New Economics Papers
on Agricultural Economics
Issue of 2006‒03‒25
27 papers chosen by

  1. The family farm in a globalizing world By Lipton, Michael
  2. Livelihood diversification and rural-urban linkages in Vietnam's Red River Delta By Thanh, Hoang Xuan; Anh, Dang Nguyen; Tacoli, Cecilia
  3. Commercializing Small Farms: Reducing Transaction Costs By Prabhu Pingali; Yasmeen Khwaja; Madelon Meijer
  4. Farmers' rights and protection of traditional agricultural knowledge By Brush, Stephen B.
  5. Transaction Costs, Institutions and Smallholder Market Integration: Potato Producers in Peru By Irini Maltsoglou; Aysen Tanyeri-Abur
  6. The Changing Structure of Pork Trade, Production, and Processing in Mexico By Bruce A. Babcock; Chad E. Hart
  7. From the Green Revolution to the Gene Revolution: How will the Poor Fare? By Prabhu Pingali; Terri Raney
  8. Institutional innovations towards gender equity in agrobiodiversity management By Padmanabhan, Martina Aruna
  9. Measuring Technical Efficiency of Wheat Farmers in Egypt By André Croppenstedt
  10. Household Income Structure and Determinants in Rural Egypt By André Croppenstedt
  12. Collective action for the conservation of on-farm genetic diversity in a center of crop diversity By Badstue, Lone B.; Bellon, Mauricio R.; Berthaud, Julien; Ramírez, Alejandro; Flores, Dagoberto; Juárez, Xóchitl; Ramírez, Fabiola
  13. Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms By Frantisek Brazdik
  14. Water pricing and valuation in Indonesia By Rodgers, Charles; Hellegers, Petra J.G.J.
  15. Farmer willingness to pay for seed-related information By Horna, J. Daniela; Smale, Melinda; von Oppen, Matthias
  16. On farm conservation of rice biodiversity in Nepal By Gauchan, D.; Van Dusen, M. E.; Smale, Melinda
  17. The Collective-Quality Promotion in the Agribusiness Sector: An Overview By Stephan Marette
  18. Trade liberalization and food security in Nepal By Pyakuryal, Bishwambher; Thapa, Y. B.; Roy, Devesh
  19. Rural non-farm development in China and India By Mukherjee, Anit; Zhang, Xiaobo
  20. Security analysis for agroterrorism By Linacre, Nicholas A.; Koo, Bonwoo; Rosegrant, Mark W.; Msangi, Siwa; Falck-Zepeda, Jose; Gaskell, Joanne; Komen, John; Cohen, Marc J.; Birner, Regina
  21. The Regulatory Choice between a Label and a Minimum-Quality Standard By Stephan Marette
  22. Localizing demand and supply of environmental services By Swallow, Brent; Meinzen-Dick, Ruth; van Noordwijk, Meine
  23. Measuring Food Security Using Respondents’ Perception of Food Consumption Adequacy By Mauro Migotto; Benjamin Davis; Gero Carletto; Kathleen Beegle
  24. Food Aid: A Primer By Sarah Lowder; Terri Raney
  25. Market institutions: Enhancing the Value of Rural-Urban Links By Chowdhury, Shyamal; Negassa, Asfaw; Torero, Maximo
  26. Tecnhnology estimation for quality pricing in supply-chain relationships By Angelo Zago
  27. Initiatives for rural development through collective action By Kariuki, Gatarwa; Place, Frank

  1. By: Lipton, Michael
    Abstract: "The topic of family farms has been gaining prominence in the academic, policy, and donor communities in recent years. Small farms dominate the agricultural landscape in the developing world, providing the largest source of employment and income to the rural poor, yet smallholders remain highly susceptible to poverty and hunger. With the advance of globalization and greater integration of agricultural markets, the need for increases in agricultural productivity for family farms is particularly pressing. Raising productivity and output of small farmers would not only increase their incomes and food security, but also stimulate the rest of the economy and contribute to broad-based food security and poverty alleviation. In this paper, Michael Lipton builds an argument for greater focus on pro-smallholder crop science as a key solution to generate increases in productivity and income. Increasing the levels of investment into agricultural technology, improving water and land use and distribution, and creating positive incentives for developing-country farmers come to the forefront of the paper as critical steps that must be taken to ensure massive reduction in global poverty. Favorable demographic trends over the next few decades provide a window of opportunity for reforms and action that must not be squandered." From Foreword by Joachim von Braun
