Rice Land Designation Policy in Vietnam and the Implications of Policy Reform for Food Security and Economic Welfare

With the aim of promoting national food security, the Vietnamese government enforces the designation of around 35 per cent of agricultural land strictly for paddy rice cultivation. We investigate the economic effects of adjusting this policy, using an economy-wide model of Vietnam with detailed modelling of region-specific land use, agricultural activity, poverty and food security measures. Our results show that the removal of the rice land designation policy increases real private consumption by an average of 0.35 per cent per annum over 2011–2030, while also reducing poverty, improving food security and contributing to more nutritionally balanced diets among Vietnamese households.     

Experiential and empathetic engagements with global poverty: ‘Live below the line so that others can rise above it’

In recent years events that physically challenge Northern publics have emerged as a new form of engagement with global poverty. In this article we examine the ‘Live Below the Line’ (LBTL) campaign, which asks participants to live on a small amount of money equivalent to the international poverty line for five days, as an example of experiential exercises that complement physical challenges with the simulation of some aspect of poor people’s lives. Drawing on interviews with participants in the 2013 New Zealand campaign, we argue that LBTL creates a limited understanding of poverty focused on poor food consumption caused by low income. While participants were able to have a more embodied and empathetic engagement with poverty, they projected their own physical and emotional sensations onto imagined poor others. As a result, stereotypes about those living in poverty were reinforced rather than challenged.     

Analysing agricultural investment from the realities of small-scale food providers: grounding the debates

Abstract

Over the past decade, agricultural investment has been presented as a catchall solution to a converging set of global crises, often with poor rural communities as the proclaimed beneficiaries. Yet the promises of such investment, such as poverty alleviation and improved food access, are routinely at odds with realities on the ground. This article offers frameworks for analysis of agricultural investment that are grounded in the realities of small-scale food providers, drawing from two studies. The first study employs a right to food framework to identify the main channels through which food for consumption is procured by small-scale food providers and the factors impacting these channels. It draws on empirical data from within the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), an investment model promised to lift rural communities out of poverty, which reflects a regional trend. Based on the shortcomings of the large-scale investments examined, the second study employs a food sovereignty framework to explore alternative forms of investment envisioned and/or already being put into practice by small-scale food providers in the SAGCOT area and elsewhere in Tanzania. While two different frameworks formed the basis of two different studies, both the studies and their frameworks are interrelated. The final section of this article makes the case for why both the right to food and food sovereignty are essential lenses for understanding agricultural investment vis-à-vis small-scale food providers and the ways in which they can serve as complementary tools for effective analysis.     

Farm productivity and rural poverty in India

Armed with new data, we return to an old question from the pages of this journal: to what extent do India's rural poor share in agricultural growth? Combining data from 24 household sample surveys spanning 35 years with other sources, we estimate a model of the joint determination of consumption‐poverty measures, agricultural wages, and food prices. We find that higher farm productivity brought both absolute and relative gains to poor rural households. A large share of the gains was via wages and prices, though these effects took time. The benefits to the poor were not confined to those near the poverty line.     

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.     

Robustness of subjective welfare analysis in a poor developing country: Madagascar 2001

We analyse the subjective perceptions of poverty in Madagascar in 2001 and their relationship to objective poverty indicators. We base our analysis on survey responses to a series of subjective perception questions. We extend the existing empirical methodology for estimating subjective poverty lines on the basis of categorical consumption adequacy questions. Based on this methodology, we calculate the household-specific, subjective poverty lines. We are able to compare between the results of subjective poverty analysis using several types of subjective welfare questions. Our results show that the aggregate poverty measures derived from consumption adequacy questions accord quite well with the poverty measures based on objective poverty lines. We demonstrate that the subjective welfare analysis can be used in poor developing countries for evaluating socio-economic and distributional impacts of various policy interventions.     

Post-development and Poverty: an assessment

This article presents a critical assessment of the post-development critique of poverty, distinguishing between claims made about how poverty is represented in ‘modern’ poverty analysis (the ‘representations critique’) and claims about trends in, and causal analysis of, consumption poverty (the ‘marginalisation thesis’). In general empirical evidence does not support ‘headline’ claims concerning the lack of correspondence of consumption poverty to local needs and the worsening of consumption poverty. There is support for other positions concerning the relativity of nutritional adequacy norms and the limits of ‘standard’ causal analysis of poverty. These latter elements, however, add little to existing critiques which are well known in the poverty literature.     

