Copyright International Labour Organization 2004 First published, 2004

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1 Copyright International Labour Organization 2004 First published, 2004 Public ations of the International Labour Offic e enjoy c opyright under protoc ol 2 of the Universal Copyright Convention. Nevertheless, short exc erpts from them may be reproduc ed without authorization, on c ondition that the sourc e is indic ated. For rights of reproduc tion or translation, applic ation should be made to the Public ations Bureau (Rights and Permissions). International Labour Offic e, CH-1211, Geneva 22, Switzerland. The ILO welc omes suc h applic ations. ILO - IPEC In-depth study of c hild. San José, Costa Ric a, International Labour Offic e, ISBN: Web Version: ILO Cataloguing in Public ation Data The designations employed, whic h are in c onformity with United Nations prac tic e, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Offic e c onc erning the legal status of any c ountry, area or territory or of its authorities, or c onc erning the delimitation of its frontiers. The responsibility for opinions expressed in signed artic les, studies and other c ontributions rests solely with their authors, and public ation does not c onstitute an endorsement by the ILO of the opinions expressed in them. Referenc e to names of firms, c ommerc ial produc ts and proc esses does not imply their endorsement by the International Labour Offic e, and any failure to mention a partic ular firm, c ommerc ial produc t or proc ess is not a sign of disapproval. Visit the ILO web sites: r, r and

2 Edition International Labour Offic e (ILO) International Programme on the Elimination of Child Labour (IPEC) Statistic al Information and Monitoring Programme on Child Labour (SIMPOC) Coordination and general supervision Angela Martins Oliveira International Labour Offic e (ILO) International Programme on the Elimination of Child Labour (IPEC) Statistic al Information and Monitoring Programme on Child Labour (SIMPOC) National Technical Coordination Marbel Gamboa de Espinoza General Direc tor, Employment and Salary Ministry of Labour (MITRAB) Report prepared by: Mayra Calero Silva, Consultant Technical support and review Marlene Aráuz Amaya, Direc tor of Employment, MITRAB Flor de María Cisneros, Direc tor of Produc tivity and Salary, MITRAB María del Carmen Pineda, Direc tor of Oc c upational Analysis, MITRAB Oc tavio Zeledón, Employment Analyst, MITRAB Angela Martins Oliveira, Senior Statistic ian, ILO/ IPEC-SIMPOC Astrid Marsc hatz, Data Analysis Expert, ILO/ IPEC-SIMPOC Bertha Rosa Guerra, National Coordinator, ILO/ IPEC Nic aragua The partial or total reproduc tion of the material published here is allowed as long as the data are not altered and the c orresponding c redit is given. Funding for this ILO public ation was provided by the United States Department of Labor. This public ation does not nec essarily reflec t the views or polic ies of the United States Department of Labor, nor does mention of trade names, c ommerc ial produc ts, or organizations imply endorsement by the United States Government.

3 Prefac e The International Labour Organization, working through the International Programme for the Elimination of Child Labour (IPEC), has turned the progressive prevention and abolition of c hildren s work into a universal c ause. At the global level, c hildren s work is a broad, c omplex and multi-fac eted issue. In the absenc e of reliable information and qualitative and quantitative studies, however, it is diffic ult to find effec tive ways to address the problem. For many years, a lac k of data regarding the c auses, magnitude, nature and c onsequenc es of c hildren s work has signific antly impeded efforts to effec tively fac e, halt and eliminate the problem, whic h affec ts millions of boys and girls around the world. Sinc e 1998, the International Programme for the Elimination of Child Labour has administered the Statistic al Information and Monitoring Programme on Child Labour (SIMPOC). The purpose of the Programme is to assist partic ipating c ountries c ollec t data on c hildren s work for c omparison among themselves. The overall objec tive of SIMPOC is to use household surveys to generate quantitative data on sc hool ac tivities, as well as other ec onomic and non-ec onomic ac tivities in whic h c hildren are engaged outside of sc hool. The programme also aims to c ollec t qualitative information and c reate databases on c hildren s work. The information gathered by SIMPOC has served as the basis for a number of studies in partic ipating c ountries. The c ollec tion and analysis of reliable data supports the development of effec tive ac tions against c hildren s work. It is hoped that the information gathered in different c ountries, and the studies based on that information, will fac ilitate the development, implementation and follow-up of polic ies and programmes to c ombat c hildren s work. It should also promote soc ial attitudes that favour the sustainable prevention and progressive elimination of c hildren s work. I am c ertain that the information presented in this report on c hildren s work in Nic aragua will c ontribute to a better understanding of the phenomenon, inc rease sensitivity to the plight of working boys and girls, and make it possible to develop better strategies to fight the problem. The ability of eac h partic ipating c ountry to form an inc reasingly ac c urate pic ture of c hildren s work undoubtedly points toward the development of a more effec tive proc ess and a shorter path toward a world without c hild labour. Guillermo Dema Subregional Coordinator ILO/ IPEC for Central Americ a, Panama, The Dominic an Republic, Haiti and Mexic o

