Agricultural and Rural Development Notes

60 items available

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https://hdl.handle.net/10986/9390

This series on commodity risk management aims to disseminate the results of World Bank research that describes the feasibility of developing countries’ ability to utilize market-based tools to mitigate risks associated with commodity price volatility and weather.

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Empowerment and Poverty Reduction through Infrastructure and Service Provision in Rural Pakistan
(Washington, DC: World Bank, 2010-01) Isa, Qazi Asmat; Ahmed, Naila; Larson, Gunnar
Poverty in Pakistan is overwhelmingly rural. Some two-thirds of Pakistan's population, and over 60 percent of the country's poor, live in rural areas. In 2005, average per capita expenditures in rural areas were 31 percent lower than in urban areas. This inequality between urban and rural areas is re-enforced by inequality within and between rural areas. Owing to uneven access to land and useable water, most of the increased income that results from agricultural production accrues to higher income farmers-who typically spend a disproportionate amount of their income on urban goods and services. This inequality seriously limits the impacts of agricultural growth on rural poverty, and is a major cause of sustained poverty and low productivity among small farmers and rural nonfarm households. It also points to the importance of effectively targeting the poor in contexts in which resources intended for them are likely to be captured by more privileged groups.
Foreign Investment in Agricultural Production : Opportunities and Challenges
(World Bank, Washington, DC, 2009-01) Songwe, Vera; Deininger, Klaus
The recent surge in food and fuel prices has prompted countries with high dependence on food imports to try and lock in future food supplies through direct investment in agricultural production in other countries. The price surges also led to a wave of proposals to invest in biofuels investments in agricultural land. While such investment can provide large benefits, it also carries considerable risks both to investors and citizens in the locality of the investment. To ensure that investments provide broad benefits and effectively contribute to larger development outcomes, enforceable property rights and contractual agreements in many developing countries need to be strengthened. This note considers how development partners can help countries create the pre-conditions for investment and proposes a governance framework to establish minimum standards for it.
Financial Services for Developing Small-Scale Irrigation in Sub-Saharan Africa
(World Bank, Washington, DC, 2008-09) Larson, Gunnar
Food insecurity and income poverty are rampant in Sub-Saharan Africa. Thirty-one percent of children under the age of five are malnourished and some 72 percent of the population lives on less than US$2 day. Forty-one percent lives on less than US$1 day. The impoverished and hungry are concentrated disproportionately in rural areas and rely mainly on the consumption and sale of agricultural produce for their food and income. Africa has experienced increasing dependency on food imports that its countries cannot afford. Yet an estimated 700,000 hectares of arable land in Africa remains uncultivated. It is land that could become productive through small-scale irrigation using basic technology to draw on small-water resources, such as tube wells, and dambos. The technologies can be applied to cultivate smallholder plots of up to five hectares. Employing them will enable up to 4 million low-income households to intensify agricultural production and increase productivity. Small-scale irrigation can increase agricultural productivity and production, thus contributing to economic growth in rural areas and increased well-being among small holder farmers. Its potential to increase and stabilize food supply is especially important in light of the ongoing food crisis, and especially in Africa. Expanding the use of small-scale irrigation requires farmers to have access to financial services. The many constraints and obstacles that rural financial institutions in Africa confront must be purposefully navigated if financial services are to fulfill this role. Effectively tailoring financial services and products to support irrigation in different settings and among different client groups will be essential to success. Carefully targeting grant funding to the very poorest subsistence farmers and clearly separating it from lending will be likewise be critical to the sustainability of these financial services.
Assessing the Investment Climate for Rural Enterprises
(World Bank, Washington, DC, 2008-05) Larson, Gunnar; Lamb, John; VanDer Meer, Cornelis
The 2008 World Development Report identifies competition as an important variable of the rural investment climate. Competition triggers innovation and the productivity gains that drive economic growth, and with it the creation of jobs. Employment is generally the principal pathway that people have out of poverty. Fostering such competitive environments entails inducing the entry of local, mainly small-and-medium enterprises as well as the development of agribusinesses that enable small farmers, entrepreneurs, and investors to participate in expanding markets. The barriers to entry confronting prospective small rural enterprises include all the risks and costs and market failures characteristic of many rural economies, in addition to poor access to financial and public services, weak business skills, and extremely limited or non-existent information about what demand consists of in the non-local markets they hope to sell to. Improving the opportunities and incentives for rural firms to invest productively, expand, and bring on new workers should be a policy priority for governments, particularly given the prominence of policy, regulations, and enforcement in rural investors' perception of risk. Providing a sound, enabling policy environment is a vital role of the government and public sector and includes setting food quality and safety grades and standards and reliable contract enforcement. Such stable policy environments go very far in relieving investors' uncertainty over what governments will do next, what policies will be formulated, and how policies and regulations will be interpreted and enforced. This is a pressing concern among investors. Making policy formulation and enforcement more predictable can dramatically encourage investment (World Bank 2005).
