Findings across agricultural public expenditure reviews in African countries


Book Description

This paper examines whether the consensus reached by the late 2000s among African Union member countries and their external partners on the need to reverse the decades-long decline in spending for essential public goods and services in agriculture has begun to result inimproved levels and quality of national expenditure programs for the sector. It synthesizes evidence from 20 Agriculture Public Expenditure Reviews (Ag PERs) that have been carried out in countries in Africa South of the Saharan (Botswana, Burkina Faso, Cameroon, Chad, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Guinea, Liberia, Madagascar, Mozambique, Rwanda, Nigeria, Senegal, Sierra Leone, South Africa, Tanzania, Togo, Uganda, and Zambia) with World Bank assistance during 2009–2015. This synthesis focuses on several measures: (1) the level of expenditures on agriculture, with particular reference to the explicit target by African heads of state in the 2003 Maputo Declaration on Agriculture and Food Security (reconfirmed in the Malabo Declaration) to allocate 10 percent of national budgets to the sector; (2) the composition and priorities of expenditures with respect to stated national strategies, evidence of impact, and sustainability; and (3) budget planning and implementation that aims to strengthen public financial management in general, and budget coherence, outputs, outcomes, and supporting mechanisms, such as procurement and audit, in particular. This paper uses Ag PERs to analyze budgetary trends across countries, identifies major expenditure issues, and synthesizes lessons regarding spending efficiency. The analysis results in evidence-based recommendations that address, inter alia, budget planning, budget execution, and monitoring for accountability; the creation of a reliable database; more effective intra-and intersectoral coordination; and the cost-effectiveness of different spending policies for meeting various objectives




Can contract farming increase farmers’ income and enhance adoption of food safety practices?


Book Description

Growing inequality has become an important concern in many countries. One of the ways that inequality is perpetuated is through differential market access across regions. This research deals with one of the primary determinants of regional inequality manifested in terms of market access. Nepal is one country where hierarchical geography leads to regional inequality. Differential market access can cause as well as accentuate inequality among farmers. Coordination arrangements such as contract farming can improve outcomes for the farmers and integrators on the one hand, but on the other hand it can accentuate inequality if only some regions benefit from it. With this background, in this paper we study the case of contract farming for exports with farmers in remote hilly areas of Nepal. The prospect for contract farming in such areas with accessibility issues owing to underdeveloped markets and lack of amenities is ambiguous. On the one hand, contractors in these areas find it difficult to build links, particularly when final consumers have quality and safety requirements. On the other hand, remoteness can make the contracts more sustainable if the agroecology offers product-specific quality advantages and, more important, if there is a lack of side-selling opportunities. At the same time, concerns remain about buyers’ monopsonistic powers when remotely located small farmers do not have outside options. This study hence quantifies the benefits of contract farming on remotely located farmers’ income and compliance with food safety measures. Results show that contract farming is significantly more profitable (offering a 58 percent greater net income) than independent production, the main pathway being higher price realization, along with training on practices and provision of quality seeds.




Can labor market imperfections explain changes in the inverse farm size-productivity relationship ?


Book Description

To understand whether and how inverse relationship between farm size and productivity changes when labor market performance improves, we use large national farm panel from India covering a quarter-century (1982, 1999, 2008) to show that the inverserelationship weakened significantly over time, despite an increase in the dispersion of farm sizes. A key reason was the substitution of capital for labor in response to nonagricultural labor demand. In addition, family labor wasmore efficient than hired labor in the 1982–1999 period, but not during the 1999–2008period.In line with labor market imperfections as a key factor, separability of labor supply and demand decisions cannot be rejected in the second period,except in villages with very low nonagricultural labor demand.




Securing Development


Book Description

Securing Development: Public Finance and the Security Sector highlights the role of public finance in the delivery of security and criminal justice services. This book offers a framework for analyzing public financial management, financial transparency, and oversight, as well as expenditure policy issues that determine how to most appropriately manage security and justice services. The interplay among security, justice, and public finance is still a relatively unexplored area of development. Such a perspective can help security actors provide more professional, effective, and efficient security and justice services for citizens, while also strengthening systems for accountability. The book is the result of a project undertaken jointly by staff from the World Bank and the United Nations, integrating the disciplines where each institution holds a comparative advantage and a core mandate. The primary audience includes government officials bearing both security and financial responsibilities, staff of international organizations working on public expenditure management and security sector issues, academics, and development practitioners working in an advisory capacity.




Rent Dispersion in the US Agricultural Insurance Industry


Book Description

A central, but inadequately explored issue with respect to subsidized crop insurance programs concerns the costs of delivering insurance coverage to farmers. This study examines that issue in the context of the heavily subsidized US crop insurance program which has often been put forward as a model for agricultural insurance programs in other countries. US Government programs often rely on private firms to deliver income transfers or services, which then establish their own rent-seeking lobbies, which are shared with input suppliers. This rent dispersion process is examined in the context of the U.S. agricultural insurance industry, which receives as much as one third of the annual subsidies that support the federal crop insurance program. We find that as total payments to insurance companies increased between 2001 and 2009, an increasingly large share of the agricultural insurance industry’s rents accrued to insurance agents, although in markets where insurance companies possessed some oligopsony power, agent payments are smaller. The findings also suggest that the insurance industry (companies and independent agents) would almost surely provide the same service for substantially less than the gross revenues from the subsidies and underwriting gains they received.




