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PublicationFramework for Conducting Benefit-Cost Analyses of Investments in Hydro-Meteorological Systems(World Bank, Washington, DC, 2014-06) Malik, Arun S.; Amacher, Gregory S.; Russ, Jason; Esikuri, Enos E.; Ashida Tao, KeikoThe whitepaper is organized as follows: section two provides an overview of the types of benefits associated with hydromet investments, the process by which the benefits are generated, and their expected development impacts; section three explains the rationale for public sector investment in hydromet systems and involvement by the World Bank; section four discusses the wide range of factors that influence the magnitude of benefits generated by hydromet systems, in particular the value of weather and climate forecasts. The discussion is supplemented by a stylized example presented in annex one; section five provides an overview of approaches that have been used to estimate the value of improved forecasts of routine climate to specific user groups or sectors of an economy; section six then turns to an overview of approaches that have been used to estimate the net benefits of hydromet investments at the country level. The primary benefits estimated by these approaches are those associated with improved forecasts of extreme meteorological events; section seven contains a discussion of the costs of hydromet investments, with particular attention given to the challenges faced in estimating these costs in developing countries; section eight lays out a framework for estimating the expected net benefits of hydromet investments at a country level. The framework builds on existing approaches and is designed to be used with data available from secondary sources. This section will be of central interest to those tasked with conducting economic evaluations of hydromet investments; section nine describes data that can be collected to conduct interim and ex-post evaluations of hydromet investments that supplement and refine ex-ante evaluations of these investments; and section ten offers conclusions and recommendations. PublicationAgricultural Support Policies and Programs in Jamaica 2006-2011(World Bank, Washington, DC, 2013-11) Arias, Diego; Gurria, Martin; Pena, Hector; Brown-Knowlton, Mildred; Boyce, Rachel; Smikle, ConradAn analysis of Jamaica's agriculture support policies and programs shows that Jamaican consumers are financing the bulk of supports to the agriculture sector. This report estimates the agriculture public support policies and programs of Jamaica between 2006 and 2011. This analysis of the agriculture programs and policies provides an understanding of the level and composition by type of support for different crops and livestock producers during 2010-2011. The estimate of total agriculture supports (measured as the total support estimate, TSE) in Jamaica in 2011 was approximately United States (U.S.) 675 million dollars (J$58.071 million), representing 4.7 percent of total gross domestic product (GDP) and 22.7 percent of agriculture GDP. Jamaica has been facing significant development challenges over the last three decades. It is in this context of fiscal restrictions and potential further economic and social stagnation, that the Government of Jamaica and the World Bank have been prompted to take action to better understand the degree and type of support Jamaican farmers are receiving. Once the level of support is understood within Jamaica's economic context, policy and program recommendations can be made to improve the effectiveness and efficiency of the support structure, addressing agriculture sector competitiveness issues and constraints. In this context, the report presents introduction; supports to agriculture; and summary and conclusions. PublicationDeterminants of Agricultural Extension Services : The Case of Haiti(World Bank, Washington, DC, 2013-05-24) Arias, Diego; Leguía, Juan José; Sy, AbdoulayeThe Haitian population is among the poorest in the world, with over 78 percent living on less than United States (U.S.) 2 dollar a day and over 50 percent living on less than U.S. 1 dollar a day. This paper extracts relevant lessons from historical data on factors influencing the receipt of extension services in Haiti, taking stock of the use of agricultural extension services prior to the 2010 earthquake. The goal is to influence future policies and development projects involving the provision of extension services as well as the type of extension services offered. This paper uses data from the 2010 agricultural census and examines the characteristics of farmers in Haiti receiving extension services by gender, education, agricultural training, farm size, and type of crop. Through in-depth study of each variable and a review of trends in the receipt of agricultural extension services, the study analyzes the equilibrium between the demand for and supply of extension services to particular farmer groups. The study draws the following nine key conclusions: (1) the proportion of households receiving agricultural