Public Expenditures for Agricultural and Rural Development in Africa

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Author :
Publisher : Routledge
ISBN 13 : 1136445404
Total Pages : 305 pages
Book Rating : 4.1/5 (364 download)

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Book Synopsis Public Expenditures for Agricultural and Rural Development in Africa by : Tewodaj Mogues

Download or read book Public Expenditures for Agricultural and Rural Development in Africa written by Tewodaj Mogues and published by Routledge. This book was released on 2012-03-15 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Public Expenditures for Agricultural and Rural Development in Africa

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Author :
Publisher : Routledge
ISBN 13 : 1136445390
Total Pages : 339 pages
Book Rating : 4.1/5 (364 download)

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Book Synopsis Public Expenditures for Agricultural and Rural Development in Africa by : Tewodaj Mogues

Download or read book Public Expenditures for Agricultural and Rural Development in Africa written by Tewodaj Mogues and published by Routledge. This book was released on 2012-03-15 with total page 339 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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?

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 : 0896293807
Total Pages : 548 pages
Book Rating : 4.8/5 (962 download)

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Book Synopsis An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia? by : Diao, Xinshen, ed.

Download or read book An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia? written by Diao, Xinshen, ed. and published by Intl Food Policy Res Inst. This book was released on 2020-12-07 with total page 548 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

The Design of Rural Development

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Publisher : Johns Hopkins University Press
ISBN 13 : 9780801817694
Total Pages : 302 pages
Book Rating : 4.8/5 (176 download)

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Book Synopsis The Design of Rural Development by : Uma J. Lele

Download or read book The Design of Rural Development written by Uma J. Lele and published by Johns Hopkins University Press. This book was released on 1975 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt:

African Agricultural Reforms

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Publisher : World Bank Publications
ISBN 13 : 0821395432
Total Pages : 339 pages
Book Rating : 4.8/5 (213 download)

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Book Synopsis African Agricultural Reforms by : M. Ataman Aksoy

Download or read book African Agricultural Reforms written by M. Ataman Aksoy and published by World Bank Publications. This book was released on 2012-06-25 with total page 339 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Returns to agricultural public spending in Africa south of the Sahara

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 40 pages
Book Rating : 4./5 ( download)

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Book Synopsis Returns to agricultural public spending in Africa south of the Sahara by : Benin, Samuel

Download or read book Returns to agricultural public spending in Africa south of the Sahara written by Benin, Samuel and published by Intl Food Policy Res Inst. This book was released on 2015-12-18 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Accelerating Poverty Reduction in Africa

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Author :
Publisher : World Bank Publications
ISBN 13 : 1464812330
Total Pages : 481 pages
Book Rating : 4.4/5 (648 download)

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Book Synopsis Accelerating Poverty Reduction in Africa by : Kathleen Beegle

Download or read book Accelerating Poverty Reduction in Africa written by Kathleen Beegle and published by World Bank Publications. This book was released on 2019-10-09 with total page 481 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sub-Saharan Africa's turnaround over the past couple of decades has been dramatic. After many years in decline, the continent's economy picked up in the mid-1990s. Along with this macroeconomic growth, people became healthier, many more youngsters attended schools, and the rate of extreme poverty declined from 54 percent in 1990 to 41 percent in 2015. Political and social freedoms expanded, and gender equality advanced. Conflict in the region also subsided, although it still claims thousands of civilian lives in some countries and still drives pressing numbers of displaced persons. Despite Africa’s widespread economic and social welfare accomplishments, the region’s challenges remain daunting: Economic growth has slowed in recent years. Poverty rates in many countries are the highest in the world. And notably, the number of poor in Africa is rising because of population growth. From a global perspective, the biggest concentration of poverty has shifted from South Asia to Africa. Accelerating Poverty Reduction in Africa explores critical policy entry points to address the demographic, societal, and political drivers of poverty; improve income-earning opportunities both on and off the farm; and better mobilize resources for the poor. It looks beyond macroeconomic stability and growth—critical yet insufficient components of these objectives—to ask what more could be done and where policy makers should focus their attention to speed up poverty reduction. The pro-poor policy agenda advanced in this volume requires not only economic growth where the poor work and live, but also mitigation of the many risks to which African households are exposed. As such, this report takes a "jobs" lens to its task. It focuses squarely on the productivity and livelihoods of the poor and vulnerable—that is, what it will take to increase their earnings. Finally, it presents a road map for financing the poverty and development agenda.

