Economic impacts of the eruption of the Cerro Negro volcano in Nicaragua.

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In April 1992 the Cerro Negro volcano in northwestern Nicaragua erupted, causing damage to Leon, the country's second largest city, and to neighbouring urban areas, farmlands, and forests. Although the physical damage was not great, the eruption has had serious economic impacts on the area, disrupting cotton production and causing widespread unemployment that has resulted in harmful woodcutting near the volcano in order to provide income. Large tracts of the zone's farmlands will have to be rehabilitated, and the area's drainage channels are blocked with volcanic material, which may lead to another disaster when the rainy season begins. This report recommends that the Nicaraguan government adopt a comprehensive strategy to shift the area over to different types of production activities, thereby increasing its inhabitants' incomes and ensuring sustainable development. The report also identifies a series of programs and projects that will require the technical and financial support of the international community