Assessing the economywide impacts of COVID-19 on Rwanda’s economy, agri-food system, and poverty: A social accounting matrix (SAM) multiplier approach PDF Download
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Author: Aragie, Emerta
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 35
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Book Description
Rwanda’s policy response to COVID-19 has been widely praised for its rapid, systematic, and comprehensive approach to containing the pandemic. Although the economic consequences are unavoidable, the country expects to return its economy to its high-growth trajectory as the pandemic subsides. We use economic modeling tools designed to estimate the short-term economywide impacts of the unanticipated, rapid-onset economic shocks of COVID-19 on Rwanda. - Results show that during the six-week lockdown that began in March, Rwanda’s GDP fell 39.1 percent (RWF 435 billion; USD 484 million) when compared to a no-COVID situation in the same period. - Results further show that Rwanda’s GDP in 2020 will be between 12 and 16 percent lower than a predicted no-COVID GDP, depending on the pace of the recovery. The losses in annual GDP are between RWF 1.0 and 1.5 trillion (USD 1.1–1.6 billion). - While GDP for the industrial and services sectors were estimated to have fallen during the lockdown period by 57 and 48 percent, respectively, exemptions of COVID-19 restrictions for the agricultural sector limited the decline in agricultural GDP to 7 percent compared to a noCOVID situation. - During the lockdown period, the national poverty rate is estimated to have increased by 10.9 percentage points as 1.3 million people, mostly in rural areas, fell into temporary poverty. Poverty rates are expected to stabilize by the end of 2020, increasing only by between 0.4 and 1.1 percentage points. While these figures may be encouraging, they mask the impacts on poor households of the sharp poverty spike during the lockdown and the inherent complexity of poverty dynamics post-lockdown. Looking forward, the speed and success of Rwanda’s recovery will depend critically on the expansion of Rwanda’s social protection programs, boosting enterprises of all sizes, support to the agri-food system, and restoration of international trade.
Author: Aragie, Emerta
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 35
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Book Description
Rwanda’s policy response to COVID-19 has been widely praised for its rapid, systematic, and comprehensive approach to containing the pandemic. Although the economic consequences are unavoidable, the country expects to return its economy to its high-growth trajectory as the pandemic subsides. We use economic modeling tools designed to estimate the short-term economywide impacts of the unanticipated, rapid-onset economic shocks of COVID-19 on Rwanda. - Results show that during the six-week lockdown that began in March, Rwanda’s GDP fell 39.1 percent (RWF 435 billion; USD 484 million) when compared to a no-COVID situation in the same period. - Results further show that Rwanda’s GDP in 2020 will be between 12 and 16 percent lower than a predicted no-COVID GDP, depending on the pace of the recovery. The losses in annual GDP are between RWF 1.0 and 1.5 trillion (USD 1.1–1.6 billion). - While GDP for the industrial and services sectors were estimated to have fallen during the lockdown period by 57 and 48 percent, respectively, exemptions of COVID-19 restrictions for the agricultural sector limited the decline in agricultural GDP to 7 percent compared to a noCOVID situation. - During the lockdown period, the national poverty rate is estimated to have increased by 10.9 percentage points as 1.3 million people, mostly in rural areas, fell into temporary poverty. Poverty rates are expected to stabilize by the end of 2020, increasing only by between 0.4 and 1.1 percentage points. While these figures may be encouraging, they mask the impacts on poor households of the sharp poverty spike during the lockdown and the inherent complexity of poverty dynamics post-lockdown. Looking forward, the speed and success of Rwanda’s recovery will depend critically on the expansion of Rwanda’s social protection programs, boosting enterprises of all sizes, support to the agri-food system, and restoration of international trade.
Author: Aragie, Emerta
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 8
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Book Description
Rwanda’s policy response to COVID-19 has been widely praised for its rapid, systematic, and comprehensive approach to containing the pandemic. Although the economic consequences of the actions taken are unavoidable, the country expects to return its economy to its high-growth trajectory as the pandemic subsides. We used economic modeling tools designed to estimate the short-term economywide impacts of the unanticipated, rapid-onset economic shocks of COVID-19 on Rwanda. In this brief, we present a synopsis of the results of this analysis. • During the six-week lockdown that began in March 2020, we estimate Rwanda’s GDP fell 39.1 percent (RWF 435 billion; USD 484 million) when compared to a no-COVID situation. • Rwanda’s GDP in 2020 will be between 12 and 16 percent lower than a predicted no-COVID GDP, depending on the pace of economic recovery. The losses in annual GDP are between RWF 1.0 and 1.5 trillion (USD 1.1 to 1.6 billion). • While GDP for the industrial and services sectors were estimated to have fallen during the lockdown period by 57 and 48 percent, respectively, exemptions of COVID-19 restrictions for the agricultural sector limited the decline in agricultural GDP to 7 percent compared to a no-COVID situation. • During the lockdown period, the national poverty rate is estimated to have increased by 10.9 percentage points as 1.3 million people, mostly in rural areas, fell into temporary poverty. Poverty rates are expected to stabilize by the end of 2020, increasing only by between 0.4 and 1.1 percentage points over the pre-COVID situation. While these figures are encouraging, they mask the impacts on poor households of the sharp poverty spike during the lockdown and the inherent complexity of poverty dynamics post-lockdown. Looking forward, the speed and success of Rwanda’s economic recovery will depend critically on expanding Rwanda’s social protection programs, supporting enterprises of all sizes, providing broad assistance to the agri-food system, and restoring international trade.
