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Author: Mateusz Filipski
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 28
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Book Description
Despite years of development interventions, agricultural productivity in Africa south of the Sahara still trails far behind all other continents, leaving many rural populations in dire poverty. This suggests that our understanding of the impacts of agricultural development projects is still imperfect; perfecting it is likely to be a crucial step in achieving development. Projects that raise agricultural productivity, in addition to directly affecting farmers, can have an impact on local prices, wages, and rents, especially in rural areas of Africa, which tend to be less-than-perfectly integrated with outside markets. Price changes, in turn, transmit project impacts to others within the local economy. This paper presents the findings of a local economywide impact evaluation of Feed the Future irrigation projects in the Morogoro region of Tanzania, using a local economy-wide impact evaluation (LEWIE) simulation model. The findings indicate that these irrigation projects can generate important indirect impacts within the region. The structure of local markets, as well as labor and land availability, shapes project spillovers in ways that point to future directions for development assistance in the region.
Author: Mateusz Filipski
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 28
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Book Description
Despite years of development interventions, agricultural productivity in Africa south of the Sahara still trails far behind all other continents, leaving many rural populations in dire poverty. This suggests that our understanding of the impacts of agricultural development projects is still imperfect; perfecting it is likely to be a crucial step in achieving development. Projects that raise agricultural productivity, in addition to directly affecting farmers, can have an impact on local prices, wages, and rents, especially in rural areas of Africa, which tend to be less-than-perfectly integrated with outside markets. Price changes, in turn, transmit project impacts to others within the local economy. This paper presents the findings of a local economywide impact evaluation of Feed the Future irrigation projects in the Morogoro region of Tanzania, using a local economy-wide impact evaluation (LEWIE) simulation model. The findings indicate that these irrigation projects can generate important indirect impacts within the region. The structure of local markets, as well as labor and land availability, shapes project spillovers in ways that point to future directions for development assistance in the region.
Author: Daidone, S., Kagin, J., Taylor J. E.
Publisher: Food & Agriculture Org.
ISBN: 9251377294
Category : Business & Economics
Languages : en
Pages : 55
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Book Description
To reduce extreme poverty and break its intergenerational transmission, in 2012 the Government of the United Republic of Tanzania initiated the Productive Social Safety Net (PSSN) – the flagship social protection programme implemented by the Tanzania Social Action Fund (TASAF). The PSSN is based on a set of integrated interventions targeted for the poorest and most vulnerable households: i) a labour-intensive public works (PW) programme; ii) conditional cash transfers (CCTs); iii) a Livelihood Enhancement (LE) component providing support to households' economic driven interventions (such as community savings and investments); and iv) Targeted Infrastructure, supporting development and rehabilitation of social infrastructures under education, health and water sectors. During the period 2013–2019, TASAF vastly scaled up the programme in five waves, enrolling 1.1 million households and 5.1 million individuals in 9 960 communities, representing approximately 10.5 percent of the total population. A randomized impact evaluation was embedded within the scaled-up design of the PSSN, which found that even after a short period of implementation (2015–2017), the PSSN achieved several objectives including: increased consumption and food security, investment in better living conditions and human capital accumulation. To complement the findings of the official PSSN impact evaluation, in this study we analyse the indirect effects of the PSSN on the overall local economy.
Author: David Laborde
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 32
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Book Description
In this paper, we provide an overview of the agricultural trade negotiations within the current World Trade Organization (WTO) negotiations and we show that including agriculture in the Doha Development Agenda talks is important both economically and politically, although the political resistance to reform is particularly strong in this sector. While agriculture accounts for less than 10 percent of merchandise trade, high and variable agricultural distortions appear to cause the majority of the cost of distortions to global merchandise trade. Within agriculture, most of the costs appear to arise from trade barriers levied on imports, since these barriers tend to be high, variable across time and over products, and levied by a wide range of countries. The negotiations face a need for balance between discipline in reducing tariffshence creating the market access gains that are central to the negotiationsand flexibility in managing political pressures. While the approach of providing flexibility on a certain percentage of tariff lines is seriously flawed, the proposed modalities still appear to provide worthwhile market access. Better ways appear to be needed to deal with developing countries concerns about food price volatility while reducing the collective-action problems resulting from price insulation.
