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1. Price Interventions as a Part of Living Income Strategies: Lessons learned from piloting a price premium mechanism for basmati rice farmers in Pakistan

Author:
Mira Alestig
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Oxfam Publishing
Abstract:
Small-scale farmers produce many globally important products such as rice, cocoa, cotton and vanilla. Poverty is widespread among these farmers, and there is an urgent need to increase their incomes. A living income – what a household needs to afford a decent standard of living for all its members – is a human right. It is increasingly recognized that paying a living income is the responsibility of businesses. Pricing is a vital part part of this, but raising the prices paid to farmers can be complicated, and many companies still treat it with scepticism. This paper presents lessons learned from the piloting of a novel price premium mechanism in Pakistan. The goal of the price intervention, which targeted basmati rice farmers in Punjab province, was to make a meaningful contribution to the incomes of the most vulnerable small-scale farmers, while at the same time identifying appropriate mechanisms to minimize costs to retailers and/or consumers. The pilot indicates that price, in combination with other complementary measures, can effectively contribute to closing the income gap for even the most vulnerable small-scale farmers, but that any mechanism to raise prices must be designed carefully. The intervention was part of the wider GRAISEA programme, which supports farmers and food producers in South-East Asia.
Topic:
Agriculture, Supply Chains, Income, Rice, and Cost of Living
Political Geography:
Pakistan and South Asia

2. Yak Herding as the Main Source of Livelihood: Examining Challenges and Opportunities of Highlanders in Bhutan

Author:
Sonam Wangdi, Kelly Tobden Dorji Tamang, Pelden Wangchuk, and Sherub
Publication Date:
06-2023
Content Type:
Journal Article
Journal:
Journal of Bhutan Studies
Institution:
Centre for Bhutan & GNH Studies (CBS)
Abstract:
Yak farming is the mainstays of nomadic herders’ economy in Bhutan. However, it has declined over the years despite diverse government interventions. Rapid socio-economic development and access to economic opportunities further hindered yak farming culture rather than helping to maintain highlanders’ livelihood. The study was carried out in four gewogs, Chhoekhor, Sephu, Merak and Sakteng, that depends on yaks for their living. Questionnaire based semi-structured interview was conducted to identify the main challenges and opportunities of yak herding within the different regions and examined the cost-benefit of herding yaks within the premises of nomadic herder’s livelihood sustenance. The study revealed that yak farming generates sufficient income to support the herders’ livelihood even though the profit margin was minimal. Around 90% of herders earned cash income from yaks. Dry cheese was the main revenue generator of Chhoekhor and Sephu, while fermented cheese earnt the highest income in Merak and Sephu. Yaks not only serve as the primary source of livelihood but also acts as a catalyst to generate additional income by gaining access to natural resources such as Cordyceps and herbal medicines. However, increased wildlife depredation on yaks and inadequate pastureland coupled with poor modern amenities threatened yak farming. The findings showed a declining trend in total yak population and number of yak-owning households particularly in Chhoekhor and Sephu compared to Merak and Sakteng. The future of yak farming in Bhutan is uncertain, but there is potential to address the challenges and ensure its continued importance to Bhutanese highlanders.
Topic:
Socioeconomics, Livelihoods, Income, Animal Husbandry, and Yak Farming
Political Geography:
South Asia and Bhutan

3. Income and Consumption Inequality in Latin American Countries

Author:
Sungwoo Hong
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The recent large-scale protests across Latin America show the seriousness of this inequality in the region. Accumulated complaints about poverty, inequality, and the gap between the rich and the poor are the root causes of the massive protests in Chile that broke out in October 2019 and the demonstrations in Colombia that started in April 2021. This brief looks into the following questions: 1) how profound is inequality in Latin America, and has there been no notable change in its pattern over time? 2) Are the current conditions of poverty and inequality and patterns of inequality the same across Latin American countries?
Topic:
Poverty, Income Inequality, Consumption, and Income
Political Geography:
South Asia and Latin America

4. Labour incomes in India: A comparison of PLFS and CMIE-CPHS data

Author:
Mrinalini Jha and Amit Basole
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
The Covid-19 pandemic has created a need for high frequency employment and income data to gauge the nature and extent of shock and recovery from month to month. Lack of such high frequency household-level data from official sources has forced researchers to rely almost entirely on the Consumer Pyramids Household Survey (CPHS) conducted by the Centre for Monitoring the Indian Economy (CMIE). Recently, the CPHS has been criticised for missing poor and vulnerable households in its sample. In this context, it becomes important to develop a detailed understanding of how comparable CPHS estimates are to other more familiar sources. We examine the comparability of monthly labour income estimates for the pre-pandemic year (2018-19) for CPHS and the Periodic Labour Force Survey (PLFS). Across different methods and assumptions, as well as rural/urban locations, CPHS mean monthly labour earnings are anywhere between 5 percent to 50 percent higher than corresponding PLFS estimates. In addition to the sampling concerns raised in the literature, we point to differences in the way employment and income are captured in the two surveys as possible causes of these differences. While CPHS estimates are always higher, it should also be emphasized that the two surveys agree on some stylized facts regarding the Indian workforce. An individual earning INR 50,000 per month lies in the top 5 percent of the income distribution in India as per both surveys. Second, both PLFS and CPHS show that half the Indian workforce earns below the recommended National Minimum Wage.
Topic:
Labor Issues, Survey, Data, COVID-19, and Income
Political Geography:
South Asia and India

5. Who was Impacted and How? Covid-19 Pandemic and the Long Uneven Recovery in India

Author:
Mrinalini Jha and Rahul Lahoti
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
We investigate the impact of the Covid-19 pandemic on income levels, poverty, and inequality in both the immediate aftermath and during the long uneven recovery till December 2021 using high-frequency household survey data from India. We find that the average all-India household income dropped between 30 to 38 percent during the months of the nationwide lockdown of April and May 2020. The subsequent recovery remained incomplete and was unevenly spread over the population even twenty-one months after the start of the pandemic. Households on an average continued to make 16 to 19 percent lower cumulative income in the post-lockdown period, but have mostly recovered after the second wave in the second half of 2021. Poverty more than doubled during the lockdown and was 50 to 80 percent higher in the post-lockdown period in comparison to the pre-pandemic levels. In the post-second-wave phase, poverty was still slightly higher than in the pre-pandemic period, and any progress in poverty reduction that would have been achieved under normal circumstances over the two years was lost. Inequality too spiked during the lockdown, but returned back to the pre-pandemic levels. Using an event study model we find that the initial shock of the lockdown was more severe for the bottom of the income distribution, but the bottom also experienced a faster recovery. On the other hand, the top end of the distribution experienced smaller declines during the lockdown but they have been slow to recover. The bottom deciles in any period typically constituted households working in contact-intensive, informal, less secure occupations that were hit the hardest during the lockdown, but were quick to recover when the economy opened up. The upper end of the distribution constituted households working in less contact-intensive, formal, secure occupations that were shielded from the sudden shock but were slow to recover.
Topic:
Poverty, Employment, COVID-19, Economic Recovery, and Income
Political Geography:
South Asia and India