Impacts Of Agricultural Investments On Growth And Poverty A Review Of Literature

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Impacts Of Agricultural Investments On Growth And Poverty A Review Of Literature

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Author : Martin, Will
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2021-11-24

Impacts Of Agricultural Investments On Growth And Poverty A Review Of Literature written by Martin, Will and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2021-11-24 with Political Science categories.

Agricultural development is crucial in developing countries, and particularly in the poorest countries where it accounts for large shares of employment and income and whose poverty is due simply to having a large share of the workforce in low-productivity agriculture. Raising productivity in agriculture is critically important for development, as is smoothly moving workers out of agriculture into more productive employment in other sectors. Raising agricultural productivity helps both to raise incomes and to reduce poverty-both by raising the incomes of poor people working in agriculture and by lowering the prices of foods that make up a disproportionately large share of the expenditures of poor people. In small and open economies, the in-crease in profitability of agriculture following improvements in productivity might tend to retain or even attract workers into agriculture. By contrast, at a global level, or at national level when policy focusses on self-sufficiency, improvements in agricultural productivity will free up labor for employment in other sectors. Incomes are generally much higher in non-agricultural work in developing countries-more than double those in agriculture after careful adjustment for key differences. This raises the possibility of a double dividend from structural transformation as workers move into higher-productivity activities. A key question for development policy is whether it is enough to simply evaluate the gains from higher productivity within agriculture, or whether potential benefits from structural change be included as well. This paper examines the arguments on this question. It concludes that these dividends may be substantial-but whether they are or not depends on the source of the initial differences in productivity and on the direction of movement when agricultural productivity rises. If it results from policy barriers such as restrictions on the transfer of farmland or requirements for residence permits in urban areas, there are likely to be substantial welfare gains when labor moves out of agriculture. They may also be substantial if urban wages are artificially high and attract substantial numbers of job-waiters into unemployment. However, these gains may be illusory if the income gaps arise primarily from differences in skills or from reluctance to move created by asset fixity.

Agriculture And Development

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Author : Gudrun Kochendörfer-Lucius
language : en
Publisher: World Bank Publications
Release Date : 2008-01-01

Agriculture And Development written by Gudrun Kochendörfer-Lucius and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2008-01-01 with Business & Economics categories.

The book highlights proceedings from the Berlin 2008: Agriculture and Development conference held in preparation for the World Development Report 2008.

Impacts Of Ifpri S Priorities For Pro Poor Public Investment Global Research Program

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Author : Renkow, Mitch
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2011-02-08

Impacts Of Ifpri S Priorities For Pro Poor Public Investment Global Research Program written by Renkow, Mitch and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-02-08 with Social Science categories.

