The report reviews basic growth, as being one of four pillars for Nicaragua's poverty reduction strategy. The well-being of the rural poor will continue its dependence on - to a great extent - agriculture. The study analyzes main agricultural development aspects, and stipulates the broad basic growth may be enhanced by strengthening agricultural competitiveness. Yet, export growth is key to economic growth, and requires immediate actions within coherent strategies, illustrated through the case of coffee within the proposed strategy. The report also identifies market forces regarding productivity restrictions of the rural sector, and suggests medium- and long-term solutions. Finally, the report addresses risk management, including a description of some promising, pilot projects.