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21. Do Public Transfers Discourage Farmer Participation in Subsistence Crop Production? Empirical Evidence from Botswana

Author:
Tebogo Seleka and Khaufelo Lekobane
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
We analyze the impact of public food and cash transfers on farmer participation in Botswana’s subsistence arable agriculture. The results indicate that publicly provided social pensions and food packages (rations) reduce the probability of participation in subsistence crop farming. Engagement in paid off-farm employment, which is sometimes facilitated through a public works programme (PWP), also discourages farmer participation in the subsistence economy. Therefore, public food and cash transfers and the PWP yield work disincentive effects in Botswana’s subsistence agriculture. This is because transfers are usually consistent and regular in Botswana, impacting on household behaviour. The design of social protection policies should therefore consider such potential disincentive effects on the agricultural sector.
Topic:
Agriculture, Development, Economic Development, and Farming
Political Geography:
Africa and Botswana

22. Factors Underlying Communal Beef Cattle Marketing Decisions in Botswana: The Role of Public and Private Transfers

Author:
Tebogo Seleka and David Mmopelwa
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This article examines factors underlying communal beef cattle marketing at a household level in Botswana, with emphasis placed on the role of public and private transfers. Results show that public and private transfers (pensions, remittances, government food rations, and food supplies from friends and relatives) discourage cattle marketing. Thus, while they are important sources of household food security, cash and food transfers may adversely impact on beef export performance in Botswana. It is therefore fundamental that public transfer programmes are well targeted to needy and poor households, in order to minimize their adverse effects on the cattle industry. On the positive side, the paper argues that public transfer programmes may assist poor farmers rebuild their cattle and other livestock inventory, contributing to transition out of inter-generational poverty.
Topic:
Development, Economics, Public Policy, Economic Development, Private Sector, and Cattle
Political Geography:
Africa and Botswana

23. Competition and Trade Policy: The Case of the Botswana Poultry Industry

Author:
Masedi Motswapong and Roman Grynberg
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The poultry sector is the most successful example of import substitution in Botswana with the country having achieved national self sufficiency. The paper describes the value chain in the industry and shows how, given the small size of the market, a high degree of market concentration exists. There is an estimate of the loss of consumer surplus from the current trade regime. The paper raises issues regarding the fundamental tension between competition and industrial policy in a small developing country. As the larger firms in the poultry industry move towards export readiness after 32 years of protection, the question of a new trade and industry regime is considered.
Topic:
Development, Economics, Economic Development, Trade Policy, Strategic Competition, and Industry
Political Geography:
Africa and Botswana