The Impact of Alternative Input Subsidy Exit Strategies on Malawis Maize Commodity Market PDF Download
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Author: Mariam A. T. J. Mapila
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 32
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Book Description
This study has been conducted in order to generate evidence of the visibility of exit from farm input subsidies in an African context. The study simulates the impact of alternative exit strategies from Malawis farm input subsidy program on maize markets. The simulation is conducted using a multiequation partial equilibrium model of the national maize market, which is sequentially linked via a price-linkage equation to local rural maize markets. The model accounts for market imperfections prevailing in the country that arise from government price interventions. Findings show that some alternative exit strategies have negative and sustained impacts on maize yields, production, and acreage allocated to maize over the simulation period. Market prices rise steadily as a result of the implementation of different exit strategies. Despite higher maize prices, domestic maize consumption remains fairly stable, with a slow but increasing trend over the simulation period. Results further suggest that exit strategies that are coupled with improvements in agricultural extension services have the potential to offset the negative impacts of the removal or scaling down of agricultural input subsidies. The study findings demonstrate the difficulty of feasibly removing farm input subsidies. Study recommendations are therefore relevant for policymakers and development partners debating removal or implementation of farm input subsidies.
Author: Mariam A. T. J. Mapila
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 32
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Book Description
This study has been conducted in order to generate evidence of the visibility of exit from farm input subsidies in an African context. The study simulates the impact of alternative exit strategies from Malawis farm input subsidy program on maize markets. The simulation is conducted using a multiequation partial equilibrium model of the national maize market, which is sequentially linked via a price-linkage equation to local rural maize markets. The model accounts for market imperfections prevailing in the country that arise from government price interventions. Findings show that some alternative exit strategies have negative and sustained impacts on maize yields, production, and acreage allocated to maize over the simulation period. Market prices rise steadily as a result of the implementation of different exit strategies. Despite higher maize prices, domestic maize consumption remains fairly stable, with a slow but increasing trend over the simulation period. Results further suggest that exit strategies that are coupled with improvements in agricultural extension services have the potential to offset the negative impacts of the removal or scaling down of agricultural input subsidies. The study findings demonstrate the difficulty of feasibly removing farm input subsidies. Study recommendations are therefore relevant for policymakers and development partners debating removal or implementation of farm input subsidies.
Author: Xinshen Diao
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 28
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Book Description
In recent years, the government of Tanzania, like other governments in Africa south of the Sahara, has periodically banned the export of staple crops (maize) in an attempt to ensure the domestic food supply and protect its citizens from international food price hikes. While this policy seems to be a common response to domestic production shortfalls or to high prices in international or neighboring countries markets, export bans not only have the potential to reduce producer prices locally but also, because the bans are often ad hoc, can cause significant market uncertainty for farmers and the private sector, ultimately making them less responsive in both supply and trade opportunities in the future. While complaints by farmers and traders regarding the export bans frequently appear in the newspapers in Tanzania, few rigorous analyses have been done to quantitatively measure the impacts of the policy. Given this knowledge gap and policy demand, we study the impact of export bans in Tanzania using a computable general equilibrium model. We find that although maize is an important food crop in Tanzania, its contribution to food price inflation is rather limited, and that banning cross-border maize exports lowers the national food price index by only 0.62.4 percent compared with the free-export scenario. The benefits of lower prices are captured primarily by urban households, but maize producer prices decrease by 726 percent, depending on the region. We also find that the export ban decreases the wage rate for low-skilled labor and the returns to land, while returns to nonagricultural capital and wage rate for the skilled labor increase, further hurting poor rural households and thus increasing poverty for the country as a whole.
