1,721,168 research outputs found
Crop price indemnified loans for farmers
Full text linkFarmers face a particular set of risks that complicate the decision to borrow. We use a randomized experiment to investigate (1) the role of crop-price risk in reducing demand for credit among famers and (2) how risk mitigation changes farmers’ investment decisions. In rural Ghana, we offer farmers loans with an indemnity component that forgives 50 percent of the loan if crop prices drop below a threshold price. A control group is offered a standard loan product at the same interest rate. We find similar rates of loan uptake among all farmers and little significant impact of the indemnity component on uptake or other outcomes of interest, with the exception of higher likelihoods of garden egg cultivation and sales to market traders rather than at farmgate among recipients of indemnified loans.agricultural credit, clustered randomized control trial, crop price insurance, crop prices, Impact evaluation, underinvestment,
Purpose and potential for commodity exchanges in African economies:
Full text linkThis paper reviews the purpose and potential of commodity exchanges in Africa. Drawing from the existing literature and using indicative empirics, it examines the conditions that enable successful exchanges, highlights the special challenges to setting up exchanges in Africa, and reviews alternatives to domestic exchanges. We argue that many critical preconditions for the successful establishment of commodity exchanges in Africa remain binding in the short to medium term. The development of commodity exchanges in the region is impeded by the relatively small size of domestic commodity markets, the weak physical and communication infrastructure, a lack of supportive legal and regulatory environments, and the likelihood of policy interventions, particularly in the staple cereals market. Meanwhile, the demand for a domestic commodity exchange for export crops may be limited due to the availability of well-established exchanges abroad and functioning auction floors. The paper highlights three points: (a) efforts to launch exchanges in Africa should realistically assess whether basic conditions for success can be met, (b) if the pre-conditions cannot be met, the use of existing exchanges abroad or the development of regional exchanges may be more feasible than the establishment of national commodity exchanges, and (c) the goals of risk management and reduced transaction costs might be achieved more effectively by improving market fundamentals through investments in transportation, information services, or other financial institutions.commodity exchanges, Risk management, Market development,
Market and climatic risks and farmers' investment in productive assets under the Second Fadama Development Project in Nigeria:
Full text linkThe majority of African farmers lack the means to mitigate the impact of risks such as those associated with rainfall and commodity prices. Because most farmers in Sub-Saharan Africa are risk-averse, they may be willing to invest in productive assets that can mitigate the impacts of such risks if their capital constraints are relaxed through external financial assistance. We test this hypothesis using panel data on Nigerian farmers' investment behaviors collected during the Second National Fadama Development Program (Fadama II), which provided financial assistance to farmers in obtaining various productive assets, as well as historical data on rainfall and white gari price in various locations in Nigeria. The results support the hypothesis. Under the Fadama II, farmers facing higher rainfall risk (coefficient of variation in annual rainfall) were more likely to invest in irrigation pumps that can mitigate the impact of rainfall risk, and those facing higher risks on white gari price were more likely to invest in milling machines that enable them to process cassava into flour instead of gari.poverty trap, rainfall risk, price risk, irrigation pump, milling machine, Risk aversion,
Investigating economywide and household-level impacts of sector-specific shocks in a poor country: The case of avian flu in Ethiopia
Full text linkDo the economic effects of potential avian flu outbreaks justify policy attention and resource allocation in a poor country like Ethiopia? We address this question by assessing both economywide (macro-level) economic impacts and household (micro-level) livelihood impacts that might be caused by an avian flu outbreak in Ethiopia. Because 1) the prevalent traditional poultry sector is weakly linked to other sectors, 2) livelihoods of the poultry-producing households are diversified, and 3) shocks are idiosyncratic in nature, the study finds that the impacts of an avian flu outbreak are likely to be small and limited to producers who keep larger flocks. Therefore, allotment of funds to prevent the disease must be justified on the grounds of preventing spread of the disease to human populations in Ethiopia and in other countries where it might have more severe economic and health effects. In other words, resource allocation must be justified as a global public good.avian flu, Livelihoods, multimarket model, simulations, probit, zero-inflated negative binomial, Propensity score matching,
Opportunities and challenges of community-based rural drinking water supplies: An analysis of water and sanitation committees in Ghana
