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Should African Rural Development Strategies Depend on Smallholder Farms? : An Exploration of the Inverse Productivity Hypothesis
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Year: 2012 Publisher: Washington, D.C., The World Bank,

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In Africa, most development strategies include efforts to improve the productivity of staple crops grown on smallholder farms. An underlying premise is that small farms are productive in the African context and that smallholders do not forgo economies of scale-a premise supported by the often observed phenomenon that staple cereal yields decline as the scale of production increases. This paper explores a research design conundrum that encourages researchers who study the relationship between productivity and scale to use surveys with a narrow geographic reach, when policy would be better served with studies based on wide and heterogeneous settings. Using a model of endogenous technology choice, the authors explore the relationship between maize yields and scale using alternative data. Since rich descriptions of the decision environments that farmers face are needed to identify the applied technologies that generate the data, improvements in the location specificity of the data should reduce the likelihood of identification errors and biased estimates. However, the analysis finds that the inverse productivity hypothesis holds up well across a broad platform of data, despite obvious shortcomings with some components. It also finds surprising consistency in the estimated scale elasticities.


Book
Should African Rural Development Strategies Depend on Smallholder Farms? : An Exploration of the Inverse Productivity Hypothesis
Authors: --- --- ---
Year: 2012 Publisher: Washington, D.C., The World Bank,

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Abstract

In Africa, most development strategies include efforts to improve the productivity of staple crops grown on smallholder farms. An underlying premise is that small farms are productive in the African context and that smallholders do not forgo economies of scale-a premise supported by the often observed phenomenon that staple cereal yields decline as the scale of production increases. This paper explores a research design conundrum that encourages researchers who study the relationship between productivity and scale to use surveys with a narrow geographic reach, when policy would be better served with studies based on wide and heterogeneous settings. Using a model of endogenous technology choice, the authors explore the relationship between maize yields and scale using alternative data. Since rich descriptions of the decision environments that farmers face are needed to identify the applied technologies that generate the data, improvements in the location specificity of the data should reduce the likelihood of identification errors and biased estimates. However, the analysis finds that the inverse productivity hypothesis holds up well across a broad platform of data, despite obvious shortcomings with some components. It also finds surprising consistency in the estimated scale elasticities.


Book
Identifying Investment Opportunities for Ruminant Livestock Feeding in Developing Countries
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Year: 2012 Publisher: Washington, D.C. : The World Bank,

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In the future scenario for livestock development, there is a continuing role for smallholder producers, particular for dairy and small ruminants, relying heavily on grass and crop-residues, however in a growth mode, intensifying production, and enhancing the efficiency of resource use (less land, labor and feed resources per unit product). In particular improving the efficiency of converting feed into milk and meat will be critical to increase their income. Ensuring that happens will require technical solutions, in ensuring that feed rations are adequately balanced with the appropriate feedstuffs of adequate quality, and institutional solutions on how to provide smallholders access to high quality information and reliable supplies of sufficient quality feeds. Investment strategies will need to be purposefully tailored to fit these specific contexts. This study assesses where the demand for feed is likely to change the most, and where investments in feed are most likely to increase animal productivity and improve the livelihoods of those who raise livestock. The study focuses on smallholder ruminant-based livestock systems because they have potentially major transformative effects on the livelihoods of producers and others engaged in the related value chains. While pig and poultry enterprises typically play an important role in livelihoods at very low input levels, such as backyard scavenging poultry, they tend to be replaced very quickly by larger scale commercial units. In India for instance, broiler production moved from a few hundred birds per unit to units with a weekly turnover of ten to twenty thousand between 2001 and 2006.


