Public Expenditures for Agricultural and Rural Development in Africa

Public Expenditures for Agricultural and Rural Development in Africa
Author: Tewodaj Mogues
Publisher: Routledge
Total Pages: 305
Release: 2012-03-15
Genre: Business & Economics
ISBN: 1136445404

Whereas there is plenty of work looking at macroeconomic effect of public spending on growth and poverty in Africa as well as studies of the impact of spending or investment in one economic sector on outcomes in that sector or on broader welfare measures, this book fills a much needed gap in the research looking how the composition of public spending affects key development outcomes in the region. The book brings together recent analysis on the trends in, and returns to, public spending for agricultural growth and rural development in Africa. Case studies of selected African countries provide insights on the contributions of different types of public expenditures for poverty, growth and welfare outcomes, as well as insights into the constraints in gaining development mileage from investments in the agricultural sector.

An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?

An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?
Author: Diao, Xinshen, ed.
Publisher: Intl Food Policy Res Inst
Total Pages: 548
Release: 2020-12-07
Genre: Political Science
ISBN: 0896293807

Agricultural mechanization in Africa south of the Sahara — especially for small farms and businesses — requires a new paradigm to meet the needs of the continent’s evolving farming systems. Can Asia, with its recent success in adopting mechanization, offer a model for Africa? An Evolving Paradigm of Agricultural Mechanization Development analyzes the experiences of eight Asian and five African countries. The authors explore crucial government roles in boosting and supporting mechanization, from import policies to promotion policies to public good policies. Potential approaches presented to facilitating mechanization in Africa include prioritizing market-led hiring services, eliminating distortions, and developing appropriate technologies for the African context. The role of agricultural mechanization within overall agricultural and rural transformation strategies in Africa is also discussed. The book’s recommendations and insights should be useful to national policymakers and the development community, who can adapt this knowledge to local contexts and use it as a foundation for further research.

Public Expenditures for Agricultural and Rural Development in Africa

Public Expenditures for Agricultural and Rural Development in Africa
Author: Tewodaj Mogues
Publisher: Routledge
Total Pages: 339
Release: 2012-03-15
Genre: Business & Economics
ISBN: 1136445390

Whereas there is plenty of work looking at macroeconomic effect of public spending on growth and poverty in Africa as well as studies of the impact of spending or investment in one economic sector on outcomes in that sector or on broader welfare measures, this book fills a much needed gap in the research looking how the composition of public spending affects key development outcomes in the region. The book brings together recent analysis on the trends in, and returns to, public spending for agricultural growth and rural development in Africa. Case studies of selected African countries provide insights on the contributions of different types of public expenditures for poverty, growth and welfare outcomes, as well as insights into the constraints in gaining development mileage from investments in the agricultural sector.

Returns to agricultural public spending in Africa south of the Sahara

Returns to agricultural public spending in Africa south of the Sahara
Author: Benin, Samuel
Publisher: Intl Food Policy Res Inst
Total Pages: 40
Release: 2015-12-18
Genre: Social Science
ISBN:

Using data on 34 countries in Africa south of the Sahara (SSA) from 1980 to 2012, this paper assesses the returns to public spending in the agricultural sector, considering expenditures on agriculture as a whole versus expenditures on agricultural research. First, an aggregate production function is estimated using a fixed-effects, instrumental variables estimator to address potential endogeneity of agricultural expenditure and to obtain elasticities of land productivity with respect to total agricultural expenditure and agricultural research expenditure. Different model specifications are used to test the sensitivity of the results to different assumptions. The estimated elasticities are then used to estimate the rate of return to expenditure in different countries and groups of countries. The elasticity of land productivity with respect to total agricultural expenditure per hectare is estimated at 0.04, and elasticity with respect to agricultural research expenditure per hectare is estimated to be higher at 0.09. The aggregate returns to total agricultural expenditure and agricultural research expenditure in SSA are estimated at 11 percent and 93 percent, respectively. Comparative analysis of the estimates with those of previous studies, as well as across different countries and different groups of countries, is undertaken. Then implications are discussed for maintaining the high returns to agricultural research expenditure and for further studies on the low return to total agricultural expenditure, including more disaggregated analysis of expenditure on other functions besides research to better inform prioritization of agricultural expenditure.