Democracy, Public Expenditures, and the Poor

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Author :
Publisher : World Bank Publications
ISBN 13 : 0031210104
Total Pages : 36 pages
Book Rating : 4.0/5 (312 download)

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Book Synopsis Democracy, Public Expenditures, and the Poor by : Philip Keefer

Download or read book Democracy, Public Expenditures, and the Poor written by Philip Keefer and published by World Bank Publications. This book was released on 2003 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

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

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 29 pages
Book Rating : 4./5 ( download)

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Book Synopsis Public expenditures on agriculture at subnational-levels and household-level agricultural outcomes in Nigeria by : Takeshima, Hiroyuki

Download or read book Public expenditures on agriculture at subnational-levels and household-level agricultural outcomes in Nigeria written by Takeshima, Hiroyuki and published by Intl Food Policy Res Inst. This book was released on with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Agricultural Input Subsidies

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Publisher : Oxford University Press, USA
ISBN 13 : 0199683522
Total Pages : 315 pages
Book Rating : 4.1/5 (996 download)

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Book Synopsis Agricultural Input Subsidies by : Ephraim Chirwa

Download or read book Agricultural Input Subsidies written by Ephraim Chirwa and published by Oxford University Press, USA. This book was released on 2013-09-26 with total page 315 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book takes forward our understanding of agricultural input subsidies in low income countries.

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

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 64 pages
Book Rating : 4./5 ( download)

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Book Synopsis Government expenditures in Kenya, 1950–2014: Determinants and agricultural growth effects by : Benin, Samuel

Download or read book Government expenditures in Kenya, 1950–2014: Determinants and agricultural growth effects written by Benin, Samuel and published by Intl Food Policy Res Inst. This book was released on 2018-11-29 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 23 pages
Book Rating : 4./5 ( download)

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Book Synopsis Agricultural public expenditures, sector performance, and welfare in Nigeria: A state-level analysis by : Mavrotas, George

Download or read book Agricultural public expenditures, sector performance, and welfare in Nigeria: A state-level analysis written by Mavrotas, George and published by Intl Food Policy Res Inst. This book was released on 2018-12-10 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Effects of Public Expenditures on Agriculture at Subnational Levels on Households’ Welfare and Economic Resilience in Nigeria

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 35 pages
Book Rating : 4./5 ( download)

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Book Synopsis Effects of Public Expenditures on Agriculture at Subnational Levels on Households’ Welfare and Economic Resilience in Nigeria by : Takeshima, Hiroyuki

Download or read book Effects of Public Expenditures on Agriculture at Subnational Levels on Households’ Welfare and Economic Resilience in Nigeria written by Takeshima, Hiroyuki and published by Intl Food Policy Res Inst. This book was released on 2020-07-29 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Agricultural development has long been considered an important driver of overall economic development in developing countries such as Nigeria. Whether increasing public expenditures on agriculture (PEA) can directly improve broad dimensions of household well-being has continued to be debated. In addition, there has been growing interest in the economic flexibility of households to switch between nonfarm and farming activities. Such flexibility can potentially enhance the resilience of households to shocks like the COVID-19 pandemic in today’s rapidly changing socioeconomic environments. Direct evidence of the impact of PEA on broad development outcomes is also important in informing regional initiatives aiming to use PEA as an instrument for overall food security enhancement and poverty reduction in Africa. Using state- and local government area (LGA)-level PEA figures and household data in Nigeria, this study aims to provide initial evidence at the household level in Nigeria. The findings suggest that greater PEA shares have positive effects on various development outcomes at the household level, including consumption, poverty reduction, nonfarm capital investments, and household dietary diversity. The findings also suggest that greater PEA shares are likely to help farm households enhance their economic flexibility. These findings are consistent with the hypotheses of positive linkages between PEA and agricultural outcomes, and linkages between agricultural and nonagricultural outcomes, often advocated in the literature. PEA should be increased by increasing its share of total public expenditures through conscious efforts to reallocate existing resources, rather than trying to increase it by increasing the overall size of public expenditures. Furthermore, it remains important to identify the appropriate sources (for example, spending by LGA or state) and types of PEA (for example, recurrent or capital spending) for particular development outcomes.

Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 35 pages
Book Rating : 4./5 ( download)

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Book Synopsis Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria by : Takeshima, Hiroyuki

Download or read book Subnational public expenditures, short-term household-level welfare, and economic resilience: Evidence from Nigeria written by Takeshima, Hiroyuki and published by Intl Food Policy Res Inst. This book was released on 2021-10-19 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Public expenditures (PE) are critical for key public sector functions that contribute to development and welfare improvements, including the provisions of necessary public goods and the mitigation of market failures. PE in social sectors, such as health, education, and social welfare, and in agriculture have been increasingly recognized as potentially important for income growth, poverty reduction, fostering increased private investment, improved nutritional outcomes, and greater economic resilience. Furthermore, the importance of the impact of subnational PE on these outcomes has also been recognized, as appropriately decentralized PE systems can potentially achieve greater effectiveness by enabling public sector support that is tailored more to local needs. However, direct evidence of these developmental effects of decentralized PE in developing countries like Nigeria has been relatively limited. This study attempts to fill this knowledge gap by estimating the effects of shares of total subnational PE for agriculture, health, education, and social welfare, as well as PE size, on household-level outcomes using nationally-representative panel household data and both local government area and higher state-level PE data for Nigeria. We find that greater shares of total PE for agriculture, health, and social welfare, conditional on PE size, generally have positive effects on consumption, poverty reduction, and non-farm business capital investments. A greater share of total PE for agriculture benefits a broader range of outcomes than do greater shares of total PE for health and social welfare. These include improving certain nutritional outcomes, like household dietary diversity across seasons, and economic flexibility between farm and non-farm activities, which may be particularly important for building resilience in today’s rapidly changing socioeconomic environment due to shocks, including COVID19. Such multi-dimensional benefits of greater PE for agriculture are particularly worthy of attention in countries like Nigeria, which have historically allocated a lower share of total PE to agriculture than to health and other social welfare sectors and a lower share of total PE to agriculture compared to that allocated to agriculture in similar countries in Africa and elsewhere.