    Keywords: Globalization ,Poverty alleviation Developing countries ,Rural poor ,Agricultural productivity ,Agricultural technology ,Small farmers ,Crop science ,
    Date: 2005
  2. By: Thanh, Hoang Xuan; Anh, Dang Nguyen; Tacoli, Cecilia
    Abstract: "With high population density and limited land availability, Vietnam's Red River Delta is undergoing a major transformation as its economic base moves away from subsistence farming towards intensive, high-value food production for export and local urban markets, and nonfarm employment. This paper describes the changing livelihoods of the residents of two villages that represent two different pathways to local economic development. One village relies primarily on agricultural intensification and diversification, although in combination with nonfarm activities. These nonfarm activities are either supplementary (such as handicraft production and seasonal migration) or related to farming, such as provision of agricultural services, transport and trade of agricultural produce. To a large extent, it is this nonfarm income that allows investment in agriculture at the household level. Residents of the second village, although nominally still owning rice farms, have effectively moved out of agriculture and engage almost exclusively in handicraft production. Despite these major differences, there are also important similarities between the two villages. First, much of their recent economic development is linked to access to markets — including proximity to local urban centers and to Hanoi (where demand from urban consumers and from exporting enterprises has increased substantially), a vastly improved road and transport system, and an excellent communications infrastructure. Second, each village has developed forward and backward linkages with their main production sector. Last but not least, local authorities have played an important role in supporting local economic development, providing infrastructure, training for handicraft production, and inputs for farmers. The long-term sustainability of economic growth and poverty reduction in the Red River Delta will largely depend on strengthening rural-urban linkages. This includes adopting regulations on land use that allow farmers to better respond to growing urban demand for high-value produce; incorporate more explicitly the needs of the handicraft micro-enterprises in existing and future policies and plans for rural industrialization; recognize and support the role of seasonal migration in rural local economic development; and address the changing planning and natural resource management needs of these urbanizing villages." Authors' Abstract
    Keywords: south east asia ,East and Southeast Asia ,Microenterprises Vietnam ,Migration, Internal ,Rural-urban linkages ,Livelihoods ,
    Date: 2005
  3. By: Prabhu Pingali (Agricultural and Development Economics Division, Food and Agriculture Organization); Yasmeen Khwaja; Madelon Meijer (Agricultural and Development Economics Division, Food and Agriculture Organization)
    Abstract: Broad changes are taking place in agrifood systems worldwide. These changes are driven by economic development, increase in per caput incomes, changing technology and urbanization. Consumers are changing their dietary preferences and shopping habits, resulting in substantial organizational and institutional changes throughout the food marketing chain. Growing concentration at all levels is taking place, particularly in the retail sector, and private sector standards for food quality and safety are proliferating. Increasingly exchange is arranged through the use of contracts. These changes have significant implications for growth, poverty and food security. For the small farmer in particular there are difficulties to meet the standards and contractual requirements. They are faced with a new set of transaction costs that emerge from dealing with a food system characterized by different rules, regulations and players. Increased transactions costs deter entry of small farmers into the market. This paper looks at required interventions aimed at reducing transaction costs to encourage increased farmer participation in competitive markets.
    Keywords: Food systems, Agricultural commercialization, Transaction costs, Small farmers, Policy.
