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131. Is Poverty a binding constraint on Agricultural Growth in Rural Malawi?

Author:
Mirriam Muhome‐Matita and Ephraim Wadonda Chirwa
Publication Date:
07-2013
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
Agriculture remains the most important sector in sub‐Saharan Africa and is a dominant form of livelihood for a majority of the population that resides in the rural areas. In Malawi, agriculture accounts for 35 percent of GDP and generates more than 80 percent of foreign exchange. In addition, agriculture is the most important occupation for 71 percent of the rural population in which crop production accounts for 74 percent of all rural incomes. However, agriculture has failed to get Africa out of poverty, and most countries are experiencing low agricultural growth, rapid population growth, weak foreign exchange earnings and high transaction costs (World Bank, 2008). In Malawi, for a long time, economic growth has been erratic (see figure 1) with huge swings and poverty has remained high. For instance, the annual growth rates in per capita gross domestic product averaged ‐2.1 percent in the 1980‐84 period, ‐2.7 percent in 1990‐94 period, 3.8 percent in 1995‐99 and ‐0.2 percent in the 2000‐05 period.
Topic:
Agriculture, Development, Economics, Political Economy, Poverty, GDP, Inequality, Economic growth, and Macroeconomics
Political Geography:
Africa and Malawi

132. Welfare Analysis of Changing Food Prices: A Nonparametric Examination of Export Ban on Rice in India (pdf)

Author:
Ben Groom and Mehroosh Tak
Publication Date:
01-2013
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
During the world food crisis of 2007-08, the price of staples soared rapidly. Higher food price impacts poor households more as they spend approximately three quarters of their income on food. Together rice and wheat provide more than 50% of the calorific intake in India. Apart from providing food security, millions of poor and small farmers depend on rice for their livelihoods. Using Indian Consumer Household Expenditure surveys for the years 2007-08 and 2009-10 the paper analyses the welfare generated by a ban on export of rice by the Indian government. The paper finds that the net impact of the ban on export of rice was positive, as it was able to cushion the Indian population (87% of whom are net consumers) from the adverse effects of the crisis. It also found that the poor in India aren’t homogeneous in nature. The majority of the rice-producing households that stand to gain from increased prices are relatively poor farmers. At the same time, the poor households that do not cultivate rice are most affected by price increase, as their budget share of rice is higher than richer households, who are more resilient to price rise. In particular, the wage labourers are affected significantly.
Topic:
Agriculture, Poverty, Food Security, Inequality, Exports, and Welfare
Political Geography:
India and Asia

133. A Note on Credit Allocation, Income Distribution, and the Circuit of Capital (pdf)

Author:
Paulo dos Santos
Publication Date:
08-2013
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This note considers the relationship between credit allocation and the aggregate, class distribution of income in the Circuit of Capital. Production and consumption credit inject means of purchase in different locations in the monetary circuits of capitalist reproduction. On the basis of comparative-dynamic analysis of the properties of steady-state evolutions, the note shows that production credit increases the wage share in total income, while consumption credit increases profit shares. These findings hold in general for any evolution in which sectoral revenue- elasticities of outlays measure less than unity. The note also motivates a new endogenous approach to the aggregate distribution of income, and offers new analytical tools facilitating work based on demand-constrained models of the Circuit of Capital.
Topic:
Inequality, Income Inequality, Economic Theory, Credit, and Capital
Political Geography:
Global Focus

134. Financing Water in Africa

Author:
Kate Bayliss
Publication Date:
08-2013
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Despite repeated policy initiatives from donors and governments, the human and economic cost of continued lack of access to safe water and sanitation in sub‐Saharan Africa remains high. This paper shows that a radical reorientation of policy is needed to achieve a significant increase in investment finance in order to raise access levels. Rather than continuing to pursue policies that have failed for the past two decades, such as bringing in the private sector and raising prices to cost recovery levels, attention needs to shift to wider aspects of domestic revenue mobilization to support public investment.
Topic:
Privatization, Water, Inequality, Investment, and Private Sector
Political Geography:
Africa

135. An Equitable Allocation of the Constituency Development Fund

Author:
Frank Kakungu
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
The disbursement of an equal quantum of funding per constituency has equity concerns because constituencies are not equal. This favours smaller, least populated constituencies against greatly populated and or the poorest – where needs are greatest. The blanket allocation of Constituency Development Fund (CDFs) across the country, without recourse to policy targets underscores national failure to address important policy concerns. This is unfortunately the case in Zambia. In this report, we devised a model that reallocates resources based on the socio-economic conditions prevailing in constituencies. The research developed a composite index of material and social deprivation using data from the Census 2010. Furthermore, the study evaluates the distribution of deprivation in constituencies and considers ways in which deprivation index can contribute to discussions relating to public resource allocation of the CDF. The research results has potential usages beyond the CDF reallocation, it informs decision-makers on resource allocation and planning and budgeting activities.
Topic:
Development, Poverty, Governance, and Inequality
Political Geography:
Africa and Zambia