Author: Aragie, Emerta
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 24
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Book Description
In this paper, we analyze the economic impacts of response measures adopted in Ethiopia to curtail the spread of the COVID-19 pandemic. We carry out simulations using an economywide multiplier model based on a 2017 Social Accounting Matrix (SAM) for the country that properly depicts interactions between economic agents. The pandemic’s impact on the global economy combined with disruptions it causes in Ethiopia represents a large, unprecedented shock to the country’s economy. In such situations, a SAM-based multiplier model provides an ideal tool for measuring the short-term direct and indirect impacts of a shock on an economic system since there is limited room for proper adjustment of economic decisions. We model the seven-week partial lockdown policy implemented in Ethiopia from mid-March to early May 2020. We also consider two possible economic recovery scenarios that may emerge as the COVID-19 control policies are relaxed during the latter part of 2020 in order to generate insights on the potential continuing impact of the virus at the end of 2020. Although the country took early swift measures, our assessment of the partial lockdown measures suggests that they were not as strict as those observed in other Africa countries. Accordingly, our estimates of the economic costs of COVID-19 on Ethiopia are significantly lower than those reported for other countries on the continent. We estimate that during the lockdown period Ethiopia’s GDP suffered a 14 percent loss (43.5 billion Birr or 1.9 billion USD) compared to a no-COVID case over the same period. Nearly two-thirds of the losses were in the services sector. Although no direct restrictions were imposed on the agriculture sector, which serves as the primary means of livelihood for most Ethiopians, the sector faced a 4.7 percent loss in output due to its linkages with the rest of the economy. Poor export performance due to a slowdown in global trade and restrictions on the transport sector also partly explain the decline in agricultural output. The broader agri-food system also was affected considerably because of its linkages with the rest of the economy. In terms of the welfare of Ethiopians, we estimate that the economic impacts during the lockdown caused 10.1 million additional people to fall below the poverty line. These findings have implications for better understanding the direct and indirect impacts of COVID-19 and for policy design during the recovery period to return Ethiopia’s economy to a normal growth trajectory and to protect the livelihoods of the most vulnerable in the process.
Author: Diao, Xinshen
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 20
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Book Description
In Rwanda, as in other countries, different types of households will experience the economic effects of the COVID-19 pandemic differently. We use a microsimulation approach to highlight the importance of these differences and to draw attention to the diversified livelihood strategies of Rwandan households in order to fully understand COVID-19’s impacts on their income and poverty status. Our approach complements macro-level assessments of COVID-19’s economic impacts, focusing on the contribution of the income sources, asset holdings, and location (urban/rural) of households to understanding these differential effects.
Author: Pauw, Karl
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 29
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Book Description
As COVID-19 spread across the globe in early 2020, governments had to make difficult policy choices to balance the socioeconomic costs of social distancing and lockdown measures, on the one hand, and the human costs of increased morbidity and mortality of an unchecked pandemic, on the other. The challenge was particularly daunting for developing countries with their often illequipped and underfunded health systems coupled with general skepticism about the effectiveness of economic restrictions to curb viral spread, especially in densely populated informal urban communities (The Economist 2020). Poorer developing country populations also tend to be less resilient to income shocks, while the social protection measures needed to mitigate against income losses are costly. With developing country governments already heavily indebted before the pandemic (Onyekwena and Ekeruche 2019), and with further anticipated losses in tax revenues due to COVID-related economic restrictions, their ability to finance palliative measures without sacrificing much-needed, longer-term public investments has remained a major concern.
Author: Bryan, Elizabeth
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 96
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Book Description
The COVID-19 pandemic has had far-reaching impacts in every part of the world, including on vulnerable populations in rural areas of low- and middle-income countries. This report explores the ways in which men and women in rural areas of four countries in sub-Saharan Africa (SSA)—Kenya, Niger, Rwanda, and Uganda—experienced the COVID-19 pandemic and associated income losses, as well as their responses to the crisis. To identify and monitor the differential effects of the COVID-19 pandemic on women and men in rural households, IFPRI conducted phone surveys in selected regions of the four focal countries, with financial and technical support from the Food and Agriculture Organization of the United Nations (FAO). The surveys traced gender differences in responses to the pandemic and associated restrictions, such as choice of coping strategies, access to public assistance, and changes in the care burden for men and women.