    JEL: Q13 Q18 D23
    Date: 2005
  4. By: Brush, Stephen B.
    Abstract: "Although achieving in situ conservation is possible without changing farmers' customary management of crops as common pool resources, an alternative approach is to negotiate a bioprospecting contract with providers of the resource that involves direct payment and royalties. This bioprospecting mechanism implies a change in the customary treatment of crop genetic resources as common pool goods and is in line with national ownership mandated by the Convention on Biological Diversity (CBD). This paper questions the value of bioprospecting for protecting traditional agricultural knowledge and argues for a common pool approach. It examines the nature of crop genetic resources and farmers' knowledge about them, and it analyzes the nature of the ‘common heritage' regime that was partly dismantled by the Convention on Biological Diversity. The paper reviews the implementation of access and benefit sharing schemes under the CBD and discusses programs to recognize Farmers' Rights that have arisen since the establishment of the CBD. It concludes with recommendations for meeting the Farmers' Rights mandate of the International Treaty on Plant Genetic Resources for Food and Agriculture." Author's Abstract
    Keywords: East Africa ,africa south of sahara ,Biological diversity conservation ,Collective action ,Bioprospecting ,
    Date: 2005
  5. By: Irini Maltsoglou; Aysen Tanyeri-Abur
    Abstract: The paper analyses the impacts of transaction costs on the degree of household market integration using survey data collected from smallholder potato farmers located in the Peruvian Andes. The analysis focuses on the impacts of transaction costs differentiated as information, negotiation and monitoring costs. Two proxies are used to measure the degree of market integration of households, namely quantity sold in the market and sales in large markets. The results show that, in addition to transport costs and market prices, information, negotiation and monitoring costs affect market integration. The study reinforces previous results and sheds light on possible policy options to support smallholders in improving their access to national and global markets.
    Keywords: Household behavior, family economics, Organizational behavior, Transaction costs, Property rights, Micro analysis of farm firms, Farm households, and Farm input markets, Agricultural markets, marketing.
    JEL: D1 D23 O12 O13
    Date: 2005
  6. By: Bruce A. Babcock; Chad E. Hart (Center for Agricultural and Rural Development (CARD))
    Abstract: Critics of the U.S. proposal to the World Trade Organization (WTO) made in October 2005 are correct when they argue that adoption of the proposal would significantly reduce available support under the current farm program structure. Using historical prices and yields from 1980 to 2004, we estimate that loan rates would have to drop by 9 percent and target prices would have to drop by 10 percent in order to meet the proposed aggregate Amber Box and Blue Box limits. While this finding should cheer those who think that reform of U.S. farm programs is long overdue, it alarms those who want to maintain a strong safety net for U.S. agriculture. The dilemma of needing to reform farm programs while maintaining a strong safety net could be resolved by redesigning programs so that they target revenue rather than price. Building on a base of 70 percent Green Box income insurance, a program that provides a crop-specific revenue guarantee equal to 98 percent of the product of the current effective target price and expected county yield would fit into the proposed aggregate Amber and Blue Box limits. Payments would be triggered whenever the product of the season-average price and county average yield fell below this 98 percent revenue guarantee. Adding the proposed crop-specific constraints lowers the coverage level to 95 percent. Moving from programs that target price to ones that target revenue would eliminate the rationale for ad hoc disaster payments. Program payments would automatically arrive whenever significant crop losses or economic losses caused by low prices occurred. Also, much of the need for the complicated mechanism (the Standard Reinsurance Agreement) that transfers most risk of the U.S. crop insurance to the federal government would be eliminated because the federal government would directly assume the risk through farm programs. Changing the focus of federal farm programs from price targeting to revenue targeting would not be easy. Farmers have long relied on price supports and the knowledge that crop losses are often adequately covered by heavily subsidized crop insurance or by ad hoc disaster payments. Farmers and their leaders would only be willing to support a change to revenue targeting if they see that the current system is untenable in an era of tight federal budgets and WTO limits.
    Keywords: farm safety net; revenue targeting; U.S. farm programs; WTO
    Date: 2005–11
  7. By: Prabhu Pingali (Agricultural and Development Economics Division, Food and Agriculture Organization); Terri Raney (Agricultural and Development Economics Division, Food and Agriculture Organization)
    Abstract: The past four decades have seen two waves of agricultural technology development and diffusion to developing countries. The first wave was initiated by the Green Revolution in which an explicit strategy for technology development and diffusion targeting poor farmers in poor countries made improved germplasm freely available as a public good. The second wave was generated by the Gene Revolution in which a global and largely private agricultural research system is creating improved agricultural technologies that flow to developing countries primarily through market transactions. The Green Revolution strategy for food crop productivity growth was based on the premise that, given appropriate institutional mechanisms, technology spillovers across political and agro-climatic boundaries can be captured. A number of significant asymmetries exist between developed and developing, e.g.: agricultural systems, market institutions and research and regulatory capacity. These asymmetries raise doubts as to whether the Gene Revolution has the same capacity to generate spillover benefits for the poor. A strong public sector – working cooperatively with the private sector – is essential to ensure that the poor benefit from the Gene Revolution.
