Using agriculture for development: Supply- and demand-side approaches

For most poor countries of today, using agriculture for development is widely recognized as a promising strategy. Yet, in these countries, investment in agriculture has mostly been lagging relative to international norms and recommendations. Current wisdom on how to use agriculture for development is that it requires asset building for smallholder farmers, productivity growth in staple foods, an agricultural transformation (diversification of farming systems toward high value crops), and a rural transformation (value addition through rural non-farm activities linked to agriculture). This sequence has too often been hampered by extensive market and government failures. We outline a theory of change where the removal of market and government failures to use this Agriculture for Development strategy can be addressed through two contrasted and complementary approaches. One is from the “supply-side” where public and social agents (governments, international and bilateral development agencies, NGOs, donors) intervene to help farmers overcome the major constraints to adoption: liquidity, risk, information, and access to markets. The other is from the “demand-side” where private agents (entrepreneurs, producer organizations) create incentives for smallholder farmers to modernize through contracting and vertical coordination in value chains. We review the extensive literature that has explored ways of using Agriculture for Development through these two approaches. We conclude by noting that the supply-side approach has benefited from extensive research but met with limited success. The demand-side approach has promise, but received insufficient attention and is in need of additional rigorous research which we outline

How experimental research in agriculture has gone from lab to field

Agriculture has a long tradition of randomized experiments in the research station and of comparative demonstration plots under scientist control. The BDK Nobelists have pioneered randomized field experiments under agency control to fight global poverty, thus making behavior, contextual circumstances, and institutional constraints key determinants of outcomes. In agriculture, experimentation has massively responded in jumping the fence from lab to field, with already major advances as to how to better use agriculture for development. We document how this has happened and how the methodology of field experiments has to be adapted to perform in the challenging context of developing country agriculture

Prospects and Bottlenecks of Reciprocal Partnerships Between the Private and Humanitarian Sectors in Cash Transfer Programming for Humanitarian Response

As an alternative to commodity-based programming (in-kind aid), Cash Transfer Programming is attracting both humanitarian organizations' and institutional donors' attention. Unlike in-kind aid, Cash Transfer Programming transfers purchasing power directly to beneficiaries in the form of currency or vouchers for them to obtain goods and/or services directly from the local market. In distributing currency to beneficiaries, the private sector, especially financial service providers, plays a prominent role, due to the humanitarian sector's limited relevant resources. The present work unveils challenges for the private and humanitarian sectors, which hinder implementing Cash Transfer Programming. Based on primary and secondary qualitative data, the paper presents the main characteristics and the mechanisms of Cash Transfer Programming to explore how the private sector is involved with Cash Transfer Programming. Then, this study presents bottlenecks of reciprocal relationships between financial service providers and humanitarian organizations in Cash Transfer Programming