The socioeconomic context of many biodiversity rich countries is argued to be heavily dwarfed in current conservation and development debate, resulting in that projects that intersect complex issues of development and conservation are often simplistically deemed as being unsuccessful. The aim of this research has therefore been to attain a more profound understanding of how socioeconomic conditions and local neoliberal contexts effect ICDP projects and to an extent also agroecological transition. In this case study ten qualitative life-story interviews were carried out during a minor field study in rural Las Pavas, Nicaragua. These were further analyzed through the use of the sustainable livelihood approach in order to identify what impacts the local socioeconomic contexts had on participant livelihoods and also what prospects and challenges C.I.P.P’s permaculture project presented in this regard. The empirical evidence shows that participant livelihoods were subjected to several constraints that were buttressed by the neoliberal development context which signified a great reliance on cattle raising as main financial activity at the expense of other important natural assets such as forest and water. Furthermore, demonstrating that permaculture projects had to provide the widest range of benefits with the least amount of risk in order to be adopted.