    Keywords: Agricultural Biotechnology, Agricultural Research, Technological Change, Economic Development.
    JEL: O13 Q12 Q16
    Date: 2005
  8. By: Padmanabhan, Martina Aruna
    Abstract: "The maintenance of crop diversity on farmers' fields in hot spots of plant genetic diversity is considered a ”global life insurance policy“ in the Convention on Biological Diversity (CBD 2001:1). This paper provides evidence of the importance of the contribution of poor women farmers to the conservation and utilization of plant genetic resources (PGR) for food and agriculture. As a consequence, its equitable recognition and economic reward is a key issue in the sustainable management of agrobiodiversity. The present investigation into the institutions governing PGR, with special emphasis on gender equity and collective action, focuses on the identification of innovative institutions with special focus on women's interests. The paper considers empirical evidence from Kerala, a hot spot of biodiversity in India, investigates properties of local biodiversity resources, and the role of collective action in conservation. To help understand conservation and utilization of agrobiodiversity the investigation uses a combination of institutional and gender analysis. Keywords: gender; agrobiodiversity management; collective action; India; institutional change" Author's Abstract
    Keywords: South Asia ,South Asia and Central Asia ,Gender ,Agricultural biotechnology ,Collective action ,Institutional change ,Agrobiodiversity management ,
    Date: 2005
  9. By: André Croppenstedt (Agricultural and Development Economics Division, Food and Agriculture Organization)
    Abstract: Liberalization of Egyptian agricultural policy and new wheat technology has led to significant increases in area allocated to wheat as well as wheat yields. The wheat self-sufficiency ratio increased from 21 percent in 1986 to about 59 percent over the 2001-03 period. However, the country still imports 4-5 million tonnes of wheat per year. This paper addresses the issue of what kind of output gains can be achieved from improving technical efficiency, i.e. how much more output can be produced with the given levels of inputs and current technology. On average wheat farmers are found to operate 20 percent below the potential output. Better information on irrigation management and two or more extension visits were found to raise output by 14 and 7 percent respectively. However, neither factor was found to affect technical efficiency. Technical efficiency was found not to vary with farm size.
    Keywords: Egypt, Wheat, Technical Efficiency, Stochastic Production Frontier.
    JEL: C21 O13 Q12
    Date: 2005
  10. By: André Croppenstedt (Agricultural and Development Economics Division, Food and Agriculture Organization)
    Abstract: Egypt is on track to achieve its long-term goal of reducing the poverty rate to 6 percent by 2022. Continued progress towards this goal will require rapid employment growth for which agriculture growth, through its impact on demand for goods and services in the rural non-tradable sector will be of fundamental importance. This paper considers which agricultural policies will be most effective at reducing rural poverty in Egypt . Using household survey data from 1997 the study analyzes household income structure and determinants. Results indicate that agricultural policies that help to raise unskilled labor wages and/or increase demand for unskilled labor as well as those that support small animal/bird raising, in particular poultry, are best suited to help the poor. A longer-term strategy must also focus on enhancing formal sector employment through increased access to education for men and in particular women.
    Keywords: Egypt, household income structure, household income determinants, income distribution, rural sector.
    JEL: D30 O12
    Date: 2006
  11. By: Kristina Toming
    Abstract: With accession to the EU, Estonia gave up its liberal trade and agricultural policies and adopted the much more protectionist regime of the EU. Prior to accession, many studies predicted that this would lead to price increases for agricultural products and processed food. This article discusses the results from the studies conducted and compares them with actual price changes that have occurred. The article concludes that prices have actually increased much less than predicted, with only a few exceptions like sugar. The reason lies in the uncertainties associated with policy modelling as well as the gradual price convergence already in motion before accession.
