Evidence On Key Policies For African Agricultural Growth

It is widely agreed that reducing poverty in Africa south of the Sahara (SSA) depends largely on stimulating growth in agriculture. To this end, heads of state in Africa rallied to form the pan-African Comprehensive African Agriculture Development Programme (CAADP) with the goal of raising investments and improving strategy implementation. However, while implementing an agricultural agenda under the CAADP framework, more and more countries have realized that increasing public investment in agriculture alone is not enough. Policy can play an important role not only to make public investment more efficient, but also is crucial for incentivizing private sector and farmer investment in agriculture. Against this backdrop this paper takes stock of current agricultural policies in SSA with a view to identifying policies that are working as well as areas for improvement. The paper examines policies to encourage the adoption of agricultural inputs, initiate greater private-sector investment in agriculture and agro-industries, and manage price volatility while encouraging openness. The paper further reviews successful land tenure policies and property rights systems, reviews the evidence on the synergies between agriculture and nutrition, and examines how CAADP is laying the institutional architecture for improved policy formulation in Africa. In general, the paper finds that although substantial progress has been made, there is considerable scope for improvement. This is not surprising given the relatively primitive and deeply rooted nature of smallholder farming in Africa. Evidence synthesized in the paper supports the view that most policies cannot be implemented in isolation. Rather, policies tend to be most effective when implemented along with complementary policies and public investments.

This book provides a thorough introduction to and examination of agricultural value chains in Sub-Saharan Africa. First, the authors introduce the economic theory of agri-food value chains and value chain governance, focusing on domestic and regional trade in (and consumption of) food crops in a low-income country context. In addition to mainstream and heterodox thinking about value chain development, the book pays attention to political economy considerations. The book also reviews the empirical evidence on value chain development and performance in Africa. It adopts multiple lenses to examine agricultural value chains, zooming out from the micro level (e.g., relational contracting in a context of market imperfections) to the meso level (e.g., distributional implications of various value chain interventions, inclusion of specific social groups) and the macro level (underlying income, population and urbanization trends, volumes and prices, etc.).Furthermore, this book places value chain development in the context of a process the authors refer to as structural transformation 2.0, which refers to a process where production factors (labor, land and capital) move from low-productivity agriculture to high-productivity agriculture. Finally, throughout the book the authors interpret the evidence in light of three important debates: (i) how competitive are rural factor and product markets, and what does this imply for distribution and innovation? (ii) what role do foreign investment and factor proportions play in the development of agri-food value chains in Africa? (iii) what complementary government policies can help facilitate a process of agricultural value chain transformation, towards high-productive activities and enhancing the capacity of value chains to generate employment opportunities and food security for a growing population.

"This publication contains the main report of a study championing the case for increased public support to agricultural and food security in sub-Saharan Africa (SSA). It advances four main reasons why agriculture in SSA deserves more public support. The first is a moral imperative: SSA governments cannot and should not ignore a sector on which about 70 percent of their population directly depend for their livelihoods if they are serious about their commitment to MDG1. Second, in spite of its generally poor performance, SSA countries do not have any realistic strategic option that they can rely upon for achieving sustainable economic development other than agriculture. Third, there is evidence from a number of SSA countries that appropriate policies and direct public sector investment have combined to trigger agriculture sector-led economic growth. This publication argues for countries to build on their success stories and for others to explore such opportunities, taking into account their specific environmental, economic and social conditions. Fourth, on average, agriculture in SSA has generally performed better than most other sectors, except in countries endowed with mineral resources."--Publisher's description.

Changes in the global environment have led some to question whether the conventional wisdom on the role of agriculture in economic development is still relevant to Africa today. This report critically examines the literature on this issue, taking both the conventional and skeptical views into account. It complements this review with case studies of five African countries. The findings indicate that agricultural growth will play an essential role in promoting overall economic growth and reducing poverty in most of Africa's agrarian-based economies. This holds true even for countries that have the potential for industrial growth driven by natural resources. The results also show that only smallholder food-staple and livestock production can generate broadbased agricultural growth. By demonstrating that Africa's agricultural and food subsector cannot be bypassed, this report contributes to an important ongoing debate in development studies.

Enhancing the productivity of agriculture is vital for Sub-Saharan Africa's economic future and is one of the most important tools to end extreme poverty and boost shared prosperity in the region. How governments elect to spend public resources has significant development impact in this regard. Choosing to catalyze a shift toward more effective, efficient, and climate-resilient public spending in agriculture can accelerate change and unleash growth. Not only does agricultural public spending in Sub-Saharan Africa lag behind other developing regions but its impact is vitiated by subsidy programs and transfers that tend to benefit elites to the detriment of poor people and the agricultural sector itself. Shortcomings in the budgeting processes also reduce spending effectiveness. In light of this scenario, addressing the quality of public spending and the efficiency of resource use becomes even more important than addressing only the level of spending. Improvements in the policy environment, better institutions, and investments in rural public goods positively affect agricultural productivity. These, combined with smarter use of public funds, have helped lay the foundations for agricultural productivity growth around the world, resulting in a wealth of important lessons from which African policy makers and development practitioners can draw. 'Reaping Richer Returns: Public Spending Priorities for African Agriculture Productivity Growth' will be of particular interest to policy makers, development practitioners, and academics. The rigorous analysis presented in this book provides options for reform with a view to boosting the productivity of African agriculture and eventually increasing development impact.

The production and use of evidence for agricultural policy is critical to prioritizing and targeting effective agricultural transformation reforms in African countries. International development organizations have supported programmes that promote evidence-informed policies, however, this support has often been focused on short-term and externally driven solutions, with limited impact in the long run. Faced with this scenario, there is now a growing interest in the role of resilient and sustainable national systems that can generate organic evidence-informed agricultural policy. Yet, there is limited knowledge on how to map out and analyse such systems, which is critical to fostering their emergence and the later uptake of evidence in policymaking. This study draws on ecological science and social network analysis to develop and test a framework that can help understand evidence-policy systems and their potential to sustainably promote evidence-informed policymaking in the agricultural sector. Applying this framework in Benin, the study found that beyond the Ministry of Agriculture, other organizations produce, broker or use evidence such as data, research, evaluation and expert knowledge in a context that is influenced by the institutional rules and setup, the incentives in place and the funding landscape. Furthermore, the paper analyses the sustainability of the evidence-policy system in Benin through its power, resilience and capability. Finally, it provides policy recommendations with the key entry points to improve on and how a system like this can be used to improve agricultural policymaking.