extension services in Haiti is non-negligible; (2) location is an important determinant of the recipients of agricultural extension services; (3) there are no statistical differences between men and women in terms of receipt of extension services; however, the impact of agricultural training and farm size change when the head of household is a woman; (4) education level has a positive, yet small, effect on receiving extension services; (5) prior agricultural training is a major determinant of the recipients of extension services; (6) rehabilitation of the Ecoles Moyennes Agricoles (EMAs) for vocational and farmer field education on a nationwide scale will increase the demand for extension services, especially among small farmers; (7) farmers with larger farms receive more agricultural extension services; (8) coffee producers make more use of extension services than other farmers; and (9) promoting a hybrid system of extension may be more efficient than supporting only public or Non-governmental organizations (NGO) provided extension services. PublicationAgro-Logistics in Central America: A Supply Chain Approach(Washington, DC, 2012-06) World BankThis chapter uses supply chain analysis (SCA) to identify transport and logistics bottlenecks that add costs, times and uncertainty to the exportation of perishable agricultural products from Central America. Macro-level analyses of logistics performance, including the logistics performance index, Doing Business Reports and Enterprise Surveys of the World Bank, as well as the Global Competitiveness Index of the Global Economic Forum, often leave policy-makers unclear on exactly what poor performance means for exporters and producers in Central America. How does poor road quality eat away at the profit margins of my country's producers? Extensive procedures add time to export processes, but how much time? How and to what extend does this additional time hurt the competitiveness of key industries? How does this effect vary by product type? By tracking the movement of seven carefully selected exports, these supply chains complement macro-level analyses by answering these questions for some of the region's key agricultural exports. A range of unique characteristics makes the success of perishable exports exceedingly dependent on the efficiency of the related logistics systems and the ability to connect effectively and reliably to global supply chains. Remote production zones add cost, time and variability to transport from the farm gate to the distribution, collection or processing center. Increasingly complicated international sanitary and phytosanitary standards (SPS) add institutional and procedural complexity to the supply chain. Above all, the time sensitivity of most perishable products increases the value of time and makes cold chain infrastructure and the availability of refrigerated containers essential for successful exportation. PublicationAgricultural Commodity Exchanges in Latin America and the Caribbean(World Bank, Washington, DC, 2011-03-17) Arias, Diego; Ferreira Lamas, Alfredo; Kpaka, MusaA commodity exchange is a goods and financial market where different groups of participants trade commodities and commodity-linked contracts, with the underlying objective of transferring exposure to commodity price risks (UNCTAD). A commodity exchange that only trades goods is known as a physical or 'cash or forward' market, while the exchange that trades price derivatives is known as financial or 'futures and options' market (see Glossary for detailed definitions). Some agriculture commodity exchanges have both. Agricultural commodity exchanges date as far back as the early 18th century. Modern exchanges, notably the Chicago Board of Trade (CBOT) was created in 1848, recently merged with the Chicago Mercantile Exchange (CME), is one the oldest and most successful futures exchanges worldwide. Today several agricultural commodity exchanges exist throughout the Latin America and Caribbean (LAC) region. They facilitate trade and financial products in countries whose economies have a relatively large share of primary and secondary agricultural activities or either account for auctions on substantial food imports. This report looks at the current development of agricultural commodity exchanges in the LAC region and offers public policy recommendations that can foster the development of such exchange markets. PublicationIntegrating Central American and International Food Markets : An Analysis of Food Price Transmission in Honduras and Nicaragua(World Bank, Washington, DC, 2011-03-17) Arias, Diego; De Franco, Mario A.In 2004 the Central American countries of Nicaragua, Honduras, Guatemala, El Salvador, Costa Rica, and the Dominican Republic signed the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) with the United States and are currently negotiating another agreement with the European Union and others. This study examines the dynamics among international and domestic food markets by assessing the transmission of international prices to domestic prices of key