4 Foreword For Nic aragua, and surely for the rest of the world as well, the availability of objec tive and c onsistent data on c hildren s work is a signific ant step toward the fulfilment of ILO c onventions 138 and 182, as well as the Convention on the Rights of the Child. The historic inc lusion of a Child Labour Module in the 2000 Household Survey signals the beginning of a new phase in the prevention and elimination of c hildren s work. It will make it possible to draw an inc reasingly ac c urate pic ture of the problem in its c urrent state, and this will undoubtedly fac ilitate the ac hievement of a future without c hild labour. The purpose of this report is to provide the c ountry with c lear and prec ise information on the c hief c harac teristic s of c hild and adolesc ent work in Nic aragua, highlighting ideas and issues that may enc ourage debate, analysis and even c ontroversy, both within the National Commission for the Progressive Eradic ation of Child Labour and Protec tion of the Adolesc ent Worker (CNEPTI), and in soc iety at large. The goal is to generate more effec tive ac tions through the c onvergenc e of reality, sc ienc e and human will, thereby ensuring respec t for the rights of Nic araguan boys and girls. The report also inc ludes c riteria whic h c an be used to assess the progress made thus far in preventing and eliminating c hildren s work. These c riteria are set forth in the belief that they will c ontribute to the quest for sustainable human, soc ial and ec onomic development. Another goal of the report is to desc ribe ac tions inspired by a variety of different approac hes, in order to identify and rally around points on whic h everyone agrees, while respec ting differenc es. In my c apac ity as Minister of Labour and Exec utive Chairman of the National Commission for the Progressive Eradic ation of Child Labour and Protec tion of the Adolesc ent Worker, I wish to express my thanks to all of the ac tors who partic ipated in this important effort. These inc lude the International Labour Organization (ILO), whic h has provided signific ant tec hnic al and financ ial support through the Statistic al Information and Monitoring Programme on Child Labour (SIMPOC), the International Programme on the Elimination of Child Labour (IPEC), and its offic es in Geneva, Costa Ric a and Nic aragua. Its efforts have been foc used on bridging the information gaps that have stood in the way of swift and effec tive ac tion to ac hieve a world without c hild labour. The work of ILO has provided us with a database that c ontains quantitative and qualitative information, as well as studies that objec tively desc ribe the situation of working boys and girls. I would also like to thank UNICEF and the Central Bank of Nic aragua for their timely tec hnic al and financ ial support, and the members of CNEPTI partic ularly the National Household Survey Subc ommittee for their important c ontributions.

5 The tec hnic al staff of the General Direc torate of Employment and Wages of the Ministry of Labour deserves spec ial rec ognition. Like the survey workers and c onsultants involved in this projec t, they have displayed a high level of professionalism, providing us with highquality doc uments on c hildren s work. The tec hnic al staff strove to c arry its analyses beyond simple interpretation of data, in order to reveal the implic ations the survey results hold for the c ountry. Other entities deserving of mention inc lude the National Institute of Statistic s and Censuses (INEC), the Ministry of Health (MINSA), the Ministry of Educ ation, Culture and Sports (MECD), UNDP and all of those organizations whic h, through their writings, provided valuable insights that helped us to design a more thorough and useful analysis. Very spec ial thanks are due to the people who provided the information espec ially the surveyed boys and girls and their families. Thanks should also be extended to the government of the United States, for c hannelling financ ial support through ILO for this initiative of national importanc e. Both this effort and those to c ome are dedic ated to the entire c ountry, and espec ially to its working boys and girls. They deserve our full support in their efforts to transform their reality in searc h of a better quality of life. Virgilio Gurdián Minister of Labour and Chairman of the National Commission for the Progressive Eradic ation of Child Labour (CNEPTI)

6 TABLE OF CONTENTS EXECUTIVE SUMMARY... VIII 1. NATIONAL CONTEXT INTRODUCTION WHAT IS NICARAGUA S POPULACE LIKE? WHAT IS NICARAGUA S ECONOMIC AND DEVELOPMENT STATUS? WHAT IS THE EDUCATIONAL LEVEL OF NICARAGUA S POPULACE? NICARAGUA S LIVING CONDITIONS ANALYSIS OF CHILD WORKERS HOW MANY CHILD WORKERS WERE THERE AT THE TIME OF THE SURVEY, AND WHAT WAS THEIR GEOGRAPHIC DISTRIBUTION? WHAT ARE THE WAGES EARNED BY CHILD WORKERS? CONDITIONS IN WHICH CHILD WORKERS LIVE INTRODUCTION WHAT KIND Of HOUSING DO THE FAMILIES OF WORKING CHILDREN AND ADOLESCENTS LIVE IN? HOW SANITARY ARE THE CONDITIONS IN NICARAGUAN HOMES? WHAT KIND OF LIGHTING DID NICARAGUAN HOMES HAVE? WHICH FUELS ARE USED FOR COOKING IN NICARAGUAN HOMES? GENERAL ECONOMIC ACTIVITY OF THE HEAD OF THE HOUSEHOLD WHAT ARE AVERAGE FAMILY EXPENSES IN NICARAGUAN HOMES? THE SITUATION IN HOMES WHERE THERE ARE WORKING CHILDREN INTRODUCTION WHERE ARE HOMES WITH WORKING CHILDREN LOCATED? WHAT WERE THE CHARACTERISTICS OF THE HEADS OF HOUSEHOLDS WITH WORKING CHILDREN WHAT WAS THE SCHOOLING LEVEL OF HEADS OF HOUSEHOLDS? WHICH JOBS DID HEADS OF HOUSEHOLD HAVE? WHAT WERE THE SCHOOLING LEVELS OF HEADS OF HOUSEHOLD IN HOMES WITH WORKING CHILDREN IN TERMS OF THEIR EMPLOYMENT SITUATION? WHICH SPECIFIC KINDS OF WORK DID HEADS OF HOUSEHOLD DO? HOW MUCH INCOME IS EARNED BY HEADS OF HOUSEHOLD? HOW DO WAGES EARNED BY WORKING CHILDREN RELATE TO THOSE OF THE HEADS OF HOUSEHOLD? WHAT WAS THE COMPOSITION OF FAMILY MEMBERS IN HOMES WITH WORKING CHILDREN? CONCLUSIONS AND RECOMMENDATIONS CONSULTED BIBLIOGRAPHY... 33

