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1. Comparing the Incidence of Taxes and Social Spending in Brazil and the United States

Author:
Nora Lustig, Timothy Smeeding, Sean Higgins, and Whitney Ruble
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
We perform the first comprehensive fiscal incidence analyses in Brazil and the US, including direct cash and food transfers, targeted housing and heating subsidies, public spending on education and health, and personal income, payroll, corporate income, property, and expenditure taxes. In both countries, primary spending is close to 40 percent of GDP. The US achieves higher redistribution through direct taxes and transfers, primarily due to underutilization of the personal income tax in Brazil and the fact that Brazil's highly progressive cash and food transfer programs are small while larger transfer programs are less progressive. However, when health and non-tertiary education spending are added to income using the government cost approach, the two countries achieve similar levels of redistribution. This result may be a reflection of better-off households in Brazil opting out of public services due to quality concerns rather than a result of government effort to make spending more equitable.
Topic:
Economics, Political Economy, Monetary Policy, and Food
Political Geography:
United States and Brazil

2. Time for FAO to Shift to a Higher Gear

Author:
Vijaya Ramachandran
Publication Date:
05-2014
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
In 2012, the Center for Global Development (CGD) convened the Working Group on Food Security, bringing together 22 experts in food policy, nutrition, agriculture, and economic development from around the world. The group's task was to review pressing challenges to agricultural development and food security and take stock of the Rome-based United Nations food agencies charged with addressing them. The working group decided to focus on the largest of those agencies—the Food and Agriculture Organization (FAO)—and has two key recommendations.
Topic:
Climate Change, Human Welfare, International Organization, and Food

3. The Value of Forest Ecosystem Services to Developing Economies

Author:
Katrina Mullan
Publication Date:
10-2014
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper assesses the scale of the potential co-benefits for residents of developing countries of protecting forest ecosystems in order to mitigate climate change. The objective is to improve understanding among development practitioners of the ways in which services provided by forest ecosystems can also make important contributions to achieving development objectives such as improvements to health and safety, and maintenance of food and energy security. This is achieved by reviewing empirical studies that estimate the value of specific ecosystem services derived from forests in order to evaluate and describe the current state of knowledge on how the wellbeing of local people is likely to be affected by the introduction of global mechanisms for avoided deforestation in developing countries. There are four main ways in which wellbeing can be affected: 1) forests provide soil protection and water regulation services, which in turn reduce waterborne diseases, maintain irrigation water supply, and mitigate risks of natural disaster; 2) forests provide habitat for birds, fish, mammals and insects that affect human health and income generation opportunities; 3) clearing forest through use of fire can lead to respiratory illness and property damage, particularly if the fires spread accidentally; and 4) tropical forests are particularly high in biodiversity, making them important locally as well as globally as a potential source of genetic material for new crop varieties and pharmaceuticals. Evidence on the size of these benefits suggests that while they are highly variable, households in or near forests and poor households benefit most from forest ecosystem services.
Topic:
Climate Change, Energy Policy, Environment, Natural Resources, Water, and Food

4. Agricultural Decisions after Relaxing Credit and Risk Constraints

Author:
Dean Karlan, Robert Osei, Christopher Udry, and Isaac Osei-Akoto
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The investment decisions of small-scale farmers in developing countries are conditioned by the farmers' financial environment. Binding credit-market constraints and incomplete insurance can reduce investment in activities with high expected profits. We conducted several experiments in northern Ghana in which farmers were randomly assigned to receive cash grants, grants of or opportunities to purchase rainfall-index insurance, or a combination of the two. Demand for index insurance is strong, and insurance leads to significantly larger agricultural investment and riskier production choices in agriculture. The salient constraint to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face, farmers are able to find resources to increase expenditure on their farms. Demand for insurance in subsequent years is strongly increasing in a farmer's own receipt of insurance payouts, and with the receipt of payouts by others in the farmer's social network. Both investment patterns and the demand for index insurance are consistent with the presence of important basis risk associated with the index insurance, and with imperfect trust that promised payouts will be delivered.
Topic:
Agriculture, Economics, Markets, Food, and Foreign Direct Investment

