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Before and after the reform, agricultural tenancy relations declined in both countries, although not for exactly the same reasons. In El Salvador, landowners generally tried to cancel tenancy contracts or agreements to prevent future application of the land-to-the-tiller program, even when owners of 7 hectares or less were not to be affected. In 1971, 60 per cent of the landholding and 24 per cent of the farmland came under tenancy contracts. 2 These proportions fell to 32 per cent and 7 per cent respectively in 1991, indicating that in postreform El Salvador the tenancy land market maintained its importance only for smallholders.
Progressive peasant organizations emerged despite the legal proscription. Restrictions on legalized trade unions and two successive fraudulent general elections further reduced the credibility of the political system. At the same time, on the external side, the Sandinistas had ousted the very conservative Somoza regime in Nicaragua, which lead to an international fear of communist takeovers in the rest of Central America. The United States’ Kissinger plan and the Socialist and Christian Democrat Internationals advocated structural changes in the region.
The impact of the structural adjustment measures on agricultural incomes and speciﬁcally on different types of farms; 3. the competitiveness and the comparative advantage of the Nicaraguan agricultural sector at national and international level; 4. possible measures for the promotion of agricultural production under current conditions. ). Economic theory is usually divided into macroeconomics dealing with aggregate variables affecting demand and supply, and microeconomics dealing with decision-making behavior of individual economic units.