Lessons from a basic income programme for Indigenous Australians

This article examines the importance of basic income in supporting development and economic security in remote Australian Indigenous communities. Specifically we draw on the case of the Community Development Employment Programme (CDEP) and examine its significant basic income features: it provided economic security, flexible definitions of work, community control and a means to establish community development initiatives. We find that CDEP suited the economic and cultural circumstances of remote-living Aboriginal people whose livelihoods depend on a hybrid form of economy inclusive of customary (non-market) practices rather than market capitalism. We then trace shifts in Indigenous policy in recent times which saw the dismantling of CDEP in the name of ‘real’ employment, and we examine the consequences of this for Aboriginal people. We end by proposing the reinstatement of a more complete basic income scheme, initially for people in remote Indigenous communities in Australia who are in deepest poverty.     

The politics of the forest frontier: Negotiating between conservation,development, and indigenous rights in Cross River State,Nigeria

Nigeria's once thriving plantation economy has suffered under decades of state neglect and political and civil turmoil. Since Nigeria's return to civilian rule in 1999, in a bid to modernize its ailing agricultural economy, most of its defunct plantations were privatized and large new areas of land were allocated to ‘high-capacity’ agricultural investors. This paper explores the local tensions associated with this policy shift in Cross River State, which, due to its favorable agro-ecological conditions and investment climate, has become one of Nigeria's premier agricultural investment destinations. It shows how the state's increasing reliance on the private sector as an impetus for rural transformation is, paradoxically, crowding out smallholder production systems and creating new avenues for rent capture by political and customary elites. Moreover, as Nigeria's most biodiverse and forested state, the rapid expansion of the agricultural frontier into forest buffer zones is threatening to undermine many of the state's conservation initiatives and valuable common pool resources. The paper goes on to explain why and how private sector interests in Cross River State are increasingly being prioritized over natural resource protection, indigenous rights over the commons, and smallholder production systems.     

The spatial expression of physical development controls in a fast growing Ghanaian city

This paper illustrates the fine spatial expression of regulatory controls through field visits, a survey of 364 systematically sampled homebuilders and interviews with customary land managers and key city officials in Sekondi-Takoradi. The research found that, development controls were hardly implemented and enforced, and that, public officials had largely acquiesced to the activities of chiefs and homebuilders who flout regulations without the fear of sanctions. This loss of legitimacy of planning ideals reflects the cultural dimension to the acceptance of centralized planning rooted in the experiences of the advanced world as well as the weak fragmented and poorly equipped land sector institutions. Therefore building institutional capacity and contextualizing planning ideals are key for managing rapidly growing cities in emerging economies. However, residential development initiated by state institutions on state lands was better planned than occurring on customary lands, hence suggesting the need for more innovative government interventions in the physical development process.     

Rural–Urban Impacts of CAP Measures in Greece: An Inter‐regional SAM Approach

This paper evaluates the inter‐regional impacts of CAP measures implemented in the rural town of Archanes (Crete, Greece), an area which received considerable EU Agricultural Guarantee and rural development funds during the 1990s. A hybrid, three‐area Social Accounting Matrix (SAM) with three groups of households defined by income level is constructed to describe inter‐linkages between three rural–urban localities, namely the rural area of Archanes, the less‐developed, agriculturally dependent, neighbouring rural area of N. Kazantzakis, and the adjacent urban centre of Heraklion. Results are reported on the diffusion patterns of economic impacts generated by three types of CAP measure: farm income support; aids to increased agricultural productivity; aids to economic diversification. These show that the diffusion of policy‐induced economic impacts from Archanes is lower than might be expected for a small open local economy, and that benefits leak primarily to Heraklion and marginally to rural N. Kazantzakis. Finally, generated income benefits seem to accrue mostly in favour of high‐income households, especially in the case of Guarantee subsidies.     

