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Summary: The impact of a large covariant shock, namely Hurricane Mitch, is examined in the context of household asset holdings in rural Nicaragua utilizing household panel data from the period. It is found that the hurricane did not have an adverse impact on the ownership of productive assets among the affected households on average. On the other hand, nonproductive asset holdings seem to have been significantly reduced. A further examination confirms that the shock affected the poorest households disproportionally, especially in terms of nonproductive assets. Finally, this study presents strong suggestive evidence of a geographical poverty trap within the shock-affected areas of the country. [ABSTRACT FROM AUTHOR]

'Disaster capitalism' refers to political economic processes that take advantage of mass trauma to impose neoliberal capitalist economic policies, facilitating the redistribution of wealth and exacerbating socio-economic divisions. Here the basic tenets of disaster capitalism are applied in another context: how natural disasters can be used to impose exclusionary protected area conservation principles with similar socio-economic consequences and ecological ramifications. The post-Hurricane Mitch relocation of resident populations from Celaque National Park, Honduras serves as a case study whereby a natural disaster, combined with the effects of neoliberal structural adjustment policies, created the opportunity to implement a universal model of exclusionary nature protection. The resultant displacement and increased semi-proletarianization of the affected population effectively served the capitalist interests of international conservation and the agro-export coffee industry and, contradictorily, worked against the proclaimed goals of nature preservation through exclusionary national park policies. [ABSTRACT FROM AUTHOR]

This paper assesses the impact of hurricane Mitch on livelihood strategies of rural households in Nicaragua. Through destruction or distress sales of productive assets, a hurricane or another natural hazard could induce people with relatively remunerative livelihoods to choose more defensive strategies which allow them to survive, but at a permanently lower welfare level than before. Using panel data from before and after hurricane Mitch, we find that livelihood strategies can be grouped into three welfare categories. Annual farming and farm employment generate low incomes, whereas nonfarm wage employment and livestock farming result in relatively high incomes. Perennial farming, nonfarm self-employment and annual cropping with nonfarm employment take an intermediate position. High welfare strategies were associated with high levels of capital, and the number of people involved was very similar between different years, suggesting that households following low-welfare strategies were trapped in poverty. However, many households moved actively between strategies of different welfare levels. This indicates that there was no absolute poverty threshold, but also that being able to initiate a relatively profitable livelihood strategy was no guarantee that this strategy could be maintained. There is no evidence that hurricane Mitch affected livelihood strategy transitions: livelihood mobility was similar for households inside and outside Mitch-affected areas. [Copyright &y& Elsevier]