INTERNATIONAL FOOD
POLICY RESEARCH INSTITUTE

         Institutional Innovation and
         Investment in Rural Public
  ...
What kind of a World in
 INTERNATIONAL FOOD
 POLICY RESEARCH INSTITUTE 2050?
                                             ...
Number of food-insecure people,
         1970, 1999, and 2015 (trend)
1200                                        East & S...
Approximated numbers of farms (1990s)


Farm size (hectares)                      % of all farms                    # of f...
Parliaments and Decentralized Elections
                                                   Number of election tiers
      ...
Page 6
Overview of Presentation

 I: Changing Context and Changing
  Issues
 II: Institutions, Innovations, and
  Public Goods
...
Elements of the Changing
Global Context
   Globalization in trade and investment
   Spread and deepening of democracy
 ...
Changing Global Food and
Agriculture Systems
 Growing role of retail industry (super
  markets)
 Intensified rural-urban...
Rural Development Down and Up
 Rural Development falling off the
  agenda in the 1980s-90s (declined
  by US$7 billion si...
Research Questions due to Changing
 Contexts and new Concepts


 What role for institutions in rural
  development ?
 Ho...
Overview of Presentation

 I: Changing Context and Changing
  Issues
 II: Institutions, Innovations, and
  Public Goods
...
What are institutions?
 ‘Institutional Environments’ :
 Formal (laws, regulations, property rights)
  or informal (values...
Conceptualization of Institutional
Linkages       (Adapted from World Bank, World Development Report 2003)




      INSTI...
Why and What Public Goods?
Why public responsibility to provide goods?
1. Market failure
2. Equity and rights

What are pu...
Connections Between Institutions
and Rural Public Goods
 Institutions are needed for efficient and
  equitable provision ...
Institutional arrangements in rural areas
– why hirarchies / markets / hybrids?

 Asset specificity
 Incomplete contract...
Examples of Public Goods
Important for the Rural Poor
   Food security
   Education
   Health care
   Access to politi...
How to set priorities among alternative
public goods investments?
High Returns for Development / poverty?
 Infrastructure...
India and Returns from Public
Spending
Fan, S., S. Thorat, and N. Rao (2003)



              India: Poverty Returns to In...
Providing Public Goods Through
Institutional Innovation
1. Roles of democracy, participatory
  government, and good govern...
Decentralization and Poverty
           Reduction - Linkages




Source: von Braun, Grote 2002

                          ...
2. Decentralization and Devolution

Is decentralization always good? „elite
  capture‟, local management
 Dec. can create...
6. Institutions and Technology
A. Example Agric. Technology
 Stress-resistant, higher-yielding varieties
 Focus on „low-...
Technology, contd.
B. Example Information Technology
 Network externalities and increasing
  returns to scale
 Reduces t...
Access to phone - effects in rural
          Peru and Bangladesh
         Net benefit per call
Peru          1.45 – 2.91 $...
Main Telephone Lines and
        GDP/capita, 2000 (138 countries)
                            60000



                   ...
Overview of Presentation

 I: Changing Context and Changing
  Issues
 II: Institutions, Innovations, and
  Public Goods
...
“Technological and Institutional Innovations
for Sustainable Rural Development”

Old temptations:
 Fixing it with smart i...
A new research focus on linkages between
areas of innovation for rural development
(1) Exploring synergies between investm...
A promise:
New relevant knowledge for rural
  development spreads faster then
  ever




                                P...
Upcoming SlideShare
Loading in …5
×

Institutional Innovation and Investment in Rural Public Goods for Development and Poverty Reduction

1,138
-1

Published on

Deutscher Tropentag
Goettingen Oct. 8, 2003

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,138
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
16
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Institutional Innovation and Investment in Rural Public Goods for Development and Poverty Reduction

