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Agriculture and Rural Development

Solar energy to bring jobs and prosperity back to parched villages

Amit Jain's picture
 
Villagers in Pavagada Taluk, Karnataka, India. Photo by Amit Jain / World Bank

Once upon a time, there was a little boy named Bala who was born in a small village in Pavagada Taluk, Karnataka, where, agriculture was the main source of income—much like in many other villages in India. But as he grew up, he saw most of his friends choosing to move to cities, because scant rainfall had made it impossible to pursue agriculture and make enough money to make ends meet at home. Village elders turned to superstition to explain the phenomenon, while others blamed climate change for the drop in rainfall. Eventually, Bala also moved to the city of Bangalore, but always dreamed of bringing prosperity back to his village.

Looks like Bala’s dream will come true in 2016. Early next year, India’s Prime Minister Narendra Modi will break ground for one of the largest solar parks (2 GW) in the world—in Pavagada Taluk.

Why agricultural product standards matter for small traders in developing countries

Ana Fernandes's picture

The successful conclusion of the Trans-Pacific Partnership (TPP) negotiations has generated a lot of interest. While much of the discussion has focused on what the mega-regional trade agreement – the largest in a generation – means for environmental or labor standards, equally important are the regulatory standards on agricultural and food products known as Sanitary and Phytosanitary (SPS) measures, which are addressed in Chapter 7 of the agreement.  
 
But how much do SPS standards really matter for trade?
 
Countries impose food safety standards for good reason, namely to protect the health of domestic consumers. However, domestic food safety standards often deviate from international ones. From an exporter’s point of view, such standards are likely to be seen as barriers to entry. Producers must modify production processes in order to meet each individual market’s product regulations, which raises the cost of the product for consumers. Economists and policy-makers are hungry for micro-level evidence on the effects of such standards on trade.
 
New World Bank Group research (Fernandes, Ferro, Wilson 2015) offers a first look at how a specific set of mandatory product standards—in this case, the maximum pesticide residue permitted on unprocessed food—impacts exporters. Novel firm-level data for exporters from 42 developing countries from 2006-2012 were analyzed along with data on pesticide standards for 243 agricultural and food products in 63 importing countries. We found that pesticide standards differ greatly across countries.

'If I knew that avocados had value, I would plant more of them'

Cecile Fruman's picture



Emilienne Isenady poses while showing off the crops on her land in Lascahobas, Central Plateau, Haiti.

“If I knew that avocados had value, I would plant more of them,” says Emilienne Isenady, a single mother of six in Lascahobas, in the Central Plateau of Haiti.

Emilienne grows and sells avocados to Dominican buyers and to “Madan Saras” (the local name for women brokers who buy and re-sell products in other cities), who will buy the avocados and transport them using the perilous local “tap taps” – trucks converted into public transportation. She will also sell them in the local market in Lascahobas.

Emilienne is a smallholder farmer, but little does she know that she is already part of an avocado local value chain, nor that there is a better avocado Global Value Chain (GVC) out there facing a global shortage.

Emilienne’s is guiding us to see her avocado trees. As we push aside branches, we do not see neatly planted rows of avocado trees but rather a wild two hectares of scattered mango trees, avocado trees, malanga, sweet peas and pineapples. We are accompanied by Marc André Volcy, Farah Edmond and Jean-Berlin Bernard, three “mobile agents” of the Business Support Service team for the Central Plateau Department.

The team is part of a program that the Haitian Ministry of Commerce and Industry has put in place to support entrepreneurs in micro, small and medium-sized enterprises across the country. The program is supported by the World Bank Group’s Business Development and Investment Project (BDI). There are nine other teams just like them in the nine other departments of the country, all working simultaneously on different value-chain reinforcement initiatives (in such sectors as coffee, cocoa, mango, vetiver, honey and apparel).

