The impact of the International Food Policy Research Institute's research program on rural finance policies for food security for the poor

This study examines the contributions of the International Food Policy Research Institute (IFPRI) between 1993 and 2001 to analysis, outreach, capacity building, and training related to the role of rural finance in poverty reduction. The IFPRI multicountry research project on Rural Finance Policies for Food Security for the Poor involved data-intensive research by more than 14 research fellows on the impacts of access to rural financial services in countries. This report examines the contribution of the program within four countries where microfinance research and outreach activities were conducted and its contribution to global knowledge about rural finance and food security....It addresses issues of critical importance: (1) does microfinance have an impact on the poor, and is this impact achieved through better risk management as well as increased income generation?, (2) does the structure of financial service providers matter in supporting this impact?, and (3) how can the microfinance industry be made more sustainable?.... Malawi, Bangladesh, Ghana and Nepal were selected for analysis of research impacts." taken from Authors' Abstract.Evaluation Methodology ,Social sciences Research Evaluation ,Research institutes ,Capacity building ,Training ,Rural poor Research ,

Market participation and marketing performance: A case study of Bolivian potato farmers

Agribusiness, Marketing,

Export commodity production and broad-based rural development: coffee and cocoa in the Dominican Republic

An estimated 80,000-100,000 Dominican farmers produce coffee and cocoa, nearly 40 percent of all agricultural producers. The sectors also provide employment for tens of thousands of field laborers and persons employed in linked economic activities. The majority of coffee and cocoa producers are small-scale and most are located in environmentally sensitive watersheds. Recent trends in international commodity markets have challenged the survival of both sectors. Production is characterized by low yields and uneven quality, while periodic hurricanes have contributed to a lackluster and unstable record of output and exports. Despite these conditions, most experts acknowledge the fact that appropriate agro-ecological conditions exist in Dominican Republic for production of high-quality coffee and cocoa. To be competitive and sustainable, some changes must take place in the coffee and cocoa sectors. The objective of this study is to provide an overview of the coffee and cocoa sectors, to identify major problems, and to suggest possible strategies to deal with these problems. The authors conclude that if the objectives of the government are poverty reduction, environmental protection and overall well-being of rural society, it is critical to move beyond a commodity-specific approach to a broader rural development focus on households, regions and environments where coffee and cocoa are currently being grown.Environmental Economics&Policies,Banks&Banking Reform,Economic Theory&Research,Crops&Crop Management Systems,Agricultural Knowledge&Information Systems,Crops&Crop Management Systems,Environmental Economics&Policies,Economic Theory&Research,Banks&Banking Reform,Agricultural Knowledge&Information Systems

Policy for plenty: measuring the benefits of policy-oriented social science research

This paper suggests practical methods for assessing policy research programs, both ex post and ex ante. Measuring the benefits of policy research is difficult: the path of causation between research and policy change is nearly always uncertain; multiple factors influence any particular policy change; policies are diverse in nature as are their intended and actual effects; and some effects of policy research are not priced in the market. Many of the benefits of changes in policy stem from the reduced cost of welfare-improving institutional change. Economic surplus analysis can be used to assess such changes. In some cases, Bayesian decision theory may be helpful in evaluating policy research, although it is usually difficult to obtain estimates of the probability distributions a decisionmaker has before the research becomes available. Subjective estimates of parameters and some measure of their degree of uncertainty, are likely to be needed for an economic surplus model. The paper suggests a set of steps for policy research evaluation. It is applied to two cases: an evaluation of pesticide policy research in Brazil, and an evaluation of policies affecting deforestation in Indonesia.Pesticides., Indonesia., Deforestation Brazil., Development projects., Impact assessment,

Those with blue hair please step forward: An economic theory of group formation and application to Cajas Rurales in Honduras

This paper presents an economic model of group formation with an application to data collected from an agricultural credit program in western Honduras. We formulate a simple theory of group formation using the concept of centers of gravity to explain why individuals join a group. According to our theory, prospective members join based on the potential benefits and costs of group membership, and based on their perception of social distance between themselves and other group members. Social distance is unobservable by outsiders but known by the individual: if you are in then you know who has blue hair. Thus, we argue that social distance helps explain preferences for group formation. To test our theory we analyze data collected from members and non-members of PRODERT, a program that has helped create 188 “Cajas Rurales” (CRs). Using conjoint analysis we test for differences in preferences between members and non-members for the main attributes of the CR. We find that members and non-members exhibit similar preferences for the attributes of the CR; therefore non-membership is not related to supply factors. Using information gathered by executing field experiments, we estimate a proxy for social distance. We use this proxy to run a group formation equation and find that it explains, along with individual characteristics, participation in the CR. Finally we offer suggestions on how to balance performance and coverage in programs in which beneficiaries decide who joins. Small cohesive groups may show exceptional performance at the cost of low coverage, and the opposite may be true.Agricultural Finance, Institutional and Behavioral Economics,

