Which is most important?

What is needed is infrastructure, urbanization and spatial plannning, especically of the north and the decentralization of the many times battered capital "city" of Managua.

If Nicaragua wishes to be "the next Costa Rica" then it certainly needs a San Jose or central valley or plateau (meseta central). The geografically, economically, and politically most similar place are the Esteli plateaus. There also geological similarities and differences to consider between San Jose and Esteli the latter possibly being less earthquake prone but similarly these cities have not suffered from natural disasters like the pacific lowland cities of Nicaragua.

Geographically, both cities are inland and on plateaus and politically they both border major divisions of the country: San Jose city borders Heredia, Alajuela, and Cartago and in fact the capital cities of the mentioned divisions are in the central valley or plateau. Esteli also borders major divisions which are Chinandega, Leon, Nueva Segovia/Madriz, Jinotega, Matagalpa and is not far from the northern Managua deparment area. Economically, both of these cities have similar potential in ecotourism, agro-industry, retirement, IT, etc. They also look to benefit from similar types of alternative energy such as hydro/wind power etc. Their central and strategic positions also make them good transportation hubs. Costa Rica's San Jose and central valley is what Nicaragua could be ("the next Costa Rica")if there is investment (Int'l airport, good roads/trains, alternative energy, etc) in the Esteli and surrounding area.

Nicaragua, on both the pacific and atlantic areas has been devasted by natural disasters which have not helped it's growth. The more heavily populated pacific region, in particular, has seen many of it's important cities partially or completely destroyed setting the country back decades every time. Unfortunately, that has been the case for other central american neighbors which suffer form earthquakes and hurricanes. Nevertheless, Costa Rica is a bit luckier because it's central valley or plateau has been spared major catastrophies such as the ones that have occurred in other central american capitals, including and especially Managua.

Also, it seems that Nicaragua's population is shifting towards the productive central north and east anyways (possibly because there is more food, less disasters, better climate). The problem whith that is that many of these people live in the rural area where it is difficult to access education, health facilities, and their presence has an adverse impact on the forest through slash and burn, etc - urbanization through investment in infrastruture should help this and generate a solution to Nicaragua's poverty and instability.

Lastly, here is a quote from an paper titled: Does "Infrastructure play role in urbanization: evidence from India"

source: http://findarticles.com/p/articles/mi_m1TSD/is_1_6/ai_n25012620/pg_6

"The study investigated the impact of infrastructure on urbanization in India. By using the state-wise data of past quarter decades, the estimated results confirmed that infrastructure has a significant positive impact on urbanization. Both are very consistent in the Indian economy over the last four decades. It is assumed that without increase of infrastructure, urbanization in India would be much lower today. But the critics say that at what level of urbanization India has achieved so far, it is comparatively low as per the country's need and in contrast to other emerging countries in the world. Since urbanization has a very positive role in rural economy in the form of agricultural development, non-farm development and poverty alleviation, there is urgent need to enhance the country's level of urbanization. This requires substantial improvement in infrastructure along with more industrialization in the economy."

I'll throw my vote for education also, but, in reality, I think equal emphasis has to be placed on education, foreign and domestic investment, and capital accumulation (but internally and not in foreign bank accounts!).

"Costa Rica places great importance on education, and as a result, Intel can count on a large pool of engineers, programmers, and other trained professionals, many of them English-speaking. Nicaragua, by contrast, invests very little in education. School-teachers are grossly underpaid, and many have barely more skills than the children they are supposed to teach. "Our educational system needs to be radically transformed," the Nicara-guan economist Israel Benavides Cerros recently wrote,or else we will be condemning our children and young people to mediocrity, with all the consequences that implies in a market system that functions according to the law of the jungle." NYRB, Volume 55, Number 10 quoted from http://www.nicaliving.com/node/12285

O quantum est in rebus inane! / A palabras necias, oídos sordos.

I know the answer! The answer lies within the heart of all mankind! The answer is twelve? I think I'm in the wrong building. - Peanuts (Charles M. Schulz)

a trio combo.

1)Develop alternative energy

2)Repair the roads,which in turn could...

3)Develop Tourism,or at least enhance it, and provide better opportunities to build where no one has yet.

FAP

I'm voting for improving the educational system. And since we seem to be delving into specifics/how-to a bit here, I guess I'd suggest more teachers with better training.