Armenia : Title Registration Project
(World Bank, Washington, DC, 2008-02) Adlington, Gavin; Saxen, Anu
This approach resulted in the fragmentation of agricultural holdings, with families owning noncontiguous plots. Land use was inefficient, owing in part to the low rate of use of agricultural machinery. Making land use and farming more efficient will require the establishment of a functioning land market. Granting farmers the right to sell, exchange, and lease their land will enable them to use it as collateral and to consolidate family plots. The overall aim of the Armenia Title Registration Project was to promote private sector development by implementing a transparent, parcel-based, easily accessible, and reliable registration system for land and other immovable property. The system was to provide a chronological record of property owners and their rights and obligations. The availability of this information was expected to reduce the transaction costs of title transfers and mortgage financing and lead to more secure property rights for parcels registered in the system. This in turn was expected to lead to higher land and real estate value, increased productivity, and the consolidation of fragmented rural land ownership. Increased use of property as collateral was expected to bring about general improvement in the efficiency of rural and urban real estate markets. The project was also intended to promote least-cost registration procedures by building on existing property information databases (adding only market-relevant information to these databases), and by contracting private surveyors.
Innovating to Reduce Risk : The Case of Livestock Insurance in Mongolia
(World Bank, Washington, DC, 2007-10) Belete, Nathan; Larson, Gunnar
The Mongolia Index Based Livestock Insurance Project (P088816) is piloting insurance plans in three provinces, Bayankhongor, Uvs, and Khenti. It consists of five components. The first provides the mechanism to pilot two index-based livestock insurance (IBLI) products. The second component of the project entails a variety of targeted promotional and public awareness activities to foster awareness and inform stakeholders about the details of the two products and the IBLI pilot. The third component supports the institutional framework and capacity necessary to expand the availability of the insurance products once the viability of IBLI instruments has been established. The fourth component monitors a variety of stakeholders during the IBLI pilot in tracking access by different social groups, monitoring how the two products are received, and in determining whether herders modify their behavior in response and, if so, how their behavior changes. The project's fifth component supports the project implementation unit in its management functions. The lessons learned also suggest themselves as potentially replicable by other project teams, and as warranting the attention of other governments that seek to manage the risks faced by livestock-dependent communities.
Building Infrastructure and Social Capital in Rural Egypt
(World Bank, Washington, DC, 2007-08) Soliman, Ayat; Larson, Gunnar
Disparity in growth rates between Upper and Lower Egypt has been dramatic. While national per capita income averaged 3 percent growth annually beginning in the mid 1990s, and growth rates in metropolitan areas approached 8 percent -- Upper Egypt experienced negative per capita growth rates during the same period. By 2001, Upper Egypt accounted for 37 percent of the country's population, but 65 percent of the population lived below the poverty line. Yet rural development programs under similar conditions throughout Egypt recently experienced some significant successes. The most notable success was a participatory approach to rural development planning introduced in the framework of the 1994 National Program for Integrated Rural Development -- known as Shorouk or Sunrise.
When Markets Do Not Work, Should Grants Be Used?
(World Bank, Washington, DC, 2006-04) van der Meer, Kees; Noordarn, Marijin
To deal with problems of inadequate markets and the persistence of deep poverty, development agency personnel designing projects have increasingly turned to grants to provide solutions. This paper examines the theory of grants, draws lessons from a review of their use in twelve projects that started mostly in the years 1998-2000, discusses findings, and recommends ways to deal with problems faced in grant projects. The paper recommends the following: guidance notes, standard guidelines and manuals, and training for task managers, emphasizing the need to explicitly identify market failures and justify the use of grants to address them, as well as providing frameworks for detailed design of grant schemes; detailed cost-benefit analyses of all grant-financed investments, to the extent that such investments are of an economic nature for which such analyses are possible; broader analyses of other investments such as community-driven development (CDD) projects and cash or food-for-work schemes; analysis of pilot interventions or stylized model investments; Project Appraisal Documents should include more details of implementation, and give more guidance to the implementers; and the World Bank's Independent Evaluation Group (IEG) should evaluate grant schemes with special attention to justification, economic evaluation, and implementation details.