Price policy,poverty, and power within rural West African households

This paper explores the impact of agricultural price policy on poverty in West Africa, a region in which prices are an important tool for raising rural household incomes. A game-theoretic, collective model of household income generation and resource allocation is developed that incorporates three features typical of West African rural households: preference heterogeneity among women and men, individual resource control, and power-mediated bargaining over resource control in the face of changes in households' economic environments. To explore price effects, the model is used to simulate the income impacts of large increases in cotton prices accompanying fast-paced agricultural liberalisation in Burkina Faso in the 1980s. The paper shows that where resources are controlled individually by household members, rather than pooled, Pareto efficiency in income generation does not hold. The impact of agricultural price policy on poverty is mediated by bargaining over resource control within households. Both the relative bargaining power of women and men and the degree of preference heterogeneity between them play fundamental roles in the outcome of such bargaining. The results point to a lower ability of households to take advantage of price incentives and thereby raise their incomes than a unitary household model, in which preferences do not differ and resources are pooled, predicts. They suggest that the effectiveness of price policy in reducing poverty in the region would be enhanced by taking into account the incentive structure within households as well as individual household members' ability to bargain over the benefit and cost streams flowing from price changes.     

Economic Benefits of Rural Feeder Roads: Evidence from Ethiopia

We estimate households’ willingness-to-pay for rural feeder roads in Ethiopia. Using purposefully collected data, we compare the economic behaviour of households by remoteness to estimate the benefits of access to feeder roads. Although we cannot definitively assert a causal relationship, we cautiously estimate that gravel roads have internal rates of return of 12–35 per cent. These results suggest that rural feeder roads may have relatively high rates of return even in unfavourable settings where (a) small-scale farmers have low levels of marketed agricultural surplus, (b) non-farm earning opportunities are negligible, and (c) motorised transport services are not guaranteed.     

How Accurate is Food-for-Work Self-Targeting in the Presence of Imperfect Factor Markets? Evidence from Ethiopia

Effective targeting of transfers is a key issue in public policy to combat poverty. Much faith is presently placed in self-targeting mechanisms such as public employment schemes supported by food-for-work transfers. Where targeting errors have been observed, these are usually attributed to mismanagement of key operational details, such as the project's wage rate. Using a unique data set from rural Ethiopia, we demonstrate that targeting errors may also have structural causes in some low-income countries. We hypothesise that imperfect factor markets generate a predictable dispersion across households in reservation wage rates that breaks down the unconditionally positive relation between income and shadow wages on which the theory of self-targeting public employment programmes rests. Our results confirm that the inaccuracy of FFW targeting stems from the fact that, in rural Ethiopia, higher income households are endowed with more labour per unit of land or animal. Due to poor factor markets in land and livestock these labour-abundant households have lower marginal labour productivity on farm, thereby depressing the reservation wage rates they find acceptable for FFW participation.     

Merger Melancholia: An Empirical Analysis of the Perceptions of the Residents of the Forcibly Amalgamated Manilla Shire Council

Notwithstanding cogent reasons for the continued existence of small local authorities in the sparsely populated Australian hinterland, compulsory council consolidation has been a recurring theme throughout the history of Australian local government. Despite its ubiquity, especially in rural, regional and remote Australian communities, its local consequences have not yet been fully examined by scholars or policy makers. The present paper seeks to remedy this neglect with an exploratory study of the social and economic consequences of forced local government amalgamations through the lens of the ‘lived experience’ of the small rural community of Manilla, which was forced in merge with the much larger Tamworth in 2004.     

Local government revenue policies in new Mexico

This examination of the revenue patterns of local governments in New Mexico finds that communities with the greatest social needs for public services-- small population rural areas, less affluent communities, and rapidly growing districts-- are precisely those that have the weakest revenue bases. Moreover, none of these types of disadvantaged jurisdictions receives above-average redistributive assistance from the federal government.Variations in revenue effort, especially among municipalities, exacerbate this problem because certain communities gain huge revenue windfalls which bear little relationship to either their social needs or taxing efforts but stem, rather, from fortuitous geographic positions. This advantage works its way through the entire revenue system, directly because state transfers are linked to place of collection and indirectly because of the overwhelming effect of revenue effort on revenue sharing allocations in the state. The local revenue system in New Mexico, therefore, works against the communities that have the greatest need for government services. Most of these inequities, however, do not appear to be the explicit goal of economic or political policy. Instead, they are the unintended consequences of a supposedly “neutral” allocation formula. This state of affairs certainly argues for policymakers paying more attention to the actual results of their policies.     

