Opportunities and Challenges for Community Involvement in Public Service Provision in Rural Guatemala

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

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Book Synopsis Opportunities and Challenges for Community Involvement in Public Service Provision in Rural Guatemala by : Johanna Speer

Download or read book Opportunities and Challenges for Community Involvement in Public Service Provision in Rural Guatemala written by Johanna Speer and published by Intl Food Policy Res Inst. This book was released on 2013-03-11 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of the research summarized in this paper is to provide policy-relevant knowledge on the governance of rural services in Guatemala and thus to contribute to improving the provision of services that are essential for agricultural and rural development. Almost 10 years ago, the Guatemalan government decided to strengthen decentralization and community participation to improve the quality of public services, as well as access to these services for the poor, especially in rural areas. Based on quantitative and qualitative primary data, we examine how services are actually provided today and how community preferences and participation affect service provision in rural Guatemala. Our main finding is that the provision of formally decentralized services by local governments is incomplete. As a result, many rural communities continue to lack access to services, and some of them engage in supplying these services themselves. However, communities do not consider themselves to be more effective at service provision and would therefore prefer to be served by the government. Moreover, we find that community participation in the planning and evaluation of services has a positive impact on the responsiveness of the local government’s service provision. However, the effectiveness of community participation varies greatly among the examined cases, with several participatory governance bodies not functioning properly due to low education levels, poverty, and weak civil-society organization.

Data Needs for Gender Analysis in Agriculture

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 22 pages
Book Rating : 4./5 ( download)

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Book Synopsis Data Needs for Gender Analysis in Agriculture by : Cheryl Doss

Download or read book Data Needs for Gender Analysis in Agriculture written by Cheryl Doss and published by Intl Food Policy Res Inst. This book was released on 2013-04-05 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: To support gender analysis in agriculture, household surveys should be better designed to capture gender-specific control and ownership of agricultural resources such as male-owned, female-owned, and jointly owned assets. This paper offers guidelines on how to improve data collection efforts to ensure that women farmers are interviewed and that their voices are heard. Researchers need to clarify who should be interviewed, how to structure the interview, and how to identify which people are involved in various activities, as owners, managers, workers, and decisionmakers. It is important not simply to assume that one particular person does these activities based on social norms, but instead to ask the questions to allow for a range of answers that can demonstrate how the gender patterns in agriculture are changing. To assist in these efforts, the paper provides an overview of relevant questions to include, emphasizing that whenever questions are asked about ownership and access to resources, answers should be associated with individuals. Finally, collecting data on the institutions that are related to agricultural production and marketing allows analysis of the gender-based constraints and opportunities that they present.

The Policy Landscape of Agricultural Water Management in Pakistan

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 32 pages
Book Rating : 4./5 ( download)

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Book Synopsis The Policy Landscape of Agricultural Water Management in Pakistan by : Noora-Lisa Aberman

Download or read book The Policy Landscape of Agricultural Water Management in Pakistan written by Noora-Lisa Aberman and published by Intl Food Policy Res Inst. This book was released on 2013-04-13 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Irrigation is central to Pakistan’s agriculture; and managing the country’s canal, ground, and surface water resources in a more efficient, equitable, and sustainable way will be crucial to meeting agricultural production challenges, including increasing agricultural productivity and adapting to climate change. The water component of the International Food Policy Research Institute’s Pakistan Strategy Support Program (PSSP) is working to address these topics through high-quality research and policy engagement. As one of the first activities of this program, the PSSP undertook this assessment of the policy landscape for agricultural water management in Pakistan, to better understand how to engage with stakeholders in the landscape, and to assess possible opportunity points for improving water conservation. The authors use the Net-Map method, an interview tool that combines stakeholder mapping, power mapping, and social network analysis, to examine the relationships between various institutions influencing the water sector in Pakistan. Group interviews were conducted with national stakeholders in Islamabad and with provincial stakeholders in Lahore to establish separate influence maps at the different scales. Interviewees were asked about four types of network relationships: formal authority, informal pressure, technical information, and funding. Network data was analyzed using social network analysis software and notes from interviews add further depth to the network observations. Concluding discussion focuses on the distribution of power and influence in the network and on the opportunities and challenges of recent governance reforms and implications for stakeholder engagement.