Author: Mara van den Bold
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 80
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Book Description
Many development programs that aim to alleviate poverty and improve investments in human capital consider womens empowerment a key pathway by which to achieve impact and often target women as their main beneficiaries. Despite this, womens empowerment dimensions are often not rigorously measured and are at times merely assumed. This paper starts by reflecting on the concept and measurement of womens empowerment and then reviews some of the structural interventions that aim to influence underlying gender norms in society and eradicate gender discrimination. It then proceeds to review the evidence of the impact of three types of interventionscash transfer programs, agricultural interventions, and microfinance programson womens empowerment, nutrition, or both. Qualitative evidence on conditional cash transfer (CCT) programs generally points to positive impacts on womens empowerment, although quantitative research findings are more heterogenous. CCT programs produce mixed results on long-term nutritional status, and very limited evidence exists of their impacts on micronutrient status. The little evidence available on unconditional cash transters (UCT) indicates mixed impacts on womens empowerment and positive impacts on nutrition; however, recent reviews comparing CCT and UCT programs have found little difference in terms of their effects on stunting and they have found that conditionality is less important than other factors, such as access to healthcare and child age and sex. Evidence of cash transfer program impacts depending on the gender of the transfer recipient or on the conditionality is also mixed, although CCTs with non-health conditionalities seem to have negative impacts on nutritional status. The impacts of programs based on the gender of the transfer recipient show mixed results, but almost no experimental evidence exists of testing gender-differentiated impacts of a single program. Agricultural interventionsspecifically home gardening and dairy projectsshow mixed impacts on womens empowerment measures such as time, workload, and control over income; but they demonstrate very little impact on nutrition. Implementation modalities are shown to determine differential impacts in terms of empowerment and nutrition outcomes. With regard to the impact of microfinance on womens empowerment, evidence is also mixed, although more recent reviews do not find any impact on womens empowerment. The impact of microfinance on nutritional status is mixed, with no evidence of impact on micronutrient status. Across all three types of programs (cash transfer programs, agricultural interventions, and microfinance programs), very little evidence exists on pathways of impact, and evidence is often biased toward a particular region. The paper ends with a discussion of the findings and remaining evidence gaps and an outline of recommendations for research.
Author: Klaus Deininger
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 36
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Book Description
Indias National Rural Employment Guarantee Scheme (NREGS) is one of the largest public works programs globally. Understanding the impacts of NREGS and the pathway through which its impacts are realized thus has important policy implications. We use a three-round 4,000-household panel from Andhra Pradesh together with administrative data to explore short- and medium-term poverty and welfare effects of NREGS. Triple difference estimates suggest that participants significantly increase consumption (protein and energy intake) in the short run and accumulate more nonfinancial assets in the medium term. Direct benefits exceed program-related transfers and are most pronounced for scheduled castes and tribes and households supplying casual labor. Asset creation via program-induced land improvements is consistent with a medium-term increase in assets by nonparticipants and increases in wage income in excess of program cost.
Author: Esha Sraboni
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 36
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Book Description
Womens low status and persistent gender gaps in health and education in South Asia contribute to chronic child malnutrition (Smith et al. 2003) and food insecurity (von Grebmer et al. 2009), even as other determinants of food security, such as per capita incomes, have improved. This is particularly relevant for Bangladesh, where chronic food insecurity continues to be an important issue despite steady advances in food production. To be able to leverage agriculture as an engine of inclusive growth, there is a need to develop indicators for measuring womens empowerment, examine its relationship to various food-security outcomes, and monitor the impact of interventions to empower women. Using nationally representative survey data from Bangladesh, we examine the relationship between womens empowerment in agriculture and two measures of household food security: per adult equivalent calorie availability and dietary diversity. We use the Womens Empowerment in Agriculture Index to assess the extent of womens empowerment in agriculture and instrumental variables techniques to correct for the potential endogeneity of empowerment. We find that the overall womens empowerment score, the number of groups in which women actively participate, womens control of assets, and a narrowing gap in empowerment between men and women within households are positively associated with calorie availability and dietary diversity.
Author: Catherine Ragasa
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 60
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Book Description
Agricultural extension is critical for agricultural growth and food security, but making the extension system effective, demand driven, and responsive to the needs of a diverse set of producers remains a challenge. As part of the institutional reforms in the Democratic Republic of Congo (DRC), the extension system is being reviewed to identify strategies and practical actions to transform the system to better respond to the knowledge needs in a rapidly changing agriculture and food sector. This paper provides an in-depth review of the agricultural extension system of DRC including an analysis of its policies and legal framework, organization, and management; links to critical institutions; and capacity and incentive of different actors in the system. This review involved document analyses, interviews with key informants, and surveys of 107 extension organizations and 162 extension agents in 156 randomly selected villages in western DRC. This review suggests serious funding constraints, human resource management problems, no linkage and coordination within the extension system and with research and education systems, and a majority of underserved communities and farmers. This review also highlights a good opportunity given the huge human resources (more than 11,000 agents) deployed into the sectors and territories as part of the Ministrys agricultural inspection system. However, their mandate is not clear and they currently focus on data collection (census) and checking what farmers do and limited in extension and advisory work. This review highlights the urgent need for human resource or civil service reform; public-sector commitment and funding; infrastructure rebuilding and skills upgrading in extension, education and training, and research organizations; and a unified policy or strategy with clear vision, mandate, targets, and performance-based incentive system.