    Keywords: EU accession, trade policy, food prices
    Date: 2006
  12. By: Badstue, Lone B.; Bellon, Mauricio R.; Berthaud, Julien; Ramírez, Alejandro; Flores, Dagoberto; Juárez, Xóchitl; Ramírez, Fabiola
    Abstract: "This project explored the possible role of collective action among small-scale farmers in managing and maintaining genetic resources in a center of crop diversity. It focused on the local institutions that ensure the supply of seed of diverse maize landraces to small-scale farmers in the Central Valleys of Oaxaca, Mexico. The key hypothesis was that the medium-to-long-term supply of a diverse set of varieties to any individual small-scale maize farmer depends on an agreement among a group of farmers to manage and supply the seed of these landraces to each other, if the need arises, and that this constitutes a form of collective action. Six communities were studied, three of them in-depth. Methodologies used included in-depth semi-structured interviews with key informants, focus group discussions, and a tracer study—following the flows of seed among different farmers. The results show that, while there is a well-developed local seed supply system based on sets of social relationships and involving multiple types of transactions, there is no evidence of collective action. Most farmers rely on and prefer to select and save seed from their own harvests. There are seed flows, however, and most seed transactions take place among people with social links, but not within a well-defined group. There are no specialized suppliers of seed, either individuals or groups. Most transactions are bilateral and while the most common transaction is the sale and purchase of seed, this is not done for profit but out of a sense of moral obligation. The system is based on the creation of trust, which is needed because seed is not transparent—that is, it is not possible to fully predict the plant phenotype that may result from a given seed simply by looking at the seed. Farmers demand different types of maize and they believe that there is a strong genotype-by-environment interaction, hence “foreign” maize types may not be appropriate for them. At the same time, farmers also find occasional experimentation beneficial and believe that they can slowly modify the characteristics of “foreign” landraces. In this system, there are strong incentives to be conservative, but also to try new landraces and experiment. The local seed system of these farmers is resilient but able to innovate as well. Interventions to support the conservation of landraces on farm, based on specialized networks for seed that rely on collective action, may not work.." Author's Abstract
    Keywords: Central America ,Europe and North America ,Small farmers ,Collective action ,Informal seed systems ,Crop diversification ,Seed supply ,Trust ,
    Date: 2005
  13. By: Frantisek Brazdik
    Abstract: The objectives of this analysis are to evaluate the technical and scale efficiency of rice farms in West Java and to identify determinants affecting farms’ efficiency. Further, the farm size–productivity relation is investigated. Data Envelopment Analysis is used to estimate technical efficiency scores. Additionally, Tobit regression is used to explain the variation in the efficiency scores related to farm-specific factors. I conclude that farm size is one of the most important factors of farm’s technical efficiency and that high land fragmentation was the main source of the technical inefficiency during the final period of the intensification era, known as the Green Revolution.
    Keywords: Rice farms, data envelopment analysis.
    JEL: C23 C50 N55 O38 Q11 Q15
    Date: 2006–01
  14. By: Rodgers, Charles; Hellegers, Petra J.G.J.
    Abstract: "The increasing demand for water and limited degree of cost recovery for irrigation water delivery are important challenges for policymakers in Indonesia. To meet the increasing demand for water, it is important to reduce water use in irrigated paddy cultivation, long the dominant consumptive user, and to divert water away from agriculture to domestic and industrial sectors. Reducing water use in irrigated agriculture can be achieved through various means, including rationing, improved user management, and water markets. The appropriate method depends on the situation specific to each basin. In the Brantas Basin in East Java, rationing is already practiced, but often leaves the non-licensed, (non-paying) irrigators with insufficient supplies. Moreover, very low irrigation service fee recovery rates hamper ongoing water sector reforms, which seek to strengthen the capacity of local institutions to co-manage water resources. In the Brantas Basin the average value of water in the production of important irrigated crops substantially exceeds estimated water supply costs and current ISF. However, increased water use fees would impose a substantial burden on farm economic welfare, while water savings would be relatively modest. Therefore, to conserve water and enhance the financial autonomy of irrigators alternative management systems are proposed, including ‘Integrated Crop and Resource Management' and a water brokerage mechanism." Authors' Abstract
    Keywords: Institutions ,Irrigation Economic aspects ,Prices ,Cost recovery ,Water Prices ,
    Date: 2005
  15. By: Horna, J. Daniela; Smale, Melinda; von Oppen, Matthias