7 List of Tables Chapter 1 Table # 1.1 Perc ent distribution of the population by area of residenc e, by region, 1993 and 2001 Table # 1.2 Inc ome distribution, 1998 and 2001 Table # 1.3 Main employment indic ators Table # 1.4 Employment rate by c ategory in employment, 1998 and 2001 (in %) Table # 1.5 Average wages and c overage of the basic shopping basket, by industry Table # 1.6 Illiterac y of the population 10 years of age and over, by geographic region Table # 1.7 Illiterac y by sex and area of residenc e, by age group (in %) Table # 1.8 Dropout rates in primary and sec ondary sc hool, (in %) Table # 1.9 Current c ost per student, 1995 and 2000 (in nominal dollars) Chapter 2 Table # 2.1 Table # 2.2 Chapter 3 Table # 3.1 Table # 3.2 Table # 3.3 Table # 3.4 Table # 3.5 Working c hildren by area, by provinc e Distribution of working c hildren by monthly inc ome distribution Type of housing of Nic araguan families Sourc e of drinking water in dwellings, by c hildren s work status Main sourc e of water in Nic araguan dwellings Ac tivity from whic h c hildren s households derive their main inc ome, by c hildren s work status Average monthly expenses of c hildren s households by c hildren s work status, by item (in c ordobas) Chapter 4 Table # 4.1 Distribution of working c hildren s households by area, by provinc e (in %) Table # 4.2 Table # 4.3 Table # 4.4 Table # 4.5 Table # 4.6 Table # 4.7 Table # 4.8 Table # 4.9 Table # 4.10 Table # 4.11 Perc ent distribution of heads of c hildren s households by c hildren s work status, by sex Perc ent distribution of Nic araguan heads of household by sex, by area of residenc e Perc ent distribution of working c hildren s heads of household by area of residenc e, by employment situation Sc hooling level of heads of working c hildren s households by employment status, by level of sc hooling Distribution of heads of c hildren s households, by oc c upation held Distribution of heads of household by c hildren s work status, by head s oc c upation Distribution of heads of working c hildren s households by area of residenc e, by oc c upation Distribution of heads of c hildren s households by c hildren s work status, by industry Distribution of heads of working c hildren s households by area of residenc e, by industry Distribution of heads of working c hildren s households by sex, by industry

8 Table # 4.12 Table # 4.13 Table # 4.14 Table # 4.15 Table # 4.16 Distribution of heads of working c hildren s households and working c hildren, by industry Distribution of heads of working c hildren s households by monthly inc ome range, by area of residenc e (in c ordobas) Distribution of heads of working c hildren s households and working c hildren by sex, by monthly inc ome range (in c ordobas) Household indic ators by head s employment status Household c harac teristic s by c hildren s work status

9 List of Charts Chapter 1 Chart # 1.1 Trend in GDP per c apita, Chart # 1.2 Central Americ a: Population below poverty threshold levels Chart # 1.3 Evolution of open unemployment rate, Chapter 2 Chart # 2.1 Chart # 2.2 Chapter 3 Chart # 3.1 Chart # 3.2 Chart # 3.3 Chart # 3.4 Chart # 3.5 Chart # 3.6 Chapter 4 Chart # 4.1 Chart # 4.2 Chart # 4.3 Chart # 4.4 Chart # 4.5 Chart # 4.6 Chart # 4.7 Chart # 4.8 Chart # 4.9 Working Children by Provinc e, by area of residenc e Perc ent distribution of working c hildren by inc ome ranges, by sex Distribution of dwellings by c hildren s work status Type of dwelling inhabited by c hildren Toilet fac ilities in dwellings, by c hildren s work status Forms of lighting in dwellings, by c hildren s work status Types of c ooking fuel used in dwellings, by c hildren s work status Type of own-ac c ount ec onomic ac tivity, by c hildren s work status Perc ent distribution of households by area of residenc e, by c hildren s work status Perc ent distribution of working c hildren s households by area of residenc e, by provinc e Heads of Household by sex and area, by c hildren s work status Sc hooling level of heads of c hildren s households, by c hildren s work status Perc ent distribution of working c hildren s heads of household by employment situation, by area of residenc e Distribution of employed heads of working c hildren s households, by area of residenc e Perc ent distribution of heads of working c hildren s household by sex, by employment status Distribution of heads of household by employment status, by c hildren s work status Distribution of heads of c hildren s households by monthly inc ome range, by c hildren s work status (in c ordobas)

10 Ac ronyms - - CNEPTI: National Commission for the Gradual Eradic ation of Child Labour and Working Adolesc ent Protec tion - ECERP: Strategy for Ec onomic Growth and Reduc tion of Poverty - ECLAC: Ec onomic Commission for Latin Americ a and the Caribbean - EMNV: Household Survey to Measure the Quality of Life - ENDESA: National Survey of Demography and Health - ENTIA: National Survey on Child Labour - FOB: Free on Board - INATEC: National Tec hnic al Institute - INEC: National Institute of Statistic s and Census - IPEC: International Programme on the Elimination of Child Labour - MECD: Ministry of Educ ation, Culture, and Sports - MITRAB: Ministry of Labour - NBI: Unmet Basic Needs - OIT: International Labour Offic e - NGO: Non-Governmental Organisations - EAP: Ec onomic ally Ac tive Population - GNP: Gross National Produc t - PREAL: Program for the Promotion of Educ ational Reform in Latin Americ a and the Caribbean - UNDP: United Nations Development Program - RAAN: Autonomous North Atlantic Region - RAAS: Autonomous South Atlantic Region - UNESCO: United Nations Organisation for Educ ation, Sc ienc e and Culture

