By Wim Pelupessy, Reurd Ruben
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3 Comparative Advantage of Food Crops Under Structural Adjustment in Nicaragua Richard Eberlin Introduction In most Latin American countries the agricultural sector plays a major economic role, not only producing food for domestic consumption but often also as the main source of hard currency through its production for export. Moreover, agriculture provides a large share of employment and is an important source of capital for the rest of the economy. Owing to major economic difﬁculties, since the 1980s most Latin American countries have had to implement structural adjustment programs (SAPs) led by the International Monetary Fund (IMF) and the World Bank.
However, most of these stocks were quickly resold at low prices owing to the lack of conﬁdence of the owners, and only a small part of the money received was reinvested in productive activities (Yang, 1967: 231). A small group of former big landowners ended up as the ﬁnal buyers of most of these stocks and became the principal stockholders of the four large enterprises, which later became very proﬁtable (Yang, 1967: 239). Although part of the resources went to stockholding in industrial enterprises, the majority of the ex-landlords have not become members of the entrepreneur class in Taiwan.
In terms of beneﬁciaries, the cooperativization program of El Salvador had relatively the smallest effect, especially when compared with the public land sale program of Taiwan, which favored a two times greater proportion of rural families. The unequal nature of the Salvadoran reform can also be deduced by looking at the number of hectares allocated per family. 9 hectares for the agrarian cooperatives. 7 hectares Wim Pelupessy 33 (land-to-the-tiller). The non-reform sector in El Salvador had an average extension that is up to twice as high if the landless are excluded.