By Steve Wiggins
Despite the achievements of smallholders in Asia during the green revolution, there is scepticism that Africa’s smallholders — who dominate the farm area in most countries — can imitate this model and deliver agricultural growth. This paper assesses whether such pessimism is justified.
Given the high transactions costs of hiring labour of farms, diseconomies of scale can be expected when labour is relatively cheap and abundant compared to other factors of production: which may explain the survey evidence that small farms often produce more per hectare than larger farms. In conditions of low development with relatively cheap labour, small units may have advantages over larger ones.
Lídia Cabral, Colin Poulton, Steve Wiggins and Linxiu Zhang
Comparing reform of agricultural policy in Bangladesh, Chile, China and New Zealand, this paper derives lessons for countries contemplating reform.
In all cases reforms to farm policy were undertaken as part of overall reforms across the whole economy, started in response to a perceived national crisis and usually implemented by new governments with a mandate to make major changes. Political will is, not surprisingly, a necessary condition.
In designing reforms and their implementation, much depends on context, including external conditions such as world market prices. The scope for change, and certainly the sequence and pace of reform, may be as much a matter of administrative feasibility as choice. Where outcomes are uncertain and state capacity limited, gradual approaches to reform that allow for learning may be better than swift and comprehensive -‘big bang’ – packages.
This working paper presents the first stage of a review of agricultural reform experiences within African countries, specifically Ethiopia, Kenya and Malawi. It aims to draw out issues for would-be reformers by examining the experience of four cases of agricultural reform, purposely selected as often being seen as successful.
By Jennifer Leavy and Colin Poulton
Accelerated growth in agriculture is seen by many as critical if the MDGs are to be met inAfrica. Although there are debates about the future viability of small farms (Hazell et al.2007), the official policies of many national governments and international development agencies accord a central role to the intensification and commercialisation of smallholder agriculture as a means of achieving poverty reduction.
According to this thinking,smallholder agriculture is uniquely positioned to deliver broad-based growth in rural areas(where the vast majority of the world.s poor still live). However, others fear that strategiesfor commercialising agriculture will not bring benefits to the majority of rural households, either directly or (in the view of some) at all. Instead, they fear that efforts to promote a morecommercial agriculture will benefit primarily large-scale farms.
At best, the top minority ofsmallholders will be able to benefit.In this paper, therefore, we discuss what is meant by the commercialisation of agriculture,emphasising the different pathways that commercialisation can take. We also examine whatneeds to be done if agricultural commercialisation is to be inclusive, bringing benefits to alarge proportion of rural households.The potential benefits of commercialisation and engaging in trade are well documented.These include stimulating rural growth, which poor people can gain from directly, forexample through: improving employment opportunities (depending on the labour intensity ofcrops grown); increasing agricultural labour productivity; direct income benefits foremployees and employers; expanding food supply and potentially improving nutritionalstatus. Multiplier effects encompass increased demand for food and services in the local area (von Braun and Kennedy, 1994).
Ramatu Al-Hassan and Colin Poulton
Ghana was one of the first countries in Africa to embark on structural adjustment reforms. 25 years on, its continuing commitment to reform for national economic development has yielded impressive gains in growth and poverty reduction. Poverty in the country is measured through periodic Ghana Living Standards Surveys (GLSS). In 1991/92 GLSS3 found that 51.7% of the population were living below the national poverty line. By 1998/99 (GLSS4) this had fallen to 39.5% and by 2005/06 (GLSS5) it had fallen to 28.5% (Ghana Statistical Service 2007). In absolute terms the number of poor people in Ghana has fallen from 7.9 million in 1991/92 to 6.2 million in 2005/06. At current growth rates, Ghana should achieve MDG1 before 2010.
Patrick Irungu, Lydia Ndirangu and John Omiti
Patrick Irungu, Lydia Ndirangu and John Omiti March 2009 This paper focuses on social protection programs in Kenya’s agriculture. A case study approach was used where three cases were examined: (a) emergency seed distribution in the arid and semi-arid lands and remote areas which are inadequately served by the formal seed sector, (b) hunger and safety net programme in northern Kenya, and (c) Njaa Marufuku Kenya. The study found that while social protection programs/strategies are necessary to cushion vulnerable groups from covariate risk, these have not been properly domesticated in the Kenyan policy and legal frameworks. In fact, the national response to shocks and stresses among the vulnerable groups has largely been ad hoc. Emergency interventions have been implemented in rather haphazard and knee-jerk approach with minimal strategic policy focus. And even where social safety nets have been implemented, these have largely been untargeted, uncoordinated and humanitarian in nature. Hence, although some efforts have been made in the past to entrench social protection in the Kenyan society (e.g., the Equity Bill, the Affirmative Action Bill and the Constitutional Review), these initiatives have suffered from lack of political goodwill, ethnic and class chauvinism and political patronage. There is therefore need to for the Kenyan society as a whole to re-define its strategic direction with regard to empowering poor households to enable them cope with shocks. The starting point would be to design a comprehensive social protection policy which is now in progress.
