Public spending in developing countries: trends, determination, and impact

The objective of this paper is to review trends in government expenditures in the developing world, to analyze the causes of change, and to develop an analytical framework for determining the differential impacts of various government expenditures on economic growth. Contrary to common belief, it is found that structural adjustment programs increased the size of government spending, but not all sectors received equal treatment. As a share of total government spending, expenditures on agriculture, education, and infrastructure in Africa; on agricultural and health in Asia; and on education and infrastructure in Latin America, all declined as a result of the structural adjustment programs. The impact of various types of government spending on economic growth is mixed. In Africa, government spending on agriculture and health was particularly strong in promoting economic growth. Asia's investments in agriculture, education, and defense had positive growth-promoting effects. However, all types of government spending except health were statistically insignificant in Latin America. Structural adjustment programs promoted growth in Asia and Latin America, but not in Africa. Growth in agricultural production is most crucial for poverty alleviation in rural areas. Agricultural spending, irrigation, education, and roads all contributed strongly to this growth. Disaggregating total agricultural expenditures into research and non-research spending reveals that research had a much larger impact on productivity than non-research spending.Poverty alleviation, Government spending policy, Structural adjustment (Economic policy),

Public expenditure, growth, and poverty reduction in rural Uganda

"Using district-level data for 1992, 1995, and 1999, the study estimated effects of different types of government expenditure on agricultural growth and rural poverty in Uganda. The results reveal that government spending on agricultural research and extension improved agricultural production substantially. This type of expenditure had the largest measured returns to growth in agricultural production. Agricultural research and extension spending also has the largest assessed impact on poverty reduction. Government spending on rural roads also had substantial marginal impact on rural poverty reduction. The impact of low-grade roads such as feeder roads is larger than that of high-grade roads such as murram and tarmac roads. Education's effects rank after agricultural research and extension, and roads. Government spending in health did not show a large impact on growth in agricultural productivity or a reduction in rural poverty, but in part because of difficulties in measuring some of the impacts of this type of investment. Additional investments in the northern region (a poor region) contribute the most to reducing poverty. The poverty-reduction effect of spending on infrastructure and education is particularly high in this region. However, it is the western region (a relatively well-developed region) where most types of investment have highest returns in terms of increased agricultural productivity." Authors' Abstract

Public investment and poverty reduction in Tanzania

"Using Tanzania as a test case, this study demonstrates how household survey data can be used to assess the impacts of public investments on growth and poverty. A two step procedure is used. First, household survey data are used to link household welfare measures to human capital and household access to infrastructure and technology, while controlling for other community and household characteristics. The second step links household human capital and access to infrastructure and technology to past public investments in these factors. As in the Asian studies, the growth effects (measured as per capita income) of investments in agricultural research, roads, and education are found to be large. But unlike Asia, no clear distinction emerges between the measured impacts for high and low potential areas. In many high potential areas, returns to investments are still high and there is no sign of any diminishing marginal returns. This suggests that there has been insufficient public investment in all kinds of regions. Nevertheless, the results show that there is opportunity to improve on the growth and poverty impacts of total public investment through better regional targeting of specific types of investment. For example, additional investments in rural education have attractive growth and poverty impacts in all regions, whereas additional investments in roads and agricultural research are better spent in the central and southern regions of the country." Authors' AbstractHuman capital ,Agricultural research Africa ,Public Expenditures, Investment, and Finance ,Infrastructures ,Welfare and Poverty ,

Institutions and economic policies for pro-poor agricultural growth

"This paper draws together findings from different elements of a research project examining critical components of pro-poor agricultural growth and of policies that can promote such growth in poor rural economies in South Asia and Sub-Saharan Africa. Agricultural growth, a critical driver in poverty reducing growth in many poor agrarian economies in the past, faces many difficulties in today's poor rural areas in South Asia and Sub-Saharan Africa. Some of these difficulties are endogenous to these areas while others result from broader processes of global change. Active state interventions in 'kick starting' markets in 20th century green revolutions suggest that another major difficulty may be current policies which emphasize the benefits of liberalization and state withdrawal but fail to address critical institutional constraints to market and economic development in poor rural areas. This broad hypothesis was tested in an analysis of the returns (in agricultural growth and poverty reduction) to different government spending in India over the last forty years. The results reject the alternate hypothesis underlying much current policy, that fertilizer and credit subsidies, for example, depressed agricultural growth and poverty reduction in the early stages of agricultural transformation. The results show initially high but then declining impacts from fertilizer subsidies; high benefits from investment in roads, education and agricultural R&D during all periods and varying benefits from credit subsidies over four decades; low impacts from power subsidies; and intermediate impacts from irrigation investments. These findings demand a fundamental reassessment of policies espousing state withdrawal from markets in poor agrarian economies. Given widespread state failure in many poor agrarian economies today, particularly in Africa, new thinking is urgently needed to find alternative ways of 'kick starting' markets ways which reduce rent seeking opportunities, promote rather than crowd-out private sector investment, and allow the state to withdraw as economic growth proceeds. Authors' AbstractAgricultural growth ,Poverty, Rural ,South Asia Rural poor ,Africa, Sub-Saharan ,Agrarian economies ,Globalization ,Green Revolution ,Poverty alleviation ,Government spending policy India ,

