Harnessing net primary productivity data for monitoring sustainable development of agriculture
Harnessing net primary productivity data for monitoring sustainable development of agriculture

Author: Robinson, Nathaniel P.

Publisher: Intl Food Policy Res Inst

Published: 2016-12-16

Total Pages: 32

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This study was undertaken to assess the utility of remotely sensed net primary productivity (NPP) data to measure agricultural sustainability by applying a new methodology that captures spatial variability and trends in total NPP and in NPP removed at harvest. The sustainable intensification of agriculture is widely promoted as a means for achieving the Sustainable Development Goals (SDGs) and transitioning toward a more productive, sustainable, and inclusive agriculture, particularity in fragile environments. Yet critics claim that the 17 SDGs and 169 targets are immeasurable and unmanageable. We propose adoption of satellite-estimated, time-series NPP data to monitor agricultural intensification and sustainability, as it is one indicator potentially valuable across several SDGs. To illustrate, we present a unique monitoring framework and a novel indicator, the agricultural appropriation of net primary productivity (AANPP) and analyze spatial trends in NPP and AANPP across the continent of Africa. AANPP focuses on the proportion of total crop NPP removed at harvest. We estimate AANPP by overlaying remotely sensed satellite imagery with rasterized crop production data at 10-by-10-kilometer spatial resolution; we explore variation in NPP and AANPP in terms of food and ecological security. The spatial distribution of NPP and AANPP illustrates the dominance of cropping systems as spatial drivers of NPP across many regions in West and East Africa, as well as in the fertile river valleys across North Africa and the Sahel, where access to irrigation and other technological inputs are inflating AANPP relative to NPP. A comparison of 2000 and 2005 datasets showed increasing AANPP in African countries south of the Sahara—particularly in Mozambique, Angola, and Zambia—whereas NPP either held stable or decreased considerably. This pattern was especially evident subnationally in Ethiopia. Such trends highlight increasing vulnerability of populations to food and ecological insecurity. When combined with other indicators and time-series data, the significance of NPP and the capacity of spatially explicit datasets have far-reaching implications for monitoring the progress of sustainable development in a post-2015 world.

Perspectives on the role of the state in economic development: Taking stock of the “Developmental State” after 35 years
Perspectives on the role of the state in economic development: Taking stock of the “Developmental State” after 35 years

Author: Kyle, Jordan

Publisher: Intl Food Policy Res Inst

Published: 2017-01-13

Total Pages: 82

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This review evaluates the role of the state in development, offering a new framework for understanding what capabilities states need to overcome different types of market failures. This framework is employed to understand the successes and failures of state-led development in Malaysia. The review addresses three key questions. First, what do we know about developmental states and why they emerged? Second, what have developmental states achieved? In answering this question, I look not only at growth but also at structural transformation, economic “upgrading,” equity, and human capability enhancement. In contrast to the idea of a single “East Asian model” of development, I find five distinct development trajectories. Third, how did developmental states utilize state structures to pursue development? To answer this final question, I examine in depth the history of state-led development in Malaysia—including agricultural, industrial, and social policies. This case study sheds light on what specific institutional and political capacities helped Malaysia to improve productivity in agriculture, expand the manufacturing sector, and reduce inequality. It also explores why Malaysia has been less successful in developing linkages with the export-based manufacturing sector.

Imputing nutrient intake from foods prepared and consumed away from home and other composite foods
Imputing nutrient intake from foods prepared and consumed away from home and other composite foods

Author:

Publisher: Intl Food Policy Res Inst

Published: 2017-01-06

Total Pages: 48

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This paper assesses the Subramanian and Deaton (S–D) approach for imputing the caloric intake of households from food prepared away from home (FAFH) and composite foods (CF) by juxtaposing it with the imputations of alternative approaches, and extends these approaches to four additional nutrients—vitamin A, iron, zinc, and calcium. The apparent relative nutritional insignificance of FAFH and CF in Bangladesh obfuscates our efforts to assess alternatives to the S–D approach to imputation, and we remain uncertain about the relative value of the alternative imputation approaches examined. FAFH and CF—although widely consumed in Bangladesh—constitute a relatively unimportant source of nutrients, regardless of how the nutrient content of FAFH and CF is imputed.

