Agriculture and Rural Development
There’s been a lot of talk about food riots in the wake of the international food price hikes in 2007. Given the deaths and injuries caused by many of these episodes, this attention is fully justified. It is quite likely that we will experience more food riots in the foreseeable future—that is, if the world continues to have high and volatile food prices. We cannot expect food riots to disappear in a world in which unpredictable weather is on the rise; panic trade interventions are a relatively easy option for troubled governments under pressure; and food-related humanitarian disasters continue to occur.
In today’s world, food price shocks have repeatedly led to spontaneous—typically urban—sociopolitical instability. Yet, not all violent episodes are spontaneous: for example, long-term and growing competition over land and water are also known to cause unrest. If we add poverty and rampant disparities, preexisting grievances, and lack of adequate social safety nets, we end up with a mix that closely links food insecurity and conflict. The list of these types of violent episodes is certainly long: you can find examples in countries such as Argentina, Cameroon, Pakistan, Somalia, Sudan, and Tunisia showcased in May’s Food Price Watch.
There is clear and present danger that another global food price crisis will emerge sooner than later.
A key signal is the lackluster result of the December 2013 Ministerial meeting of the World Trade Organization (WTO) in Bali, Indonesia - in the heart of the ASEAN community.
The compromises arising from the WTO Bali meeting further demonstrates that many WTO member-nations have returned to a focus on internal domestic politics, sacrificing long-term gains shared across nations, in favor of short-term gains motivated largely by domestic political survival or sheer short-sightedness.
Al-Arabiya reported a few weeks ago that the political crisis in Ukraine and Russia is threatening the availability of food in Egypt and Jordan. Food prices becoming hostage to political crises is certainly not a new phenomenon: food plays an important role in the stability of societies through its availability, affordability, and quality. We learned this lesson from the 1789 French Revolution and more recently, many commentators link soaring food prices in 2010 with the events leading up to the ‘Arab Spring.’ The latter is not surprising when Arab countries import 56% of their cereal consumption, and some Arab countries import 100% of their wheat consumption. These recent market dynamics have led many countries to revisit their food security strategies with an eye to securing food supply.
There is a vigorous debate over the reasons pertaining to the food price increases in 2008, 2010, and 2012. Many highlight the effects of seasonal, short and medium term factors such as weather changes and biofuel-related crop conversions as well as long term factors such as population growth, income growth, and climate change. These price increases in food have enormous effects on people, for example, the 2008 food crisis pushed 105 million people into poverty.
- private sector
- land governance
- environmental and social performance standards
- King Abdullah’s Initiative for Agricultural Investment Abroad
- banned food exports
- food crisis
- Arab Spring & food
- agriculture FDI
- foreign direct investment
- Political Risk Insurance
- Agriculture and Rural Development
- The World Region
- Middle East and North Africa
- Saudi Arabia
Fallow lands in the coastal areas during the dry season
Such large areas of fertile lands are left fallow in spite of ample water available right there in the channels near the farms,” exclaimed Prof. M. Abdul Halim Khan in disbelief during our journey in mid-April to Patuakhali and Barguna. We were taking a trip to his agricultural research sites in the coastal region of Bangladesh.
Agriculture is one of the most important sectors of Bangladesh and its performance has tremendous impacts on poverty reduction, food security as well as overall economic development of the country. This is especially true for people in the coastal areas – mostly small rice farmers whose livelihood depend on the production of rice and other crops.
Despite that, most of the farm lands in the coastal areas remain unused in the dry season for as long as 6 months a year. The main causes of such underutilization of lands include: seasonal natural calamities such as cyclone and tidal surges as well as rising water salinity. There are two peak season for the formation of tropical cyclone in the Bay of Bengal; one in May and another in November. Likewise, salinity in drinking and irrigation water peaks from April to May. As a result, farming in the coastal areas is largely constrained to mono-cropping while double or triple cropping are common practices in other parts of Bangladesh.
To address this issue, Prof. Halim – a prominent professor at the Bangladesh Agricultural University (BAU) – launched a research project, “Strengthening Postgraduate Research Capability and Adaptation of Climate Resilient Cropping System in Vulnerable Coastal Region”, with funding of Taka 23 million (US$ 280,000) from the Academic Innovation Fund (AIF) program under the Higher Education Quality Enhancement Project (HEQEP).
“Accounting” may not be a word that gets many pulses racing. But what if I told you that a new kind of accounting — called natural capital accounting — could revolutionize the way the world’s nations assess and value their economies?
Currently, gross domestic product (GDP) is the most widely used indicator of a country’s economic status. But while this number places a value on all the goods and services produced by that economy, it doesn’t account for its “natural capital” — the ecosystems and the services they provide, from carbon sequestration to freshwater regulation to pollination.
The Africa Progress Panel (a group of the great and good, chaired by Kofi Annan) recently launched its 2014 Africa Progress Report. It’s an excellent, and very nicely written (heartfelt thanks) overview of some key areas: agriculture, fisheries and finance. Some highlights:
‘For more than a decade, Africa’s economies have been doing well, according to graphs that chart the growth of GDP, exports and foreign investment. The experience of Africa’s people has been more mixed. Viewed from the rural areas and informal settlements that are home to most Africans, the economic recovery looks less impressive. Some – like the artisanal fishermen of West Africa – have been pushed to the brink of destitution. For others, growth has brought extraordinary wealth.
There is much cause for optimism. Demography, globalization, new technologies and changes in the environment for business are combining to create opportunities for development that were absent before the economic recovery. However, optimism should not give way to the exuberance now on display in some quarters. Governments urgently need to make sure that economic growth doesn’t just create wealth for some, but improves wellbeing for the majority. Above all, that means strengthening the focus on Africa’s greatest and most productive assets, the region’s farms and fisheries. This report calls for more effective protection, management and mobilization of the continent’s vast ocean and forest resources. This protection is needed to support transformative growth.
The 10th South Asian Economics Students Meet (SAESM) was held in Lahore, Pakistan, bringing together 82 top economics undergraduate students from the region. The theme was the Political Economy of South Asia, with a winning paper selected for each of the six sub-themes. In this post, Thilani Navaratne presents her winning paper on the political economy of energy and natural resource use. Posts from the other winning authors have also been featured on this blog, and can be found at the end of this post.
In the past, Sri Lankan policy makers and politicians paid considerable attention to creating surplus energy capacity at the national level in order to support rapid development while at the same time, embarked on rural development as a prime political initiative where the rural electrification infrastructure formed a crucial component of the policy framework.
I conducted an analysis of the dynamics and the characteristics of the political economy of access to energy in rural electrification in Sri Lanka. The study focuses on how national policies shaped rural energy access and what influence rural politics and demand at the grassroots level have had on the energy infrastructure.
In addition to that the study explores the budgetary policies that had a direct bearing on national energy policies, and more specifically in creating rural energy infrastructure itself. While the provision of energy is the main component of rural energy access, the affordability of energy at rural level remains a key factor in the ultimate, tangible outcomes of energy usage. Clearly, rural economic development and enhancement of living standards are intrinsically linked with the degree of access to energy at affordable prices.
My paper finds that rural access to energy has come about both as a direct outcome of specific policies as well as a result of broader policies of rural development. Specific policies include the National Energy Policy which addresses the basic energy needs of the nation and sets out strategies to be followed to fulfil such needs. Much broader, macro level policies relating to Rural Development and energy accessibility are captured in the “Mahinda Chinthana”- The long term plan for the future of the nation, presented by the governing regime and in the Ministerial Policies.