11 T his in-depth analysis of the situation of working c hildren in Nic aragua foc uses on those girls and boys who had been working during the week prec eding the ENTIA 2000 survey (National Survey on Child and Adolesc ent Labour), as well as the c harac teristic s of their households and general living c onditions. As suc h, the analysis takes into ac c ount the fundamental features of said population in order to c hannel more effec tive measures for dealing with this phenomenon and to have reliable data about the c auses of c hild labour and its ac c ompanying fac tors. A signific ant effort has been made in this report, moreover, to c ompare households with c hildren who work and those having youngsters who do not. Main characteristics of working children The ENTIA 2000 survey reveals that out of the 314,012 c hildren between 5 and 17 years old who stated that they had worked at some point in their lives, 253,057 were still working during the week prec eding the survey, that is, they were ac tual workers, representing 14.3% of all boys and girls in this age group. Of these, 187,523 (74.0%) were males, as opposed to 65,534 (26.0%) females Ac c ording to the ENTIA 2000 survey results, working c hildren were present in every provinc e, primarily c onc entrated in the Autonomous North Atlantic Region (RAAN), Madriz, Jinotega, the Autonomous South Atlantic Region (RAAS) and Nueva Segovia. The largest perc entage of working c hildren belonged to rural areas, mainly the Autonomous South Atlantic Region (RAAS), Chinandega, and the Autonomous North Atlantic Region (RAAN), where over a quarter of all c hildren between 5 and 17 years old were working. Other provinc es with high EXECUTIVE SUMMARY work rates for c hildren were Leon, Madriz, Boac o, Nueva Segovia, Esteli, Matagalpa, and Jinotega. As for urban working c hildren, a high perc entage was found in Nueva Segovia, Rivas, RAAN, Esteli and Jinotega, as well as Managua, the c apital c ity. With respec t to educ ational levels, the survey results revealed data that should be of major c onc ern for the c ountry in general: 52.2% of working c hildren did not attend sc hool. Of those that did manage to, 23.4% had not c ompleted any level of sc hooling, 62.4% had at most been to primary sc hool, and 14.1% had attended some high sc hool Regarding industry, it was notic ed that the major sec tors in whic h they were involved are agric ulture, forestry, and fishing, whereas 20.4% were working in trade. Regarding oc c upations, unskilled labourers represent 64.9% of all working c hildren. With regards to what they earned for their work, out of the 253,057 working c hildren, only 101,536 (40.0%) reported rec eiving an inc ome for their work. The rest worked as unpaid assistants or rec eived retribution in kind. Although girls had higher sc hooling levels, their earnings were lower. The lowest wages were found in c ommunity, soc ial, and personal servic es and in agric ulture, forestry, and fishing. Additionally, girls dominate the servic es sec tor. Characteristics of households with working children Most households with working c hildren were in Matagalpa, Chinandega, Leon,

12 Jinotega, and the Autonomous North and South Atlantic Regions (RAAN and RAAS). Regarding area of residenc e, the majority of households with working c hildren were in rural areas (62.2%). In stark c ontrast, the majority of households with non-working c hildren were in urban areas (64.0%). The provinc es with the highest number of working boys and girls in rural areas were RAAS, Madriz, Rio San Juan, Jinotega, la RAAN, Boac o, Matagalpa y Rivas. In both types of households (with and without working c hildren), c lose to 30% of the heads were women. A fundamental differenc e is found between urban and rural areas, given that in the former the perc entage of female-headed households is higher. Sc hooling levels for heads of working c hildren s households were lower than those in the c ase of non-working c hildren. In fac t, 41.5% of the former had no level of sc hooling, as opposed to only 22.8% of the latter. Only 10.0% of those heads of working c hildren s households had attended some high sc hool, and 1.7% had gone to university. In c ontrast, out of those without working c hildren in the household, a total of 25.4% had gone to high sc hool, and 9.5% had attended university. A higher level of unemployment was found among heads of households without c hild workers (20.0%) as opposed to those with working c hildren (14.0%), whic h indic ates and again c onfirms that beyond poverty, there are psyc hologic al and soc ial fac tors that promote c hild labour. Similarly, higher inc ome was reported in households of non-working c hildren. Moreover, the disadvantaged position of heads of working c hildren s households with respec t to their own job plac ement was c onfirmed. For example, 18.7% of these were unskilled labourers, in c ontrast with only 12.1% of the heads of households in whic h c hildren did not work. Furthermore, of these, 12.7% were employed as administrators, tec hnic ians, top level tec hnic ians, and professionals. However, among heads of working c hildren s households, a sc ant 3.6% held similar positions. Living conditions of working children In general, it was found that the living c onditions of both groups --- those households having working boys and girls and those that did not --- were quite far from being optimal for the c hildren s development. Nevertheless, in working c hildren s households, the disadvantages were greater: A total of 18.5% of the dwellings of working c hildren were shac ks or hut-like struc tures, as opposed to only 10.0% of those in whic h the c hildren did not work. It is estimated that 6.4% of working c hildren s dwellings were improvised (made with plastic sheeting, wood sc raps, c ardboard, c orrugated tin, etc.), in c ontrast with 4.0% of dwellings of nonworking c hildren. Approximately 9.7% of working c hildren inhabited dwellings with no flush toilet or latrine, whereas only 4.3% of those dwellings in whic h the c hildren did not work lac ked these fac ilities. Just 11.6% of dwellings of working c hildren had indoor sanitary fac ilities, as opposed to 26.3% of dwellings in whic h the c hildren did not work. Similarly, only 24.2% of dwellings of working c hildren had potable water, as opposed to 41.1% of dwellings of nonworking c hildren. In 39.1% of working c hildren s dwellings, there was no elec tric power, in c ontrast with only 19.2% for the other group. A total of 50.7% of dwellings with nonworking c hildren used firewood for