Does Freer Trade Really Lead to Productivity Growth?

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 28 pages
Book Rating : 4./5 ( download)

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Book Synopsis Does Freer Trade Really Lead to Productivity Growth? by : Lauren Bresnahan

Download or read book Does Freer Trade Really Lead to Productivity Growth? written by Lauren Bresnahan and published by Intl Food Policy Res Inst. This book was released on 2013-04-17 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Manufacturing is intensive in the use of reproducible factors and exhibits greater technological dynamism than primary production. As such, its growth is central to long-run development in low-income countries. African countries are latecomers to industrialization, and barriers to manufacturing growth, including those that limit trade, have been slow to come down. What factors contribute most to increases in output and productivity growth in African manufacturing? Recent trade–industrial organization theory suggests that trade liberalization should raise average total factor productivity (TFP) among manufacturing firms (Melitz 2003). However, these predictions are conditional on maintained assumptions about the nature of industries, factor markets, and trade patterns that may not be appropriate in a developing-country setting. Manufacturing firms are heterogeneous, so the analysis demands disaggregated data. We use firm-level data from the World Bank’s Regional Program on Enterprise Development, covering Ghana, Kenya, Nigeria, and Tanzania for 1991–2003. Among other things, the data distinguish exports by destination (Africa and the rest of the world), which is important due to the spread of intra-African regional trade agreements (RTAs). Econometric results confirm well-known relationships, such as a positive association between export intensity and TFP, which implies that more productive firms are more likely to select in to exporting. However, we also find the destination of exports to be important. Many exporters have experienced declining TFP growth rates, which have occurred at different rates depending on the country and the export destination. The evidence for “learning by exporting” is thus mixed. These results add a new dimension to controversies over the development implications of trade liberalization and the promotion of intra-African RTAs.

Who talks to whom in African agricultural research information networks? The Malawi case

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 24 pages
Book Rating : 4./5 ( download)

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Book Synopsis Who talks to whom in African agricultural research information networks? The Malawi case by : Klaus Droppelmann

Download or read book Who talks to whom in African agricultural research information networks? The Malawi case written by Klaus Droppelmann and published by Intl Food Policy Res Inst. This book was released on 2013-04-17 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The sector-wide approach currently dominates as the strategy for developing the agricultural sector of many African countries. Although it is recognized that agricultural research plays a vital role in ensuring success of sectorwide agricultural development strategies, there has been little or no effort to explicitly link the research strategies of the National Agricultural Research System (NARS) in African countries to the research agenda that is articulated in sectorwide agricultural development strategies. This study fills that gap by analyzing the readiness of Malawi’s NARS to respond to the research needs of the national agricultural sector development strategy, namely the Agriculture Sector Wide Approach (ASWAp) program. Results of a social network analysis demonstrate that public agricultural research departments play a central coordinating role in facilitating information sharing, with other actors remaining on the periphery. However, that analysis also shows the important role other actors play in relaying information to a wider network of stakeholders. These secondary information pathways can play a crucial role in ensuring successful implementation of the national agricultural research agenda. Policymakers and managers of public research programs are called upon to integrate other research actors into the mainstream national agricultural research information network. This is vital as other research actors are, at the global level, increasingly taking up a greater role in financing and disseminating research and research results, and in enhancing the scaling up and out of new agricultural technologies.