This report assesses the impact of the International Food Policy Research Institute’s (IFPRI) Global Research Program on Priorities for Public Investment in Agriculture and Rural Areas (“GRP-3”). Initiated in 1998, the stated objectives of the research program were (1) to increase public investment for rural areas and the agricultural sector given that there is an underspending in the sector and (2) to better target and improve efficiency of public resources to achieve these growth and poverty reduction goals, as well as other development goals. GRP-3 evolved out of research on the impacts of alternative types of public spending on income and poverty outcomes in India and China that was conducted by staff of IFPRI’s Environment and Production Technology Division (later the Development Strategy and Governance Division). Those studies indicated that public investments in infrastructure—in particular, investments in roads, agricultural research and development (R&D), and education—yielded sizeable marginal benefits in terms of poverty alleviation and income generation in rural areas. This line of research was later expanded to encompass a number of countries in Africa and, to a lesser extent, Southeast Asia and the Middle East. A second major (and ongoing) thrust of the program is to support African governments in establishing public investment priorities and strategies for promoting rural economic growth and poverty alleviation. Major activities undertaken include providing analytical and institutional support to the Comprehensive Africa Agriculture Development Programme (CAADP) and evaluations of individual publicly-funded programs in several African countries. GRP-3 has generated an impressive array of published outputs. The great bulk of these emerged from the research conducted in India and China. A much smaller number of published outputs have been generated by the (more recently conducted) research in Africa; however, a substantial number of papers, book manuscripts, and monographs are in various stages of the publication process. Other important program outputs include a variety of public expenditure databases suitable for assessing the nature and effects of individual countries’ spending priorities. GRP-3 research has had substantial influence on public expenditure priorities in India and China. Most notably, published research in India played a key role in the institution of the Rural Roads Program that directed huge sums toward construction of roads connecting large numbers of previously unserved villages. Quantitative assessment of the positive impacts from these road investments indicates that IFPRI research can reasonably take substantial credit for lifting tens of thousands of individuals out of poverty and increasing agricultural GDP by billions of rupees. Additionally, in both China and India, GRP-3 research has influenced recent policy conversations that have led to increased spending on agricultural R&D and education. Overall, the program has substantially met its stated objectives in Asia. GRP-3 research in Africa has yet to fully meet the program’s objectives, in large part because the policymaking process in the countries where IFPRI has been active are still not far enough advanced for the research outputs to have translated into actual policies. Still, some important outcomes have emerged: The work IFPRI has conducted in support of CAADP has successfully shepherded 19 countries through the Compact process. However, the Compacts are intermediate products; it remains to be seen the extent to which governments follow through on the plans contained within them. IFPRI’s compilations of disparate public expenditure data in a large number of countries represent a useful local public good for use by research and practitioner communities outside of IFPRI. In addition, IFPRI’s role in guiding the formation and operation of a regional strategic assessment and knowledge support system (ReSAKSS) has boosted, if not created, institutional capacity for future monitoring and evaluation activities. Research on the impact of public investments in the agricultural sector has been useful to the donor community by providing empirical backstopping for ongoing policy dialogues with governments. However, the difficult—and often contentious—political environment in which those dialogues occur has meant that policy outcomes are still materializing (and far from certain).

Prioritizing Agricultural Investments Across Commodities For Income Growth And Poverty Reduction Methods And Applications

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Author : Minot, Nicholas
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2021-11-24

Prioritizing Agricultural Investments Across Commodities For Income Growth And Poverty Reduction Methods And Applications written by Minot, Nicholas and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2021-11-24 with Political Science categories.

Some agricultural investments are commodity-specific, meaning that they increase the productivity of production, processing, or marketing of a single agricultural commodity or a set of closely-related commodities. Examples include investment in cassava breeding, expanding cotton ginning capacity, irrigation for rice production, expansion of cold storage capacity for horticultural exports, or road investment to a region whose main product is maize. Traditional cost-benefit analysis estimates the effect of in-vestments on net income assuming that the investment is not large enough to influence market prices. However, a different approach is needed when the investment affects market prices and/or there is an interest in other outcomes such as poverty reduction. This report describes an approach to estimating the impact of commodity-specific agricultural investments on income, poverty, and other measures of welfare. This approach can be extended to identify the optimal allocation of an investment budget across commodities subject to a given objective function. For example, it could be used to allocate agricultural research funds across commodities to maximize income, poverty reduction, or a weighted average of the two.

Synopsis Implications Of Public Investments And External Shocks On Agriculture Economic Growth And Poverty In Papua New Guinea An Economywide Analysis

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Author : Dorosh, Paul A.
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2022-08-22

Synopsis Implications Of Public Investments And External Shocks On Agriculture Economic Growth And Poverty In Papua New Guinea An Economywide Analysis written by Dorosh, Paul A. and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022-08-22 with Political Science categories.

Policy simulations utilizing an economy-wide model based on PNG national accounts and survey data highlight the importance of linkages between the agricultural and non-agricultural sectors of the PNG economy. There are potentially major benefits of increased agricultural productivity for national income and urban households. To reduce rural poverty, however, transport and processing costs must be lowered, as well. Even if only half of the increase in foreign exchange earnings from the 2022 world energy price shock is absorbed into the PNG economy, the real exchange rate appreciates by 13 percent, reducing incomes from export crops. However, increased domestic demand for non-tradable crops contributes to a 10 percent income gain for the rural poor. Using a portion of increased oil and natural gas revenues to finance new investments in crop agriculture, processing and transport, provides even greater benefits by spurring real GDP growth and raising real household incomes by an additional 2 to 4 percentage points. A hypothetical carbon credit arrangement in which PNG reduces deforestation in exchange for funds used to finance cash transfers to the poorest 20 percent of both urban and rural households could raise the incomes of these groups by about 13 percent.