Author: Samuel Morley
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 36
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Book Description
Author: Nazaire Houssou
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 24
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Book Description
Since 2007, the government of Ghana has been providing subsidized agricultural machines to private enterprises established as Agricultural Mechanization Services Enterprise Centers (AMSEC) to scale up tractor-hire services to smallholder farmers. Although farmers demand for mechanization has increased in recent years, most of this demand concentrates on land preparation (plowing) service. Using the firm investment model and recent data, this paper quantitatively assesses whether AMSEC as a private enterprise is a viable business model attractive to private investors. Even though the intention of the government is to promote private sector-led mechanization, findings suggest that the AMSEC model is unlikely to be a profitable business model attractive to private investors even with the current level of subsidy. The low tractor utilization rate as a result of low operational scale is the most important constraint to the intertemporal profitability of tractor-hire services. Our findings further support the argument of Pingali, Bigot, and Binswanger (1987), who indicated that mechanization service centers supported through governments heavy subsidy are not a policy option anywhere in the world, even in the current situation in Ghana. Although the tractor rental service market is a proper way of mechanizing agriculture in a smallholder-dominated agricultural economy such as Ghana, this paper concludes that the development of such a market depends crucially on a number of factors, including increased tractor use through migration across the two very different rainfall zones (north and south), increased tractor use through multiple tasks, and use of low-cost tractors. The government can play an important role in facilitating the development of a tractor service market; however, the successful development of such a market depends on the incentive and innovation of the private sector, including farmers who want to own tractors as part of their business portfolio, traders who know how to bring in affordable tractors and expand the market, and manufacturers in exporting countries who want to seek a long-term potential market opportunity in Ghana and in other west African countries.
Author: Karl Pauw
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 36
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Book Description
The Malawian economy has in recent months been plagued by a severe foreign exchange crisis, fueled in part by a steadily rising import bill, sharp successive declines in tobacco export prices, the suspension of direct government budget support from several development partners in 2011, and an all-time low in international investor confidence. Up until the regime change in April 2012, the government resisted calls for a devaluation, which at the time resulted in a thriving parallel foreign exchange market. At its peak, the Malawi kwacha was trading at a premium of up to 100 percent in this secondary market. Economic theory shows that such a situation has adverse implications for an economy in terms of the balance-of-payments adjustment process and income distribution in the economy. Those with access to foreign exchange at the official rate are able to extract rents by selling foreign currency or imported goods at inflated prices. Imports sold domestically are then often valued at the parallel exchange rate rather than the official rate, with the parallel market rate serving as the only adjustment mechanism through which equilibrium can be restored in the balance of payments. This has a significant impact on domestic inflation to the detriment of consumers, while those with preferential access to foreign exchange at the official rate capture large rents. A simulation exercise using an economywide model for Malawi considers how the economy responds to different types of foreign exchange shocks under fixed and flexible exchange rate regimes. While the foreign exchange crisis in itself has severe negative implications for the economy, our results suggest that the economy responds much better to these types of shocks under a flexible exchange rate regime (that is, devaluations or a free-floating currency). Our main simulation shows that under the latter policy, gross domestic product growth, although negative, is 1.5 percentage points higher than under a fixed exchange rate policy. Similarly, poverty is 6.9 percentage points lower. A relaxation of the exchange rate policy, however, is only part of the solution; in the longer run, good governance and sound macroeconomic policy that is conducive to growth are needed to address the underlying structural problems in the economy that also contribute to foreign exchange shortages.
