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A Strengthened Growth and Poverty Reduction Strategy Paper
Prepared by the Government of Nicaragua
July 2001

Poverty Reduction Strategy Papers (PRSPs) are prepared by member countries in broad consultation with stakeholders and development partners, including the staffs of the World Bank and the IMF. Updated every three years with annual progress reports, they describe the country's macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. This country document is being made available on the IMF website by agreement with the member country as a service to users of the IMF website.

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Abbreviations and Acronyms

Preface: Transition From The I-PRSP to SGPRS

Executive Summary

  1. The Consultation Process and Government Commitment
    1. Background on previous processes
    2. Development of the SGPRS process
    3. The strengthened process

  2. Poverty Profile
    1. Basis of analysis and measurement methodologies
    2. The situation and evolution of poverty
    3. The economic dimensions of poverty
    4. Human capital and poverty
    5. Vulnerability and marginality
    6. Poverty from the poor's point of view

  3. Background on Policies and Strategies and their Impact on Poverty
    1. Some important economic and social facts of the last thirty years
    2. Strategies and policies in the 1990's
    3. Obstacles to higher economic growth; macro and microeconomic aspects

  4. Goals and Intermediate Indicators
    1. International development goals and the setting of goals and indicators for Nicaragua
    2. Targets and intermediate indicators

  5. Strengthened Growth and Poverty Reduction Policies
    1. Overview
    2. The principles underlying the strengthened growth and poverty reduction strategy
    3. First pillar: broad-based economic growth and structural reform
    4. Second pillar: greater and better investment in human capital
    5. Third pillar: better protection for vulnerable groups
    6. Fourth pillar: good governance and institutional development
    7. Cross-cutting themes

  6. Economic Prospects and the SGPRS in the Medium Term
    1. General aspects
    2. Macroeconomic framework
    3. Financing the SGPRS
    4. Structural and other major reforms
    5. Better governance and institutional building
    6. Programs by strategic components and sectors
    7. Costing of goals

  7. Implementation, Monitoring and Evaluation of Impact
    1. Implementation of the SGPRS
    2. What to monitor and evaluate
    3. Setting up the SGPRS monitoring and evaluation system
    4. Evaluation of poverty evolution and overall SGPRS impact
    5. Monitoring and evaluation of key SGPRS programs
    6. Schedule of reports and evaluation


  1. Evolution of poverty
  2. Poverty gap and its evolution
  3. Consumption distribution
  4. Matrix of goals, targets and intermediate indicators
  5. Basic economic indicators
  6. Central government outlays related to the SGPRS
  7. Allocation of HIPC funds
  8. Public investment program SGPRS, 2001-2005
  9. Total cost of meeting selected indicators
  10. SGPRS coordination: SETEC and other participants´ roles


  1. Poverty and Extreme Poverty
  2. Urban and Rural Poverty
  3. Urban and Rural Extreme Poverty
  4. Real Per Capita GDP
  5. External Debt
  6. SGPRS Organizational Structure


  1. The Consultation Process
  2. Main Structural Reforms - Past Measures
  3. Matrix of Goals, Targets and Intermediate Indicators
  4. The Nicaraguan Extreme Poverty Map
  5. Matrix of Policy Actions
  6. Defining Poverty-Related Expenditures

Annex Tables

  1. Nicaragua: Economic and Social Indicators
  2. SGPRS Portfolio of Programs (consolidated)
  3. SGPRS Portfolio of Programs

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