Cities and rural transformation: A spatial analysis of rural youth livelihoods in Ghana
Cities and rural transformation: A spatial analysis of rural youth livelihoods in Ghana

Author: Diao, Xinshen

Publisher: Intl Food Policy Res Inst

Published: 2017-01-27

Total Pages: 40

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Urbanization has had a major impact on livelihoods in Ghana and throughout Africa as a whole. However, much research on urbanization has focused on effects occurring within cities, while there is insufficient understanding of its effects on rural areas. This paper examines the impact of urbanization—through a typology of districts—on rural livelihoods in Ghana. The country’s districts are classified into seven spatial groups according to the size of the largest city in each district in southern and northern Ghana. The paper does not address rural–urban migration but instead focuses on the livelihoods of rural households. In contrast to the extensive literature focusing on the effects of urbanization on individuals, we assess its impacts on individual rural households as a whole, with a particular focus on youth-headed households. Many rural households have shifted their primary employment from agriculture to nonagriculture, especially in the more urbanized South. In contrast, change in livelihood diversification within rural households with family members’ primary employment in both agriculture and nonagriculture appears much less rapid. Rural youth-headed households are significantly more associated with the transition away from agriculture than households headed by other adults, and such trends are stronger in locations closer to larger cities, particularly in the South. Although the nonagricultural economy is becoming increasingly important for rural households, contrary to expectations, the probit model analysis in this paper shows that agricultural production does not appear to be more intensified—in terms of modern input use—in the more urbanized South, and youth do not show greater agricultural technology adoption than other adults, indicating that the constraints against modern input adoption may be binding for all farmers, including youth and farmers in more urbanized locations. We also find that rural poverty rates are consistently lower among nonagricultural households, and the share of middle-class population is also disproportionally higher among rural nonagricultural households than agricultural households. While the probit analysis confirms the positive relationship between being a nonagricultural household and being nonpoor or becoming middle class after controlling for all other factors, education seems to play the biggest role. As rural youth become more educated and more households shift from agriculture to the rural nonfarm economy, a different range of technologies for agricultural intensification is necessary for agriculture to be attractive for youth. A territorial approach and related policies that integrate secondary cities and small towns with the rural economy deserve more attention such that the diversification of rural livelihoods can become a viable alternative or complement to rural–urban migration for youth.

The dark side of competition
The dark side of competition

Author: Chang, Simone

Publisher: Intl Food Policy Res Inst

Published: 2016-12-16

Total Pages: 32

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The literature has placed great emphasis on the advantages of competition on market efficiency while ignoring the downside of competition on health. Using a natural experiment in Taiwan, we show that excessive competition comes at a health cost. In the late 1940s, half a million soldiers retreated to Taiwan from Mainland China after a civil war. They were initially not allowed to get married until the marriage ban was essentially lifted in 1959. As a large number of soldiers flooded the marriage market, men faced much stronger mating competition than before, which in turn increased the likelihood of male depression and mortality.

External shocks, food security, and development
External shocks, food security, and development

Author: Díaz-Bonilla, Eugenio

Publisher: Intl Food Policy Res Inst

Published: 2016-12-23

Total Pages: 44

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We conduct an ex ante evaluation of the impacts of a potential global recession within the next years and the possible policy responses to support economic activity and improve social indicators in five Central American countries: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. We review the economic and social evolution of the past decades in those countries, and we consider a global scenario that includes further deceleration of world growth, lower commodity prices, and a decline in remittances and capital flows to those countries. We simulate those scenarios and related policy issues using recursive dynamic CGE models for the countries considered. The global shock is run under fixed exchange rates and flexible exchange rates (in the case of El Salvador, which has adopted the US dollar as the domestic currency, the simulation of a flexible exchange rate is just indicative). In all cases, a flexible exchange rate delivers better results in terms of GDP per capita, by softening the overall economic impact of the external shocks. Two possible interventions to deal with the recession are simulated: one focuses on policies to strengthen the safety net for the poor; the other applies a more general macroeconomic stimulus (a tax cut plus a modest increase in public investments, financed by un-conventional monetary policy) to try to cushion the shock. For all countries except El Salvador, these two simulations are run with a flexible exchange rate. In the first policy simulation GDP per capita in those countries does not change much, but the poor groups targeted clearly improve their incomes and consumption, helping them the most during the years of the negative shocks. In the second simulation, the macroeconomic stimulus improves the performance of the economies, allowing GDP per capita to be higher than in the case of the shock alone. In summary, facing a potential global downturn as the one simulated here, those countries that have flexible exchange rates and the use of domestic monetary policies can use a mix of adjustment in exchange rates combined with targeted poverty transfers and macroeconomic stimulus to alleviate the shock. El Salvador, which does not have the exchange rate and monetary instruments, will require further support from multilateral and bilateral sources to soften the shock

Changing preferences through experimental games
Changing preferences through experimental games

Author: Stopnitzky, Yaniv

Publisher: Intl Food Policy Res Inst

Published: 2016-12-16

Total Pages: 36

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Much policy interest in sanitation and hygiene promotion focuses on changing behavior and increasing demand for these goods. Yet the effectiveness of large-scale interventions has been mixed, in large part because of the difficulty of changing attitudes on deeply rooted behaviors. This study tests whether an experiential learning exercise structured around an experimental game can be used to shift preferences around sanitation and hygiene. A minimum coordination game is adapted to the sanitation and hygiene setting by linking game choices to real-world investment decisions and payoffs in terms of health and status. Individuals from 20 villages in rural Tamil Nadu were randomly assigned to one of three groups: one that played a game in which communication between rounds was allowed, another that played a game in which communication was prohibited, and a control group that only completed a survey. Based on a comparison of survey responses across treatment arms, the game improved stated preferences in relation to sanitation and hygiene. This effect was larger when communication was allowed, and men responded on average more strongly than women across both versions of the game. These results suggest that experimental games can be a valuable tool not only for the study of decision making but for improving participants’ knowledge and pro-sanitation preferences.

