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Agriculture and Rural Development

Are Agricultural Traders Colluding? Experimental Evidence on Competition in Kenyan Maize Markets: Guest Post by Lauren Falcao Bergquist

This is the second in our series of posts by Ph.D. students on the job market this year
Setting food-price policy is hard. Smallholder farmers are better off with higher crop prices, but consumers want lower prices. So what is a policymaker to do?
 
Well-integrated agricultural markets can tackle both sides of this food-price policy dilemma, by pulling crops out of surplus areas (to boost prices received by farmers) and pushing food into deficit areas (to reduce prices faced by consumers).
 
But, alas, agricultural markets in sub-Saharan Africa are not well-integrated. Wide variation in prices across regions and seasons is common, and large gaps between farmer and consumer prices are the norm. There are many possible causes. One issue is that trade is expensive to conduct in the region. To move crops from surplus to deficit areas, agricultural traders must pay high transport costs, spend time and money searching for sellers and buyers, and battle institutional failures like poor credit availability and contact enforcement. Yet, there may be another important driver of the gap between farmer and consumer prices – one that has been voiced by policymakers but is much less well-documented empirically: agricultural traders may be engaging in imperfect competition and extracting rents. 

120 minutes: A story of a water master and transformative irrigation in Afghanistan

Bashir Ahmad's picture



As the local mirab - “water master” and I walked along the high-elevation canal, high winds blew sand in our mouths and eyes. The elevation canal in Herat province is famous for its “120 days of wind.” Located in the far west of Afghanistan, Herat is home to the Hari Rud River basin, giving the province the potential to be an agricultural heartland. But the area I walked was not green and lush, rather, it looked like desert.
 
Herati farmers cultivate wheat, barley, and vegetables, but also face severe water shortages and irrigation issues. “Poor people cultivate wheat as a major crop to have at least something to eat,” said a local villager. “Most years, the flood flushes away our soil bags and we cannot divert water into the canal.”
 
The water shortages are not due to the lack of water, but rather the lack of efficient water management. As Regional Manager of the On-Farm Water Management Project (OFWMP) in Herat, I was there to visit sites for potential irrigation projects in three villages: Kushk-e-Baad Saba village in Injil district, and Deh Surkh and Deh Pada villages in Zenda Jan district. Through these projects, we could work with local villagers to transform this dusty desert into fruitful farmland.

Measuring family farming is tricky business

Vellore Arthi's picture



Of the 1.4 billion people living in extreme poverty, the vast majority resides in rural areas, relying on smallholder agriculture as a source of income and livelihood. Agricultural labor statistics are needed to study some of the most pressing issues in development:  how households earn income, the factors driving urbanization, the causes of un- and under-employment, the constraints to growth in Sub-Saharan Africa, and, in the big picture, understanding the potential for structural transformation. And, as climate change continues to impact smallholder farming outcomes, collecting quality data is even more important as we think ahead to interventions that promote climate-resilience for family farmers.

Agribusiness can help to unlock the true potential of Africa

Teodoro De Jesus Xavier Poulson's picture
A woman farmer works fields in the Conde’ community of Morro da Bango, Angola. © Anita Baumann

The challenges faced by small farmers are similar across the developing world – pests, diseases and climate change. Yet in Africa the challenges are even greater. If farmers are to survive at current rates (let alone grow), they need to have access to high-yielding seeds, effective fertilizers and irrigation technologies. These issues threaten the region’s ability to feed itself and make business-growth and export markets especially difficult to reach. Other factors include the rise in global food prices and export subsidies for exporters in the developed economies, which leave African farmers struggling to price competitively.