Full text linkProviding safe drinking water in rural areas is a major challenge because it is not easy to establish institutional arrangements that will ensure that drinking water facilities are provided, maintained, and managed in an efficient, equitable, and sustainable way. Like many other countries, Ghana has adopted a community-based approach to meet this challenge. Community-based water and sanitation committees (WATSANs) are in charge of managing drinking water facilities at the local level. They are supported by water and sanitation teams of each district administration and by the Community Water and Sanitation Agency, an independent agency that has been created to facilitate the community-based approach. This paper is based on the analysis of two survey datasets of WATSANs and households in rural Ghana. The paper confirms some findings of the earlier literature on this topic. For example, communities that have a higher level of existing community groups are more likely to have functioning WATSANs, while ethnically diverse communities are less likely to have these organizations. The paper also indicates that WATSANs have a positive effect on the mobilization of payment for water services. Using empirical data on local leaders, the paper shows that leadership also matters for the provision of safe drinking water. In particular, the paper suggests that female leaders seem to be effective in this respect.Community-based resource management, Decentralization, drinking water supply, Participation, Sustainable development,
Building capacities for evidence and outcome-based food policy planning and implementation
Full text linkThe Comprehensive Africa Agriculture Development Programme (CAADP) is an Africawide framework for revitalizing agriculture and rural development in order to accelerate economic growth and progress toward poverty reduction and food and nutrition security. This study reviews CAADP and its strategic objectives, key players, implementation modalities, and approach to ensuring evidence and outcome-based policy planning and implementation. The study also lays out CAADP’s common analytical framework at the country level and shares economic modeling results from member countries of the Economic Community of West African States (ECOWAS) in which analysis was conducted to examine agricultural growth and investment options for meeting CAADP growth and expenditure targets and the Millennium Development Goal target of halving poverty. Finally, the paper discusses CAADP’s review and dialogue mechanisms and knowledge support systems that have been put in place to facilitate benchmarking, mutual learning, and capacity strengthening that will improve agricultural policy, program design, and implementation.CAADP, ECOWAS, growth options, MDG 1, Poverty reduction, public expenditure,
Overview of the agricultural input sector in Ghana
Full text linkKnowledge of the characteristics and size of the agricultural input sector of a country is critical for policymakers to design appropriate interventions that not only foster growth in the sector, but also support the agricultural development goals of the country. In 2009, the International Food Policy Research Institute and the International Fertilizer Development Center jointly conducted a census of agricultural input dealers in Ghana to fill a critical data gap on the nature of the country’s agricultural input sector. This paper presents a detailed description of the sector’s structure, market practices, and supply chain. It also assesses the sector’s response to recently implemented fertilizer subsidies, and findings show that, despite the government’s goal of making the subsidy program supportive of the private market, the majority of fertilizer retailers were excluded from participating.agricultural input sector, fertilizer, agro-dealers network, vouchers, subsidies,
Institutional and public expenditure review of Ghana’s Ministry of Food and Agriculture
Full text linkThe need for agricultural ministries to have the capacity to develop appropriate policies and effectively implement them is becoming increasingly important as African countries, following on their commitment to Comprehensive Africa Agriculture Development Program (CAADP), pursue economic growth through agriculture-led development. The ministries need to take the lead in pulling together evidence based strategies and building partnerships that ensures their ownership. As donors begin to align their policies with those of governments, an increasingly large share of external support to agriculture is likely to be delivered in the form of support to budgets rather than specially implemented projects. Capacities of ministries and effectiveness public systems will have significant bearing on effectiveness and impact of investments in agriculture. This public expenditure and institutional review of Ghana’s Ministry of Food and Agriculture offers insights on diagnosing limitations to and identifying strategies for improving the capacity of ministries to make effective use of human and financial resources. The review makes use a conceptual framework in which mission and functions, organizational capacity – a combination of structures, processes and resources –and organizational incentives interact to produce organizational performance. Indicative strategies are recommended that the ministry can use to generate discussions internally and developed a set a reforms that are owned. They key message is that to improve performance both capacity and incentives faced by organizations need to be addressed.agriculture, ministry, capacity, expenditure review, institutions,
- …