    Abstract: "A typical private good is defined by its excludability and rivalry characteristics. Information embodied in a technology might not generate rivalry among its users. By contrast, excludability is certainly a characteristic of this kind of information and its delivery can generate incentives for private participation. This study examines farmers' preferences for seed of new rice varieties and their willingness to pay for seed-related information in villages of Nigeria and Benin. Conjoint analysis is used to estimate the structure of farmers' preferences for rice seed given a set of alternatives. Farmers are considered to be consumers of seed as a production input, preferring one variety over another based on the utility they obtain from its attributes, which depends on their own social and economic characteristics, including whether or not they sell rice. Contingent methods are used to elicit preferences and willingness to pay (WTP) for rice seed. The marginal values of attributes, with and without information about the seed, are estimated with an ordered probit regression. WTP for information is derived from the analysis of WTP for rice seed. The results have implications for the best way to finance research and extension services in the areas of intervention, particularly for new rice varieties. " Authors' Abstract
    Keywords: Willingnes to pay (WTP) ,seed-related information ,conjoint analysis ,rice attributes ,farmers' preferences ,technology ,
    Date: 2005
  16. By: Gauchan, D.; Van Dusen, M. E.; Smale, Melinda
    Abstract: "This paper presents an empirical case study about farmer management of rice genetic resources in two communities of Nepal, drawing on interdisciplinary, participatory research that involved farmers, rice geneticists, and social scientists. The decision-making process of farm households is modeled and estimated in order to provide information for the design of community-based conservation programs. A bivariate model with sample selection treats the simultaneous process of whether farmers decide to plant landraces or modern varieties, and whether the landraces they choose to plant constitute genetic diversity of interest for future crop improvement. Findings show that the two landrace choices are affected by different social and economic factors. The estimation procedure demonstrates that in certain cases, however, the decision processes are interrelated. Policies to promote the conservation of local rice diversity will need to take both processes into account. Fitted equations are then used to compare the likelihood that households targeted for conservation according to one set of conservation criteria also meet other conservation criteria. Households most likely to plant landraces identified as important for crop improvement also grow richer, more spatially diverse rice varieties. In these communities, few policy trade-offs would result from employing one set of criteria instead of the other." Authors' Abstract
    Keywords: Landraces ,Crop diversity ,
    Date: 2005
  17. By: Stephan Marette (Center for Agricultural and Rural Development (CARD))
    Abstract: This paper reviews the economic effects of collective-quality promotion through a survey of the recent literature devoted to common labeling and professional groups. Benefits and costs of common labeling and professional groups for improving quality are detailed. Some empirical facts are presented, mainly focusing on some European examples, since many European countries have a long history of producer-owned marketing programs. This paper shows that in some cases the collective-quality promotion can be a successful strategy for firms/farmers.
    Keywords: collective-quality promotion; labeling; marketing organization; quality signals
    Date: 2005–10
  18. By: Pyakuryal, Bishwambher; Thapa, Y. B.; Roy, Devesh
    Abstract: "Among South Asian countries, Nepal has liberalized most extensively during the 1980s and 1990s on both fronts, domestic and external. Nepal is a least developed country with a gross national product of US $235 per capita in 2001 and second lowest per capita wealth in the world. In South Asia, Nepal has the lowest per capita income, highest dependence of population on agriculture and second highest poverty rate. At the same time, on an average, Nepal has the lowest tariffs in South Asia and has taken several steps to downsize its public distribution system and remove a host of agricultural subsidies. This twin scenario where the lowest per capita income country is perhaps also the most liberalized makes for an interesting case for policy analysis. This paper reviews the outcomes from the liberalization policies followed by Nepal relating to food security." from Authors' Abstract
    Date: 2005
  19. By: Mukherjee, Anit; Zhang, Xiaobo
    Abstract: The dynamic rural nonfarm sector in China has been a major contributor to the country's remarkable growth, while in India the growth in output and employment in this sector has been rather stagnant. The paper argues that the observed patterns in the rural nonfarm development are the results of institutional differences between the two countries, especially in their political systems, ownership structure, and credit institutions. A review of the strengths and weaknesses of the rural nonfarm economy in China and India highlights the potentials and challenges of growth in the sector.
