Changing asset endowments and smallholder participation in higher-value markets: Evidence from certified-coffee producers in Nicaragua

Abstract

Chapter 3 (Donovan and Poole) analyzes the accumulation of livelihood assets among smallholders producing certified coffee in Nicaragua. The authors are particularly interested in the capacity of resource-poor smallholders who pursue diversified livelihood strategies and operate in adverse conditions to significantly increase their income and build their asset base through engagement with more demanding markets. There is growing consensus that asset accumulation plays a critical role in providing a pathway out of poverty (Carter and Barrett 2004). However, the authors’ case underscores that smallholder endowments with critical livelihood assets are overall limited and often imbalanced.