Marc, Farah and Jean-Berlin live in the Central Plateau, enabling them to support the avocado producers directly, visiting them often and understanding the local political economy. The team has visited about 80 other smallholder farmers like Emilienne in their department, and has invited them to two public meetings and strategic working groups to present key challenges and opportunities for their avocado cluster. The Central Plateau team has carried out the competitive reinforcement initiative of the avocado cluster in their department with training and coaching financed by a grant from the Competitive Industries and Innovation Program (CIIP), through which they have received in-class training and coaching on how to carry out their field projects. 
 

Five facts about rice and poverty in the Greater Mekong Sub-region

Sergiy Zorya's picture

The Greater Mekong Sub-region (GMS) is a major global rice producer and exporter but its population suffers from serious levels of poverty and malnutrition.
 
Spanning six countries – China, Myanmar, Lao PDR, Thailand, Cambodia and Vietnam – the region is home to 334 million people. Nearly 60 million of them are involved in rice production, growing collectively over 44% of the world’s rice. All of the countries, except China, are net exporters of rice. This means they have more rice available than required for domestic consumption. Yet, nearly 15% of the population is seriously malnourished and about 40% of children under five are stunted, in other words, too short for their age as a result of under nutrition.
 

Big lessons on climate change from a small country

Annette Dixon's picture
Landscape of terrace fields and homes. Bhutan
Landscape of terrace fields and homes in Bhutan. Credits: Curt Carnemark / World Bank

The mountain kingdom of Bhutan may not seem an obvious place to look for lessons on addressing climate change. But on a recent visit I was impressed with how much this small country has achieved and also with its ambition. Bhutan has much to teach South Asia and the wider world. These lessons are especially relevant as the world negotiates in Paris a new pact on climate change at the International Climate Change Summit, known as COP21, which we all hope will eventually move the global economy to a low carbon and more resilient path.

The talks aimed at agreeing a way to keep global warming to a maximum of 2 degrees Celsius from pre-industrial era levels. There is widespread agreement that going above this threshold would have serious consequences. South Asia is among the regions of the world that is likely to be most affected by climate change. We are already experiencing this. There is increasing variability of the monsoon rainfall, more heavy rainfalls such as those that caused the recent flooding in India, and an increase in the number of droughts.

A World Bank report in 2013 predicted that even if the warming climate was kept at 2 degrees then this could threaten the lives of millions of people in South Asia. The region's dense urban populations face extreme heat, flooding and diseases and millions of people could be trapped in poverty. Droughts could especially affect north-western India, Pakistan and Afghanistan.

These are big problems. They may look much bigger than anything Bhutan - a very small country in a populous region - can teach South Asia and the world. But I see three lessons. Firstly, a commitment to ambitious goals will be critical to save the world from climate disaster. To stop the world from warming too much, climate experts estimate that global greenhouse gas emissions must be cut by up to 70 percent by 2050. Carbon neutrality (zero emissions) must be achieved within this century.
 

Trade competitiveness in Uruguay

Gonzalo Varela's picture
For a small economy like Uruguay, integration into the global marketplace is one of the most powerful vehicles for growth and development. Participating actively in international trade allows Uruguayan firms to become more productive, by achieving economies of scale and by learning through exposure to international technologies, know-how and ideas. 

How did Uruguayan firms perform, over the last 15 years, in the global marketplace?


Using the Trade Competitiveness Diagnostic Framework – which we presented today to the Uruguayan public and private sector – a World Bank team examined the performance of Uruguayan firms in global markets in terms of export growth, diversification, quality upgrading and survival;. The team presented a number of recommendations to increase integration and to gain from it.

The main findings of
the report reveal the following:

  • Exports have grown fast thanks to favorable external conditions, but also due to the dynamism of the private sector, as well as to sound trade and investment policies.
  • Tailwinds due to high commodity prices helped export growth. Exports in gross and in value-added terms expanded at double-digit rates, and they expanded even faster among primary and resource-based products. The emblematic example is that of soybean exports, which stood at US$1.5 million in 2001 and which climbed to US$1.6 billion in 2014, making Uruguay an increasingly important player in the world market with a share of 3 percent of total exports.
  • But it wasn’t just tailwinds. The private sector was dynamic enough to seize the opportunity of favorable conditions and penetrate 46 new markets between 2000 and 2013. In just one product, beef, exporters gained access to 30 new destinations, and they secured higher prices in top-quality markets on the back of smart entrepreneurship, quality upgrading and a longstanding government strategy of negotiating market access for the sector. In services, for example, modern, knowledge-intensive sectors such as ICT and other business services also grew at double-digit rates, increasing the knowledge content of the export bundle.