  1. 1. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Institutional Innovation and Investment in Rural Public Goods for Development and Poverty Reduction Joachim von Braun, IFPRI Deutscher Tropentag Goettingen Oct. 8, 2003
  2. 2. What kind of a World in INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 2050? Now 1 : 4 : 1-Then 1 : 4 : 4 ? 10 9 8 7 6 5 4 3 2 1 0 1750 1770 1790 1810 1830 1850 1870 1890 1910 1930 1950 1970 1990 2010 2030 2050 W t ev ölk er ng elb u 2070 2090 2110 Source: UN 2130 2150
  3. 3. Number of food-insecure people, 1970, 1999, and 2015 (trend) 1200 East & Southeast Asia Millions South Asia 959 Sub-Saharan Africa 1000 Latin America 799 West Asia & North Africa 800 610 600 400 200 0 1970 1999 2015 Source: FAO (2000a, 2002); Bruinsma(2003). Page 3
  4. 4. Approximated numbers of farms (1990s) Farm size (hectares) % of all farms # of farms (millions) <1 73.20 334.00 1–2 11.70 53.30 2–5 8.90 40.30 5–50 5.30 24.60 >50 0.90 4.00 Total 100.00 456.10 Sources: von Braun, 2003, Estimates based on FAO World Agricultural Census (1990) and Supplement to FAO World Agricultural Census (various years, 1990–97), and various country statistics. Page 4
  5. 5. Parliaments and Decentralized Elections Number of election tiers No 1 2 3 Total elections Low and 25 42 13 2 82 Middle Income Countries Source: Own calculations based on data from UNDP 1999 and WDR 1999/00. Page 5
  6. 6. Page 6
  7. 7. Overview of Presentation  I: Changing Context and Changing Issues  II: Institutions, Innovations, and Public Goods  III: Agenda for Further Research Page 7
  8. 8. Elements of the Changing Global Context  Globalization in trade and investment  Spread and deepening of democracy  Decentralization of state control  Rapid change of technology  Increasing inequality  Increased global health linkages …are not separate trends but linked Page 8
  9. 9. Changing Global Food and Agriculture Systems  Growing role of retail industry (super markets)  Intensified rural-urban linkages  Changing governance in global natural resource use  New technologies  Continued protectionism? Page 9
  10. 10. Rural Development Down and Up  Rural Development falling off the agenda in the 1980s-90s (declined by US$7 billion since 1980 to late 1990s  A recent come back for rural development ? !  Unhealthy fluctuations Hoping for Rural Development Rather than Focused Initiatives Page 10
  11. 11. Research Questions due to Changing Contexts and new Concepts  What role for institutions in rural development ?  How can institutional innovation be stimulated? (“How to?” and “who?”)  What links from institutions to poverty reducing investments in public goods?  What links from institutions to poverty reducing technology? Page 11
  12. 12. Overview of Presentation  I: Changing Context and Changing Issues  II: Institutions, Innovations, and Public Goods  III: Agenda for Further Research Page 12
  13. 13. What are institutions?  ‘Institutional Environments’ : Formal (laws, regulations, property rights) or informal (values, cultures, norms) ‘rules of the game’ that influence transactions costs  ‘Institutional arrangements’ : Institutions of governance; linkages between organizations (‘players’), connected by laws, policies, regulations, norms, which determine competition, cooperation, and coordination (at costs) Page 13
  14. 14. Conceptualization of Institutional Linkages (Adapted from World Bank, World Development Report 2003) INSTITUTIONS - Rules Organizations Informal Formal Rules Regulations Government Agencies Networks Firms Laws Civil Society Organization Norms Police Traditions Constitutions Courts Markets Page 14
  15. 15. Why and What Public Goods? Why public responsibility to provide goods? 1. Market failure 2. Equity and rights What are public goods? 1. Non – rival (but not „pure‟) 2. Non – exclusive (but not „pure‟) Time, location, and context dependent Local, national, global public goods Page 15
  16. 16. Connections Between Institutions and Rural Public Goods  Institutions are needed for efficient and equitable provision and management of public goods  Public goods provide foundation for rural growth and market development  The rural poor are especially dependent on public goods provision due to … - imperfect markets, - low voice / power - Lack of access to information ->High transactions costs Page 16
