Something of a Paradox: The Curious Neglect of Agriculture in Development

This paper argues that investment in agriculture has a large and continuing developmental importance in terms of both economic growth and poverty reduction. Moreover, targeted public resources have proven to be indispensable in achieving these results. Both arguments are supported with novel analyses which update and strengthen the traditional case for agriculture-led development with public-sector involvement. But despite the strong case for agriculture-led development strategies, the authors find that over the last three decades the financial resources allocated towards this sector have strongly declined. It is suggested that a shift towards new development paradigms since 1980 might be a significant explanation for this apparent Agricultural Paradox. This conjecture is tested with data on market reform impacts, PRSP contents and analyses of the intellectual resources devoted to the study of agriculture in development by both practitioners and researchers. The authors conclude with a critical discussion of these disturbing trends.

How Not to Defend the Revolution: Mark Weisbrot and the Misinterpretation of Venezuelan Evidence

Mark Weisbrot (2008) has claimed that under the Chávez administration in Venezuela the share of pro-poor spending has increased, inequality has declined, poverty has fallen rapidly, and there has been a massive reduction in illiteracy. All of these conclusions are based on the use of heavily slanted data and on the misinterpretation of the existing empirical evidence. Weisbrot uses estimates of social spending that are upward biased by the inclusion of large infrastructure projects, debt refinancing, and even military spending; his inequality data is distorted by the inexplicable exclusion of households that received no income; his econometric estimates on illiteracy actually show the exact opposite of what he is arguing for. Weisbrot confuses basic economic concepts and offers a bizarre interpretation of events leading up to the 2002 currency crisis. Once one corrects for Weibrot’s biases, the evidence paints a consistent image of an administration that has not effectively prioritized the well-being of the Venezuelan poor.

Nation-state Crises in the Absence and Presence of Segment States: The Case of Nicaragua

This study provides a critical examination of the relationship between segment states and nationalist crises through a consideration of Nicaragua\u27s recent history. Nicaragua experienced a nationalist crisis from 1981 to the mid-1980s. That crisis ended with the creation of two autonomous regions on the Atlantic Coast. Although relations between the common state and the new segment state proved difficult over the next few years, the new arrangement held for two decades. Roughly around 2007, however, a new nation-state crisis emerged in Nicaragua. Taking advantage of the fact that Nicaragua provides an opportunity to compare two nation-state crises across time, this study asks whether the country\u27s pattern of nation-state crisis, creation of a segment state, and emergence of a second nationalist crisis may mean that segment states are endogenous to nation-state crises. In addition, it raises the question of whether, if fully followed through, autonomy arrangements may prove stabilizing under certain contexts

Nation-state Crises in the Absence and Presence of Segment States: The Case of Nicaragua

This study provides a critical examination of the relationship between segment states and nationalist crises through a consideration of Nicaragua\u27s recent history. Nicaragua experienced a nationalist crisis from 1981 to the mid-1980s. That crisis ended with the creation of two autonomous regions on the Atlantic Coast. Although relations between the common state and the new segment state proved difficult over the next few years, the new arrangement held for two decades. Roughly around 2007, however, a new nation-state crisis emerged in Nicaragua. Taking advantage of the fact that Nicaragua provides an opportunity to compare two nation-state crises across time, this study asks whether the country\u27s pattern of nation-state crisis, creation of a segment state, and emergence of a second nationalist crisis may mean that segment states are endogenous to nation-state crises. In addition, it raises the question of whether, if fully followed through, autonomy arrangements may prove stabilizing under certain contexts

Does democracy impact the lives of the poor in Nicaragua?

Does democracy help the poor? Nicaragua, the emphasis of this study, will be used to analyze the impact democracy might be having on improving the lives of the poor. The World Development Indicators (World Bank) and the Human Development Index (United Nations) from 1992--2006 will be used in this study to measure economic growth in Nicaragua. The Latin America Public Opinion Project data on Latin America measures Nicaragua public opinion regarding democracy and economic growth in the country. The graphs from the World Bank illustrate that the standard of living for the poor in Nicaragua is improving and that democracy has brought some economic growth. Still the data from the LAPOP surveys in two different time periods 1991 and 2008 show that the level of improvements does not indicate any drastic increase in growth of material well being. The increase in consumer possession is significant, but not dramatic

The Global War on Terror and U.S. Development Assistance: USAID allocation by country, 1998-2005

