The document discusses agricultural policy issues, highlighting the importance of macroeconomic stability, economic freedom, and public spending for rural growth and poverty reduction. It outlines challenges in rural markets, including a lack of access to necessary inputs for small farmers, particularly women, and suggests state intervention and institutional innovation as potential solutions. The overall consensus recognizes the need for investments in rural public goods, technology, and sustainable practices to support agricultural development.

1. Mapping Policy Issues
1

2. Agriculture: much
discussed
Consensus Debates & …
Uncertainties

3. Debates & Uncertainties
Rural transitions
Small & large
farms
Failings in rural
markets
Stabilising
markets
Land policy
Competitiveness
& value chains
Technology Trade Climate change
Environmental
sustainability

4. Consensus on Agricultural
Growth
Rural Investment Climate
• Doesn’t have to be perfect! [Rodrik]
Rural Public Goods
• Roads, Power, Irrigation, etc.
• Education, Health, Water
• Research & Extension

5. SE Asia: 3 preconditions
for ↑growth
& ↓poverty
Macroeconomic stability
low inflation, currency overvaluation
Economic freedom
for farmers & entrepreneurs
Pro-poor public spending
on agriculture, public services, rural infrastructure
Source: Henley & van Donge 2012

6. 6
0
1
2
3
4
5
1961/62
1962/64
1964/66
1966/68
1968/70
1970/72
1972/74
1974/76
1976/78
1978/80
1980/82
1982/84
1984/86
1986/88
1988/90
1990/92
1992/94
1994/96
1996/98
1998/00
2000/02
2002/04
2004/06
2006/08
Agric gross prod: bill US$ 2000
2.6 % year
1974 1982 5.1 % year
-3 .1% year
20
30
40
50
60
70
1991/1992 1998/1999 2006
Poverty Incidence (%)
Poverty, rural
Poverty, cocoa
producers
Poverty, national
1.000
10
15
1.500
20
25
2.000
30
35
2.500
40
45
3.000
50
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
Underweight, % U5s
Food Supply, kcal/cap/day

7. Failings in Rural Markets
• SF don’t get inputs,
finance, TA, marketing
needed…
• …but technology exists!
• Female farmers hit
harder
• Poverty Trap [Sachs]
• … but what’s the problem?
7
High T Costs?
Governmen
t failure?
Real
costs?

8. Failings in rural markets: solutions?
State intervention?
e.g. Fert Sub
Institutional
Innovation
e.g. Contracts, Co-ops,
etc.
8

9. Key References
• Wiggins, Steve, John Farrington, Giles Henley,
Natasha Grist Anna Locke, 2013, Agricultural
development policy: a contemporary agenda,
Background Paper for GIZ, London: Overseas
Development Institute --- see Summary,
Chapter 2
•

10. SLIDE DUMP!

11. Framework: consensus, debates
uncertainties
• Rural Investment Climate
• Rural Public Goods
• Food Nutrition Security
Consensus
• Rural transitions
• Small large farms
• Failings in rural markets
• Stabilising markets
• Land policy
• Competitiveness value chains
• Technology
• Trade
• Climate change
• Environmental sustainability
Debates
Uncertainties
11