51 research outputs found

    Is growth in Bangladesh's rice production sustainable?

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    The recent growth of food grain (primarily rice) production in Bangladesh has outpaced population growth largely due to the spread of green revolution technology. The transition from a"basket case"in the early 1970s to the virtual elimination of rice imports in the early 1990s is particularly remarkable considering the severe land constraint in Bangladesh. Two decades of concerted government efforts to achieve rice self-sufficiency have created both an atmosphere of optimism and concerns about whether rice self sufficiency is sustainable. The authors find that rice production grew in Bangladesh between 1973 and 1994 because of the conversion of rice-growing areas from local to modern varieties. Simulations suggest that the current level of per capita production can be sustained only through increased yields from modern rice varieties. Other factors that could affect growth in per capita rice production are population control and faster conversion of remaining areas to modern varieties. But population control and faster conversion to modern varieties are only complements for the most important factor: efforts to increase the yields from modern rice varieties. If policies designed to raise the overall rate of economic growth and reduce poverty succeed, it will be even more critical to focus on increasing productivity.Agricultural Research,Crops&Crop Management Systems,Public Health Promotion,Economic Conditions and Volatility,Health Monitoring&Evaluation,Crops&Crop Management Systems,Achieving Shared Growth,Governance Indicators,Agricultural Research,Economic Growth

    Reconsidering the evidence on returns to T&V extension in Kenya

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    The authors revisit the widely disseminated results of a study (Bindlish and Evenson 1993, 1997) of the impact of the training and visit (T&V) system of management for public extension services in Kenya. T&V was introduced in Kenya by the World Bank and has since been supported through two successive projects. The impact of the projects continues to be the subject of much debate. The authors'paper suggests the need for greater vigilance in empirical analysis, especially about the quality of data used to support Bank policy and the need to validate potentially influential findings. Using household data from 1990, Bindlish and Evenson found the returns from extension to be very high. But the authors find that the returns estimated by Binslish and Evenson suffer from data errors, and limitations imposed by cross-sectional data. After correcting for several data processing and measurement errors, the authors show the results to be less robust than reported by Bindlish and Evenson and highly sensitive to regional effects. When region-specific effects are included, a positive return to extension cannot be established, using Bindlish and Evenson's data set and cross-sectional model specifications. After testing the robustness of results using a number of tests, the authors could not definitively establish the factors underlying strong regional effects, largely because of the limitations imposed by the cross-sectional framework. Household panel data methods would have allowed greater control for regional effects and would have yielded better insight into the impact of extension. The impact on agricultural productivity in Kenya expected from T&V extension services is not discernible from the available data, and the impact may vary across districts. The hypothesis that T&V had no impact in Kenya between 1982 and 1990 cannot be rejected. The sample data fail to support a positive rate of return on the investment in T&V.Agricultural Knowledge&Information Systems,Statistical&Mathematical Sciences,Environmental Economics&Policies,Labor Policies,Economic Theory&Research,Economic Theory&Research,Health Economics&Finance,Agricultural Knowledge&Information Systems,Environmental Economics&Policies,Statistical&Mathematical Sciences

    Rural demand for drought insurance

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    Many agricultural regions in the developing world are subject to severe droughts, which can have devastating effects on household incomes and consumption, especially for the poor. To protect consumption, rural households engage in many different risk management strategies - some mainly risk-reducing and some simply coping devices to protect consumption once income has been lost. An important limitation of these traditional risk management strategies is their inability to insure against covariate risks and they are also costly.. The absence of formal credit and insurance institutions, which offer an efficient alternative by overcoming regional covariance problems and reducing the cost of risk management, amounts to a market failure. Past research has paid much more attention to the supply-side reasons for this market failure than to the demand side question of whether there exist financial instruments that farmers want and would be willing to pay for. The authors use a dynamic household model to examine the efficiency of drought management strategies used by peasant households. An attractive feature of the method is that it exploits actual production (input-output) data and does not deal with the usually unreliable data on household consumption and leisure activities. The model is applied to a two-year panel of data on households from five villages in Tamil Nadu (South India). The sample is small, but the data are special, as one of the two years was a severe drought year. The results indicate that agricultural households exhibit significant risk-avoidance bahavior, and that even though they may use a range of risk management strategies, there still remains an unmet demand for insurance against drought risks. The study did not estimate the likely costs of supplying drought insurance, but the latent demand in the study region is strong enough to more than cover the breakeven rate of approximately the pure risk cost (the probability of drought) plus 5 percent administration costs. The findings confirm the inadequacies of traditional strategies of coping with droughts in poor rural areas. Because of the catastrophic and simultaneous effects of droughts on all households over large areas, there is limited scope for spreading risks effectively at the local level. Either households must increase their savings significantly (a problem with low average incomes and an absence of safe and convenient savings instruments), or more effective risk management aids are needed that can overcome the covariation problem. Improved financial markets (with both credit and savings facilities) could be helpful, particularly if they intermediate over a larger and more diverse economic base than the local economy. Alternatively, formal drought insurance in the form of a drought (or rainfall) lottery might be feasible, and the results suggest that it could be sold on a full-cost basis.Environmental Economics&Policies,Economic Theory&Research,Banks&Banking Reform,Services&Transfers to Poor,Safety Nets and Transfers