The launch of the Global War on Terror (GWOT) soon after September 11, 2001 has been predicted to fundamentally alter U.S. foreign aid programs. In particular, there is a common expectation that development assistance will be used to support strategic allies in the GWOT, perhaps at the expense of anti-poverty programs. In this paper we assess changes in country allocation by USAID over 1998-2001 versus 2002-05. In addition to standard aid allocation variables, we add several proxies for the GWOT, including the presence of foreign terrorist groups, sharing a border with a state sponsor of terrorism, troop contribution in Iraq, and relative share of Muslim population. We find that any major changes in aid allocation related to the GWOT appear to be affecting only a handful of critical countries, namely, Iraq, Afghanistan, Jordan, and the Palestinian Territories. The extra resources to these countries also seem to be coming from overall increases in the bilateral aid envelope, combined with declines in aid to Israel, Egypt, and Bosnia and Herzegovina. We do not find that any of our GWOT proxies (or their interactions) are significantly correlated with changes in country allocation of aid flows to the rest of the world, including to sub-Saharan African countries. Concerns that there is a large and systematic diversion of U.S. foreign aid from fighting poverty to fighting the GWOT do not so far appear to have been realized.Global War on Terror (GWOT), September 11, foreign aid, terrorism, Iraq, muslim, poverty

Agriculture and development : a brief review of the literature

After 20 years of neglect by international donors, agriculture is now again in the headlines because higher food prices are increasing food insecurity and poverty. In the coming years it will be essential to increase food productivity and production in developing countries, especially in Sub-Saharan Africa and with smallholders. This however requires finding viable solutions to a number of complex technical, institutional and policy issues including land markets, research on seeds and inputs; agricultural extension; credit; rural infrastructure; storage; connection to markets; rural nonfarm employment and food price stabilization. This paper reviews what the economic literature has to say on these topics. It discusses in turn the role played by agriculture in the development process and the interactions between agriculture and other economic sectors; the determinants of the Green Revolution and discuss the foundations of agricultural growth; issues of income diversification by farmers; approaches to rural development; and finally issues of international trade policy and food security which are at the root of the crisis in agricultural commodity volatility in the past few years.Rural Poverty Reduction,Regional Economic Development,Agricultural Research,Rural Development Knowledge&Information Systems

Evaluating the Impact of Biofortification: A Meta-analysis of Community-level Studies on Quality Protein Maize (QPM)

Biofortification, or the genetic improvement of the nutritional quality of food crops, is a promising strategy to combat undernutrition, particularly among the rural poor in developing countries. However, traditional methods of impact assessment do not apply to biofortified crops as little or no yield increases are expected. Significant progress has been made to develop maize varieties with improved protein quality, collectively known as quality protein maize (QPM). Evidence for the impact of QPM at the community level, as demonstrated by randomized, controlled studies, was evaluated using meta-analysis. A new and generalizable effect size was proposed to quantify the impact of QPM on a key outcome, child growth. The results indicated that consumption of QPM instead of conventional maize leads to an 8% (95% CI: 4-12%) increase in the rate of growth in height and a 9% (95% CI: 4-12%) increase in the rate of growth in weight in infants and young children with mild to moderate undernutrition from populations in which maize is a significant part of the diet. These results are the first step in evaluating the potential economic impact of QPM by establishing and quantifying a link between use of the improved crop and nutritional outcomes. QPM can serve as a model for other biofortification efforts, and in particular, the conceptual framework and methodologies for impact assessment are directly applicable to other biofortified crops.Impact assessment, biofortification, meta-analysis, Crop Production/Industries, Food Security and Poverty,

The long run development of Chile and the Natural Resources curse. Linkages, policy and growth, 1850-1950

This chapter analyses the effects of Natural Resources on the Chilean economy in the long run -1850-1950-. Specifically, the authors focus their attention on the mining cycles -nitrates and copper- and their impact on the mining activity. We also compare it with the evolution of the industry and whole economy, and how this has affected the economic growth of the country. In that sense, the industrial performance in Chile at the end of the 19th century until the Great Depression is still under debate. The optimistic view of Kirsch -1977- forehead the pessimistic view of Lagos -1966- and Palma -1979-. The new data and its analyses shows a neutral effect of the Natural Resources in the industrial development

The role of agriculture in poverty reduction an empirical perspective

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.Rural Poverty Reduction,Achieving Shared Growth,Economic Theory&Research,Rural Development Knowledge&Information Systems