Measuring Food Policy Research Capacity

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

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Book Synopsis Measuring Food Policy Research Capacity by : Suresh Chandra Babu

Download or read book Measuring Food Policy Research Capacity written by Suresh Chandra Babu and published by Intl Food Policy Res Inst. This book was released on 2013-04-10 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Addressing emerging global poverty, hunger, and malnutrition challenges requires prudent evidence-based policymaking at the country level. Capacity for generating evidence remains a major constraint in the policy process in developing countries. We surveyed 30 countries to measure the capacity of their individuals, organizations, and policy process system to undertake food and agricultural policy research. Our Food Policy Research Capacity Index, constructed using measures of human capacity (PhD full-time equivalent researchers per million rural residents), human capacity productivity (publications per PhD full-time equivalent researcher), and strength of institutions (the government effectiveness pillar of the Worldwide Governance Indicators), showed substantial variation across countries, with the Republic of South Africa, Colombia, and Ghana scored far higher than countries with similarly sized rural populations such as Liberia, Laos, Burundi, and Afghanistan. Initial analysis showed that the index is strongly positively correlated with the Global Food Security Index and negatively correlated with the Global Hunger Index. Further work is planned to refine the indicators, particularly with regard to the effects of country size (population) and quality of the underlying data.

Dynamics of Transformation

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 36 pages
Book Rating : 4./5 ( download)

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Book Synopsis Dynamics of Transformation by : Hiroyuki Takeshima

Download or read book Dynamics of Transformation written by Hiroyuki Takeshima and published by Intl Food Policy Res Inst. This book was released on 2013-06-21 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Agriculture in African South of the Sahara (SSA) can be transformed if the right public support is provided at the initial stage, and it can sustain itself once the enabling environment is put in place. Successes are also specific to the location of projects. In Ghana, interesting insights are obtained from the successful Kpong Irrigation Project (KIP), contrasted with other major irrigation projects in the country. Through an exploratory review, we describe how a productive system evolved in KIP and how public support for critical aspects (accumulation of crop husbandry knowledge, selection and supply of profitable varieties, and mechanization of land preparation) might have created a productive environment that the private sector could enter and fill in the market for credit, processing, mechanization of harvesting, and other institutional voids that typically have constrained agricultural transformation in the rest of SSA. Slower progress in other projects also raises a number of questions. We conclude by summarizing those questions and some testable hypotheses for future research.

Targeting Technology to Reduce Poverty and Conserve Resources

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4./5 ( download)

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Book Synopsis Targeting Technology to Reduce Poverty and Conserve Resources by : Travis J. Lybbert

Download or read book Targeting Technology to Reduce Poverty and Conserve Resources written by Travis J. Lybbert and published by Intl Food Policy Res Inst. This book was released on 2013-07-02 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Demand heterogeneity often makes it profitable for firms to price and promote goods and services differently in different market segments. When private consumption brings public benefits, this same heterogeneity can be used to target public subsidies. We explore the design of public–private targeting and segmentation strategies in the case of a resource-conserving agricultural technology in India. To understand farmers’ heterogeneous demand for laser land leveling (LLL), we conducted an experimental auction for LLL services with an integrated randomized controlled trial to estimate the private benefits of the technology. We use graphical and econometric approaches to characterize farmer demand for LLL. We then add detailed cost data from LLL providers to simulate and evaluate several potential targeted delivery strategies based on measures of (1) the cost-effectiveness of expanding LLL dissemination, (2) water savings, and (3) market surplus in a welfare framework. These simulations demonstrate inherent tradeoffs between increasing the amount of land that is leveled and expanding the number of farmers who adopt the technology, and between adoption and water savings. While segmenting and targeting are popular elements of many public–private partnerships to develop and disseminate agricultural technologies, formulating and implementing effective delivery strategies requires a rich understanding of costs, benefits, and demand. Our experimental approach generates such an understanding and may be relevant in other contexts.

