In Nicaragua, land reform was first introduced in the western part of the nation. This was considered to be the preliminary measure on zonal level, immediately after the zones got liberation from the Sandinista guerrillas. In fact, the Nicaraguan agrarian reform programs could be regarded as the core of the development model prepared by the government of Sandinista. The initiation of the land reform process was aimed at broadening and strengthening the relationship existing between agricultural workers and the farmers. In fact, the mutual bond which the Nicaraguan peasants and workers shared acted as a strong and significant force driving the agrarian sector of the country towards necessary renovations.
As far as the formulation and implementation of the Nicaraguan land reform programs were concerned, the initial initiatives came from the sides of the agrarian workers and the farmers of Nicaragua. The formation of the Nicaraguan agrarian reform law boosted up the restructuring process of the agricultural sector. This law authorized the confiscation of farmland which were remaining uncultivated and were owned by large landlords.
By 1979 September, the Nicaraguan government gained complete control over invasion of agricultural lands. The government was compelled to formulate laws which were necessary for putting the uncultivated land of the large landowners on rent to the landless farmers.
Following reformation of the agricultural sector of Nicaragua, the farmers conformed to the requests made by the Farmworkers' Association (ATC) and concentrated in the formation of organizations called cooperatives. Within a six-month time period, there were as many as 3,000 cooperatives in Nicaragua. The formation of cooperatives revolutionized the country’s agricultural sector, in terms of extending credits to 80% of the agrarian producers on official levels. In fact, this marked the beginning of the direct participation of the agrarian producers in Nicaraguan economic and financial systems.
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