Global Agendas, Local Norms: Mobilising around Unpaid Care Work in Asia

This article explores the articulation and framing of unpaid care work and the mobilization around it at two spatial scales, the global and national. For the latter it focuses on three of the largest and most diverse countries in Asia — India, China and Indonesia. While the concept of unpaid care work has received considerable attention in international development discourse, it is rarely found in feminist mobilization and advocacy across these countries. The article asks why this issue remains largely excluded from women's political agendas. It also explores how it is framed when it is included. While most organizations recognize women's double burden and the importance of domestic labour, they do not consider ‘unpaid care work’ as a legitimate political issue around which to mobilize. Rather, it is framed, if at all, as part of other political agendas, such as the rights of the elderly (in China), the rights to social protection, especially childcare and maternity entitlements (in India), or the right to equal opportunities within marriage (in Indonesia). The study analyses the differences in framing, the conceptualization of gender equality embedded therein, and the implications for policy

Struggles over work take place at home: women’s decisions, choices and constraints in the Tiruppur textile industry, India

Examining women’s choices around paid work in south India, this article shows the need to pay greater attention to the sphere of reproduction, and in particular the way that women endeavour to fit their productive work around their reproductive roles and responsibilities. Focussing on the region of the Tiruppur garment cluster in Tamil Nadu, India, it outlines the opportunities available to rural women, shedding light first on women’s decisions whether to work or not, and second, on how women choose between particular types of work available to them. The article demonstrates the primacy of the reproductive economy in shaping women's movements in and out of paid work, particularly the importance of stage in life course, household composition and patriarchal control to women’s decisions. Main findings of the article are that most women work, but their particular job choices reflect multiple social and reproductive constraints, while those who withdraw from work have been subjected to new expressions of patriarchy. The article advances understandings in feminist geographies of work by drawing on ethnographic insights to highlight the mutual embeddedness of the reproductive and productive economies

PUBLIC SPENDING IN DEVELOPING COUTRIES: TRENDS, DETERMINATION, AND IMPACT

The objective of this paper is to review trends in government expenditures in the developing world, to analyze the causes of change, and to develop an analytical framework for determining the differential impacts of various government expenditures on economic growth. Contrary to common belief, it is found that structural adjustment programs increased the size of government spending, but not all sectors received equal treatment. As a share of total government spending, expenditures on agriculture, education, and infrastructure in Africa; on agricultural and health in Asia; and on education and infrastructure in Latin America, all declined as a result of the structural adjustment programs. The impact of various types of government spending on economic growth is mixed. In Africa, government spending on agriculture and health was particularly strong in promoting economic growth. Asia's investments in agriculture, education, and defense had positive growth-promoting effects. However, all types of government spending except health were statistically insignificant in Latin America. Structural adjustment programs promoted growth in Asia and Latin America, but not in Africa. Growth in agricultural production is most crucial for poverty alleviation in rural areas. Agricultural spending, irrigation, education, and roads all contributed strongly to this growth. Disaggregating total agricultural expenditures into research and non-research spending reveals that research had a much larger impact on productivity than non-research spending

PUBLIC EXPENDITURE, GROWTH, AND POVERTY REDUCTION IN RURAL UGANDA

Using district-level data for 1992, 1995, and 1999, the study estimated effects of different types of government expenditure on agricultural growth and rural poverty in Uganda. The results reveal that government spending on agricultural research and extension improved agricultural production substantially. This type of expenditure had the largest measured returns to growth in agricultural production. Agricultural research and extension spending also has the largest assessed impact on poverty reduction. Government spending on rural roads also had substantial marginal impact on rural poverty reduction. The impact of low-grade roads such as feeder roads is larger than that of high-grade roads such as murram and tarmac roads. Education's effects rank after agricultural research and extension, and roads. Government spending in health did not show a large impact on growth in agricultural productivity or a reduction in rural poverty, but in part because of difficulties in measuring some of the impacts of this type of investment. Additional investments in the northern region (a poor region) contribute the most to reducing poverty. The poverty-reduction effect of spending on infrastructure and education is particularly high in this region. However, it is the western region (a relatively well-developed region) where most types of investment have highest returns in terms of increased agricultural productivity

Methodology to evaluate first transition foundation stiffness for columns on Winkler foundation

A methodology is developed in this paper to evaluate the first transition foundation stiffness for columns subjected to end concentrated loads, on a Winkler foundation, where the buckling mode shape changes. The method is based on earlier work of Naidu and Rao to predict the fundamental frequency of beam columns, wherein it was assumed that the mode shapes of vibration, initially loaded vibration, and buckling are the same. Very good predictions for the fundamental frequency of beam columns were obtained when the assumption of the same mode shapes is satisfied. In the case of the buckling of columns on Winkler foundations, at a certain value of the foundation stiffness the buckling mode shape totally changes while the mode shapes of vibration and initially loaded vibration remain the same. This led to a very large error in the predicted fundamental frequency parameter of the beam columns. This aspect is used in the present paper to evaluate the first transition foundation modulus of columns of Winkler foundations. The first transition foundation stiffness for simply supported columns on Winkler foundations, for which an exact solution is available, is obtained through the proposed methodology, and is found to be very accurate when compared to the literature values. The methodology is further used to find the first transition foundation modulus of clamped columns for which no solution is readily available. Very interesting and unexpected results were obtained for the transition stiffness and the corresponding mode shapes at transition for clamped columns of Winkler foundations