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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

Suggested Citation

  • Maluccio, John A., 2005. "Coping with the “coffee crisis” in Central America: The Role of the Nicaraguan Red de Protección Social," FCND discussion papers 188, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:188
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    3. Maluccio, John A. & Flores, Rafael, 2004. "Impact evaluation of a conditional cash transfer program," FCND briefs 184, International Food Policy Research Institute (IFPRI).
    4. 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.
    5. Natàlia 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.
    6. Vakis, Renos & Kruger, Diana & Mason, Andrew D., 2004. "Shocks and coffee : lessons from Nicaragua," Social Protection and Labor Policy and Technical Notes 30164, The World Bank.
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    8. Harold Alderman & Jere 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.
    9. 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).
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    Cited by:

    1. Rosati, Furio C. & Dema, Guillermo., 2010. "Trends in children's employment and child labour in the Latin America and Caribbean region regional overview," ILO Working Papers 994683923402676, International Labour Organization.
    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. 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.
    4. Joseph Cummins & Anaka Aiyar, 2017. "Age-Profile Estimates of the Relationship Between Economic Growth and Child Health," Working Papers 201710, University of California at Riverside, Department of Economics.
    5. Independent Evaluation Group, 2014. "Social Safety Nets and Gender : Learning from Impact Evaluations and World Bank Projects," World Bank Publications, The World Bank, number 21365.
    6. Armando Barrientos, 2016. "Inequality, Poverty, and Antipoverty Transfers," Working Papers id:11190, eSocialSciences.
    7. 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.
    8. 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.
    9. M. Manacorda & F.C. Rosati, 2008. "Industrial structure and child labour. Evidence from Brazil," UCW Working Paper 44, Understanding Children's Work (UCW Programme).
    10. Seth Gitter & James Manley & Brad Barham, 2011. "The Coffee Crisis, Early Childhood Development, and Conditional Cash Transfers," IDB Publications (Working Papers) 3111, Inter-American Development Bank.
    11. Quiñones, Esteban J., 2006. "The Indigenous Heterogeneity of Oportunidades: Ample or Insufficient Human Capital Accumulation?," MPRA Paper 19539, University Library of Munich, Germany.
    12. Seth R. Gitter & Bradford L. Barham, 2008. "Women's Power, Conditional Cash Transfers, and Schooling in Nicaragua," World Bank Economic Review, World Bank Group, vol. 22(2), pages 271-290, May.
    13. 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.
    14. Seth Gitter & James Manley & Brad Barham, 2011. "The Coffee Crisis, Early Childhood Development, and Conditional Cash Transfers," IDB Publications (Working Papers) 3111, Inter-American Development Bank.
    15. 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.

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    Keywords

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

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