Agriculture for Development - Rural Development - Lecture Slides, Slides of Human Development

Download Agriculture for Development - Rural Development - Lecture Slides and more Slides Human Development in PDF only on Docsity!

Agriculture for Development

Toward a new paradigm and guidelines for success

Docsity.com

Outline of the argument

• I. Historical perspective on agriculture in

development

• II. Current crises and resurgence of demands

on agriculture for development

• III. Emergence of a new paradigm of

agriculture for development

• IV. Why the continued under-use of agriculture

for development?

• V. Conditions for success in using agriculture

for development

• VI. The way forward

Docsity.com^2

I. Historical perspective on agriculture in development

4

Successes, but many implementation failures in the 1970s

• Urban bias in Import Substitution Industrialization
• Integrated rural development to meet broadened development objectives flawed: •Overestimated state capacity to coordinate •Underestimated emerging private sector roles •Undermined cooperative producer organizations •Many failures in agriculture-based projects •Too complex, insufficient support

Docsity.com

I. Historical perspective on agriculture in development

5

Leading to 20 years of neglect of agriculture under the Washington Consensus (1985-2005)

•Adjust the macro-fundamentals but no sectoral policy •Industrialize through open economy not through agriculture •Descale the role of the state in agriculture despite pervasive market failures •Reduce rural poverty through transfers instead of rising autonomous incomes •Investment in agriculture discouraged by low international commodity prices (OECD farm policies) and adverse environmental effects Docsity.com

II. Current crises and resurgence of demands on agriculture for development

7

 Following 20 years of neglect, five crises put

agriculture back on the development agenda:

1. The global food and financial crises: Rising

food insecurity and hunger

2. Stagnation of productivity growth in Sub-

Saharan Africa agriculture

3. World poverty still overwhelmingly rural

4. Increasing rural-urban income disparities

5. Rising resource scarcity and unmet demands

for environmental services Docsity.com

II. Current crises and resurgence of demands on agriculture for development

8

Crisis 1: Global food and financial crises The world food situation has changed drastically in the last three years. This implies three major policy shifts:

• Need give greater attention to the supply side of agriculture to achieve sustainable productivity gains and greater resilience to shocks.
• Need raise again the issue of food security as a policy concern: Combine trade, national food reserves, level of food self-sufficiency, social safety nets, and role of subsistence farming.
• Need focus not only on chronic poverty but also on vulnerability to price and income shocks for net buyers of food: “new poor” and risks of irreversibilities in assets, health, and education due to shocks.Docsity.com

II. Current crises and resurgence of

demands on agriculture for development

10

Fertilizer use (kg/ha of arable land)

0

50

100

150

200

250

300

1960 1970 1980 1990 2000 2010

East Asia

South Asia LAC ME&N Africa SS-Africa

Irrigated area (% of cropland)

0

5

10

15

20

25

30

35

40

1960 1970 1980 1990 2000

ME&N Africa South Asia

Latin America SS-Africa

Stagnant yields are associated with low fertilizer use and limited irrigated area. Understanding the determinants of yield growth (technology adoption) is a major research challenge Docsity.com

II. Current crises and resurgence of

demands on agriculture for development

11

Crisis 3: World poverty still overwhelmingly rural % of world poor rural by continent

0

20

40

60

80

100

LAC ECA SSA SAS MNA EAP World

Number of rural poor (1993=100)

50

60

70

80

90

100

110

120

1992 1994 1996 1998 2000 2002 2004

East Asia

Latin America

SS-Africa South Asia

75% of world poor are still rural, and rural poverty is rising in SS- Africa and South Asia: Key to meet MDG#1 Docsity.com

II. Current crises and resurgence of

demands on agriculture for development

13

Crisis 5: Rising resource scarcities and unmet demands for environmental services

The rate of deforestation is accelerating in LAC and SS-Africa. Conservation agriculture, rapidly expanding worldwide, is barely adopted in Africa due to lower yields and high labor costs

Average annual rate of change in forest area

-0.

-0.

-0.

-0.

-0.

-0.

-0.

EAP SA LAC SSA

1990-99 2000-

Docsity.com

III. Emergence of a new paradigm of agriculture for development

14

These crises put new demands on using agriculture for development, but with no possible return to the classical paradigm for two reasons:

“Development” is no longer just industrialization (1950-60) but multidimensional (1970-) •Growth, poverty/hunger, vulnerability, equity, sustainability

The structural context for agricultural growth has changed drastically •Globalization, integrated value chains, technological and institutional innovations, environmental constraintsDocsity.com

IV. Why the continued under-use of

agriculture for development?

16

Structural transformation in Asia

4.5 5.5 6.5 7.5 8. Log of GDP per capita (constant 2000 US$)

Cross-section Bangladesh Cambodia Hong Kong, China India Indonesia Korea, Rep. Malaysia Myanmar Pakistan Papua New Guinea Philippines Thailand China Vietnam Taiwan, China

China India

Malaysia Rep. Korea

Normal pattern

Pakistan

Bangladesh

Successful structural transformations in Asia Docsity.com

IV. Why the continued under-use of agriculture for development?

17

Structural transformation in Sub-SaharanAfrica

4.5 5.5 Log of GDP per capita (constant 2000 US$) 6.5 7.5 8.

Cross-section Angola Benin Cameroon Chad Cote d'Ivoire Kenya Madagascar Niger Nigeria Rwanda Senegal South Africa Tanzania Togo Zambia Zimbabwe South Africa

Nigeria

Cote d'Ivoire

Togo

Chad

Normal pattern

But agriculture is still under- and mis-used in Africa and Latin America: Labor is pushed out of agriculture without associated growth in GDP per capita

Structural transformation in Latin America andCaribbean

4.5 (^) Log of GDP per capita (constant 2000 US$)5.5 6.5 7.5 8.

Cross-section Argentina Bolivia Brazil Chile Colombia Dominican Republic Ecuador Guatemala Honduras Haiti Mexico Peru Paraguay x^ El Salvador^ Venezuela, RB

Docsity.com

IV. Why the continued under-use of agriculture for development?

19

It must be different from the Asian Green Revolution

In addition:

• It must go beyond cereals to include high value activities
• It must deal with sustainability and environmental friendliness Beyond the seed-fertilizer-water package toward agro-ecology, agro-forestry, and conservation agriculture.
• It must address brand new challenges Energy prices, climate change, integrated value chains, globalization
• It must succeed urgently given the rapid changes in the world food situation and distress of rural populations.

Answer: Continued under-use because we do not know enough about how to do it, and are not adequately equipped to do it successfully Docsity.com

V. Conditions for success in using agriculture for development

20

 Proposition: Two conditions for success in using agriculture for development

 Condition 1: Need to re-conceptualize the role of agriculture for development in the new paradigm

1. Recognize the complementarities and trade-offs in the multiple functions of agriculture for development  Define country priorities and strategy
2. Design the process of agricultural growth to achieve development beyond market forces  With eventual growth opportunity costs (e.g., debate on farm size)
3. Redefine the role of the state in support of agriculture  State to set social priorities among conflicting functions, overcome market failures, regulate, and engage in private-public partnerships. Docsity.com