Democracy, Public Expenditures, and the Poor

Democracy, Public Expenditures, and the Poor
Author: Philip Keefer
Publisher: World Bank Publications
Total Pages: 36
Release: 2003
Genre: Democracy
ISBN: 0031210104

Countries vary systematically with respect to the incentives of politicians to provide broad public goods, and to reduce poverty. Even in developing countries that are democracies, politicians often have incentives to divert resources to political rents, and to private transfers that benefit a few citizens at the expense of many. These distortions can be traced to imperfections in political markets, that are greater in some countries than in others. The authors review the theory, and evidence on the impact of incomplete information of voters, the lack of credibility of political promises, and social polarization on political incentives. They argue that the effects of these imperfections are large, but that their implications are insufficiently integrated into the design of policy reforms aimed at improving the provision of public goods, and reducing poverty.

African Agricultural Reforms

African Agricultural Reforms
Author: M. Ataman Aksoy
Publisher: World Bank Publications
Total Pages: 339
Release: 2012-06-25
Genre: Business & Economics
ISBN: 0821395432

During the 1990s, SSA countries initiated agricultural policy reforms to increase producer incentives and increase growth. Yet, agricultural growth rates after the reforms have been uneven. This has been attributed to lack of supporting infrastructure or the inability to respond to incentives by the smallholders. Based on ten studies, this volume provides a different framework to interpret the outcomes. First, it attributes the success of the reforms to the degree of consensus around the reform programs, which in turn, creates the institutions that can accommodate unexpected shocks. It differentiates between short run growth accelerations and sustained growth episodes. Second, it analyzes the impact of international prices which increased during the early 1990 and collapsed around 2000. Finally, it links the support institutions that evolved after the reforms back to the political economy of the stakeholders and their interests. Aksoy and Anil develop a political economy framework by bringing together the issues of consensus over the distribution of rents, role of unexpected changes, and the capabilities of institutions in handling these changes. Onal tests the of supply responses while Onal and Aksoy analyze international commodity prices and their transmission to the producers. Baffes analyzes impact of the adoption of cotton biotechnology in India and China, and the failure of SSA to also adopt. Baffes and Onal undertake a comparative study of coffee sectors in Uganda, and Vietnam which faced similar shocks. Five case studies cover cashew in Mozambique (Aksoy and Yagci), coffee and tea in Kenya (Mitchell), cashew in Tanzania (Mitchell and Baregu), tobacco in Tanzania (Mitchell and Baregu), and cotton in Zambia (Yagci and Aksoy). Results show that Agricultural policy reforms generated an immediate positive supply response. Real producer prices increased along with output. In unsuccessful cases where the short run supply response petered out, political and social consensus on the reforms was weak, and the ability to redistribute income after a negative shock was not built into the new arrangements. These products had been a major instrument for rent distribution before the reforms. The agencies could not be reformed to give greater non price support. In successful cases, there was greater consensus on the reforms program. The product was not a major rent distribution instrument and the producers were allied with the governments. Lower conflict also led to greater non price support. There was enough political and economic space for the parties to find solutions in case of shocks.