Author: Daniel J. Clarke
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 64
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Book Description
Governments play a key role in supporting populations affected by natural disasters, including rebuilding infrastructure to ensure continued services and scaling-up public safety nets to prevent widespread hunger and poverty. However, the traditional approach of limiting greater spending to the aftermath of a disaster has many drawbacks. External support from bilateral or multilateral donors can be slow and unreliable. Private sector reinsurance can be prohibitively expensive. And reallocating budgets toward recovery and reconstruction is typically a slow process that can even hurt long-term development by drawing resources away from effective programs. Some countries are trying to mitigate this liability by banding together and creating sovereign catastrophe risk pools that allow governments to coordinate with one another to insure their uncertain fiscal liabilities at lower cost. Countries contribute to the pool, which then provides payments if an insured natural disaster strikes. The African Risk Capacity (ARC), has been proposed as a pan-Africa drought risk pool to insure against drought risk in Africa south of the Sahara. If fully operationalized, the ARC will mark a major change in how donors fund emergency support to countries in Africa during times of need. In this paper, we undertake a cost-benefit analysis of the ARC pool and discuss how lessons can inform the design of the ARC.
Author: Antony Chapoto
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 52
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Book Description
The past decade has seen several African countries increasing their agricultural growth, a trend largely underpinned by increases in land area cultivated instead of productivity increases. Meanwhile, scholars debate whether Africa should pursue a strategy of large-scale or smallholder farms, paying little attention to a special group of smallholder farmers who have transitioned to become medium- and large-scale farmers. This study, therefore, begins to analyze this group of farmers, using qualitative data from in-depth interviews and focus group discussions in Ghana. We analyze their characteristics, ingredients of farm-size expansion, and commercialization. Numerous insights are gained and hypotheses formulated for future research. One important insight is that with the right attitude, exposure, and discipline, it is possible for smallholder farmers to increase their farm size and commercialize regardless of initial farm enterprise choice. However, to transition, initial farm size and farming system appear critical, with farmers in areas of low population density and flat topography more likely to acquire larger farming land. The transition, however, occurs gradually over 20 to 30 years, with mean annual land acquisition rates ranging from 0.3 to 24.3 acres per year. In the transition process, large- and medium-scale farmers are found to increase their use of modern farm inputs (such as fertilizer and high-yielding seed varieties) and agricultural technologies (such as tractors and processing machinery) and appear more productive than smallholder farmers. Additional quantitative analyses using representative survey data are, however, needed to substantiate the observed qualitative patterns and to further understand the trajectories of farm size expansion and the implications for agricultural productivity and commercialization.
Author: Bjorn Van Campenhout
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 44
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Book Description
In developing countries, all too often policies formulated in response to high food prices are inspired by ideology instead of evidence-based policy research. We look at the immediate effects of these shocks faced by households in Uganda on their poverty and well-being. In addition, we look at the economywide impact in the long run when all markets have settled at a new equilibrium. We find that in the short run, poverty has increased substantially. However, in the longer run, we find welfare levels of rural farm households in particular to rise sharply, primarily as a result of increased returns to farm labor and agricultural land coupled with improved market prices for output sold. These results call for policies that aim to protect the most vulnerable against high food prices and extreme volatility in the short run, without eliminating the incentives of steadily rising commodity prices for longer-run structural agricultural development.
Author: Hosaena Ghebru Hagos
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 36
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Book Description
security effects (investment effects) and through more efficient input use due to enhanced tradability of the land (factor intensity effect), empirical studies on the size and magnitude of these effects are very scarce. Taking advantage of a unique quasi-experimental survey design, this study analyzes the productivity impacts of the Ethiopian land certification program by identifying how the investment effects (technological gains) would measure up against the benefits from any improvements in input use intensity (technical efficiency). For this purpose, we adopted a data envelopment analysisbased Malmquist-type productivity index to decompose productivity differences into (1) within-group farm efficiency differences, reflecting the technical efficiency effect, and (2) differences in the group production frontier, reflecting the long-term investment (technological) effects. The results show that farms without a land use certificate are, on aggregate, less productive than those with formalized use rights. We found no evidence to suggest this productivity difference is due to inferior technical efficiency. Rather, the reason is down to technological advantages, or a favorable investment effect, from which farm plots with a land use certificate benefit when evaluated against farms not included in the certification program. The low level of within-group efficiency of farms in each group reinforces the argument that certification programs need to be accompanied by complementary measures such as an improved financial and legal institutional framework in order to achieve the promised effects.