Author: Diao, Xinshen
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 35
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Book Description
This paper assesses the structure of Rwanda’s current and evolving agrifood system and its contribu-tion to national development. The paper reiterates the point that Rwanda’s agrifood system stretches well beyond primary agriculture and creates jobs and income opportunities throughout the economy. While off-farm components of Rwanda’s agrifood system have generally grown more rapidly than pri-mary agriculture in recent years, growth varies across value chains of the agrifood system in the stud-ied period. The growth diagnostic in this paper reveals that it is domestic markets that have driven the recent growth in Rwanda’s AFS other than exports. The paper’s forward-looking analysis assesses potentially differential impacts of value-chain develop-ment efforts on broad development outcomes. The analysis measures the synergies and trade-offs of value-chain development in the context of an inclusive agricultural transformation. Such analysis is conducted using the Rwanda Computable General Equilibrium (CGE) model – an adaption of IFPRI’s Rural Investment and Policy Analysis (RIAPA) model to the Rwandan context. The modeling results indicate that value chains differ considerably in their effectiveness in achieving development goals and there are significant trade-offs among different development goals from pro-moting a specific value chain. The value chains that make a larger contribution to growth or job crea-tion are not necessarily effective in reducing poverty or improving dietary quality – for example, value chains for coffee and tea – while value chains that play an important role in improving dietary quality may contribute less to job creation – such as vegetables or fruits. While there is no single value chain that can achieve all development goals effectively, it is possible to select a diversified set of value chains that complement each other in achieving different development goals. This latter strategy is a more realistic approach to growth and development.
Author: McDermott, John
Publisher: Intl Food Policy Res Inst
ISBN: 0896294226
Category : Political Science
Languages : en
Pages : 200
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Book Description
Two years after the onset of the COVID-19 pandemic, the health, economic, and social disruptions caused by this global crisis continue to evolve. The impacts of the pandemic are likely to endure for years to come, with poor, marginalized, and vulnerable groups the most affected. In COVID-19 & Global Food Security: Two Years Later, the editors bring together contributions from new IFPRI research, blogs, and the CGIAR COVID-19 Hub to examine the pandemic’s effects on poverty, food security, nutrition, and health around the world. This volume presents key lessons learned on food security and food system resilience in 2020 and 2021 and assesses the effectiveness of policy responses to the crisis. Looking forward, the authors consider how the pandemic experience can inform both recovery and longer-term efforts to build more resilient food systems.
Author: Clemens Breisinger
Publisher: Intl Food Policy Res Inst
ISBN: 0896297837
Category : Business & Economics
Languages : en
Pages : 42
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Book Description
This training guide introduces development practitioners, policy analysts, and students to social accounting matrices (SAMs) and their use in policy analysis. There are already a number of books that explain the System of National Accounts and SAM multipliers-some of these are recommended at the end of this training guide. However, most books tend to be quite technical and move quickly from an introduction to more complex applications. By contrast, this guidebook uses a series of hands-on exercises to gradually introduce SAMs and multiplier analysis. It therefore complements more theoretical SAM and multiplier literature and provides a first step for development practitioners and students wishing to understand the strengths and limitations of these economic tools. It is also useful for policy analysts and researchers embarking on more complex SAM-based methodologies. One such methodology is computable general equilibrium (CGE) modeling, for which IFPRI has also developed a series of introductory exercises and a standard modeling framework.To download the exercises, go to www.ifpri.org/publication/social-accounting-matrices-and-multiplier-analysis
Author: Alain de Janvry
Publisher: Springer Science & Business Media
ISBN: 0387297480
Category : Business & Economics
Languages : en
Pages : 390
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Book Description
This collection of essays honors a remarkable man and his work. Erik Thorbecke has made significant contributions to the microeconomic and the macroeconomic analysis of poverty, inequality and development, ranging from theory to empirics and policy. The essays in this volume display the same range. As a collection they make the fundamental point that deep understanding of these phenomena requires both the micro and the macro perspectives together, utilizing the strengths of each but also the special insights that come when the two are linked together. After an overview section which contains the introductory chapter and a chapter examining the historical roots of Erik Thorbecke's motivations, the essays in this volume are grouped into four parts, each part identifying a major strand of Erik's work—Measurement of Poverty and Inequality, Micro Behavior and Market Failure, SAMs and CGEs, and Institutions and Development. The range of topics covered in the essays, written by leading authorities in their own areas, highlight the extraordinary depth and breadth of Erik Thorbecke's influence in research and policy on poverty, inequality and development. Acknowledgements These papers were presented at a conference in honor of Erik Thorbecke held at Cornell University on October 10-11, 2003. The conference was supported by the funds of the H. E. Babcock Chair in Food, Nutrition and Public Policy, and the T. H. Lee Chair in World Affairs at Cornell University.