  17. 17. Institutional arrangements in rural areas – why hirarchies / markets / hybrids?  Asset specificity  Incomplete contracts  Human propensity to opportunism -> “non-standard”- contractual forms as organizational solutions See O. Williamson Page 17
  18. 18. Examples of Public Goods Important for the Rural Poor  Food security  Education  Health care  Access to political rights  Property rights (Rule of law for land and water, etc.)  Access to information  Public Agro-scientific research  Natural resources and environmental quality  Equitable fiscal/monetary policies Page 18
  19. 19. How to set priorities among alternative public goods investments? High Returns for Development / poverty?  Infrastructure for mobility (roads?)  Education (fertility; mortality)  Agriculture research and development (growth and poverty)  Health (productivity) Assets with comparative advantages ? Requires coordination to avoid (investment) failure Page 19
  20. 20. India and Returns from Public Spending Fan, S., S. Thorat, and N. Rao (2003) India: Poverty Returns to Investment Number of poor reduced per Million Rps Spent 1960s 1970s 1980s 1990s Roads 229 722 717 474 Education 13 130 168 154 Irrigation 42 125 116 6 HYV Agric 254 224 44 n.s. R&D Page 20
  21. 21. Providing Public Goods Through Institutional Innovation 1. Roles of democracy, participatory government, and good governance 2. Decentralization and Devolution 3. Property rights establishment 4. Markets, and Coordination 5. Collective action in natural resource management 6. Institutions for Technology Page 21
  22. 22. Decentralization and Poverty Reduction - Linkages Source: von Braun, Grote 2002 Page 22
  23. 23. 2. Decentralization and Devolution Is decentralization always good? „elite capture‟, local management  Dec. can create incentives for pro- poor public goods delivery  Administrative-, and fiscal- without political decentralization? Optimizing decentralization! (scale, sequence, types of public good) Page 23
  24. 24. 6. Institutions and Technology A. Example Agric. Technology  Stress-resistant, higher-yielding varieties  Focus on „low-potential‟ areas (livestock)  Achieving higher yields without sacrificing natural resources (aquaculture)  Consumer oriented crop technology (price, quality, health) Time, location, and context dependent Why not just private sector? (CGIAR etc.) Page 24
  25. 25. Technology, contd. B. Example Information Technology  Network externalities and increasing returns to scale  Reduces transactions costs (price of information)  Can foster pro-poor institutional arrangements  Can strengthen pro-poor rights Privatization / contracts key ICT institutions Page 25
  26. 26. Access to phone - effects in rural Peru and Bangladesh Net benefit per call Peru 1.45 – 2.91 $ Bangladesh 0.11 – 1.59 $ Poorest 25% benefit more Increased participation in land, labor, and high value goods markets (+8%) Source: S. Chowdhury, 2002 Page 26
  27. 27. Main Telephone Lines and GDP/capita, 2000 (138 countries) 60000 50000 GDP per Capita (1995 US$) United States 40000 30000 Japan 20000 10000 Peru Jamaica India China Lao P.D.R. 0 Tanzania Uganda Bangladesh 0 10 20 30 40 50 60 70 80 Main Telephone Lines per '00' Inhabitants Page 27
  28. 28. Overview of Presentation  I: Changing Context and Changing Issues  II: Institutions, Innovations, and Public Goods  III: Agenda for Further Research Page 28
  29. 29. “Technological and Institutional Innovations for Sustainable Rural Development” Old temptations:  Fixing it with smart institutions?  Fixing it with smart technology?  Pushing for over-extended public goods provisioning Chance: seeking new synergies Page 29
  30. 30. A new research focus on linkages between areas of innovation for rural development (1) Exploring synergies between investment in public goods, technologies, and institutional innovation (2) Research on coordination of rural public goods provisioning (market and non- market; contracts, accountability, incentives, transparency) (3) Explicitly exploring distributional effects of alternatives (ex-post and ex- ante) But: not neglect the innovation potentials in the components Page 30
  31. 31. A promise: New relevant knowledge for rural development spreads faster then ever Page 31
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×