SUPPLY AND DEMAND FOR MARRIED FEMALE LABOR: RURAL AND URBAN DIFFERENCES IN THE SOUTHERN UNITED STATES

This study examined the supply of and demand for married female labor in the southern United States. Special attention was given to differences in labor force participation, labor supply, and quantities of labor supplied and demanded across rural and urban areas. Once state effects were accounted for, decisions to change participation were found not to vary by urban-rural designation. Differences in demand were fully captured by an intercept shifter and the variations in hours supplied by married females between urban and rural areas. Labor supply varied greatly with the effects of key determinants (number of children, work force experience, family income) being strongly different in rural areas. Different policies are needed to promote female labor supply in rural areas as opposed to urban areas.Community/Rural/Urban Development, Labor and Human Capital,

TAXATION: NO SIMPLE ANSWERS

Public Economics,

PRODUCTIVITY AND LAND ENHANCING TECHNOLOGIES IN NORTHERN ETHIOPIA: HEALTH, PUBLIC INVESTMENTS, AND SEQUENTIAL ADOPTION

The adoption of more efficient farming practices and technologies that enhance agricultural productivity and improve environmental sustainability is instrumental for achieving economic growth, food security and poverty alleviation in sub-Saharan Africa. Our research examines the interaction between public investments, community health, and adoption of productivity and land enhancing technologies by households in the northern Ethiopian state of Tigray. Agricultural technology adoption decisions are modeled as a sequential process where the timing of choices can matter. We find that time spent sick and opportunity costs of caring for sick family members are significant factors in adoption. Sickness, through its impact on household income and labor allocation decisions for healthcare and other activities, significantly reduces the likelihood of technology adoption. Our findings suggest that agencies working to improve agricultural productivity and land resource conservation should consider not only the financial status of potential adopters, but also their related health situation.Research and Development/Tech Change/Emerging Technologies,

Viewing microinsurance as a social risk management instrument

The objectives of this paper are to highlight some of the potential and limitations of microinsurance in the context of Social Risk Management (SRM) framework to stimulate further discussion. The paper draws on existing literature on SRM and microinsurance. Where relevant, it invokes lessons from microfinance. The authors conclude that there is potential for efficient and equitable risk management through microinsurance, but also limitations. Microinsurance may be an acceptable means of managing a few limited forms of risk, but not all. SRM practitioners need to recognize that effectiveness of any risk management instrument depends on the nature of risks, household and group characteristics and dynamics, and the availability of alternative risk management options. SRM options should strike a balance between household risk management activities and the multiple instruments available at different institutional levels, including informal, market-based, and publicly provided mechanisms. Microinsurance is a potential part of the SRM toolbox, but risk management can be enhanced through different mechanisms or combinations of them.Insurance&Risk Mitigation,Banks&Banking Reform,Non Bank Financial Institutions,Environmental Economics&Policies,Health Economics&Finance

Is export diversification the best way to achieve export growth and stability? A look at three African countries

Malawi, Tanzania, and Zimbabwe depend heavily on export earnings from a narrow base of agricultural commodities (coffee, cotton, sugar, tea, and tobacco). This dependence increased between 1961 - 1973 and 1974 - 1987, when international prices for those commodities were declining and unstable. Policymakers concerned with the instability and downward trend in export earnings for the three countries, tend to equate these trends with the countries'narrow export commodity base. They often propose export diversification as an expedient remedy. But the authors found that horizontal diversification would have produced lower export earnings and more instability. Policymakers introducing horizontal diversification must first consider price forecasts, comparative advantage, the economy's changing structure, and the costs of adjustment. Reactions to historical price movements can produce unexpected, undesirable results. A shift during this period from favorable to unfavorable price trends, and shifts in the covariances of deviations from price trends, complicate the design of export diversification policies, especially policies aimed at stabilizing export earnings. Generally, the most effective way to achieve growth and stability in export earnings is to increase and stabilize agricultural production and the volume of exports. The authors analysis shows that different export diversification policies can help fulfill different policy goals.Economic Theory&Research,Airports and Air Services,Achieving Shared Growth,Water Resources Assessment,Crops&Crop Management Systems