A tale of two disasters: Communities connecting and learning from each other

Margaret Arnold's picture
Community members from Nepal learn how to make paper jewelry crafts from Ibasho-Japan elders.
Community members from Nepal learn how to make paper jewelry crafts from Ibasho-Japan members. 
(Photo: Margaret Arnold / World Bank)
In the aftermath of the earthquake that struck Nepal in April 2015, Santoshi Rana of Bihani, a social venture working with elderly community members in Kathmandu, noticed that many efforts engaged the youth in relief and recovery activities. “Our elderly were completely left out of the equation, and were treated as passive beneficiaries in need of care.” So she took to the Internet to see what resources she could find. She came across a World Bank-Global Facility for Disaster Reduction and Recovery (GFDRR) report, “Elders Leading the Way to Resilience,” which assessed the impact of Ibasho café, an elder-led recovery effort in Ofunato, Japan, following the Great East Japan Earthquake (GEJE) in 2011.

Ibasho: a Japanese approach to community resilience

In Ofunato, elder community members planned and built the Ibasho Café, which serves as a hub to restore the fabric of a community badly damaged by the GEJE disaster. Ibasho Café is an informal gathering place that brings the community together. All generations connect in that space, with children coming to read books in the English library, older people teaching the young how to make traditional foods, younger people helping their elders navigate computer software, etc. With the elderly actively engaged in the operation of the Ibasho café, the place helps build social capital and resilience, while changing people’s mindsets about aging. The café runs as a sustainable business and, over time, has developed a noodle shop, an organic farm, and a farmers market to further support its operation.

In 2014-2015, GFDRR supported the documentation of the Ibasho experience in Japan. Learning about this experience, Santoshi realized the elders and women of her community could also lead the way, and reached out to Emi Kiyota, head of Ibasho, the NGO that facilitated the process in Ofunato.

How to make services work for the poor?

Maria Jones's picture

This question is particularly relevant in the context of traditional public agricultural extension services. Expensive and burdened by high rates of under-staffing and low levels of accountability, privatization of extension services may be a way to improve cost-effectiveness. However, private services may lack incentives to tailor their services to the poorest, making them an unsatisfactory substitute for a public system of extension. This issue is particularly salient in sub-Saharan Africa, where markets for agricultural services are typically lean.

Tackling drug-resistant infections a priority

Tim Evans's picture
This Op-Ed originally appeared in the China Daily, USA.
A technician carries out a blood test for HIV virus at Jinan AIDS lab in East China's
Shandong province on Nov 30, 2015. [Photo/IC]

While the last half century has seen major advances in global health, new challenges are now threatening these hard-won health gains. One of these is antimicrobial resistance (AMR), or drug-resistant infections which can no longer be treated by antibiotics and other antimicrobial drugs. AMR is on the increase globally both in humans and animals.

One Health: let’s not have pandemics get in the way

Franck Berthe's picture



Today the world is celebrating “One Health Day.” Sometimes great ideas appear simple, even intuitive: the One Health concept was created to demonstrate that the health of people and animals are interconnected, and that these are in turn, inextricably bound to the health of the environment on which all life depends.

Against all odds - What is driving poverty reduction in Nepal?

SaileshTiwari's picture
Father and son
“Today is the happiest day in my life. I never thought my son would be going to a boarding school in the city.” - Tsering Tejaba, Sankhuwasabha (Photo Credit – Stories of Nepal)


The year 2015 was rough on Nepal. The catastrophic earthquakes that struck the country in April/May caused widespread destruction of life and property and was followed by disruptions in the south that brought cross-border trade with India to a complete standstill for 4 months. As dramatic as these recent shocks have been, Nepal is no stranger to conflict and fragility. A 10-year violent Maoist conflict ended in 2006 but the ensuing years of drafting a new constitution were turbulent; politics often dominating the discourse as opposed to economics. But despite these unfavorable odds, Nepal made rather surprising progress on improving living standards and reducing poverty.

Between 1995 and 2010, absolute poverty – measured as the proportion of people living below the national poverty line of Rs.19,261 per person per year – declined steadily by around 2.2 percentage points a year. This helped the country meet the MDG target of halving income poverty by 2015 quite comfortably. Living standards improvements were realized not just based on income or consumption but also along multidimensional measures of well-being that take into account access to essential services such as education, health and drinking water and sanitation. What was behind this progress on poverty reduction Nepal achieved amidst a violent conflict and a tumultuous post-conflict recovery?


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