Social Capital and Hygiene Practices among the Extreme Poor in Rural Bangladesh

We investigate the effect of social capital on hygiene practices pertaining to lives of the extreme poor in rural Bangladesh. Analysing a unique survey dataset for 5,600 extreme poor households, we document a significant positive effect of social capital on sanitary latrine use and wearing shoes/sandals at home for hygiene. We account for the endogeneity of social capital by instrumental variable estimation. Our findings emphasise the role of social capital in preventing common diseases through improving hygiene practices for the extreme poor, who usually lack access to medical services in the event of illness, which has important policy implications.     

Promoting neoliberal ideology in Finnish rural community development: the creation of new moral actors

ABSTRACT

Today’s political ambitions are based on the neoliberal aspiration to diminish the state’s role and responsibilities, and to transfer those responsibilities to local communities and individuals in ways that idealise those communities, promising to ‘give power to the people’. Instead of highlighting individualism, neoliberalism now celebrates communities and participation. This article deals with the effects of this ideology with regard to Finnish rural policy objectives. Drawing on Finnish village action programmes as data, we argue that these ideological views aim to transform individuals and create new moral actors. Our research indicates that Finland’s rural policy objectives invoke actors that are responsible for their communities, have an ‘enterprising spirit’, and are change-friendly and innovative. However, the ideology disregards the economic and social preconditions and resources necessary for building affluent communities and villages, which are difficult to attain when there is less government involvement. Thus, rural communities face increasing demands and less government involvement.     

Distributional Effects of Maize Price Increases in Malawi

Abstract

In the wake of highly volatile world prices of staple commodities, we examine the impacts of increases in maize prices on various categories of households in Malawi. Using household-level data, changes in household income are calculated taking into account the net maize production status of the household and food price elasticities estimated from a censored demand system. While maize price increases have unequivocal deleterious effects on the incomes of urban households, rural households experience differential impacts. Net producing households in rural areas benefit from price increases with households above the poverty line obtaining proportionally higher incomes.     

Cash Transfers Enable Households to Cope with Agricultural Production and Price Shocks: Evidence from Zambia

Climate change is projected to dramatically disrupt rainfall patterns and agricultural yields in sub-Saharan Africa. These shocks to food production can mire farming households in poverty traps. This study investigates whether unconditional cash transfers can help households cope with agricultural production and price shocks. We find that cash empowers poor, rural households facing these negative shocks to employ coping strategies typically used by the non-poor and enables them to substantially increase their food consumption and overall food security. Extending relatively small cash payments unconditionally to the rural poor is a powerful policy option for fostering climate-resilient development.     

Poverty and productivity in female-headed households in Zimbabwe

A household survey conducted in rural Zimbabwe in 2001 is used to compare the position of de facto and de jure female-headed households to those with a male head. These households are characterised by different forms of poverty that impinge on their ability to improve agricultural productivity. However, once inputs are accounted for, it is only for growing cotton that female-headed households' productivity is lower than that found for male-headed households. General poverty alleviation policies will benefit the female-headed household but specific interventions via extension services and access to marketing consortia are also indicated.     

E-Government for Lowering Administrative Burden: An Empirical Research on European Rural Businesses

Administrative burden reduction is in the policy agenda in European countries and international organizations. The objectives of this article are to measure administrative burden of rural businesses in three European case studies and to assess the use of semantic electronic government services for its reduction. The main findings are that rural businesses do not perceive the administrative burden significance for entrepreneurship; public administration could implement semantic electronic government services to reduce rural businesses’ administrative burden; and future administrative burden reduction policies should take into account the type and location of businesses to achieve an efficient business environment.     

