The impact of the International Food Policy Research Institute's research program on rural finance policies for food security for the poor

This study examines the contributions of the International Food Policy Research Institute (IFPRI) between 1993 and 2001 to analysis, outreach, capacity building, and training related to the role of rural finance in poverty reduction. The IFPRI multicountry research project on Rural Finance Policies for Food Security for the Poor involved data-intensive research by more than 14 research fellows on the impacts of access to rural financial services in countries. This report examines the contribution of the program within four countries where microfinance research and outreach activities were conducted and its contribution to global knowledge about rural finance and food security....It addresses issues of critical importance: (1) does microfinance have an impact on the poor, and is this impact achieved through better risk management as well as increased income generation?, (2) does the structure of financial service providers matter in supporting this impact?, and (3) how can the microfinance industry be made more sustainable?.... Malawi, Bangladesh, Ghana and Nepal were selected for analysis of research impacts." taken from Authors' Abstract.Evaluation Methodology ,Social sciences Research Evaluation ,Research institutes ,Capacity building ,Training ,Rural poor Research ,

Market participation and marketing performance: A case study of Bolivian potato farmers

Agribusiness, Marketing,

An asset-based approach to social risk management : a conceptual framework

There is increasing concern about the vulnerability of poor and near-poor rural households, who have limited capabilities to manage risk and often resort to strategies that can lead to a vicious cycle of poverty. Household-related risk is ususally considered individual or private, but measures to manage risk are actually social or public in nature. Furthermore, various externality issues are associated with household-related risk, such as its links to economic development, poverty reduction, social cohesion, and environmental quality. Hence the need for a holistic approach to risk management, or"social risk management,"which encompasses a broad spectrum of private and public actions. An asset-based approach to social risk management is presented, which provides an integrated approach to considering household, community, and extra-community assets and risk-management strategies. The conceptual framework for social risk management focuses on rural Sub-Saharan Africa. The report concludes with several suggestions on moving from concepts to actions.Health Economics&Finance,Insurance&Risk Mitigation,Banking Law,Environmental Economics&Policies,Banks&Banking Reform

Policy for plenty: measuring the benefits of policy-oriented social science research

This paper suggests practical methods for assessing policy research programs, both ex post and ex ante. Measuring the benefits of policy research is difficult: the path of causation between research and policy change is nearly always uncertain; multiple factors influence any particular policy change; policies are diverse in nature as are their intended and actual effects; and some effects of policy research are not priced in the market. Many of the benefits of changes in policy stem from the reduced cost of welfare-improving institutional change. Economic surplus analysis can be used to assess such changes. In some cases, Bayesian decision theory may be helpful in evaluating policy research, although it is usually difficult to obtain estimates of the probability distributions a decisionmaker has before the research becomes available. Subjective estimates of parameters and some measure of their degree of uncertainty, are likely to be needed for an economic surplus model. The paper suggests a set of steps for policy research evaluation. It is applied to two cases: an evaluation of pesticide policy research in Brazil, and an evaluation of policies affecting deforestation in Indonesia.Pesticides., Indonesia., Deforestation Brazil., Development projects., Impact assessment,

TAXATION: NO SIMPLE ANSWERS

Public Economics,

SUPPLY AND DEMAND FOR MARRIED FEMALE LABOR: RURAL AND URBAN DIFFERENCES IN THE SOUTHERN UNITED STATES

This study examined the supply of and demand for married female labor in the southern United States. Special attention was given to differences in labor force participation, labor supply, and quantities of labor supplied and demanded across rural and urban areas. Once state effects were accounted for, decisions to change participation were found not to vary by urban-rural designation. Differences in demand were fully captured by an intercept shifter and the variations in hours supplied by married females between urban and rural areas. Labor supply varied greatly with the effects of key determinants (number of children, work force experience, family income) being strongly different in rural areas. Different policies are needed to promote female labor supply in rural areas as opposed to urban areas.Community/Rural/Urban Development, Labor and Human Capital,