Public expenditures on agriculture at subnational-levels and household-level agricultural outcomes in Nigeria

Public expenditures on agriculture at subnational-levels and household-level agricultural outcomes in Nigeria
Author: Takeshima, Hiroyuki
Publisher: Intl Food Policy Res Inst
Total Pages: 29
Release:
Genre: Political Science
ISBN:

Growing agriculture remains important for countries like Nigeria where, despite economic transformation at sectoral levels, a significant share of employment still originates from the agricultural sector. The question has continued to be debated of whether increasing Public Expenditures on Agriculture (PEA) is the way to grow agriculture. The needed evidence-base for this debate, while gradually growing, has remained insufficient in African countries, including Nigeria. This has been particularly the case as regards to evidence on the effects of PEA at household levels. This study attempted to partially fill this gap, using state and local government area (LGA)-level PEA figures and household data in Nigeria. The findings suggest that PEA has positive effects on household-level agricultural outcomes in various dimensions, including overall production levels, profits, access to public extension services or subsidized fertilizer, as well as private investments and, in some cases, agricultural mechanization. These patterns generally underscore the hypothesis that increasing direct support to the agricultural sector is likely to have greater effects on agricultural outcomes, compared to alternative strategies of developing agriculture indirectly through the support of other social-sectors like education, health, social safety-nets, among others. Increasing PEA by increasing the agricultural share of public expenditures (PE), while keeping the overall size of PE constant, is found to be particularly effective, compared to alternative approaches of increasing the overall size of PE while keeping agricultural share unchanged. Such patterns may suggest that Ricardian Equivalence partly holds. Furthermore, different agricultural outcomes are found to respond to PEA from different sources (e.g., LGA or State), and types (e.g., recurrent or capital spending). Enhancing research capacity to identify appropriate sources and types of PEA for particular agricultural outcomes remains important.

Government expenditures in Kenya, 1950–2014: Determinants and agricultural growth effects

Government expenditures in Kenya, 1950–2014: Determinants and agricultural growth effects
Author: Benin, Samuel
Publisher: Intl Food Policy Res Inst
Total Pages: 64
Release: 2018-11-29
Genre: Political Science
ISBN:

Annual data on Kenya from 1950 to 2014 are used to analyze the determinants of the level and composition of government expenditures and estimate the agricultural-output returns to the different types of government expenditures. The paper analyzes expenditures for six functions (general administration, defense, education, health, agriculture, and other economic functions—transport, communications, etc.) as well as the capital-to-recurrent expenditure ratios within each of the six functions. Simultaneous equations modeling methods are employed, and different diagnostic tests are used to check for and address issues with stationarity, causality, and autocorrelation. Different model specifications are used to assess the sensitivity of the results to using different measures and combinations of the conceptual variables that are hypothesized to affect the composition of government expenditures and agricultural production.

Agricultural public expenditures, sector performance, and welfare in Nigeria: A state-level analysis

Agricultural public expenditures, sector performance, and welfare in Nigeria: A state-level analysis
Author: Mavrotas, George
Publisher: Intl Food Policy Res Inst
Total Pages: 23
Release: 2018-12-10
Genre: Political Science
ISBN:

Building on the work of earlier studies that looked at trends in and returns to federal public expenditures on agriculture in Nigeria, this paper explores spending patterns at the sub-national state level over a nine-year period, as well as trends in agricultural and economic performance and indicators of household welfare. Our examination focuses on two groupings of states – the full 37 state units of Nigeria (the 36 states, plus the Federal Capital Territory, Abuja); and the seven states that are the focus in Nigeria of the Global Food Security Strategy (GFSS) of the United States Agency for International Development. Sub-national agricultural spending as a share of aggregate agricultural spending in Nigeria is large, given the stronger role for sub-national governments in agriculture than is the case in other sectors. However, we find that the share of state-level expenditures on agriculture as a share of aggregate state-level expenditures is still relatively low, an average of 3.86 percent over the period 2007 to 2015. While the prioritization of agriculture spending varies greatly year by year, the variation over time does not have a discernible long-run upwards or downwards trend. We also find that agricultural expenditures are more capital intensive than are overall public expenditures at state level, but that capital expenditures as a share of total agriculture spending has decline over the last decade, as is the case overall in Nigeria’s industrial sectors. We conclude that efforts to strengthen state-level agricultural spending in Nigeria merits greater attention, while putting in place measures to ensure improved effectiveness in any such spending.