Economic transformation in Africa from the bottom up: Evidence from Tanzania
Economic transformation in Africa from the bottom up: Evidence from Tanzania

Author: Diao, Xinshen

Publisher: Intl Food Policy Res Inst

Published: 2017-02-03

Total Pages: 41

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At roughly 4 percent per year, labor productivity in Tanzania has grown more rapidly over the past 14 years than at any other time in recent history. Employment growth has also been strong, keeping up with population growth at roughly 2.5 percent per year; the bulk of employment growth (90 percent) has been in the nonagricultural sector. However, the vast majority of this nonagricultural employment growth has occurred in informal sector. Using Tanzania’s first nationally representative survey of micro-, small-, and medium-sized enterprises, this paper shows that firms in the informal sector contributed roughly half a percentage point to economywide labor productivity growth in Tanzania between 2002 and 2012. However, virtually all of the labor productivity growth contributed by informal firms came from a small subset of firms called the “in-between firms.” This paper considers attributes of the in-between firms that could be used for targeting financial and business services to firms with the potential to grow. This paper finds two salient characteristics of in-between firms that might lend themselves to targeting—their owners are more likely to keep written accounts and more likely to keep their savings in formal bank accounts.

Climate change, agriculture, and adaptation in the Republic of Korea to 2050
Climate change, agriculture, and adaptation in the Republic of Korea to 2050

Author: Cenacchi, Nicola

Publisher: Intl Food Policy Res Inst

Published: 2016-12-16

Total Pages: 92

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As the effects of climate change set in, and population and income growth exert increasing pressure on natural resources, food security is becoming a pressing challenge for countries worldwide. Awareness of these threats is critical to transforming concern into long-term planning, and modeling tools like the one used in the present study are beneficial for strategic support of decision making in the agricultural policy arena. The focus of this investigation is the Republic of Korea, where economic growth has resulted in large shifts in diet in recent decades, in parallel with a decline in both arable land and agricultural production, and a tripling of agricultural imports, compared to the early 2000s. Although these are recognized as traits of a rapidly growing economy, officials and experts in the country recognize that the trends expose the Republic of Korea to climate change shocks and fluctuations in the global food market. This study uses the IMPACT (International Model for Policy Analysis of Agricultural Commodities and Trade) economic model to investigate possible future trends of both domestic food production and dependence on food imports, as well as the effects from adoption of agricultural practices consistent with a climate change adaptation strategy. The goal is to help assess the prospects for sustaining improvements in food security and possibly inform the national debate on agricultural policy. Results show that historical trends of harvested area and imports may continue into the future under climate change. Although crop models suggest negative long-term impacts of climate change on rice yield in the Republic of Korea, the economic model simulations show that intrinsic productivity growth and market effects have the potential to limit the magnitude of losses; rice production and yield are projected to keep growing between 2010 and 2050, with a larger boost when adoption of improved technologies is taken into consideration. At the same time, food production and net exports from the country’s major trading partners are also projected to increase, although diminished by climate change effects. In sum, these results show that kilocalorie availability will keep growing in the Republic of Korea, and although climate change may have some impact by reducing the overall availability, the effect does not appear strong enough to have significant consequences on projected trends of increasing food security.

Estimating spatial basis risk in rainfall index insurance
Estimating spatial basis risk in rainfall index insurance

Author: Ceballos, Francisco

Publisher: Intl Food Policy Res Inst

Published: 2016-12-29

Total Pages: 48

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This paper develops a novel methodology to estimate the degree of spatial basis risk for an arbitrary rainfall index insurance instrument. It relies on a widelyused stochastic rainfall generator, extendedto accommodate nontraditional dependence patterns—in particular spatial upper-tail dependence in rainfall—through a copula function. The methodology is applied to a recentlylaunched index product insuring against excess rainfall in Uruguay. The model is first calibrated using historical daily rainfall data from the national network of weather stations, complemented with a unique,high-resolution dataset from a dense network of 34 automatic weather stations around the study area. The degree of downside spatial basis risk is then estimated by Monte Carlo simulations and the results are linked to both a theoretical model of the demand for index insurance and to farmers’ perceptions about the product.