Social Network Effects on Mobile Money Adoption in Uganda

This study analyses social network effects on the adoption of mobile money among rural households in Uganda. We estimate conditional logistic regressions controlling for correlated effects and other information sources. Results show that mobile money adoption is positively influenced by the size of the social network with which information is exchanged. We further find that this effect is particularly pronounced for non-poor households. Thus, while social networks represent an important target for policy-makers aiming to promote mobile money technology, the poorest households are likely to be excluded and require more tailored policy programmes and assistance.     

Son Preference and Household Income in Rural China

Why is it that couples who have a son or whose last child is a son earn higher conditional income? To solve this curious case we tell a detective story: evidence of a phenomenon to be explained, a parade of suspects, a process of elimination from the enquiry, and then the denouement. Given the draconian family planning policy and a common perception that there is strong son preference in rural China, we postulate two main hypotheses: income-based sex selection making it more likely that richer households have sons, and an incentive for households with sons to raise their income. Tests of each hypothesis are conducted. Taken as a whole, the tests cannot reject either hypothesis but they tend to favour the incentive hypothesis; and there is evidence in support of the channels through which the incentive effect might operate. To our knowledge, this is the first study to test these hypotheses against each other in rural China and more generally in developing countries.     

Economic Consequences of Forced Displacement

Over 42 million people worldwide have been forcibly displaced from their communities, though little is known about the impact of this movement on livelihoods. I use a panel data set and exploit a geographic discontinuity to explore the effects of displacement in Uganda. I find that displaced households experience a significant initial decrease in consumption. Two years after households returned home, displaced households still lag behind. However, households in the top quartiles of pre-displacement assets have recovered some of their consumption, though with significantly reduced education and wealth levels. There is likely little or no recovery for the poorest households.     

The Impact of Shocks on Gender-differentiated Asset Dynamics in Bangladesh

This study investigates changes in assets owned by the household head, his spouse, or jointly in response to shocks in rural agricultural households in Bangladesh with household survey panel data. Looking at changes within households over time, we find that weather shocks adversely affect the asset holdings of household heads relatively strongly, while predicted negative shocks more strongly lead to assets of both spouses being drawn down. The results, furthermore, suggest that jointly owned assets are not easily sold in response to shocks, and that women’s asset holdings and coping strategies are shaped by their lower involvement in agriculture.     

Devolution and individual choice in local government services

Abstract

The Labour government in England is pressing for further individual consumer choice in local authority services and, in the name of localism, exploring possibilities for devolution of powers to councils. Little work has been done on how the two agendas might interact. Are they in inevitable tension, because choice promotes exit and devolution promotes voice? Might devolution be offered as a reward for good performance in choice? What might be the consequences for equity? This article argues that the more significant interaction issues are likely to arise from the dynamics created by their combined effects on incentives on households at the margin to relocate. The article offers conceptual and deductive analysis, because before we know the design of devolution and choice schemes we cannot measure the size of the interaction effects. Although major policy tension is not inevitable, the article concludes that policy makers may have to decide how much gains in voice and from choice are worth the possible losses in equity.     

Inequality,earnings and participation among the poor in rural India

Emphasising that there is a relative dimension to deprivation, an attempt is made here to decompose income inequality among the rural poor into inequality in earnings per worker, in participation rate and covariance of earnings per worker and participation rate. From this decomposition, the effects of (small) changes in inequality in earnings per worker and in participation rate on income inequality are evaluated. The analysis is based on a cross‐section of rural households in 1970–71. The samples of poor cultivating households and poor casual agricultural labour households are analysed separately for each of two regions, based on a classification of villages in terms of technological advancement.     

Are Alternative Livelihood Projects Alleviating Poverty in Mining Communities? Experiences from Ghana

This paper critiques the approach being taken in Ghana to implement Alternative Livelihood (AL) projects in mining communities. The rapid insurgence of illegal artisanal gold mining has forced policymakers to think more creatively about ways in which to deal with mounting unemployment in the country's rural areas. Most of the economic activities being promoted, however, have proved highly unpopular with target groups. The adopted policy approaches reflect how little in tune the organisations championing AL activities are with the mindsets and ambitions of rural populations.