Rachel Sabates-Wheeler, Stephen Devereux and Bruce Guenther
The paper explores how social protection and agricultural policies interact, creating either synergies or conflicts between them. To the extent that social protection measures help poor rural people expand their assets, use them more efficiently and adopt higher return activities, there should be strong synergies with agricultural development. Reverse synergies can also arise, if agricultural policies help farmers improve their livelihoods and reduce their vulnerability. But conflicts can occur if policy objectives are inconsistent with each other, and these are also examined in this paper. We draw on numerous examples from the across the globe, but with specific emphasis from the African continent to highlight issues including, liquidity constraints, scale and threshold effects, timing, seasonality and policy complementarities. In conclusion we consider lessons for how the agricultural policies and social protection instruments can be designed and implemented to exploit welfare and growth synergies.
Cash Transfers and High Food Prices: Explaining Outcomes on Ethiopia’s Productive Safety Net ProgramMarch 1, 2010 / Working Papers
Rachel Sabates-Wheeler and Stephen Devereux
An ongoing and highly politicised debate concerns the relative efficacy of cash transfers versus food aid. This paper aims to shed light on this debate, drawing on new empirical evidence from Ethiopia’s Productive Safety Net Programme (PSNP). Our data derive from a two-wave panel survey conducted in 2006 and 2008. Ethiopia has experienced unprecedented rates of inflation since 2007, which have reduced the real purchasing power of PSNP cash payments. Our regression findings confirm that food transfers or ‘cash plus food’ packages are superior to cash transfers alone – they enable higher levels of income growth, livestock accumulation and self-reported food security. These results raise questions of fundamental importance to global humanitarian response and social protection policy. We draw out some implications for the design of social transfer programmes and describe some steps that could be taken to enable ‘predictable transfers to meet predictable needs’wpdm_package id='4402']
Jennifer Leavy and Colin Poulton
According to this thinking, smallholder agriculture is uniquely positioned to deliver broad-based growth in rural areas (where the vast majority of the world?s poor still live). However, others fear that strategies for commercialising agriculture will not bring benefits to the majority of rural households, either directly or (in the view of some) at all. Instead, they fear that efforts to promote a more commercial agriculture will benefit primarily large-scale farms. At best, the top minority of smallholders will be able to benefit.
Accelerated growth in agriculture is seen by many as critical if the MDGs are to be met in Africa. Although there are debates about the future viability of small farms (Hazell et al. 2007), the official policies of many national governments and international development agencies accord a central role to the intensification and commercialisation of smallholder agriculture as a means of achieving poverty reduction.
Various explanations have been advanced for the persistent under?performance of agriculturein many African countries, where smallholder farming is still the dominant livelihood activityand the main source of employment, food and income. Some of the oldest argumentsremain the most compelling. African farmers face harsh agro?ecologies and erratic weather,characterised by low soil fertility, recurrent droughts and/or floods, and increasinglyunpredictable weather patterns associated with climate change. Vulnerability to shocks iscompounded by infrastructure deficits (roads and transport networks, telecommunications,potable water and irrigation) that keep poor communities poor and vulnerable, as testifiedby the phenomenon observed during livelihood crises of steep food price gradients fromisolated rural villages to densely settled urban centres. African farmers have also beeninadequately protected against the forces of globalisation and adverse international terms oftrade – for instance, Western farmers and markets are heavily protected in ways that Africanfarmers and markets are not.
This Working Paper draws on nearly twenty years of research in several African countries on the inter-related themes of food insecurity, seasonality, coping strategies, famine, formal and informal safety nets and social protection. The paper has three objectives:
- To document and synthesise evidence on the nature and consequences of seasonality across rural Africa, highlighting the similarities and convergences across contexts
- To explore the various policy interventions that have been implemented in response to seasonality, with particular reference to the emerging social protection agenda
- To argue that current approaches to social protection are misconceived and inadequate for addressing the seasonal dimensions of rural vulnerability