Book
Agribusiness Indicators : Tanzania.
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Year: 2012 Publisher: Washington, D.C. : The World Bank,

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Agriculture in Tanzania accounts for 28 percent of the country's Gross Domestic Product (GDP) and employs 80 percent of its labor force. The sector is also an important source of export revenues. The data and findings presented in this report provide a summary of the performance of the agriculture sector in Tanzania using a set of indicators covering six areas. These are: 1) access to and availability of certified seed; 2) availability of and access to fertilizer; 3) access to farm machinery, particularly tractor hire services for land preparation; 4) access to agricultural and agro-enterprise finance; 5) the cost and efficiency of transporting agricultural commodities; and 6) measures of policy certainty and uncertainty as perceived by private investors and the effects these have on the enabling environment for producers and agribusinesses. The Agribusiness Indicators (ABI) team conducted interviews with Government agencies, private firms (fertilizer importers, seed companies, tractor importers and distributors, transporters), commercial banks, farmer-based organizations, donors, and Non Governmental Organizations (NGOs). The ABI program is pilot testing an initial set of indicators on the ease (or difficulty) of operating agribusinesses in African countries. The indicators are used to assess whether the countries have an enabling environment that is conducive to agribusiness investment, competitiveness, and ultimately agriculture-led growth.


Book
A Toolkit of Policy Options to Support Inclusive Green Growth
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Year: 2012 Publisher: Washington, D.C. : The World Bank,

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In 2012, the Mexican Presidency of the G20 introduced inclusive green growth as a cross-cutting priority on the G20 development agenda. The second meeting of the G20 Development Working Group (DWG), hosted by the Government of the Republic of Korea, took place in Seoul the 19th and 20th of March 2012. As agreed during the first DWG meeting, this second meeting focused on the priorities for their presidency in the first half of 2012: infrastructure, food security and inclusive green growth (IGG). At its Seoul meeting, the DWG also agreed that IGG co-facilitators and relevant international organizations (IOs) should work together in 2012 to develop a nonprescriptive good practices guide/toolkit on enabling national policy frameworks for inclusive green growth to support countries who voluntarily wish to design and implement affordable and inclusive green growth policies, with the aim of achieving sustainable development and poverty alleviation. The toolkit is organized as follows. First, the necessity of applying the different tools in the context of a broad inclusive green growth strategy is stressed, and a harmonized framework combining approaches and tools identified by all four IOs is set forth. Second, the document offers an overview of key tools that can be mobilized to implement an inclusive green growth strategy. Quick technical descriptions of these tools are offered along with suggested sources for further details. Finally, capacity building and knowledge sharing initiatives are presented, with the Green Growth Knowledge Platform (GGKP) highlighted as a powerful collaborative tool to advance policies for inclusive green economies.


Book
Agribusiness Indicators : Zambia.
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Year: 2012 Publisher: Washington, D.C. : The World Bank,

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Agriculture and agribusiness play an important role in the Zambian economy, contributing around 20 percent of gross domestic product (GDP) in recent years and about 12 percent of national export earnings. Agriculture employs nearly 70 percent of the labor force and remains the main source of income and employment for most of the people living in rural areas. The objective of the Zambia agribusiness indicators (ABI) country report is to examine factors that have affected agricultural productivity, market access, and the policy environment for agriculture in Zambia. This report presents findings of a data collection exercise carried out to compile a set of pilot ABI for Zambia. The pilot indicators presented are based on a review of the literature, government statistical bulletins, and primary interviews in the seed, fertilizer, mechanization, agricultural finance, and transport subsectors. The resulting indicators are presented in matrix form, together with notes indicating the specific data source (or sources) used for each indicator. A set of questionnaires was developed for this part of the exercise based on guidelines. Perception indicators on the quality of road infrastructure and other transport sector issues were added to supplement the checklist guidelines. The anticipated impact of the presentation of country performances will be to raise the competitiveness of African agriculture by bringing into sharper focus measures of how individual countries are transitioning towards a more commercial agriculture. This report consists of following seven chapters: chapter one gives introduction; chapter two presents access to and use of improved seed; chapter three focuses on fertilizer access and availability; chapter four focuses on access to farm machinery and tractor hire services; chapter five presents access to agricultural and agri-enterprise finance; chapter six gives cost and efficiency of transport in Zambia; and chapter seven presents policy and enabling environment for agribusiness development.

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