agriculture commodities in Honduras and Nicaragua. It analyzes to what degree, if at all, a change in the international price of a given food product influences the domestic price of that same good, at the level of the consumer and producer and in different regions in each country. This analysis provides important evidence of the price dynamics that guide public policy recommendations for a complementary agenda of agriculture trade liberaliza-tion in the region. There are two methods for analyzing the relationship between international and domestic prices. The first is to conduct a price wedge analysis-to evaluate the difference between international and domestic prices. The second method is to conduct a price transmission analysis by analyzing the variation in the percent growth of international versus domestic prices. Evidence from Nicaragua suggests that for most of the agriculture supply chains studied (except for beans) there is little competition in the country's domestic market structure. A few Nicaraguan companies own the majority share of the market, both to purchase and export agricultural products and to import and sell food domestically. Obtaining information about the structure of domestic agriculture and food markets could shed light on country-specific impediments from domestic market structure to increasing agriculture growth, reducing poverty, and improving rural competitiveness. Information on domestic market structure was difficult to obtain for this study, particularly for Honduras. But, even in a context where the domestic market structure concentrates purchasing and selling power in a few agribusiness companies, price transmission could be high. PublicationUnintended Consequences of Food Subsidies : The Case of the Haiti Rice Subsidy(World Bank, Washington, DC, 2011-03-17) Arias, Diego; Carneus, MaximeHaiti is an important rice consumer, and a big rice importer. Around 86 percent of the Haitian population consumes rice. The decision to implement an indirect subsidy was made based on the fact that import prices had in the past been transmitted fully and immediately to rice consumers. Thus, a subsidy to the price of rice at the level of the importers was expected to be passed on immediately into benefits (savings) to rice consumers. The Government also prohibited rice exports to the Dominican Republic in order to avoid re-export of subsidized rice. The subsidy scheme was implemented by forming a public-private sector Presidential Commission between the Central Bank of Haiti (BRH), the President's Office and rice importers. Although the rice price subsidy program did produce the intended savings to Haitian consumers during the 4-month period of the subsidy program (April-August 2008), this intervention caused medium term distortions in the domestic market of imported rice such that domestic prices of imported rice have risen beyond the price that consumers would have faced without a subsidy program. The actual prices consumers faced after the subsidy program was implemented were much more volatile than the estimated price without a subsidy program, pointing to also an increased consumer uncertainty about local market prices for rice. Using a targeted food voucher as a subsidy mechanism is not only more efficient, but can have higher impact on nutrition as it can be used for a wide variety. PublicationImplications of the Organization of the Commodity Production and Processing Industry : The Soybean Chain in Argentina(World Bank, Washington, DC, 2010-01) Regunaga, MarceloThe study includes four sections: i) brief production background; ii) description of the Argentine soybean value chain; iii) evolution of the main policies and institutional regimes in Argentina; iv) lessons learned related to the political economy and the industrial organization. The study describes the main policies implemented in Argentina during the last two decades which had impact on the structure of the soybean value chain and its performance. The dramatic changes registered in some of such policies, as well as in the international scenario, provide interesting background to better understand the evolution and performance of the Argentine industry in the global soybean value chain. PublicationLogistics, Transport and Food Prices in LAC : Policy Guidance for Improving Efficiency and Reducing Costs(World Bank, Washington, DC, 2009-08) Schwartz, Jordan; Guasch, Jose Luis; Wilmsmeier, Gordon; Stokenberga, AigaThis introductory section explains the rationale for the guidance note, reflecting on the relevance of food prices in Latin America and the Caribbean (LAC), their impact on the poor and the effect that logistics and transport costs have on those prices. Based upon that framework, the note provides an overview of the logistics and transport hurdles faced by importers and consumers in the region as food products move through the logistics chain. The final section of the report provides some policy guidance that could improve the efficiency of logistics systems in LAC and reduce the price of delivered foods.