Structural transformation and intertemporal evolution of real wages, machine use, and farm size–productivity relationships in Vietnam


Book Description

This paper explores the evolution of real agricultural wages, machinery use, and the relationship between farm size and productivity in Vietnam during its dramatic structural transformation over the course of the 1990s and 2000s. Using six rounds of nationally representative household survey data, we find strong evidence that the inverse relationship between rice productivity and planting area attenuated significantly over this period and that the attenuation was most pronounced in areas with higher real wages. This pattern is also associated with sharp increases in machinery use, indicating a scale-biased substitution effect between machinery and labor. The results suggest that rural-factor market failures are receding in importance, making land concentration less of a cause of concern for aggregate food production.




Linking smallholder farmers to commercial markets


Book Description

Access to modern commercialization channels is key for smallholder farmers to be able to move away from subsistence farming and overcome poverty. However, achieving that goal is challenging for smallholders given their lack of appropriate managerial practices, production technology and infrastructure. This paper examines the effect of receiving training in two different entrepreneurial practices designed to link farmers to commercial markets: one direct aimed at the individual and farmer-association level and another indirect focused at the community level. We exploit an extensive panel dataset of staple bean farmers in Nicaragua who participated in a program run by a nongovernmental organization between 2007–2012. We find that the two market-linkage training activities had opposite effects on the commercialization of beans, especially on the intensive margin or volume of sales. While receiving direct training on entrepreneurial practices is positively associated with sales in commercial markets, training on municipality engagement (ME) activities is negatively associated. The market-linkage activities mainly affected entrant farmers as opposed to those already participating in commercial markets. We further find varying effects of the ME activities by plot size and leadership position. Additional results show that training activities that appear to work for bean producers do not necessarily work for other crop producers, and vice versa.




A dynamic spatial model of agricultural price transmission


Book Description

Spatial interactions are essential drivers of price transmission mechanisms and may significantly affect any food’s policy outcomes. However, spatial aspects seem to be generally overlooked when analyzing price transmission. This paper attempts to fill this gap by highlighting the usefulness of spatial interaction and models for market integration analysis. A spatial dynamic panel datamodel is presented and applied to Niger’s millet market. Empirical results show that (1) the millet market is partly integrated, (2) locally traded commodities (millet and sorghum) are linked by a cross-commodity price transmission, (3) most imported cereals prices, which for Niger is maize and rice, did not affect the millet market, and (4) no cross-regions price transmissionoccurred for the millet market.




Qualitative methods for gender research in agricultural development


Book Description

The rise of mixed methods approaches to development-oriented research has brought new attention to qualitative research methods. This paper describes the use of qualitative approaches to illuminate gender relations in agricultural development research and project implementation. For gender research, qualitative methods can be particularly helpful in illuminating how men and women view their lives. Drawing on literature about social science methods and linking it to recent examples of qualitative methods employed in research and development projects, the paper argues for greater precision in key concepts of gender research, starting with sex and gender. From the many possible qualitative methods used in development work, the paper focuses on several common observational (both direct and participatory) and interview techniques, the latter including key informant and group interviews and focus group discussions. Researchers use various techniques to gather different types of information, for example, mapping techniques to understand men’s and women’s different types of knowledge about their environment and eliciting in-depth information on a single topic with key informants. In a brief discussion of the analysis of qualitative data, the paper notes that informant responses are not “the truth” but need to be assessed against other sources of data. Finally, there is a short discussion of how qualitative data have been used in comparative work. The paper concludes that the results of good qualitative research on gender relations can help identify the locally specific pathways needed to achieve gender-transformative development approaches.




Effectiveness of food subsidies in raising healthy food consumption


Book Description

There is an increasing demand to add pulses to the basket of subsidized goods in the Public Distribution System (PDS) of India—the world’s largest food-based social safety-net program. Would subsidizing pulses through PDS lead to a significant increase in its consumption? We study the case of subsidy on pulses in select Indian states and its impact on consumption and ultimately nutrition (in terms of protein intake) by exploiting an exogenous variation in prices to answer this question. Between 2004/2005 and 2009/2010, four Indian states introduced subsidized pulses through the country’s PDS, while other states did not. We exploit exogenous price variations to examine whether the price subsidy on pulses achieves its goal of increasing pulse consumption, and by extension protein intake, among India’s poor. Using several rounds of consumption expenditure survey data and difference-in-difference estimation, we find that the change in consumption of pulses due to the PDS subsidy, though statistically significant, is of a small order, and not large enough to meet the goal of enhancing the nutrition of beneficiaries.