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1. Agricultural input subsidy and farmers outcomes in Tanzania

Author:
Bethuel Kinyanjui Kinuthia
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines the impact of the government input subsidy—the National Agriculture Input Voucher—on farmers’ production and welfare in Tanzania as well as the factors that influence agricultural production in the country. The analysis is based on the Living Standards Measurement Study-Integrated Surveys on Agriculture for 2008–13. The study uses panel fixed effects and difference-in-difference and propensity score matching methods to examine the two objectives. The results show that the input subsidy programme resulted in an initial increase in maize and rice production but not in the long run and only in a few regions. In addition, there was a decrease in total production in the southern region and the programme had little effect on farmers’ welfare. The results show that this programme only partly met the expected outcomes in Tanzania due to mistargeting, inaccurate identification of households, and poor implementation.
Topic:
Agriculture, Development, Welfare, Farming, and Subsidies
Political Geography:
Africa and Tanzania

2. “Blanket” Fuel and Electricity Subsidies Did Not Offer Much Benefit to Zambia’s Poor

Author:
Caesar Cheelo and Rabecca Haatongo-Masenke
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Hudson Institute
Abstract:
For a long time the Zambian Government ran a number of consumption and production subsidy programmes. These programmes1 came under considerable strain in 2015 when Zambia experienced a significant economic downturn. In that year, the real Gross Domestic Product (GDP) growth rate fell to 2.9%, from an impressive 7.7% over the ten years before (2005-2014). By the time the 2015 downturn had fully set in, the country was running a budget deficit of nearly 10% of GDP and had raked up a public debt stock of over 50% of GDP (IMF, 2016). With the combined cost of debt service interest payments and arrear payments rising from 17% of the National Budget in 2016 to 23% in 2017 (Cheelo, 2017), the Government was readily hemorrhaging money in the aftermath of the minicrisis. Zambia could no longer afford the multiplicity of subsidies it had been maintaining and seriously contemplated abolishing some of them. The policy intentions of the Government were met with strong anti-abolition sentiments with some stakeholders asserting that the removal of subsidies on fuel and electricity would cause pump-price and electricity tariff escalations. The worry was that these price hikes would hurt Zambia’s poor and vulnerable groups most of all. Generally, these sentiments were not backed by analysis and empirical evidence; they were subjective and had the potential to misinform public policy. This paper offers an alternative perspective to the above motion on anti-abolition of subsidies. We argue that during their existence, the fuel and electricity subsidies had benefitted the poor far less than they had done any other social groups in Zambia. Likewise, the abolition of the subsidies affected the poor less than it did other social groups.
Topic:
Energy Policy, Electricity, Fossil Fuels, and Subsidies
Political Geography:
Africa and Zambia

3. Reforming the Cotton Trade Order? An Analysis of Cotton Subsidies and Implications for Sustainable Development

Author:
Christine M. Makori
Publication Date:
05-2005
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
Cotton is the most widely produced cash crop in the developing world. It supports the livelihoods of numerous households in these countries and occupies a significant position both economically and politically. However, in the recent past, this sector has experienced a pricing crisis mainly attributed to subsidies of developed nations. This article analyzes the effects of cotton subsidies (the most controversial agricultural commodity in the ongoing trade negotiations) on sustainable development, focusing on the impacts of U.S. subsidies on four West African countries. Given that these support systems have political motivations, the article briefly surveys political challenges to subsidy reforms. In conclusion, the article makes specific recommendations to the WTO and national governments to promote free trade, enhance economic efficiency, and support the global fight against poverty.
Topic:
Sustainable Development Goals, Trade, WTO, Subsidies, and Cotton
Political Geography:
Africa, West Africa, and United States of America