Trends in poverty and destitution in Wollo,Ethiopia 1

According to several studies, poverty in rural Ethiopia has fallen significantly since the early 1990s, thanks to improved governance and economic liberalisation policies. This paper presents several arguments that challenge this view. The first questions the methodological foundations of the data from which these positive trends are derived: we argue that the original sampling frame was too small and unrepresentative to provide a basis for extrapolating national poverty levels or trends. The second argument questions the conceptual underpinnings of these studies: poverty estimates based on levels of current consumption fail to allow for non-income dimensions of wellbeing, nor for confounding factors such as seasonality, annual rainfall and food aid receipts. The third strand considers alternative sources of data on changes in wellbeing in Ethiopia: recent qualitative studies report that the poor perceive themselves as poorer and more vulnerable than poverty headcount figures suggest.

Finally, we report findings from our own survey in chronically poor and historically famine-prone Wollo. First, a significant proportion of households in the study area are destitute – destitution being defined as inability to meet basic needs, lack of key productive assets, and dependence on transfers. Secondly, the numbers of destitute people, and of people vulnerable to becoming destitute, have increased over the past ten years. Thirdly, the crisis of livelihoods underlying this trend is affecting entire communities – the dominant pattern is an aggregate downward shift, rather than stratification – and the decline of wealthier households is exacerbating the vulnerability of the poorest. These findings cast serious doubts on generalisations about poverty trends in Ethiopia. At the very least, national-level data need to be disaggregated: improving national trends may conceal pockets of entrenched poverty and a deepening livelihoods crisis in parts of rural Ethiopia.     

Food energy intake and cost of basic needs: Measuring poverty in Bangladesh

Past estimates of poverty in Bangladesh based on the food energy intake method found decreasing poverty over time and similar poverty in urban and rural areas. Using the cost of basic needs method, we find increasing poverty for 1984–92 and higher poverty in rural than urban areas. Examples of lack of consistency in past estimates are highlighted. A method is introduced to assess the gap narrowing and re‐ranking impacts on poverty measures of changes in poverty lines. The article also estimates the marginal impact of household characteristics such as household size, education, occupation and land ownership on the probability of being poor.     

The Effects of International Remittances on Poverty and Inequality in Ethiopia

Abstract

The article studies the effects of international remittances on poverty and inequality in Ethiopia using an urban household survey from 2004. Counterfactual consumption in the hypothetical case of no remittance is estimated in a selection-corrected estimation framework. Inequality and poverty values in the hypothetical and actual cases are then compared. There is a significant reduction in poverty, while inequality does not change. The head count, the poverty gap and the squared poverty gap ratios decreased from 0.41 to 0.38, 0.14 to 0.13, and 0.064 to 0.057 respectively.     

Shocks and their consequences across and within households in Rural Zimbabwe

Increasing attention is now being paid to poverty dynamics in developing countries. This work links the extent to which households smooth consumption or smooth assets given income shocks, the empirical evidence on the churning of households in and out of poverty, and the possibility that temporary shocks can have permanent consequences. Using longitudinal data from rural Zimbabwe, this paper extends the discussion of these issues by disaggregating the impact of shocks by levels of asset holdings, by disaggregating the impact of shocks on individual level welfare and by assessing the extent to which such shocks have permanent consequences. By doing so, it assesses the validity of distinguishing between asset and consumption smoothing and provides insights into whether poverty dynamics assessed at the household level provide an adequate picture of dynamics at the individual level.     

Poverty in Bangladesh: Measurement,decomposition and intertemporal comparison

This article, using the methodology developed by Foster, Greer, and Thorbecke to measure and decompose poverty, provides estimates of the levels of poverty in rural and urban areas in Bangladesh. It investigates in the context of Bangladesh, the most powerful effect of poverty in terms of a shortfall in food for daily calorie intake by the poor. It provides intertemporal comparison of poverty and its decomposition among subgroups. It also makes comparisons between the results obtained in this study with those currently available. The results of the study show a significant improvement in poverty situations in rural areas from 1982 to 1986. The article also discusses the policy implications of its findings.     

Identifying a Sustained Pathway to Multidimensional Poverty Reduction: Evidence from Two Chinese Provinces

Poor rural households in developing countries often endure many-faceted burdens including monetary poverty, nutrition deficiency and energy shortage due to reliance on limited local natural resources with low utilisation efficiency. We investigate a sustained pathway in rural China to escape the vicious circle between three important dimensions of poverty – deficiency of income, malnutrition and a low energy consumption profile in terms of reliance on firewood. By exploiting household panel data and a dynamic and recursive multi-equation mixed mode, we identify inter-locking deprivations in income, nutrition and energy consumption. Firewood plantations only offer short-term solutions to break them through income effects, while the sustained pathways in the long-term are increasing agricultural labour productivity and provision of agricultural loans.     