136. Pro-poor growth and poverty reduction in Nigeria

Author:
John E. Ataguba, Chukwuma Agu, and Hyacinth Ichoku
Publication Date:
11-2012
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
The government of Nigeria has placed poverty reduction at the centre of the country’s economic policy and development programs since independence. Though this was not explicitly targeted in earlier development plans (1962 to 1975) of the country, it featured in more pronounced ways in latter programs and projects, many of which specifically targeted elimination of poverty. These targeted programs and projects covered a wide range of sectors of the economy including agriculture, health, education, housing and finance. In fact, they became so commonplace, scattered and ubiquitous that the Obasanjo regime (1999-2007) had to set out to rationalize and merge them in 1999. The various institutions that have arisen from the disparate poverty reduction programs were then consolidated into the National Poverty Eradication Programme (NAPEP). This, headed by the President, was charged with the sole mandate of eradicating poverty. There are different opinions that exist regarding the level of success of these programs and policies. Some people believe that these programs have had positive impact on the poor while others believe that they have made the poor poorer.
Topic:
Poverty, Inequality, Economic growth, and Economic Policy
Political Geography:
Africa and Nigeria

137. Headscarf Ban and Discrimination

Author:
Dilek Cindoğlu
Publication Date:
11-2010
Content Type:
Working Paper
Institution:
Turkish Economic and Social Studies Foundation (TESEV)
Abstract:
The headscarf ban applied in institutions of higher education, in the public sector, and as this research has shown, in the private sector, reveals the perspectives of the state and its institutions and as well of the society on human, women’s and citizens’ rights. The restrictions and barriers to entry of women to study and work in institutions of higher education and public sector institutions, in place since the 1960s, rest on a mentality that views women’s choices to wear headscarves as an attack on the secular regime, instead of treating their choices as a manifestation of their freedom of religion and belief. Consequently, the practices that were initially violating freedom of belief gradually deteriorated to cause further violations of rights to education, to employment, to equal access to public life and of basic rights and liberties such as the right to equality. The headscarf ban in institutions of higher education has for many years been and remains to be a widely debated and contested issue. Though there is a wealth of analysis, dialogue, debate and research on the subject, it is largely restricted to whether the headscarf ban in universities is justified or not. The impact that the ban has had on headscarved women’s lives have, on the other hand, been absent in the debates and analyses on the headscarf ban. A question that has not been featured in research and public debates so far is despite the public sector ban on the headscarf what are the experiences of those headscarved women at work who were able to graduate from university, but did not abandon their choice to wear headscarf to practice their faith and without? In other words, what is the impact of the headscarf ban in the public sector on the professional lives of higher educated headscarved women? Does this ban, which applies to public sector institutions, also hinder or restrict professional headscarved women as they apply for or work in private sector jobs? What obstacles are there for professional headscarved women to entering job markets in Turkey and to advancing their careers? This report is a product of TESEV Democratization Program’s quest to answer these questions. It examines one of the greatest roadblocks on Turkey’s path to democratization, the headscarf ban, and the implications of the ban on public and private sector employment to document the myriad forms of discrimination and rights violations that headscarved women face immediately after they decide to become working professionals. Though some forms of workplace discrimination 6 that headscarved women face also affect non-headscarved professional women with similar socio-economic backgrounds, the headscarf is the primary source of the majority of discrimination faced by professional headscarved women. Again, this report shows that the ban on the public sector spilled over to the private sector. Cases of discrimination and rights violations that are believed to have diminished and to even have been reversed in favor of headscarved women during the two terms of the AK Party administration continue to be recorded, especially and more vehemently in the private sector.
Topic:
Democratization, Gender Issues, Religion, Women, Inequality, and Discrimination
Political Geography:
Turkey and Middle East

138. China and World Development beyond the Crisis

Author:
Dic Lo
Publication Date:
10-2010
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Recent international opinions on China and world development have focused on the Sino-US economic nexus. The neo-liberal theory of “China causing global imbalances” claims that the particular way through which China has integrated itself into the world market is to the detriment of the economies of the advanced countries. The critical theory of “China facing internal and external dependence”, in contrast, claims that the real victim has been the economic development of China itself and the majority of developing economies. The objective of this paper is to clarify the analytical efficacy of these two theories, and, on that basis, to assess the validity of their implied policies. The paper also seeks to explore into the construction of an alternative policy line that suits better the needs of the social and economic development of China and the developing world.
Topic:
Development, Inequality, Social Policy, and Economic Development
Political Geography:
China and Asia

139. Combating Poverty and Social Exclusion in France

Author:
Stephanie Jamet
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Reducing poverty and social exclusion is an important objective for all French governments. Even though conventionally measured poverty is in fact lower than in most other countries, it is still higher than can be easily accepted. The current policy approach involves a large number of measures tailored to different circumstances. Some policies have unwanted side effects on labour market performance, and their cost-effectiveness could be improved to obtain better outcomes with the same resources. Concentrations of poverty and social exclusion in certain geographic areas and among certain groups of the population provide one of the most difficult challenges, for which contributions from education, labour market, housing, urban planning and anti-discrimination policies, as well as from the social services, are necessary.
Topic:
Poverty, Social Stratification, Inequality, and Social Roles
Political Geography:
Europe, France, and Western Europe