Measuring and causes of inequality in farm sizes in the United States

This article examines the notion of farm size inequality expressed as sales inequality in the United States. The farm size index (FSI) is developed as a measure of farm size inequality. FSIs are calculated for the farming sector in all 50 states and large variation in farm size across the states and over time is determined. The largest FSIs are calculated for a number of Southern, Southwestern, and Pacific states. Increasing FSIs over time are observed in all states as well. The spatial and temporal (between 1987 and 1997) differences in FSIs are explained by running a pooled, cross‐sectional time‐series model. The most influential variables accounting for the differences have to do with the ownership structure, where a larger presence of individual and family farms relative to corporate farms and cooperatives leads to a lower degree of farm size inequality. Also, states and regions having relatively larger number of farms owned by minorities have higher FSIs. Shrinking opportunities in the agricultural sector relative to the rest of the economy, primarily services, are reflected in a declining share of agricultural sector state income in total gross state product (GSP). This in turn leads to an increase in the farming sector's FSI suggesting that only larger, more profitable operations are the likely candidates to pursue farming activities. Finally, grains farming regions have all lower degree of farm size inequality than livestock or fruits and vegetables regions. Profitable grains farming requires relatively large farm size and equipment investments, which leads to a relatively homogeneous structure of grains farms. A larger variation in the size of profitable farm operations is possible in fruits and vegetables and livestock. This leads to the existence of a large number of very small but still sustainable farms, and a relatively small number of large farms that capture most of market sales share.     

Deregulation reforms,resource reallocation and aggregate productivity growth in the Australian dairy industry

Deregulation reforms in the Australian dairy industry had long‐lasting repercussions for Australian agriculture and the wider Australian economy. Using farm‐level data from 1979 to 2013, we investigate the effect of these reforms on productivity in the Australian dairy industry which arose from correcting resource misallocation between farms and across segregated state milk markets. Our results demonstrate that after the dairy reforms in 2000, relative market share shifted from less productive farms to more productive ones, and between farms using different production systems – generating additional productivity gains for the farm sector, but imposing some costs on downstream manufacturers by strengthening the seasonality of milk supply. Lessons from the Australian experience provide timely guidance for those countries exploring deregulation now or in the future to improve the industry‐level agricultural productivity growth through facilitating resource reallocation from less efficient to more efficient farms.     

The Role of Ownership in Determining the Rural Economic Benefits of On‐shore Wind Farms

The development of the wind energy sector is often promoted as a means of supporting rural economies. This paper focuses on how the ownership structure of on‐shore wind power plants (external, farmer or community) affects the size and distribution of impacts within the rural part of a region. Empirical analysis is based on a regional computable general equilibrium model of North East Scotland with the results compared to those generated from a standard social accounting matrix multiplier analysis. With no local ownership, while rural GDP increases, there is almost no effect on household incomes due to the limited direct linkages of the on‐shore wind sector. Local ownership increases the household income benefits but there are still limited positive spill‐over effects on the wider economy unless factor income is re‐invested in local capital. With re‐investment, farm household ownership gives rise to the largest increase in total household income but community ownership gives rise to the largest increase in rural (non‐farm) household incomes and welfare. The results contribute to the on‐going debate about the opportunity cost of external asset ownership in rural areas.     

Agricultural Growth and Inter‐Sectoral Linkages in a Developing Economy

Does growth in the manufacturing sector of an economy spillover to agriculture, or do sectors share similar growth rates only when they share some common exogenous stimuli? The limited number of investigations of this issue, for cross‐sections of countries, have found some evidence in favour of spillovers, though the methodologies used cannot readily separate correlation from causation. Adapting the Feder (1982) model of sectoral externalities to a time‐series context, we examine how far agricultural output in Malaysia has been affected by inter‐sectoral spillovers. Our results suggest that expansion of manufacturing output, though associated with reduced agricultural output in the short‐run, is associated with agricultural expansion over the long‐run. Service output growth on the other hand seems to have been inimical to agricultural growth in both the short‐ and long‐runs, while causality testing supports the case for spillovers rather than “common causes”. Evidence on sectoral productivity is consistent with neoclassical arguments suggesting that the benefits of higher productivity in manufacturing tend to spill over to agriculture, encouraging productivity convergence.     

Paying for ecological services in Ecuador: The political economy of structural inequality

Paying Indigenous communities to conserve land for carbon sequestration is a controversial way of tackling climate change. Critics argue that paying for ecological services (or ‘PES’) in the form of carbon offset programmes reduces land and social relations to an economic transaction that devalues Indigenous livelihoods and communities. At the same time, empirical studies have shown that Indigenous communities have accepted and even embraced the idea of being paid to conserve land for climate change mitigation. This paper explores this apparent contradiction by investigating the implementation of Programa Socio Bosque (PSB), a PES carbon sequestration programme in Ecuador. Drawing upon primary fieldwork in the highland province of Chimborazo, it makes the case that PES programmes need to be understood as form of state power that reconfigures and reinforces the ways in which Indigenous peoples engage with the state. Particularly important in this regard is the role of the state in reinforcing the agrarian conditions under which Indigenous communities use and interpret PES payments while at the same time reconfiguring new forms of land conservation. Empirically, the research reveals important complementarities between the goals of carbon sequestration PES programmes and Indigenous land-use practices. Methodologically, it highlights the importance of situating the study of PES programmes in a context of land struggles, community–state relations and agrarian change.     