Mobile Phones and Economic Development in Rural Peru

We estimate the effects of mobile phone coverage on different measures of economic development. We exploit the timing of mobile coverage at the village level merging it with a village-level panel dataset for rural Peru. The main findings suggest that mobile phone expansion has increased household real consumption by 11 per cent, reduced poverty incidence by 8 percentage points and decreased extreme poverty by 5.4 percentage points. Moreover, those benefits appear to be shared by all covered households regardless of mobile ownership.     

Can agricultural intensification help attain Sustainable Development Goals? Evidence from Africa and Asia

Market-oriented agricultural intensification is a major development strategy, yet its alignment with sustainable development goals (SDGs) is unclear. We apply indicators for SDG 2 (eradicate hunger) regarding income, food production, food security and land tenure to recent intensifications in Rwanda and Laos to reveal their disaggregated impacts. We find while market-oriented intensification may generate poverty reduction, it also exacerbated marginalisation and poverty through various forms of land tenure insecurity. Ethnicity and gender were influential factors in Rwanda, and post-conflict resettlement policies in Laos. We discuss implications for development practice and selection of suitable indicators to reflect the ambition of the SDGs.     

Exploring Seasonal Poverty Traps: The ‘Six-Week Window’ in Southern Malawi

Conventional wisdom in Malawi holds that seasonal food deficits force smallholders to hire out their labour to buy food during the critical first six weeks after planting, thereby reducing maize yields on their own fields and reinforcing poverty. This model was tested empirically for the Blantyre Shire Highlands using evidence from a panel survey and household case studies. Results showed no significant relationship between the supply of hired labour (ganyu) and the timeliness of weeding for maize, and that timely weeding was not a significant determinant of household maize deficits. This puzzle is explained by the diversification of the rural economy that has allowed households to develop alternative livelihood strategies to cope with maize deficits. Livelihood diversity helped poor households avoid the seasonal poverty trap and also helps explain the paradox of why the poorest region in Malawi escaped the 2001–2002 famine.     

Evaluating the Role of Subsidy Reform in Addressing Poverty Levels in Malaysia: A CGE Poverty Framework

Abstract

Malaysia as one of the top subsidised countries around the world has launched to reduce subsidies to capture its development goals. This study, therefore, analyses the effects of the subsidy reform on the macroeconomic, welfare and poverty levels of Malaysia by applying a CGE model. The findings suggest that subsidy removal leads to significant falls in both income and consumption of rural, urban and non-citizen households, and consequently decreases their welfare. However, poverty levels among rural households will most likely increase significantly when compared to urban households due to their relatively low level of income compared to other groups.     

An Unconditional Quantile Regression Based Decomposition of Spatial Welfare Inequalities in Ghana

Ghana has witnessed tremendous economic growth since the 1990s and attained the Millennium Development Goals target of halving poverty. This notwithstanding, inequality in Ghana increased over the same period, suggesting growth benefits were not equitably distributed. This study provides evidence on the determinants of household consumption expenditure and factors that explain rural-urban welfare gaps between 1998 and 2013. The study employs an unconditional quantile regression and recently proposed decomposition technique based on re-centred influence functions. We find significant spatial differences in consumption expenditure across selected quantiles, with rural-urban inequalities driven largely by differences in returns to households’ endowments.     

Rural income and poverty in a time of radical change in Malawi

Malawi is one of the poorest countries in Africa. There is widespread, though not universal, agreement about the shape of poverty in the country and the policy challenge this sets. Agriculture continues to be the most obvious means to stimulate broad-based rural growth and to provide levels of food security and income needed for the majority rural population. A longitudinal study over a decade during which radical policy and political changes occurred provides the data and basis for discussing the appropriate policy directions for reducing poverty.     

Labour-Intensive Jobs for Women and Development: Intra-household Welfare Effects and Its Transmission Channels

We examine the welfare impacts of poor women getting low-skilled jobs and find large positive income, consumption and poverty effects at household and individual levels. However, the women workers, their husbands and oldest daughters reduced their leisure, but the women to a much larger extent. Investigating the transmission mechanisms suggests that the impacts did not only go through income effects, but also through a bargaining effect. Getting the job improved the bargaining power of the wife through several mechanisms, which in turn added substantially to the positive impact on household consumption.