Understanding The Effects Of Agricultural R D Investments On Poverty And Undernourishment In Sub Saharan Africa A Causal Mediation Approach

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Author : Benfica, Rui
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2021-10-19

Understanding The Effects Of Agricultural R D Investments On Poverty And Undernourishment In Sub Saharan Africa A Causal Mediation Approach written by Benfica, Rui and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2021-10-19 with Political Science categories.

This analysis explores the relationship between agricultural R&D investments and rural poverty reduction, and the prevalence of undernourishment in sub-Saharan Africa (SSA). It uses a panel data set of internationally comparable poverty dis-aggregated by urban and rural areas, country level undernourishment, and ASTI data on R&D investments and derived indicators. The study uses agricultural R&D knowledge stocks (KS) to account for the lagged effects of research through depreciation and gestation period of investments, and applies causal mediation analysis to assess the impact of KS on poverty and hunger and measure the relative contribution of KS-induced agricultural productivity growth on those outcomes. Evidence suggests that, while SSA growth in KS has been relatively slow, it helped reduce rural poverty and undernourishment – the percentage point reduction in rural extreme and moderate poverty of a 1% annual increase in KS is 0.218 and 0.146 percentage points per year, respectively. Mediation analysis indicates that a fifth of the KS effect on extreme rural poverty, and a quarter of the KS effect on moderate rural poverty, can be attributed to KS driven gains in agricultural labor productivity. Likewise, KS growth reduces undernourishment – a 1% annual increase in KS leads to a drop of 0.132 percentage points per year in the prevalence of undernourishment, with about 40% of that effect mediated through gains in agricultural land productivity. These results indicate that KS supports poverty and hunger reduction through benefits on-farm and beyond it. They also suggest that there is room for strengthening the role of R&D KS productivity enhancing innovations. Given the current low levels of investments in R&D and resulting KS, increasing its levels will be critical, but that alone is not sufficient. Policy makers will have to rethink the way the innovations from R&D get scaled up and pay attention to the necessary complementary policies and investments that enable a sustainable pathway leading to greater productivity growth and development impacts.

Designing Investments In Agricultural Research For Enhanced Poverty Impacts

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Author : Derek Byerlee
language : en
Publisher:
Release Date : 2003

Designing Investments In Agricultural Research For Enhanced Poverty Impacts written by Derek Byerlee and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2003 with Agriculture categories.

Considerable empirical evidence indicates that agricultural growth is a priority for reducing poverty in developing countries. Investment in agricultural research is a major source of agricultural growth, and can provide powerful direct and indirect impacts on rural and urban poverty. The World Ban's Rural Strategy identifies agricultural science and technology as a high priority for future support, but this support must be more focused on the Bank's overarching objective of poverty reduction. Several decades of experience provide evidence that a broad-based approach to promoting agricultural growth can have substantial impacts on poverty reduction where: (a) agriculture is important to the incomes of rural poor; (b) the agro-ecological base allows significant potential for productivity growth; (c) land distribution is relatively equitable; and (d) the poor consume nontradable food staples. Without these preconditions for win-win productivity growth and poverty reduction, agricultural research may still have strong poverty reduction impacts, but must be carefully targeted on poor producers and consumers.

The Role Of Agriculture In Poverty Reduction

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Author : Luc J. Christiaensen
language : en
Publisher: World Bank Publications
Release Date : 2006

The Role Of Agriculture In Poverty Reduction written by Luc J. Christiaensen and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with Agricultural Development categories.