Author: Mariam A. T. J. Mapila
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 40
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Book Description
This paper presents a model of the Malawi maize commodity market that is developed for use as a policy analysis tool. The model captures national and local maize market dynamics and the linkages existing within the maize market in the country. This research has been undertaken in order to provide policy makers with a robust tool which can be used to simulate the impact of policy changes on markets and households. Such a tool ensures the availability of evidence for informing food and agricultural policies. The model is a multiequation partial equilibrium model of the national maize market in Malawi. It is developed and linked in a top-down unidirectional manner to the local maize economy via a price linkage equation. A nonbehavioral arithmetic microaccounting approach is used to estimate rural household incomes that are linked to the local economy, through which macroeconomic-level maize price changes transmit. The model can be used as a tool for analyzing the impacts of macroeconomic and agricultural policy changes on the maize industry as well as on rural households that rely on maize. The novelty of the model is that it takes into account the interrelationships between farm/household, local-economy, and national maize market prices, as well as economic theory and existing empirical evidence, to build a framework that is capable of linking to the macroeconomy rural subsistence households that are traditionally deemed to have few or no backward and forward linkages.
Author: J. Edward Taylor
Publisher: Oxford University Press, USA
ISBN: 0198707886
Category : Business & Economics
Languages : en
Pages : 337
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Book Description
Provides readers with a methodology to evaluate the impacts of a wide diversity of development projects and policies on local economies, together with a diversity of applications of these tools-from poverty programs to global price shocks, irrigation projects, eco-tourism, migration, production subsidies, and government corruption.
Author: Hosaena Ghebru Hagos
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 48
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Book Description
While there are ample empirical studies that claim the potential disincentive effects of sharecropping arrangements, the existing literature is shallow in explaining why share tenancy contracts are prevalent and diffusing in many developing countries. Using a unique tenant-landlord matched dataset from the Tigray region of Ethiopia, we are able to show how the tenants strategic response to the varying economic and tenure-security status of the landlords can explain sharecroppers productivity differentials. To the best of our knowledge, this is the first study to use tenantlandlord matched data that accounts for both the supply (landlord) and demand (tenant) side characteristics in analyzing sharecroppers level of effort and productivity. The study reveals that sharecroppers yields are significantly lower on plots leased from landlords who are non-kin, who are female, who have lower income-generating opportunity, and who are tenure insecure than on plots leased from landlords with the opposite characteristics. While, on aggregate, the results show no significant efficiency loss on kin-operated sharecropped plots, more decomposed analyses indicate strong evidence of Marshallian inefficiency on kin-operated plots leased from landlords with weaker bargaining power and higher tenure insecurity. This study thus shows how failure to control for the heterogeneity of landowners characteristics can explain the lack of clarity in the existing empirical literature on the extent of moral hazard problems in sharecropping contracts.
Author: Laia Domenech
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 28
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Book Description
Agriculture in Africa south of the Sahara (SSA) is still largely rainfed. SSA also exhibits the lowest crop yields for major staples in the world, largely due to low use of irrigation and fertilizer. Rainfed agriculture poses growing production risks with increased climate variability and change. At the same time, smallholder irrigation in the region developed rapidly over the past decade, albeit starting from very low levels. In addition to largely demand-driven irrigation development by smallholders, there is a significant push by donors for large-scale irrigation development, as well as some push for smallholder irrigation. There has also been a long-standing debate about whether irrigation in SSA should be large scale or small scale to achieve its potential. However, given the potentially high rewards, but also high possibility of failure, the assessment of irrigation potential must go beyond large scale versus small scale to integrate concerns regarding environmental sustainability, resource use efficiency, nutrition and health impacts, and womens empowerment. The hypothesis underlying this review paper is that how irrigation gets deployed in SSA will be decisive not only for environmental sustainability (such as deciding remaining forest cover in the region) and poverty reduction, but also for health, nutrition, and gender outcomes in the region. The focus of this paper is on the health, nutrition, and gender linkage. We find that to date, few studies have analyzed the impact of irrigation interventions on nutrition, health, and womens empowerment, despite the large potential of irrigation to affect these important variables. Irrigation interventions may have differential effects on different members in the household and in the community, such as irrigators, non-irrigators, children, and women. Measuring and understanding such differences, followed by improving design and implementation to maximize gender, health, and nutrition outcomes, could transform irrigation programs from focusing solely on increased food production toward becoming an integral component of poverty-reduction strategies.