Why did the farmer cross the road? To bridge the productivity divide: Guest Post by Sam Asher

This is the sixth in our series of posts by students on the job market this year.
 The productivity of workers in agriculture is generally much lower than in other sectors of the economy (Gollin, Lagakos and Waugh, 2014). This is particularly true in low-income countries, yet these countries generally have the highest shares of the population living in rural areas and working in agriculture (McMillan et al, 2014). So why don’t workers switch jobs into higher productivity (and better paid) occupations? Development economists as far back as Lewis (1954) and Sen (1966) have studied the labor market imperfections that may keep workers in low productivity agriculture despite higher wages elsewhere.

Growing resilient forest landscapes in the face of climate change

Paula Caballero's picture
Andrea Borgarello for World Bank/TerrAfrica

Playing out this week and next in Paris is a high-stakes match between science and political will.
 
The science part is quite clear: 2015 is set to be the hottest year on record – a full degree over pre-industrial averages. Climate change is already taking a toll on countries. Add to that we have El Nino wreaking havoc in many parts of the world.  And it is going to get warmer.
 
The political analysis is more complicated. On the one hand, if the national plans, the Intended Nationally Determined Contributions (INDCs) drawn up by countries to tackle climate change were implemented, including actions that have been conditioned on available finance, this would likely put the planet on about a 2.7 C degree trajectory that would be catastrophic for the economic, social and natural systems on which we depend.  Clearly more needs to be done. On the other hand, it is a sign of welcome progress. The fact that almost all the world’s countries (Carbon Brief tracks 184 climate pledges to date) have put forward INDCs is a remarkable feat many would have considered impossible just a few years ago.  So there is progress, just not fast enough.
 
Paris should be seen as an important milestone in an arduous journey– a platform for generating an ever upward spiral of ambition in many fields of climate action.
 
One area that promises innumerable wins for people and the planet is land use change, agriculture, and forestry. Together these sectors account for about 24 percent of global emissions, but represent a much greater share of emissions in many developing countries. A preliminary analysis of INDCs shows strong commitment to reducing greenhouse gas emissions from deforestation, forest degradation, land use change and agriculture. And there is evidence of a growing appetite for landscape restoration measures in many of those countries. 

Restoring livelihoods after conflict - social mapping helps return land in Colombia

Ivonne Astrid Moreno Horta's picture

I will never forget the day in 2003 as I stood in Cajamarca, a beautiful city nestled within the Andes Mountains of Colombia, looking at the tired faces of families who had been forcibly displaced from their land by conflict. What previously I had only seen from figures and tables, was now presented before me in all its human form.
 

Where water and climate change meet

This week, the 2015 Paris Climate Conference, or COP21, will gather countries that want to take action for the climate. A central topic of these discussions will focus on the intersection of water and climate change.

Combating climate change is everyone’s business. Reducing emissions and investing in renewable energy, improving city planning and building design standards, developing more efficient transportation, and reducing deforestation (among others) all play key roles in mitigating the effects of climate change. At the same time, countries, and industries, will also need to adapt to changes in the climate as they unfold. Since climate change will significantly increase the variability of rainfall, different parts of the world will become more vulnerable to floods or droughts. 

“Water scarcity and variability pose significant risks to all economic activities, including food and energy production, manufacturing and infrastructure development,“ said Laura Tuck, World Bank Group Vice President for Sustainable Development during a recent press conference at COP21. “Poor water management can exacerbate the effects of climate change on economic growth, but if water is managed well it can go a long way to neutralizing the negative impacts.”


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