13 c ooking, as opposed to 76.8% of dwellings of c hildren who worked. For only 26.4% of working c hildren s households was inc ome derived from stable employment, in c ontrast with 45.8% of households with non-working c hildren. In addition to regular employment, 3.5% of households without working c hildren had other inc ome sourc es, whic h only oc c urred in 1.4% of the group with c hildren who worked. Comparing expenditure levels for both types of households, the most relevant differenc e is that on educ ation. The average sc hool-related expenditure of households with working c hildren was C$ (less than US$10), whereas said expenditure was double in households of c hildren who did not work. Figures from the survey also reveal that, despite their lower inc ome, working c hildren s households had, on average, more members than those in the other group, the main differenc e being in the number of c hildren under 18 years of age. The analysis showed the c lear disadvantage of work in every aspec t of the lives of the young vic tims and their entire families. It is diffic ult to asc ertain whic h situations are c auses and whic h merely effec ts. However, it is urgent that the prevention and eradic ation of this phenomenon be fac ed with the greatest energy and c ommitment possible.

14 1. THE NATIONAL CONTEXT 1.1 Introduction For this in-depth study of working girls and boys in Nic aragua, it is nec essary to begin with a desc ription of the c ountry s demographic profile, inc luding the struc ture, growth, and geographic distribution of the populac e, as well as educ ational aspec ts, espec ially illiterac y, ac c ess to sc hooling, dropout rates, and public expenditure on educ ation. With respec t to ec onomic features, ec onomic growth, inc ome distribution, job ac c ess and poverty levels have to be c onsidered, along with the living c onditions of Nic araguan families, in partic ular those c onditions related to dwelling and ac c ess to servic es, and c harac teristic s of the heads of household. 1.2 What is Nicaragua s populace like? The Nic araguan population has grown fivefold 1 in the last 50 years, from 1,049,611 inhabitants in 1950 to 5,205,023 in the year The c ountry has a total surfac e area of 130,374 Km 2 with a population density of 39.9 inhabitants per Km 2 in 2001, the lowest in Central Americ a. The estimated annual average population growth rate for the period of is 2.6%. A total of 42.5% of the populac e resides in rural areas. Distribution by sex is almost equal between men and women. Ac c ording to the Living Standard Measurement Study 2001 (EMNV), the geographic distribution of the population by region is quite diverse, as seen in the following table: 1 Offic ial data from INEC. Nic araguan Demography and Health Survey (ENDESA) Oc tober Table #1.1 Percent distribution of the population by area of residence, by region, 1993 and 2001 Region Urban Rural Urban Rural Managua Pac ific Central Atlantic Sourc e: EMNV 2001, INEC. In Managua, site of the nation s c apital, the proportion of the population that is urban inc reased by 11 perc entage points between 1993 and 2001, from 80.3% to 91.5%. This is due in part to rural residents migrating to the c apital and other urban c entres in searc h of jobs and a better standard of living. The same situation was observed in the Central and Atlantic regions, but to a lesser extent. Nic aragua s population is young, with 2,692,541 inhabitants under 18 years of age in the year 2001, slightly more than half (51.7%) of the total populac e. This is the group whic h requires the greatest investment from the state and soc iety as a whole in the form of basic and fundamental servic es suc h as food, sc hooling, health, safety, and rec reation. These element are nec essary in order to fully be able to exerc ise their rights and optimise their c apac ities, and thus be able to live a full, rewarding life and, onc e they bec ome adults, c ontribute to the nation s development. From this young population, ac c ording to the ENDESA survey, 10.6% of 2 The Pac ific region inc ludes the provinc es of Masaya, Granada, Carazo, Rivas, Leon, and Chinandega. 3 The Central region inc ludes Matagalpa, Jinotega, Nueva Segovia, Madriz, Boac o, and Chontales. 4 The Atlantic or Caribbean region inc ludes the Autonomous Regions of the North and South Atlantic and Rio San Juan. 5 Nic araguan Survey of Demography and Health of the National Institute of Statistic s and Census of Nic aragua.

