Rural Poverty Reduction Policies in Honduras, Nicaragua and Bolivia: Lessons from a Comparative Analysis

A common trait of the Poverty Reduction Strategy Papers (PRSPs) in Bolivia, Honduras and Nicaragua is the relative lack of priority assigned to the rural sector despite the high incidence of poverty found there, as well as their inability to focus on the key determinants of rural poverty. The dynamics of the PRSP process and their impact on rural poverty are analysed. Although the factors accounting for the poor results attained by poverty reduction strategies vary between the countries discussed, a common factor is the limited capacity of the State to design and implement development strategies that are able to tackle the structural causes of poverty, and hence achieve substantial and sustainable reductions in poverty. This conclusion is reinforced by a comparative analysis with South Korea and Taiwan, which have succeeded in significantly reducing poverty through a growth with equity developmentalist strategy.