Identifying agricultural expenditures within the public financial accounts and coding system in Ghana

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 52 pages
Book Rating : 4./5 ( download)

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Book Synopsis Identifying agricultural expenditures within the public financial accounts and coding system in Ghana by : Benin, Samuel

Download or read book Identifying agricultural expenditures within the public financial accounts and coding system in Ghana written by Benin, Samuel and published by Intl Food Policy Res Inst. This book was released on 2014-08-25 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper is part of four country case studies that take a detailed look at public expenditures in agriculture, and at how the data on expenditures are captured in government financial and budget accounts. The objective of these studies is to unpack the black box of public expenditure statistics reported in various cross-country datasets, and ultimately to enable the use of existing government accounts to identify levels and compositions of government agriculture expenditures, with better understanding of what these data are in fact accounting for.

The (Arab) Agricultural Investment for Development Analyzer (AIDA): An innovative tool for evidence-based planning

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 18 pages
Book Rating : 4./5 ( download)

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Book Synopsis The (Arab) Agricultural Investment for Development Analyzer (AIDA): An innovative tool for evidence-based planning by : Raouf, Mariam

Download or read book The (Arab) Agricultural Investment for Development Analyzer (AIDA): An innovative tool for evidence-based planning written by Raouf, Mariam and published by Intl Food Policy Res Inst. This book was released on 2018-02-09 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper describes an innovative agricultural and rural economic planning tool that will help governments and analysts in the design of agricultural investment plans: the (Arab) Agricultural Investment for Development Analyzer (AIDA). A policy challenge for all governments, including those in the Middle East and North Africa, is determining the appropriate allocation and quality of public spending to foster agricultural and rural economic growth, employment creation, and poverty reduction. The AIDA economic planning toolkit has been built using an economy-wide and minimalistic investment data approach to assist governments in meeting this planning challenge. Centered on the use of economy-wide Computable General Equilibrium (CGE) models, it allows for a comprehensive planning approach to ensure that the level and allocation of investment in the agriculture and rural sectors is sufficient for achieving desired targeted outcomes. It does this by linking agricultural and rural spending to economic growth, job creation, and household poverty, given resource and market constraints, as well as considering trade-offs and opportunity costs associated with different investment options. Such a holistic system approach enables the ranking of possible interventions and allocations of public funds amid possible changes in public policy to help in designing national agriculture plans and targets.

Strategic public spending: Scenarios and lessons for Ghana

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Author :
Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 35 pages
Book Rating : 4./5 ( download)

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Book Synopsis Strategic public spending: Scenarios and lessons for Ghana by : Aragie, Emerta

Download or read book Strategic public spending: Scenarios and lessons for Ghana written by Aragie, Emerta and published by Intl Food Policy Res Inst. This book was released on with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Growth in Ghana during the last decade has not translated into meaningful benefits for rural households who experienced an increase in poverty in recent years. This reflects, among other factors, the relatively weak performance of the agricultural sector and its general lack of competitiveness. The government has identified agriculture as the backbone of its development strategy and is committed to address the numerous challenges faced by the sector. However, it is likely to encounter fiscal constraints in a postdevelopment assistance era. It is therefore crucial to understand the trade-offs associated with alternative spending strategies. In this study we develop an economywide modeling framework for analyzing returns to public spending in support of agriculture. The model is used to evaluate the effect of compositional shifts in spending given marginal returns to different areas of investment. Our analysis focuses especially on extension services and input subsidies as two important components of the government’s agricultural development strategy. The objective of the study is to advise policymakers on which spending strategy is the most likely to contribute to government’s development goals, such as poverty reduction or economic growth. We find that a doubling of the share of agriculture in total public budget would accelerate agricultural growth to somewhere between 7.6% and 8.6% against the business-as-usual scenario of about 3.5%. The level of growth achieved depends on the types of policies that are favored. In the examples presented here, we show that an input subsidy-oriented spending strategy may yield significant benefits in the short run (1–5 years), and especially in an expansionary fiscal environment, but investments in effective extensive services are more sustainable and rewarding in the medium- to longer-run (6–10 years), especially when public resources are more constrained. These results demonstrate why short-term political goals might result in policy choices that are suboptimal from a longer-term development perspective.