Transfers and Development: Easy Come, Easy Go?

Contrary to the popular notion that money that is easily earned, is also easily spent, economic theory holds that income is fungible. Drawing on the concept of mental accounting, this study theoretically explores when such a link between spending behaviour and the effort dispensed in obtaining income is plausible. Empirically, it is found that the marginal propensity to consume from unearned income is about three times larger than that from earned income, based on household panel data from rural China, with the difference more pronounced when unearned income is transitory and smaller than earned income. The policy implications are real

Application of a Novel Method for Assessing Cumulative Risk Burden by County

The purpose of this study is to apply the Human Security Index (HSI) as a tool to detect social and economic cumulative risk burden at a county-level in the state of Texas. The HSI is an index comprising a network of three sub-components or “fabrics”; the Economic, Environmental, and Social Fabrics. We hypothesized that the HSI will be a useful instrument for identifying and analyzing socioeconomic conditions that contribute to cumulative risk burden in vulnerable counties. We expected to identify statistical associations between cumulative risk burden and (a) ethnic concentration and (b) geographic proximity to the Texas-Mexico border. Findings from this study indicate that the Texas-Mexico border region did not have consistently higher total or individual fabric scores as would be suggested by the high disease burden and low income in this region. While the Economic, Environmental, Social Fabrics (including the Health subfabric) were highly associated with Hispanic ethnic concentration, the overall HSI and the Crime subfabric were not. In addition, the Education, Health and Crime subfabrics were associated with African American racial composition, while Environment, Economic and Social Fabrics were not. Application of the HSI to Texas counties provides a fuller and more nuanced understanding of socioeconomic and environmental conditions, and increases awareness of the role played by environmental, economic, and social factors in observed health disparities by race/ethnicity and geographic region

Are Medium-scale Farms Driving Agricultural Transformation in sub-Saharan Africa?

This study presents evidence of profound farm-level transformation in parts of sub-Saharan Africa, identifies major sources of dynamism in the sector, and proposes an updated typology of farms that reflects the evolving nature of African agriculture. Repeat waves of national survey data are used to examine changes in crop production and marketed output by farm size. Between the first and most recent surveys (generally covering 6 to 10 years), the share of national marketed crop output value accounted for by medium-scale farms rose in Zambia from 23% to 42%, in Tanzania from 17% to 36%, and in Nigeria from 7% to 18%. The share of land under medium-scale farms is not rising in densely populated countries such as Kenya, Uganda, and Rwanda, where land scarcity is impeding the pace of medium-scale farm acquisitions. Medium-scale farmers are a diverse group, reflecting distinct entry pathways into agriculture, encouraged by the rapid development of land rental, purchase, and long-term lease markets. The rise of medium-scale farms is affecting the region in diverse ways that are difficult to generalize. Findings indicate that these farms can be a dynamic driver of agricultural transformation but this does not reduce the importance of maintaining a clear commitment to supporting smallholder farms. Strengthening land tenure security of local rural people to maintain land rights and support productivity investments by smallholder households remains crucial

Replacing the services sector and three-sector theory: urbanization and control as economic sectors

Developed during the Second World War, ‘three-sector theory’ popularized the notion of the ‘services’ sector. It has quietly underpinned understandings of economic structure ever since. The limitations and influence of this basic breakdown have led to many critiques and extensions, but no replacements. Inspired by Henri Lefebvre’s The Urban Revolution (1968), we develop a four-sector model that replaces services with sectors focused on urbanization and control. We argue that this model is a better reflection of material economic life, and a more useful way of approaching the 21st-century economy. It also offers scholars of urbanization and regional development a creative new way of seeing urbanization

diversification as part of a csa strategy the cases of zambia and malawi

Climate variability, associated with farm-income variability, is recognized as one of the main drivers of livelihood diversification strategies in developing countries. In this chapter, we present a synthesis of two comprehensive studies from Zambia and Malawi on the drivers of diversification and its impacts on selected welfare outcomes with a specific attention to climatic variables and institutions. We use geo-referenced farm-household-level data merged with data on historical rainfall and temperature as well as with administrative data on relevant institutions. The two case studies demonstrate that diversification is clearly an adaptation response, as long term trends in climatic shocks have a significant effect on livelihood diversification, albeit with different implications. Whereas the long term variation in growing period rainfall is associated with increased crop, labour and income diversification in Malawi, it is only associated with increased livestock diversification in Zambia. With regard to institutions, we find that access to extension agents positively and significantly correlates with crop diversification in both countries, underlining the role of extension in promoting more resilient farming systems in rural Zambia and Malawi. Fertilizer subsidies are among the most important agricultural policies in both countries, where they significantly affect incentives for income diversification – though in opposing ways – providing important policy implications. The two case studies document distinct ways in which incentives for livelihood diversification (measured along different dimensions) are shaped by increased variability in rainfall and rural institutions. The results also demonstrate that diversification can be an effective adaptation response and the risk-return trade-offs are not as pronounced as might be expected