Public Investment Targeting in Rural Central America

This paper uses an asset-base framework to analyze the determinants of rural growth and poverty reduction for the three poorest countries in Central America: Guatemala, Honduras and Nicaragua. High inequalities in the distribution of productive assets in all three countries constrain how the poor share in the benefits of growth, even under appropriate policy regimes. Heterogeneous conditions require complementary analysis of spatial determinants of well-being, analysis of household-level assets, and how household livelihood strategies, conditioned on spatial attributes and asset bases, determine well-being outcomes. Using a combination of GIS mapping techniques and quantitative household analysis, we generate a description of rural territories that recognizes the differential effects of policies and asset bundles across space and households. We identify the asset combinations that matter most to raise household well-being and take advantage of poverty-reducing growth. In all three countries, investments have generally been directed toward more favored areas. But area economic potential does not automatically translate into improved well-being for all households. We found a strong overlap between economic potential, poverty rates and poverty densities in Guatemala and Honduras but not in Nicaragua. This implies that while in Guatemala and Honduras public investments may be targeted toward the Western Altiplano and the hillside areas respectively, in Nicaragua high poverty rates but low poverty densities in the Atlantic zone, and somewhat lower poverty rates but high poverty densities near Managua and other urban centers in the Central and Pacific regions, present a trade-off which makes targeting decisions more complicated.Community/Rural/Urban Development,

Those with blue hair please step forward: An economic theory of group formation and application to Cajas Rurales in Honduras

This paper presents an economic model of group formation with an application to data collected from an agricultural credit program in western Honduras. We formulate a simple theory of group formation using the concept of centers of gravity to explain why individuals join a group. According to our theory, prospective members join based on the potential benefits and costs of group membership, and based on their perception of social distance between themselves and other group members. Social distance is unobservable by outsiders but known by the individual: if you are in then you know who has blue hair. Thus, we argue that social distance helps explain preferences for group formation. To test our theory we analyze data collected from members and non-members of PRODERT, a program that has helped create 188 “Cajas Rurales” (CRs). Using conjoint analysis we test for differences in preferences between members and non-members for the main attributes of the CR. We find that members and non-members exhibit similar preferences for the attributes of the CR; therefore non-membership is not related to supply factors. Using information gathered by executing field experiments, we estimate a proxy for social distance. We use this proxy to run a group formation equation and find that it explains, along with individual characteristics, participation in the CR. Finally we offer suggestions on how to balance performance and coverage in programs in which beneficiaries decide who joins. Small cohesive groups may show exceptional performance at the cost of low coverage, and the opposite may be true.Agricultural Finance, Institutional and Behavioral Economics,

Vulnerability : a view from different disciplines

Practitioners from different disciplines use different meanings and concepts of vulnerability, which, in turn, have led to diverse methods of measuring it. This paper presents a selective review of the literature from several disciplines to examine how they define and measure vulnerability. The disciplines include economics, sociology/anthropology, disaster management, environmental science, and health/nutrition. Differences between the disciplines can be explained by their tendency to focus on different components of risk, household responses to risk and welfare outcomes. In general, they focus either on the risks (at one extreme) or the underlying conditions (or outcomes) at the other. Trade-offs exist between simple measurement schemes and rich conceptual understanding.Environmental Economics&Policies,Health Economics&Finance,Insurance&Risk Mitigation,Economic Theory&Research,Rural Poverty Reduction

Is export diversification the best way to achieve export growth and stability? A look at three African countries

Malawi, Tanzania, and Zimbabwe depend heavily on export earnings from a narrow base of agricultural commodities (coffee, cotton, sugar, tea, and tobacco). This dependence increased between 1961 - 1973 and 1974 - 1987, when international prices for those commodities were declining and unstable. Policymakers concerned with the instability and downward trend in export earnings for the three countries, tend to equate these trends with the countries'narrow export commodity base. They often propose export diversification as an expedient remedy. But the authors found that horizontal diversification would have produced lower export earnings and more instability. Policymakers introducing horizontal diversification must first consider price forecasts, comparative advantage, the economy's changing structure, and the costs of adjustment. Reactions to historical price movements can produce unexpected, undesirable results. A shift during this period from favorable to unfavorable price trends, and shifts in the covariances of deviations from price trends, complicate the design of export diversification policies, especially policies aimed at stabilizing export earnings. Generally, the most effective way to achieve growth and stability in export earnings is to increase and stabilize agricultural production and the volume of exports. The authors analysis shows that different export diversification policies can help fulfill different policy goals.Economic Theory&Research,Airports and Air Services,Achieving Shared Growth,Water Resources Assessment,Crops&Crop Management Systems