    Keywords: Industrial policy ,Policy research ,Non-farm development ,
    Date: 2005
  20. By: Linacre, Nicholas A.; Koo, Bonwoo; Rosegrant, Mark W.; Msangi, Siwa; Falck-Zepeda, Jose; Gaskell, Joanne; Komen, John; Cohen, Marc J.; Birner, Regina
    Abstract: "We examine access to, use of, and participation in decisions on improved water supply in the Volta basin of Ghana, one of the first countries to introduce a community-based approach to rural water supply on a large scale. While 71 percent of the households interviewed have access to improved water, 43 percent of these continue to use unsafe sources as their main domestic water source. Our results indicate that quality perceptions and opportunity costs play an important role in households' choice of water source. The effect of prices and income levels on this choice differs according to the pricing system used. Given that supply characteristics such as the location and pricing system affect household decisions to use the improved source, households may try to influence these characteristics in their favor during the community decision-making process for the improved source. However, less than 40 percent of the households interviewed participated in decisions on location or technology. We argue that the decision whether to participate depends on three main factors: (i) the household's bargaining power, (ii) the potential benefits from influencing outcomes, and (iii) the cost of participation, (mainly opportunity cost of time). Our results indicate that bargaining power matters In some developing countries the potential exists for agroterrorism to cause widespread disruption through loss of sustenance, income and production. Defense of agriculture may also be problematic because of the lack stability and basic biosecurity infrastructure for the detection and prevention of diseases or invasive species. Currently new methodological approaches for terrorism risk assessments are being actively explored for resource prioritization. One such methodology for risk based allocation of resources is Threat, Vulnerability, and Consequence (TVC) Analysis. A qualitative application of the TVC framework is used to analyze the risk of agroterrorism in developing countries relative to industrialized countries. The analysis suggests that evidence exists to demonstrate general terrorist threats, vulnerability of agriculture and, depending on the country, potentially serious consequences arising from argoterrorism. Where specific threats emerge, action may be needed by the international community to strengthen biosecurity systems in developing countries through: increasing global cooperation, capacity building in monitoring, remediation and risk analysis technologies, and the dissemination of novel technologies for control of pests and diseases." Authors' Abstract
    Keywords: Capacity building ,Water-supply Management ,Agroterrorism ,Biosecurity ,Risk analysis ,resource allocation ,Terrorism ,
    Date: 2005
  21. By: Stephan Marette (Center for Agricultural and Rural Development (CARD))
    Abstract: This paper revisits the issue of the regulatory choice between a mandatory label and a minimum-quality standard. When the cost of regulation is relatively low, we show that the socially optimal choice depends on the producers’ cost structure for complying with regulation and improving quality. Under a marginal cost for improving quality, the mandatory labeling is sufficient for reaching the socially optimal level of quality. Under a fixed cost for improving quality, we show that each instrument or the combination of both instruments may emerge at the equilibrium.
    Keywords: cost of regulation; information; standard
    Date: 2005–12
  22. By: Swallow, Brent; Meinzen-Dick, Ruth; van Noordwijk, Meine
    Abstract: "Payments for environmental services (PES) are increasingly discussed as appropriate mechanisms for matching the demand for environmental services with the incentives of land users whose actions modify the supply of those environmental services. While there has been considerable discussion of the institutional mechanisms for PES, relatively little attention has been given to the inter-relationships between PES institutions and other rural institutions. This paper presents and builds upon the proposition that both the function and welfare effects of PES institutions depend crucially on the co-institutions of collective action (CA) and property rights (PR)... This paper presents a conceptual framework that clarifies the inter-linkages between property rights, collective action, payment for environmental services, and the welfare of smallholder land users. The framework is centered on concerns of function and welfare effects of PES. The functional perspective clarifies the effects of collective action and property rights institutions on the supply of environmental services. The welfare perspective considers smallholders as one of several potential sources of supply,sometimes directly competing against large landowners and public sector providers. from Author's Abstract
    Keywords: Environmental services ,Poverty alleviation ,Collective action ,Smallholders ,Property rights ,Rural institutions ,Welfare effects ,Payment for environmental services (PES) ,
    Date: 2005
  23. By: Mauro Migotto; Benjamin Davis (Agricultural and Development Economics Division, Food and Agriculture Organization); Gero Carletto (Agricultural and Development Economics Division, Food and Agriculture Organization); Kathleen Beegle
    Abstract: Food security is a complex and multi-dimensional phenomenon. As such, its measurement may entail and benefit from the combination of both “qualitative-subjective” and “quantitative-objective” indicators. Yet, the evidence on the external validity of subjective-type information is scarce, especially using representative household surveys. The aim of this paper is to compare information on self-perceived food consumption adequacy from the subjective modules of household surveys with standard quantitative indicators, namely calorie consumption, dietary diversity and anthropometry. Datasets from four countries are analyzed: Albania, Madagascar, Nepal and Indonesia. Simple descriptive statistics, correlation coefficients, contingency tables and multivariate regression show that the “subjective” indicator is at best poorly correlated with standard quantitative indicators. The paper concludes that while subjective food adequacy indicators may provide insight on the vulnerability dimension of food insecurity, they are too blunt an indicator for food insecurity targeting. An effort towards developing improved subjective food security modules that are contextually sensitive should go hand in hand with research into how to improve household survey data for food security measurement along other dimensions of the phenomenon, particularly calorie consumption.
