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Agriculture and Rural Development

Do Elected Councils Improve Governance? - Experimental Evidence from Afghanistan

Andrew Beath's picture

In the past decade, economists such as Daron Acemoglu, Abhijit Banerjee, Nathan Nunn, and James Robinson have empirically validated the primacy of ‘good’ institutions in driving beneficial political and economic outcomes. While this has been a great leap for academic economics, the applicability to policy is debatable. Specifically, as the empirical techniques employed generally exclude components of institutional variation that change over the short- to medium-run (see Rohini Pande and Christopher Udry), the respective findings potentially don't have much to say about what can be expected from deliberate attempts to generate 'good' institutions.

Serious empirical investigation of the effects of institutional reform remains scant, and for good reason. Rigorously identifying the effects of democratization – or any other specific reform – is extremely difficult, particularly at the national-level. When and where societies enact democratic reforms (such as in Eastern Europe in 1989), such reforms go part in parcel with sweeping changes in economic policy, institutional frameworks, and political actors (in the technical lexicon, such reforms are ‘endogenous’). This makes it almost impossible to isolate the effects of the reform itself from the effects of the multitude of other contemporaneous changes.

Collective action and community development: evidence from self-help groups in rural India

LTD Editors's picture

In response to the problems of high coordination costs among the poor, efforts are underway in many countries to organize the poor through "self-help groups" (SHGs) -- membership-based organizations that aim to promote social cohesion through a mixture of education, access to finance, and linkages to wider development programs.

Friday Roundup: New Working Papers on food prices, India rainfall insurance, mega farms and Brazil ethanol

LTD Editors's picture

Food price spikes, price insulation, and poverty
This paper looks into the impact of changes in restrictions on staple foods trade during the 2008 food price crisis on global food prices and also analyzes the impact of such insulating behavior on poverty in various developing countries and globally.

Securing Africa’s Land Rights

Klaus Deininger's picture

In a new book released Monday, the World Bank's Africa Region convincingly argued for "Securing Africa's Land for Shared Prosperity" by recording land rights for both individuals and groups. That’s mainly because at a time when vastly-increased commodity demand has led to a series of widely publicized “land grabs” and urban expansion, the potential benefits from securing rights have greatly increased in several ways.

First, equity and efficiency. Poor and traditionally disadvantaged people, including women, have the least access to land rights, so securing their rights can provide them with access to a key productive resource. Also, if land rights are secured, land users will be more likely to invest in land improvement and modern technology to improve the efficiency of land use.

Microcredit Borrowers in Bangladesh Are Not Necessarily Trapped in Poverty and Debt as many contended in recent years

Shahid Khandker's picture

With spectacular growth of microfinance institutions (MFIs) in Bangladesh, there is a growing concern that borrowers might be borrowing from multiple sources and more than they are able to repay, and hence, they are trapped in poverty and debt.  Microfinance programs, operating in Bangladesh for more than two decades, have reached more than 10 million households in 2008, nearly half the rural population, with an annual disbursement close to US$1.8 billion and an outstanding balance of US$1.5 billion.  Multiple program membership has increased over the years: it was nonexistent in 1991/92, 11.9 percent in 1998/99 and 36 percent in 2010/11. 

However, a recent study shows that increased borrowing, even from multiple sources, has not lowered loan recovery rates. 

Also, another recent study observes that microcredit borrowers are not necessarily trapped in poverty and debt. This study analyzes data from a long panel survey over a 20-year period, and finds that although many participants have been with microcredit programs for many years they are not necessarily trapped in debt as the accrued assets due to borrowing outweigh accumulated debt for many borrowers.

Do Mass Media Affect Global Agricultural and Food Policies?

Johan Swinnen's picture

With Alessandro Olper*
 

Mass media plays a crucial role in distribution of information and in shaping public policy. Theory shows that information provided by mass media reflects its incentives to provide news to different groups in a society and in turn shape these groups’ influence on policy making.

Are female firms less productive? Findings from the Rural Investment Climate Pilot Surveys

Rita Costa's picture

The potentially deleterious effects of gender disparities on growth and poverty reduction have been receiving progressively more policy attention (reflected, for instance, in the inclusion of the promotion of gender parity amongst the Millennium Development Goals and the 2012 World Development Report). Inequities in labor market opportunities are of particular concern since labor earnings are the most important source of income for the poor in the vast majority of developing countries.
 
Although the vast majority of the poor live in rural areas and rural non-farm enterprises account for about 35-50% of rural income and roughly a third of rural employment in developing countries, relatively little is known about gender inequities in rural non-agricultural labor market outcomes due to data-limitations. This is unfortunate given the proliferation and diversification of rural non-farm activities and their potential to alleviate poverty, especially in countries where the importance of agriculture as an employer is likely to diminish.

Importance of Equal Inheritance Rights for Female Empowerment

Aparajita Goyal's picture

Policies that aim to improve the position of women relative to men are desirable not only on equity but also on efficiency grounds. While developing countries continue to improve economic opportunities for women, inheritance laws remain strongly biased against women in many societies. When the distribution of inherited wealth is highly unequal, the effect of this disparity on economic inequality is of considerable interest. Parental bequests of material wealth and human capital investments represent central forms of intergenerational transfers that affect long-term development in far reaching ways.

Why nutrition matters

Bénédicte de la Brière's picture

Three years from the deadline for reaching the Millennium Development Goals, two-thirds of countries will not reach MDGs 4 and 5 (child and maternal mortality, respectively). And now the second food price rise in three years is a wake-up call for the development community.

In this context, the Global Monitoring Report 2012: Food Prices, Nutrition, and the Millennium Development Goals examines some of the possible consequences of food price increases, such as a rise in poverty and undernourishment1. Households cope through a variety of mechanisms, including: eating less nutritious diets and then less food; making more household members work (women and children); and not seeking health care when ill. The most vulnerable (the poor, children, and pregnant women) bear the brunt of these adverse impacts.   Moreover, as countries seek to maintain food prices, some increase food price subsidies and cut into other services.

Open Data Is Not Enough

Raka Banerjee's picture

Since its inception, the World Bank’s Open Data initiative has generated considerable excitement and discussion on the possibilities that it holds for democratizing development economics as well as for democratizing the way that development itself is conducted around the world.  Robert Zoellick, in a speech given last year at Georgetown University, expounded on the many benefits resulting directly from open data.  Offering the example of a health care worker in a village, he spoke of her newfound ability to “see which schools have feeding programs . . . access 20 years of data on infant mortality for her country . . . and mobilize the community to demand better or more targeted health programs.”  Beyond this, Zoellick argued that open data means open research, resulting in “more hands and minds to confront theory with evidence on major policy issues.”

The New York Times featured the Bank’s Open Data initiative in an article published earlier this month, in which it referred to the released data as “highly valuable”, saying that “whatever its accuracy or biases, this data essentially defines the economic reality of billions of people and is used in making policies and decisions that have an enormous impact on their lives.”  The far-reaching policymaking consequences of the data are undeniable, but the New York Times touches upon a crucial question that has been overshadowed by the current push for transparency: what about quality? 

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