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Coping with the “coffee crisis” in Central America: The Role of the Nicaraguan Red de Protección Social

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  • Maluccio, John A.

Abstract

"The international and local Nicaraguan media have widely reported on the “coffee crisis” in Latin America and there is substantial evidence that there has been a downturn and that this has been more severe in the coffee-growing regions. Using household panel data from a randomized community-based intervention carried out in both coffee- and noncoffee-growing areas, I examine the role of a conditional cash transfer program, the Red de Protección Social (RPS), during this downturn. While not designed as a traditional safety net program in the sense of reacting or adjusting to crises or shocks, RPS has performed like one, with larger estimated program effects for those who were more severely affected by the downturn. For example, it protected households against declines in per capita expenditures and, while not significantly depressing labor supply relative to before the program, muted additional labor supply for beneficiaries in coffee-growing areas, relative to their counterparts without the program. Beneficiaries who participated in the coffee industry as laborers before the program were more likely to have exited the coffee industry, whereas those who participated as producers were less likely to have exited. The findings are consistent with the existence of credit constraints inhibiting such transitions in the absence of the program. Overall, then, RPS appears to be playing an important part in the risk-coping strategies of households.." Authors' Abstract

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 188.

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Date of creation: 2005
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Handle: RePEc:fpr:fcnddp:188

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Keywords: conditional cash transfer program ; coffee crisis ; social safety nets ;

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References

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  1. Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2004. "Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey," Labor and Demography 0408007, EconWPA.
  2. Fafchamps, Marcel & Quisumbing, Agnes R., 1999. "Social roles, human capital, and the intrahousehold division of labor," FCND discussion papers 73, International Food Policy Research Institute (IFPRI).
  3. Haddad, Lawrence James & Adato, Michelle, 2001. "How effectively do public works programs transfer benefits to the poor?," FCND briefs 108, International Food Policy Research Institute (IFPRI).
  4. Harold Alderman & Jere R. Behrman & Hans-Peter Kohler & John A. Maluccio & Susan Watkins, 2001. "Attrition in Longitudinal Household Survey Data," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 5(4), pages 79-124, November.
  5. Vakis, Renos & Kruger, Diana & Mason, Andrew D., 2004. "Shocks and coffee : lessons from Nicaragua," Social Protection Discussion Papers 30164, The World Bank.
  6. Maluccio, John A. & Flores, Rafael, 2004. "Impact evaluation of a conditional cash transfer program," FCND briefs 184, International Food Policy Research Institute (IFPRI).
  7. Gary Burtless, 1995. "The Case for Randomized Field Trials in Economic and Policy Research," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 63-84, Spring.
  8. Varangis, Panos & Siegel, Paul & Giovannucci, Daniele & Lewin, Bryan, 2003. "Dealing with the coffee crisis in Central America - impacts and strategies," Policy Research Working Paper Series 2993, The World Bank.
  9. Nat�lia Caldés & John A. Maluccio, 2005. "The cost of conditional cash transfers," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(2), pages 151-168.
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Cited by:
  1. M. Manacorda & F.C. Rosati, 2008. "Industrial structure and child labour. Evidence from Brazil," UCW Working Paper 44, Understanding Children's Work (UCW Programme).
  2. Jakobsen, Kristian Thor, 2012. "In the Eye of the Storm—The Welfare Impacts of a Hurricane," World Development, Elsevier, vol. 40(12), pages 2578-2589.
  3. Alain de JANVRY & Elisabeth SADOULET & Renos VAKIS, 2008. "Protecting Vulnerable Children from Uninsured Risks: Adapting Conditional Cash Transfer Programs to Provide Broader Safety Nets," Working Papers P04, FERDI.
  4. Charity Moore, 2009. "Nicaragua?s Red de Protección Social: An Exemplary but Short-Lived Conditional Cash Transfer Programme," Country Study 17, International Policy Centre for Inclusive Growth.
  5. Seth R. Gitter & James Manley & Vanya Slavchevska, 2010. "How Effective are Cash Transfer Programs at Improving Nutritional Status?," Working Papers 2010-18, Towson University, Department of Economics, revised Dec 2012.
  6. Manley, James & Gitter, Seth & Slavchevska, Vanya, 2013. "How Effective are Cash Transfers at Improving Nutritional Status?," World Development, Elsevier, vol. 48(C), pages 133-155.
  7. Quiñones, Esteban J., 2006. "The Indigenous Heterogeneity of Oportunidades: Ample or Insufficient Human Capital Accumulation?," MPRA Paper 19539, University Library of Munich, Germany.
  8. Gitter, Seth R. & Barham, Bradford, 2007. "Women's Power, Conditional Cash Transfers and Schooling in Nicaragua," Staff Paper Series 517, University of Wisconsin, Agricultural and Applied Economics.
  9. Ferdinando Regalía & Leslie Castro, 2007. "Performance-based Incentives for Health: Demand- and Supply-Side Incentives in the Nicaraguan Red de Protección Social," Working Papers 119, Center for Global Development.

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