5. Assessing the Quality of Aid for Agriculture

Author:
Kimberly Elliott and Edward Collins
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
New international initiatives signal strong commitment to agriculture and food security in the face of growing demand and climate-change challenges. But aid to agriculture still represents just five percent of total official development assistance. With donor budgets under intense pressure, making aid effective is more important than ever, but we still know relatively little about the quality of aid in general and of agricultural aid in particular.
Topic:
Security, Agriculture, Climate Change, Development, Foreign Aid, and Food

6. West African Experience with the World Rice Crisis, 2007–2008

Author:
Vijaya Ramachandran, Peter Timmer, Steven Block, and Jenny C. Aker
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Rice production in Africa has tended to be low-yielding, geographically dispersed, and uncompetitive against low-cost Asian imports, even when protected by high freight costs and substantial trade barriers. Skyrocketing prices in world markets in 2007—08 were a shock to African consumers, producers, and governments alike. When international rice prices were relatively low, rice imports did not pose economic or political problems for West African governments. Extremely expensive imports reverse that equation. This paper addresses the response to that reversal first by presenting a historical review of trends in the West African rice sector and, second, by assessing the effect of world rice prices on domestic prices, primarily at the consumer level.
Topic:
Humanitarian Aid and Food
Political Geography:
Africa and Asia

7. Food Crisis, Household Welfare, and HIV/AIDS Treatment: Evidence from Mozambique

Author:
Mead Over, Damien de Walque, Harounan Kazianga, and Julia Vaillant
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Using panel data from Mozambique collected in 2007 and 2008, the authors explore the impact of the food crisis on welfare of households living with HIV/AIDS. The analysis finds that there has been a real deterioration of welfare in terms of income, food consumption, and nutritional status in Mozambique between 2007 and 2008, among both HIV and comparison households. However, HIV households have not suffered more from the crisis than others. Results on the evolution of labor-force participation suggests that initiation of treatment and better services in health facilities have counterbalanced the effect of the crisis by improving the health of patients and their labor-force participation. In addition, the authors look at the effect of the change in welfare on the frequency of visits to health facilities and on treatment outcomes. Both variables can proxy for adherence to treatment. This is a particularly crucial issue as it affects both the health of the patient and public health because sub-optimal adherence leads to the development of resistant forms of the virus. The authors find no effect of the change in welfare on the frequency of visits, but they do find that people who experienced a negative income shock also experienced a reduction or a slower progress in treatment outcomes.
Topic:
Food and Health Care Policy
Political Geography:
Africa

8. Financing Food Assistance: Options for the World Food Programme to Save Lives and Dollars

Author:
Vijaya Ramachandran, Benjamin Leo, and Owen McCarthy
Publication Date:
04-2010
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The World Food Programme has world-class logistics, but its ability to manage financial risk is extremely limited. The WFP procures 100 percent of its food through spot markets, which subjects it to substantial commodity and transport price risks and significant delays delivering food. Relying on reactive emergency appeals and on donors that tend to earmark contributions and make commitments one year at a time only adds to operational inflexibility and uncertainty.
Topic:
Humanitarian Aid and Food
Political Geography:
United States

9. Rice Price Formation in the Short Run and the Long Run

Author:
C. Peter Timmer
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper analyzes price formation on the world's rice market using simple supply and demand models as a start, but moving to “supply of storage” models—a staple of commodity-market analysis for more than half a century—to explain hoarding behavior and its subsequent impact on prices. The supply of storage model, however, does not account adequately for the influence that “outside” speculators have on prices. This paper quantifies the impact of financial factors and actors on commodity-price formation using very short-run prices and Granger causality analysis for a wide range of financial and commodity markets, including rice. The results are highly preliminary but are also very provocative. Speculative money seems to surge in and out of commodity markets, strongly linking financial variables with commodity prices during some time periods, but these periods are often short and the relationships disappear for long periods of time. Finally, the paper addresses the long-run (since 1900) relationships among the prices of the three basic cereal staples, rice, wheat and corn (maize), which have declined more than 1 percent per year over the past century. The decline accelerated after the mid-1980s; only the recent run-up in cereal prices in 2007–08 returned them to the long-run downward trend. Despite these common features and important cross-commodity linkages, however, price formation for rice has several unique dimensions worthy of further study.
Topic:
Agriculture, Markets, Food, and Financial Crisis