    Rural investment to accelerate growth and poverty reduction in Kenya:

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    "Kenya's economy is relatively diverse, with both agricultural and industrial potential. However, the economy has performed poorly over the last decade, and poverty and inequality have risen. This paper examines the impact of alternative growth paths and rural investments on poverty using an economy-wide model. It finds that if Kenya continues along its current growth path, its economy will have to grow by more than 10 percent per year over the coming decade to meet the Millennium Development Goal (MDG) of halving poverty by 2015. Therefore, Kenya must search for alternative sources of poverty-reducing growth. The results of the model indicate that poverty is unlikely to decline significantly without an acceleration of agricultural growth. Growth in agriculture is found to benefit both urban and rural households, whereas industry-led growth benefits a smaller segment of the urban population, thus exacerbating inequality. Kenya's current Economic Recovery Strategy, however, is not optimistic about agriculture's growth potential, focusing more heavily on industry-led growth. Therefore, as Kenya prepares its new national strategy, the country should place greater emphasis on and direct resources toward accelerating agricultural growth. In assessing the impact of rural investments on growth and poverty, the paper finds that increasing agricultural spending to meet the 10 percent target set by the Maputo Declaration would lift an additional 1.5 million people above the poverty line by 2015. Specific agricultural investments have higher returns in different parts of the country, however. Irrigation favors the lowlands and the poorest segment of the population, while research and extension (R&E) favors the midlands and highlands. Investment in R&E is also found to have the highest returns in both growth and poverty reduction. However, increasing agricultural spending to 10 percent of total spending is insufficient to meet either the MDG or the 6 percent agricultural growth target of the Comprehensive African Agriculture Development Program, which Kenya has recently adopted. . Achieving this target requires nonagricultural investments, such as in roads and market development. Building rural roads and reducing agricultural transaction costs significantly reduces poverty and encourages growth beyond rural areas. While it is necessary to increase spending on agriculture, the fiscal burden of an agricultural strategy can be greatly reduced by improving investment efficiency." from Author's AbstractAgriculture, Rural investment, Public investment, Poverty reduction, Inequality, Pro-poor growth,

    Property rights in a very poor country : tenure insecurity and investment in Ethiopia

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    This paper provides evidence from one of the poorest countries of the world that the property rights matter for efficiency, investment, and growth. With all land state-owned, the threat of land redistribution never appears far off the agenda. Land rental and leasing have been made legal, but transfer rights remain restricted and the perception of continuing tenure insecurity remains quite strong. Using a unique panel data set, this study investigates whether transfer rights and tenure insecurity affect household investment decisions, focusing on trees and shrubs. The panel data estimates suggest that limited perceived transfer rights, and the threat of expropriation, negatively affect long-term investment in Ethiopian agriculture, contributing to the low returns from land and perpetuating low growth and poverty.Common Property Resource Development,Forestry,Municipal Housing and Land,Rural Development Knowledge&Information Systems,Urban Housing

    Policies to promote cereal intensification in Ethiopia: A review of evidence and experience

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    Dawit Alemu: DCA, EthiopiaCereal crops, Agricultural development, Agricultural extension work, Fertilizers, Seed industry and trade Developing countries, Public investment, Food policy,

    QCSP monsters and the demise of the chen conjecture.

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    We give a surprising classification for the computational complexity of the Quantified Constraint Satisfaction Problem over a constraint language Γ, QCSP(Γ), where Γ is a finite language over 3 elements which contains all constants. In particular, such problems are either in P, NP-complete, co-NP-complete or PSpace-complete. Our classification refutes the hitherto widely-believed Chen Conjecture. Additionally, we show that already on a 4-element domain there exists a constraint language Γ such that QCSP(Γ) is DP-complete (from Boolean Hierarchy), and on a 10-element domain there exists a constraint language giving the complexity class Θ ???? 2 . Meanwhile, we prove the Chen Conjecture for finite conservative languages Γ. If the polymorphism clone of such Γ has the polynomially generated powers (PGP) property then QCSP(Γ) is in NP. Otherwise, the polymorphism clone of Γ has the exponentially generated powers (EGP) property and QCSP(Γ) is PSpace-complete
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