A Regional Computable General Equilibrium Model for Honduras

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 36 pages
Book Rating : 4./5 ( download)

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Book Synopsis A Regional Computable General Equilibrium Model for Honduras by : Samuel Morley

Download or read book A Regional Computable General Equilibrium Model for Honduras written by Samuel Morley and published by Intl Food Policy Res Inst. This book was released on 2013-03-15 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Impact of Oportunidades on Human Capital and Income Distribution

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4./5 ( download)

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Book Synopsis The Impact of Oportunidades on Human Capital and Income Distribution by : Dario Debowicz

Download or read book The Impact of Oportunidades on Human Capital and Income Distribution written by Dario Debowicz and published by Intl Food Policy Res Inst. This book was released on 2013-04-05 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an effort to inform social policy in Mexico, this paper analyzes the effects of a major social program on school attendance and household income distribution, accounting for its partial and general equilibrium effects. Linking a microeconometric simulation model and a general equilibrium model in a bidirectional way, the paper explicitly takes spillover effects of the Oportunidades conditional cash transfer program into account. Our results suggest that partial equilibrium analysis alone may underestimate the distributional effects of the program. Extending the coverage of the program leads to a significant increase in school attendance, which reduces labor supply and increases the equilibrium wages of the children who remain at work. This general equilibrium effect indirectly reduces income inequality and poverty at the national level.

Filling the learning gap in program implementation using participatory monitoring and evaluation

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4./5 ( download)

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Book Synopsis Filling the learning gap in program implementation using participatory monitoring and evaluation by : Elias Zerfu

Download or read book Filling the learning gap in program implementation using participatory monitoring and evaluation written by Elias Zerfu and published by Intl Food Policy Res Inst. This book was released on 2013-03-29 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study is motivated by the idea that even though participatory monitoring and evaluation (PM&E) is widely accepted as a tool to manage development programs to be effective, its application is widely constrained by its high start-up resource requirements in terms of both finance and time. However, this paper argues that after the initial investment is made, the payback from using PM&E is much higher both in terms of grassroots-level learning, empowerment, and capacity building and in terms of higher-level strategic decision making which enhances impact. This is demonstrated using field-level experience of implementing PM&E in farmer field schools (FFSs) under the Agricultural Services Support Program and Agricultural Sector Development Program–Livestock (ASSP/ASDP-L) program in Zanzibar, Tanzania. After describing the major steps followed in designing and implementing a PM&E for FFSs, the major lessons learned and challenges faced in the process are discussed. The study found out that PM&E has enabled the tracking of technology uptake and reasons behind adoption and nonadoption of technologies through detailed data collection. This informed and improved decision making at a higher level to design feasible methods to scale up adoption at other FFSs and to devise solutions for nonadoption. The need for incentives to undertake PM&E was found to be one of the major challenges of implementation, among others.

A Partial Equilibrium Model of the Malawi Maize Commodity Market

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

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Book Synopsis A Partial Equilibrium Model of the Malawi Maize Commodity Market by : Mariam A. T. J. Mapila

Download or read book A Partial Equilibrium Model of the Malawi Maize Commodity Market written by Mariam A. T. J. Mapila and published by Intl Food Policy Res Inst. This book was released on 2013-03-29 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a model of the Malawi maize commodity market that is developed for use as a policy analysis tool. The model captures national and local maize market dynamics and the linkages existing within the maize market in the country. This research has been undertaken in order to provide policy makers with a robust tool which can be used to simulate the impact of policy changes on markets and households. Such a tool ensures the availability of evidence for informing food and agricultural policies. The model is a multiequation partial equilibrium model of the national maize market in Malawi. It is developed and linked in a top-down unidirectional manner to the local maize economy via a price linkage equation. A nonbehavioral arithmetic microaccounting approach is used to estimate rural household incomes that are linked to the local economy, through which macroeconomic-level maize price changes transmit. The model can be used as a tool for analyzing the impacts of macroeconomic and agricultural policy changes on the maize industry as well as on rural households that rely on maize. The novelty of the model is that it takes into account the interrelationships between farm/household, local-economy, and national maize market prices, as well as economic theory and existing empirical evidence, to build a framework that is capable of linking to the macroeconomy rural subsistence households that are traditionally deemed to have few or no backward and forward linkages.