    Keywords: Food security, Qualitative indicators, Quantitative indicators, Household surveys, Subjective perceptions of food adequacy.
    JEL: I31 I32 O57 C19 C81
    Date: 2005
  24. By: Sarah Lowder; Terri Raney (Agricultural and Development Economics Division, Food and Agriculture Organization)
    Abstract: As an introduction to food aid this paper reviews various definitions of food aid and terminology used by practitioners and academics. It also briefly examines the size of food aid relative to Official Development Assistance, trade and food production in recipient countries and recognizes that in many instances food aid may play an important role in issues related to food security. Lastly, it summarizes actions taken by various international organizations to limit possible trade distortion resulting from food aid.
    Keywords: Food aid, Food security, Trade, World Food Programme, Official Development Assistance, International Organizations.
    JEL: F35 O19 P45 Q17 Q18
    Date: 2005
  25. By: Chowdhury, Shyamal; Negassa, Asfaw; Torero, Maximo
    Abstract: "This paper examines how market institutions can affect links between urban and rural areas with specific emphasis on goods market integration in the national context.Traditionally, development researchers and practitioners have focused either on rural market development or on urban market development without considering the interdependencies and synergies between the two. However, more than ever before, emerging local and global patterns such as the modern food value-chain led by supermarkets and food processors, rapid urbanization, changes in dietary composition, and enhanced information and communication technologies point to the need to pay close attention to the role of markets both in linking rural areas with intermediate cities and market towns and promotion of economic development and poverty reduction. This paper begins with a presentation of a conceptual framework of market integration and then identifies five major factors that increase the transfer costs that subsequently hinder market integration between rural and urban areas: information asymmetry, transaction costs, transport and communication costs, policy induced barriers, and social and noneconomic factors. Five specific cases in five developing countries are examined in this study to demonstrate the primary sources of transfer costs and the aspects of market institutions that are important to market integration and promotion of rural-urban linkages." from Authors' Abstract
    Keywords: Rural-urban linkages ,
    Date: 2005
  26. By: Angelo Zago (Dipartimento di Scienze economiche, Università di Verona)
    Keywords: Quality, Procurement, Contracts, Efficienty, Stochastic Production Frontier
    JEL: C21 L15 L24
    Date: 2005–09
  27. By: Kariuki, Gatarwa; Place, Frank
    Abstract: "Dimensions of the nature, scope, and complexity of collective action in Kenya have evolved over many years. In studying collective action, the aim is to understand why and how people participate in networks of trust. The purpose of this study was to investigate the different objectives that farmers pursue through collective action with the aim of understanding the patterns of people's participation in collective action, identify factors that influence people to join groups, and identify the costs and benefits of participating in activities of groups. The study was carried out in four sites spread across the highlands of central Kenya. Data was collected from a total of 442 households, focusing on whether members of those households belonged to groups and if so, what type of groups these were and their activities. In addition we looked at how these groups functioned and identified some of the contributions members make to these groups and the benefits from the same. The analysis shows that collective action is used to accomplish a range of activities for different socioeconomic categories and that the majority of households in central Kenya engage in some form of group activity.... The study suggests that where institutions and policies that promote individual or private sector growth are weak, collective action can help to overcome these weaknesses and connect individuals in these institutions and policies." from Author's Abstract
    Keywords: Collective action ,Trust ,Community participation ,cost benefit analysis ,Household surveys ,
    Date: 2005

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