rethinking the role of agriculture: an overview gerdien meijerink, derek eaton, swaibu mbowa, mary...
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Rethinking the role of agriculture: an overviewGerdien Meijerink, Derek Eaton, Swaibu Mbowa, Mary Mosugu
Overview: “The role of agriculture in sustainable
economic development” Need for improved understanding of processes that result
in strengthened economic structures of rural areas 2006-2007 LEI, WI, PRI, Alterra
Schools of thought: Emphasis on agricultural productivity increase through
technology Emphasis on institutions
technology
Role of agriculture in development
institutions
Overview: “Sachs Report”
Review of main documents on role of agriculture in development
Second half of 2006 PRI, WI, WUR
institutions
R&D Access to resources and services
Market access
Institutional arrangements
Role of agriculture
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Land productivity (value added per ha arable land)
Labo
ur p
rodu
ctiv
ity (
valu
e ad
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per
ag w
orke
r)
East Asia & Pacific
Latin America & Caribbean
South Asia
Sub-Saharan Africa
Middle East & North Africa
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1965 1970 1975 1980 1985 1990 1995 2000 2004
East Asia & PacificWorldLatin America & CaribbeanEurope & Central AsiaSouth AsiaMiddle East & North AfricaSub-Saharan Africa
Land and labour productivity 1960-2003
Cereal yields (kg/ha)
• Multiplier effects: agricultural development economic development
• Safety net
• Cultural significance
• Environmental services
Role of technology (R&D) Raising agricultural productivity Participation of farmers in research Reduced spill-overs North South Input and outputs markets
Role of institutions
Relatively recent thinking -- common conceptual framework still developing: Different levels of institutions are often confused
(organisations vs. rules and norms) Terms & concepts used are abstract
(institutions, transaction costs, markets, etc.)
institutional arrangements access to resource and services market access
Optimal ignorance?
Surprising finding: little knowledge to guide initiatives to improve efficiency or equity of economic transactions How do markets work? How can supporting institutions be strengthened
or even designed? Which organisational forms have best chance of
success? Need to deepen learning process
Market in action
Reality of markets
High costs in time and money: Inspecting goods Late delivery Late or no payment Risk of delegating tasks
Trust as a risk reducing institution But costly (takes time and money)!
Conclusion (1)
“Getting the institutions right”“Making markets work” Empty recommendations when there is so little
known on how institutions work and especially how institutional change can be promoted
Need to give practical relevance to abstract terms
Need to analyse the role various elements of ‘institutions’ play in specific situations, especially as change takes place
Conclusions (2)
In promoting agricultural development, a three-tiered approach should be followed: Continued efforts to raise agricultural
productivity through technology + institutional change
Focus on strengthening the interlinkages between agriculture and the rest of the economy
Generate a better understanding of institutions Focus on what but especially on how
Thank you
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