Agricultural Trade

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 32 pages
Book Rating : 4./5 ( download)

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Book Synopsis Agricultural Trade by : David Laborde

Download or read book Agricultural Trade written by David Laborde and published by Intl Food Policy Res Inst. This book was released on 2013-03-14 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we provide an overview of the agricultural trade negotiations within the current World Trade Organization (WTO) negotiations and we show that including agriculture in the Doha Development Agenda talks is important both economically and politically, although the political resistance to reform is particularly strong in this sector. While agriculture accounts for less than 10 percent of merchandise trade, high and variable agricultural distortions appear to cause the majority of the cost of distortions to global merchandise trade. Within agriculture, most of the costs appear to arise from trade barriers levied on imports, since these barriers tend to be high, variable across time and over products, and levied by a wide range of countries. The negotiations face a need for balance between discipline in reducing tariffs—hence creating the market access gains that are central to the negotiations—and flexibility in managing political pressures. While the approach of providing flexibility on a certain percentage of tariff lines is seriously flawed, the proposed modalities still appear to provide worthwhile market access. Better ways appear to be needed to deal with developing countries’ concerns about food price volatility while reducing the collective-action problems resulting from price insulation.

Assessing the Effectiveness of Multistakeholder Platforms

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 32 pages
Book Rating : 4./5 ( download)

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Book Synopsis Assessing the Effectiveness of Multistakeholder Platforms by : Thaddée Badibanga

Download or read book Assessing the Effectiveness of Multistakeholder Platforms written by Thaddée Badibanga and published by Intl Food Policy Res Inst. This book was released on 2013-04-05 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2008, the Democratic Republic of the Congo (DRC) established multistakeholder platforms in the agricultural sector known as agricultural and rural management councils (CARGs). The aim of CARGs is achieving a decentralized governance of the agricultural policies and strategies through a large participation of stakeholders of the sector in the design and implementation of agricultural policy processes. Multistakeholder platforms are institutional arrangements intended and used for learning, policy dialogue, and priority setting, but they are rarely evaluated. This paper analyzes the effectiveness of local-level (territory) multistakeholder platforms using data from 55 CARGs in 23 randomly selected territories in three provinces (Bandundu, Bas-Congo, and Kinshasa) of the DRC. The first CARG was established in 2008, and the survey was conducted three years later, from August to October 2011. The results indicate that the effectiveness of the CARGs has been rather limited. Fifty-one percent of the surveyed CARGs achieved results consistent with at least one of the main goals of their processes. However, 45 percent have not yet achieved any tangible output, whether consistent or not with their main goals, while 4 percent achieved output outside their objectives. The results also show that the capacity to generate and sustain support for CARGs and their multistakeholder process is an important determinant of their effectiveness. Strategies aimed at improving CARG capacity are likely to improve their effectiveness.

Reverse-Share-Tenancy and Marshallian Inefficiency

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 48 pages
Book Rating : 4./5 ( download)

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Book Synopsis Reverse-Share-Tenancy and Marshallian Inefficiency by : Hosaena Ghebru Hagos

Download or read book Reverse-Share-Tenancy and Marshallian Inefficiency written by Hosaena Ghebru Hagos and published by Intl Food Policy Res Inst. This book was released on 2013-05-17 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: While there are ample empirical studies that claim the potential disincentive effects of sharecropping arrangements, the existing literature is shallow in explaining why share tenancy contracts are prevalent and diffusing in many developing countries. Using a unique tenant-landlord matched dataset from the Tigray region of Ethiopia, we are able to show how the tenants’ strategic response to the varying economic and tenure-security status of the landlords can explain sharecroppers’ productivity differentials. To the best of our knowledge, this is the first study to use tenant–landlord matched data that accounts for both the supply (landlord) and demand (tenant) side characteristics in analyzing sharecroppers’ level of effort and productivity. The study reveals that sharecroppers’ yields are significantly lower on plots leased from landlords who are non-kin, who are female, who have lower income-generating opportunity, and who are tenure insecure than on plots leased from landlords with the opposite characteristics. While, on aggregate, the results show no significant efficiency loss on kin-operated sharecropped plots, more decomposed analyses indicate strong evidence of Marshallian inefficiency on kin-operated plots leased from landlords with weaker bargaining power and higher tenure insecurity. This study thus shows how failure to control for the heterogeneity of landowners’ characteristics can explain the lack of clarity in the existing empirical literature on the extent of moral hazard problems in sharecropping contracts.