15 adolesc ent females between the ages of 15 and 17 are already mothers, and 4.0% were pregnant with their first c hild at the moment that the survey was being c arried out. In short, nearly 15.0% of them are dealing with motherhood at a time of their lives when they should be studying, developing their own personalities, and having fun. By the same token, they are c ontributing to Nic aragua s high birth rate. 1.3 What is Nicaragua s economic and development status? Many years of soc ial and politic al instability, of inadequate development polic ies, and natural disasters that have devastated large ec onomic sec tors of its territory, have rendered Nic aragua s c urrent ec onomic situation as one of diffic ulty and hardship. All of these disadvantages have made its Gross Domestic Produc t (GDP) per c apita the region s lowest. In rec ent years, notable efforts have been made toward ec onomic integration, both with the region and with the rest of the world, but Nic aragua s position is still prec arious, despite a slight positive growth trend of its Gross Domestic Produc t (GDP) per c apita sinc e 1994, as c an be noted in the graph below: 1980 US$ Chart #1.1 Trend in GDP per capita, Sourc e: Central Bank of Nic aragua, July 2002 The nation s ec onomic vulnerability c an be observed in its elevated domestic and foreign debt, the defic its in the trade ac c ount and the balanc e of payments, its sc ant diversific ation of exports and low export volume, the dependenc y on imported tec hnology and goods, and its weak infrastruc ture in the areas of c ommunic ations, energy, and transportation. The trade defic it alone (this being the differenc e between FOB exports and FOB imports) has reac hed a thousand million dollars. The c ountry s annual debt per c apita is US$1, On the other hand, at c urrent retail pric es, the average workers wage c overs only the c ost of one and a half basic shopping baskets. Nic araguan family inc ome reveals large gaps in terms of equality in distribution. Ac c ording to the Human Development in Nic aragua report, whic h was made public in , the poorest dec ile of the population c omprising some 520,000 inhabitants, had ac c ess to only 1.3% of the total inc ome generated in the c ountry in In vivid c ontrast, the top dec ile, being that of the ric hest 10% of the populac e and c omprising the same number of inhabitants, appropriated 46.1% of the nation s total wealth. Of this sec tor, the wealthiest 1% alone garnered 18.4% of all inc ome, whic h is equivalent to more than what the first five dec iles (half the population, some 2.6 million inhabitants) were able to earn. Together, the five poorest groups only rec eived 15.4% of the total inc ome generated in Nic aragua. If we c ompare 1998 with 2001, a minimal inc rease in the perc entage of total inc ome rec eived is noted among the first three dec iles of the population, whic h does not represent signific ant c hanges in their quality of life. However, a slight drop in the earnings of the fifth through ninth groups c an be seen, in other words, among the middle c lass. The earnings of the top dec ile alone, the ric hest sec tor, grew from 45.4% to 46.1% 6 UNDP, 2002.

16 of total national inc ome, that is, the wealthiest members of the populac e inc reased their perc entage share of total inc ome. Table #1.2 Income distribution, 1998 and 2001 Proportion of national income Decile received by each decile First Sec ond Third Fourth Fifth Sixth Seventh Eighth Ninth Tenth Wealthiest 1% Sourc e: EMNV 1998 and 2001, INEC. All the above-mentioned fac tors, in addition to an unjust distribution of wealth, have been dec isive in reduc ing the vast majority of Nic araguans to high levels of impoverishment, whic h in turn yields fertile ground for permanent and even inc reased c hild labour. When analysing poverty levels in the Central Americ an region, we note that Nic aragua has the highest levels of poverty and extreme poverty ac c ording to figures supplied by the World Bank. Chart #1.2 Central America: Population below poverty threshold levels % Costa Rica El Salvador 51.9 Less than US$1 a day 39.8 Guatemala Hond uras 42.6 Nicara gua Less than US$2 a day Sourc e: ENMV 2001/ World Bank (World Development Report ). Data provided by the National Institute of Statistic s and Census (INEC) based on the EMNV of 1993 and 2001 show that poverty in Nic aragua diminished slightly, but that the number of persons below the poverty line rose due to population growth, rising from 2,099,954 in 1993 to 2,383,901 in the year As for people under the extreme poverty line, although there was a minor drop in this population sinc e 1993, the situation is not more enc ouraging given that in 2001 there were still 785,958 Nic araguans in this prec arious c ondition In general, both poverty and extreme poverty harm more people in the rural rather than the urban areas of the c ountry. There are c lose to two poor persons in rural areas per poor person in urban areas, whic h is an important indic ator of a higher inc idenc e of c hild labour in this sec tor as well. In this c ontext, it is hard not to suppose that working c hildren primarily c ome from the population of persons living in poverty and extreme poverty. Experienc e has also shown that c ultural prac tic es and beliefs about c hildhood and adolesc enc e have a strong impac t, but poverty doubtlessly is an important fac tor in this phenomenon s origin. Based on these figures, it is even more c ruc ial than ever that the measures proposed by the government in its Strategy for Ec onomic Growth and Poverty Reduc tion (ECERP) be implemented more effic iently, as well as other ac tions taken by various institutions and soc iety in general. In this way, a signific ant reduc tion of the numbers of the nation s people living in poverty or extreme poverty c an be brought about. In addition, c hild labour rates must be taken as an important indic ator of impoverishment. Employment is also a dec isive fac tor in the ec onomic deterioration or improvement of people. In 2001, out of Nic aragua s total population, the Ec onomic ally Ac tive Population (EAP)