The relative contribution of a sector to poverty reduction is shown to depend on its direct and indirect growth effects as well as its participation effect. The paper assesses how these effects compare between agriculture and non-agriculture by reviewing the literature and by analyzing cross-country national accounts and poverty data from household surveys. Special attention is given to Sub-Saharan Africa. While the direct growth effect of agriculture on poverty reduction is likely to be smaller than that of non-agriculture (though not because of inherently inferior productivity growth), the indirect growth effect of agriculture (through its linkages with nonagriculture) appears substantial and at least as large as the reverse feedback effect. The poor participate much more in growth in the agricultural sector, especially in low-income countries, resulting in much larger poverty reduction impact. Together, these findings support the overall premise that enhancing agricultural productivity is the critical entry-point in designing effective poverty reduction strategies, including in Sub-Saharan Africa. Yet, to maximize the poverty reducing effects, the right agricultural technology and investments must be pursued, underscoring the need for much more country specific analysis of the structure and institutional organization of the rural economy in designing poverty reduction strategies.

Public Investment Prioritization For Rwanda S Inclusive Agricultural Transformation Evidence From Rural Investment And Policy Analysis Modeling

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Author : Aragie, Emerta
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2022-02-22

Public Investment Prioritization For Rwanda S Inclusive Agricultural Transformation Evidence From Rural Investment And Policy Analysis Modeling written by Aragie, Emerta and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022-02-22 with Political Science categories.

As Rwanda is expected to return to its rapid growth trajectory following the COVID-19 pandemic, agriculture will continue to play a central role in the structural transformation of the entire economy. To this end, the Government of Rwanda continues to invest in the agricultural sector by building on Strategic Plans for the Transformation of Agriculture (PSTAs) that began in the early 2000s. The challenging question is how to prioritize public expenditures across a broad portfolio of policies and programs. Ambitious plans, whether in the short or long term, require difficult decisions. The prioritization of public investment becomes even more complex as Rwanda’s structural transformation advances and as new investments—beyond the farm—become critically important for the agricultural sector. The structural transformation process itself means that as agriculture becomes more integrated with the rest of the economy, public resource allocations need to address a wider range of issues across the entire food system; these include nutrition-sensitive food production systems, inclusive value chain development, nonfarm rural enterprise development, and climate-resilient sustainable intensification of both crops and livestock. This study provides evidence that is designed to assist the Government of Rwanda in its selection of agricultural policy, investment, and expenditure portfolios that reflect the country’s broad focus on its food system and structural transformation. This process of prioritization will need to incorporate multiple public investments targeting multiple development outcomes and will need to be grounded in the costeffective use of public resources in a largely market-led transformation process. This data-driven and evidence-based approach must critically underpin an informed investment prioritization process that helps achieve ambitious targets in an environment constrained by limited public resources. The study uses the Rural Investment and Policy Analysis (RIAPA) economywide model developed by the International Food Policy Research Institute (IFPRI), with contributions from colleagues at the Ministry of Agriculture and Animal Resources (MINAGRI), the Ministry of Finance and Economic Planning (MINECOFIN) and the National Institute of Statistics of Rwanda (NISR). The study draws on data from multiple sources as well as expert insights to inform the application of RIAPA’s Agricultural Investment for Data Analyzer (AIDA) module as a tool to measure the impacts of alternative public expenditure options on multiple development outcomes. Using this integrated modeling framework, the study links agricultural and rural development spending to four specific outcomes: economic growth, job creation, poverty reduction, and diet quality improvement; at the same time, it considers the synergies and tradeoffs associated with the different investment options in the transformation process. The paper first assesses the contribution of public expenditures to agricultural and rural development under the fourth Strategic Plan for Agriculture Transformation (PSTA 4) that extends between 2018 and 2024. These findings are important, given the fact that since the beginning of PSTA 4, the budget allocated to MINAGRI (measured in constant prices) has stagnated. Our results suggest that increased spending on agriculture is well justified and that such spending is essential if the Government of Rwanda is to achieve its long-term development goals.

Impacts Of Agricultural Research On Poverty Findings Of An Integrated Economic And Social Analysis

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Author : Ruth Meinzen-Dick, Michelle Adato, Lawrence Haddad, Peter Hazell
language : en
Publisher: Intl Food Policy Res Inst
Release Date :

Impacts Of Agricultural Research On Poverty Findings Of An Integrated Economic And Social Analysis written by Ruth Meinzen-Dick, Michelle Adato, Lawrence Haddad, Peter Hazell and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on with Social Science categories.