Understanding the Role of Research in the Evolution of Fertilizer Policies in Malawi

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 32 pages
Book Rating : 4./5 ( download)

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Book Synopsis Understanding the Role of Research in the Evolution of Fertilizer Policies in Malawi by : Michael Johnson

Download or read book Understanding the Role of Research in the Evolution of Fertilizer Policies in Malawi written by Michael Johnson and published by Intl Food Policy Res Inst. This book was released on 2013-04-25 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the role of research in agricultural policy making in Malawi at a time when the Africa Union and the New Partnership for Africa’s Development have been seeking to promote greater evidenced-based decision making in agriculture. Drawing on both theory and actual past experiences documented in the literature, results are intended to improve our understanding of the extent to which research has played any role in influencing policy change in Malawi. This is done in the context of the evolution of the country’s fertilizer subsidy policies. Results point to some general lessons. First, strengthening the Ministry of Agriculture’s capacity for policy analysis and becoming more proactive in the policy process proved critical in the earlier years of Malawi’s long history of fertilizer subsidies. Second, the government’s experience of bargaining with donors may have actually strengthened its own ability to position and assert its legitimacy in shaping policies. Third, while research may have played a historically marginal role, researchers have been able to influence policy choices whenever a window of opportunity arose for technical input—such as at times of crisis. However, researchers would also benefit from engaging more with the policy debates and policymaking process. Finally, while the paper draws on existing theoretical frameworks to understand the role of research in the policy process more generally, a better framework still needs to be developed in describing the standard experiences and realities of the African agricultural policy landscape.

Agricultural Mechanization in Ghana

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Publisher : Intl Food Policy Res Inst
ISBN 13 :
Total Pages : 24 pages
Book Rating : 4./5 ( download)

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Book Synopsis Agricultural Mechanization in Ghana by : Nazaire Houssou

Download or read book Agricultural Mechanization in Ghana written by Nazaire Houssou and published by Intl Food Policy Res Inst. This book was released on 2013-03-29 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since 2007, the government of Ghana has been providing subsidized agricultural machines to private enterprises established as Agricultural Mechanization Services Enterprise Centers (AMSEC) to scale up tractor-hire services to smallholder farmers. Although farmer’s demand for mechanization has increased in recent years, most of this demand concentrates on land preparation (plowing) service. Using the firm investment model and recent data, this paper quantitatively assesses whether AMSEC as a private enterprise is a viable business model attractive to private investors. Even though the intention of the government is to promote private sector-led mechanization, findings suggest that the AMSEC model is unlikely to be a profitable business model attractive to private investors even with the current level of subsidy. The low tractor utilization rate as a result of low operational scale is the most important constraint to the intertemporal profitability of tractor-hire services. Our findings further support the argument of Pingali, Bigot, and Binswanger (1987), who indicated that mechanization service centers supported through government’s heavy subsidy are not a policy option anywhere in the world, even in the current situation in Ghana. Although the tractor rental service market is a proper way of mechanizing agriculture in a smallholder-dominated agricultural economy such as Ghana, this paper concludes that the development of such a market depends crucially on a number of factors, including increased tractor use through migration across the two very different rainfall zones (north and south), increased tractor use through multiple tasks, and use of low-cost tractors. The government can play an important role in facilitating the development of a tractor service market; however, the successful development of such a market depends on the incentive and innovation of the private sector, including farmers who want to own tractors as part of their business portfolio, traders who know how to bring in affordable tractors and expand the market, and manufacturers in exporting countries who want to seek a long-term potential market opportunity in Ghana and in other west African countries.