17 was c omprised of 1.9 million persons, of whom 64% were men and only 36% women. In Table # 1.3, employment figures for that year are summarised, and it is noted that whereas 88.7% were em p loyed in the tec hnic a l sense, fulltime employment, that is, at positions with standard working shifts paid at minimum wage or better, stood at only 54.1% of the EAP. Table #1.3 Main employment indicators Indicator % Partic ipation rate Employment rate Full employment rate 54.1 Underemployment rate Unemployment rate 11.3 Sourc e: Household survey, July 2001, MITRAB Open unemployment 10, observed over an entire dec ade (see Chart # 1.3), rose to its highest point in 1993, at 17.8%. This rate fell to 9.8% in 2000, but has sinc e worsened as the jobs needed by the EAP were not c reated, leading to the subsequent rise in open unemployment. Another fac tor fuelling the rise in the unemployment rate has been the dismantling of the state apparatus as a result of agreements made with international entities. Ac c ording to the EMNV surveys c arried out in 1998 and 2001, employment in the informal sec tor of the ec onomy has grown, while that in the formal sec tor has diminished from 53.1% in 1998 to 50.2% in Employment of c hildren primarily takes plac e in the informal sec tor. It c an also be observed that the inc rease in the ec onomic ally ac tive 7 This is the relationship between the EAP and the population in working age (10 years old and over). 8 The employment rate is the perc entage of the ec onomic ally ac tive population that is employed. 9 It refers to visible and invisible underemployment. The first means that the person involuntarily works less than 40 hours a week. The sec ond oc c urs when less than the minimum wage in the c orresponding sec tor is rec eived, even when the person works 40 hours or more per week. 10 It refers to those persons without work but who are willing and able to work. population, partic ularly the young one, is not being absorbed by the formal sec tor, thus these persons end up in the ranks of the unemployed, working at odd jobs, or for family businesses, as the following table shows. Table #1.4 Employment rate by category in employment, 1998 and 2001 (in %) Category in employment Independent workers Employers Own ac c ount workers Salaried workers Employee / labourer Casual worker / Peon Co-operative member Other Unpaid family worker Sourc e: EMNV 1998 and 2001, INEC. Like other developing c ountries, Nic aragua is witnessing a rise in the perc entage of jobs in the tertiary sec tor 11, whic h employs 48.9% of the employed EAP. In sec ond plac e is the primary sec tor 12 with 34.2%, and in final plac e the sec ondary sec tor 13, whic h generated only 16.9% of jobs, ac c ording to the EMNV survey of Chart #1.3 Evolution of open unemployment rate, % Sourc e: Central Bank of Nic aragua, The tertiary sec tor c omprises: trade, hotels and restaurants; c ommunity, soc ial and personal servic es; transportation, storage and c ommunic ations; elec tric ity, gas and water; financ ial and insuranac e establishments. 12 The primary sec tor c omprises agric ulture, silvic ulture and forestry. 13 The sec ondary sec tor inc ludes: manufac turing; c onstruc tion; mining and quarrying

18 This c onc entration of employment in the tertiary sec tor is due to some extent to globalisation and the ensuing inc reased c ommerc ial and financ ial trade among c ountries. In this sense, the inflow of multinationals, as well as national and foreign c apital is geared toward the servic e and trade sec tors, whic h gives rise to the c reation of more employment in these sec tors than in the others. Another reason is related to the existenc e of better salaries, high enough to purc hase the basic shopping basket of 53 produc ts 14, as shown in Table # 1.5. Table #1.5 Average wages and coverage of the basic shopping basket, by industry Average wages Average wages Industry / cost of basic C$ US$ shopping basket Construc tion 3, Trade, restaurants, and hotels 4, Manufacturing industry 3, Community, soc ial, and personal 3, servic es Agric ulture and livestoc k Central government 2, Sourc e: EMNV 2001, INEC If the traits of the job market are analysed with respec t to sex, women have a higher risk of being unemployed, with this inequality being even more marked among rural women and those living in extreme poverty. Ac c ording to the EMNV survey of 2001, 13.0% of women in general were unemployed, as opposed to 10.3% of men. However, among women in extreme poverty 25.6% were unemployed versus 9.4% of men, and the situation of rural women was even worse, with 30.5% unemployed as opposed to 8.0% of those men. 1.4 What is the educational level of Nicaragua s population? Ac c ording to the 2001 EMNV survey, the illiterac y rate reac hed 20.5% for all persons 10 years of age and older in the year Progress in the reduc tion of this rate has not been notable despite the efforts made, due to the Ministry of Educ ation s budget defic it, among other reasons. Ac c ording to the Nic aragua Human Development Report, issued in , the various literac y programs, both governmental and independent, that exist in the c ountry only assist 57,750 persons annually, less than 10% of the 779,404 illiterate persons over age 10 in the c ountry. Illiterac y has c hanged over time ac c ording to geographic region, as seen in Table # 1.6. In general terms, the rate fell from 23.5% in 1993 to 20.5% in 2001, not a signific ant c hange in almost a dec ade. Nevertheless, the most worrisome aspec t is the rise in illiterac y in the urban areas of the Atlantic, Central, and to a lesser extent, Pac ific zones, a phenomenon that c an be assoc iated with the migration from the c ountryside to c ities whic h lac k sc hool fac ilities, and where poverty impedes ac c ess to educ ation for most. In 2001, the highest rates of illiterac y were in the rural areas of the c ountry s Atlantic and Central zones Table #1.6 Illiteracy of the population 10 years of age and over, by geographic region Region Illiteracy rate (%) Country average Managua Urban Pac ific Rural Pac ific Urban Central Rural Central Urban Atlantic Rural Atlantic Sourc e: EMNV 1993, 1998, and 2001, INEC. 14 Ac c ording to the Central Bank of Nic aragua, the c ost of the basket of goods was C$7, (US$147) in that year. 15 UNDP, 2002.

19 Age group Illiterac y among 10 to 17 year olds is markedly differentiated between the sexes: greater numbers of males are illiterate than females, with higher frequenc y in rural areas. Table #1.7 Illiteracy by sex and area of residence, by age group (in %) Men Women Urban area Rural area Country average Sourc e: EMNV 2001, INEC. It has bec ome inc reasingly c lear that educ ation is the key to people s soc ial and ec onomic development. Moreover, in the life of a human being, educ ation c onstitutes a systematic and ongoing proc ess, and logic ally, early c hildhood educ ation, inc luding primary sc hool, is its foundation. Seen as suc h, educ ation should be a priority issue of national governments and soc iety in general. However, Nic aragua still shows disc ouraging signs is this area, although ac c ording to the Nic aragua Human Development Report in issued in , the c ountry s population does c onsider that educ ation opens up new opportunities. They view it as essential for ac c ess to better living c onditions, and an existenc e with fewer worries and c onstraints and more opportunities, allowing for soc ial integration as opposed to exc lusion and marginalisation. Ac c ess to educ ation is an ongoing c onc ern. Ac c ording to the Ministry of Educ ation, Culture, and Sports (MECD) and figures from the National Institute of Statistic s and the Census (INEC), the net rates 17 of enrolment are: 26.1 for presc hool, 81.1 for primary sc hool, and 37.2 for high sc hool. This means that more 15 UNDP, UNDP, Quotient between enrollment of c hildren in the c orresponding ages and the entire population at these ages. than 800,000 c hildren between 3 and 17 years c annot exerc ise their lawful right to an educ ation. On the other hand, high dropout rates c ontinue to be one of the worst problems that the nation s educ ation system fac es. Some of the c auses are pupils lac k of motivation, c hild labour, high c osts, and poorly trained teac hers, among others. The following table provides a more c omplete overview of the problem. Table #1.8 Dropout rates in primary and secondary school, (in %) Level Primary Sec ondary Sourc e: MECD. Similarly, ac c ording to the ENDESA 2001 survey, the perc entage of youngsters repeating the same grade in whic h they were enrolled in the prec eding year, is 15.8% and 14.7% in first grade of primary sc hool for girls and boys, respec tively, reac hing 17.8% and 12.2% for girls and boys, respec tively, at the same sc hool level in rural areas. Expenditure on educ ation has risen overall in the last 5 years, doubling in absolute terms from 79 million dollars in 1995, whic h amounted to 13.5% of government expenses, to 161 million dollars in 2001, or 16.3% of the total budget. Ac c ording to Table # 1.9, looking at this outlay of funds per student in the most basic level of instruc tion (pre-sc hool, primary, and high sc hool), the rise in spending is c onc entrated at the primary sc hool level, d im inishing a t the p resc hool and sec ondary levels. This is due to, among other reasons, the fac t that many educ ation c entres entered a selffunding or autonomous administrative regime whic h allowed loc al sc hool administrations, by means of sc hool c ounc il resolutions, to establish their own

20 quotas and c ollec t tuition through voluntary c ontributions from the students families. Table #1.9 Current cost per student, 1995 and 2000 (in nominal dollars) Educational levels Pre-sc hool Primary Sec ondary Sourc e: Nic aragua Human Development Report, 2002, UNDP. 1.5 Nicaraguans living conditions Housing, besides being the physic al spac e of a home, is also where the ties of sec urity and solidarity are established, along with ethic al and spiritual values instilled, in the c ritic al developmental stages of girls and boys. As suc h, it is believed that defic ient living c onditions mar the quality of life of a family and limits their development. In this sense, c onditions in Nic araguans households are far from being optimal. Potable water, one of the most important basic needs for human health, was available either inside or outside the dwelling in only 61.8% of the c ases, ac c ording to the 1993 EMNV survey. In 2001, this perc entage had risen to 65.9%. In rural areas, the situation was even more prec arious: only 26.6% of dwellings in 1993 and 32.2% in 2001 had ac c ess to potable water. In 1993, 81.7% of dwellings had a flush toilet or latrine, with this figure rising to 85.6% in Similarly, the perc entage of dwellings with ac c ess to elec tric ity went from 70.6% in 1993 to 72.2% in Only a slow inc rease in ac c ess to these servic es is observable, whic h implies a hindranc e for the full development of all family members, above all c hildren, in their most c ritic al stages Overc rowding 18 was present in 47.7% of 18 Overc rowding is defined ac c ording to the methodology established by the Unmet Basic Needs (NBI) as being 4 or dwellings in 1993, inc reasing to 48.7% in A number of studies have shown that overc rowding, assoc iated with poverty, not only generates frustration in human beings who are in the proc ess of building their own identity, but that it also c ontributes to intra-family domestic violenc e, as well as aggressive forms of c ommunic ation among family members. In the c ase of c hildren, it c an c ause premature abandonment of the home to searc h for their own identity and improved well-being. The head of household, likewise, often determines the level of aspirations and development of the household s members. In addition to many soc ioec onomic diffic ulties present, it is important to note that many Nic araguan households are headed by a woman who is generally the mother of the young members of the family, implying that the full responsibility for both the home and c hildren falls on these women In 1993, the number of households with a female head, ac c ording to the EMNV survey, was 28.1%, whic h had risen to 28.3% in Various studies have revealed that, in suc h households, the women in c harge have limited job opportunities, the family inc ome is lower, poverty is more c ommon, and the risk for c hild labour is higher. Regarding health c are, ac c ording to the 2001 EMNV survey, 38.0% of the population reported having been ill or injured during the month prec eding the survey, and of these, approximately half had rec eived some kind of medic al attention. Both the poor and non poor get ill at approximately the same rate (38.8% and 37.1%, respec tively), but the kind of medic al c are rec eived varies more persons in a single room or bedroom in urban areas, and 5 or more persons in a single room or bedroom in rural areas.

21 c onsiderably between the two populations. Among the non-poor, 55.7% reported having rec eived medic al attention, while only 42.7% of the poor had done so. The poor explained not going to the doc tor as being for lac k of money (20.0%), due to their already knowing what ailed them (39.2%), bec ause medic al c are was defic ient in quality (11.3%), or bec ause the ailment was minor (19.1%). Nic araguans in general have little c hanc e of getting medic al insuranc e c overage, whether through the Nic araguan Institute of Soc ial Sec urity (INSS) or with private insurers. Only 8.8% of the total population is insured, and among the poor and extremely poor, the figures are only 2.9% and 1.1%, respec tively, c ompared to 13.8% of the non-poor. In rural areas, only 1.0% of the extremely poor has any form of health insuranc e. It bears noting that a populac e with health defic ienc ies c annot c ontribute effec tively to their own families development, or to that of the c ountry as a whole.