Seed Market Privatisation and Farmers’ Access to Crop Technologies: The Case of Hybrid Pearl Millet Adoption in India

In India, pearl millet is a typical subsistence crop. Nonetheless, use of hybrid seeds is widespread. The first pearl millet hybrids were introduced in 1965 by the public sector. Yet, starting in the late 1980s, market liberalisation led to an increasing role of private companies in seed development and distribution. Although several studies showed that proprietary pearl millet hybrids are more productive than public hybrids and open‐pollinated varieties, the impacts of privatisation on farmers’ technology access and overall innovation rates are not yet well understood. This paper analyses the dynamics of adoption using duration models and farm survey data collected in the state of Maharashtra. The results show that education, short distances to main information sources and good market infrastructure speeded up the adoption of pearl millet hybrids. Likewise, the increasing role of private seed companies had a positive and accelerating effect on technology diffusion in the small farm sector.     

How Different is Mining from Mineral Processing? A General Equilibrium Analysis of New Resources Projects in Western Australia

Western Australia has experienced an investment surge in the minerals sector of the economy in recent years. Unlike previous surges, this one involves a large proportion of mineral-processing projects. In this study, the differential effects on the WA economy of 25 mining and 10 mineral-processing projects are analysed using an economy-wide model of WA. The results indicate that: (i) both the mining and mineral-processing projects will have substantial flow-on benefits to the WA economy as a whole; (ii) on an A$1-million-invested basis, mineral processing has larger flow-on effects on employment and generates more export revenue than does mining once the projects are operational.     

Introduction to a Symposium on Global Finance and the Agri‐food Sector: Risk and Regulation

This symposium introduction brings together two debates; the debate on global food prices and speculation, and the debate on so‐called global ‘land investment’ or ‘land grabbing’. Both debates are examining two sides of the same phenomenon – the growing role of private financial investors in the global agri‐food value chains and the myriad consequences of it. The symposium moves beyond the identification of finance as an exogenous factor to the trends in the sector. It examines real‐life incarnations of finance in the sector by looking at investment arrangements, including connections with the state, and its (regional) variations. The symposium addresses three main themes. First, it explores the interplay of the state and private finance. It shows that the effect of regulation is limited in the face of increasingly mobile and complex investment flows. Second, it addresses the shifts and transfigurations of risk in the agri‐food sector due to financialization. Third, the symposium discusses to what extent, and how, the origins and identity of farmland investors still matters within an increasingly globalized financial sector. The paper concludes by identifying some related areas for further research.     

Making the ‘rules of the game’: Constituting territory and authority in Nicaragua's indigenous communities

Indigenous communities, particularly in Latin America, are increasingly winning recognition of rights to lands and forests that they have managed or used historically under customary institutions. If property refers to ‘the rules of the game’, this article uses the constitution of indigenous communal territories in Nicaragua to examine the process of ‘making the rules’. Specifically, the recognition of rights by central governments leads to political contestations over both territory and authority as communities and indigenous political leaders vie for different configurations of both lands and new territorial authorities. That is, the process of constituting large collective territories is intimately related to the constitution of authority, as it involves not only the negotiation of physical boundaries but also the recognition of an existing authority structure – or the creation of a new entity – to represent the beneficiaries. In Nicaragua's North Atlantic Autonomous Region, then, the decision over ‘which configuration of territory’ is ultimately a political negotiation over which ‘authority’ will have the right to control and enforce access to which rights and benefits from land and natural resources.     

Will digital technologies transform agriculture in developing countries?

Mobile phones and the internet have significantly affected practically all sectors of the economy and agriculture is no exception. Building on a recent World Bank flagship report, this article introduces a concise framework for describing the main benefits from new information and communication technologies. They promote greater inclusion in the broader economy, raise efficiency by complementing other production factors, and foster innovation by dramatically reducing transaction costs. The article reviews the recent literature on corresponding technology impacts in the rural sector in developing countries. Digital technologies overcome information problems that hinder market access for many small‐scale farmers, increase knowledge through new ways of providing extension services, and they provide novel ways for improving agricultural supply chain management. While there are many promising examples of positive impacts on rural livelihoods—or “digital dividends”—these have often not scaled up to the extent expected. The main reason is that technology can always only address some, but not all of the barriers faced by farmers in poorer countries.     

Governing the Organic Cocoa Network from Ghana: Towards Hybrid Governance Arrangements?

In this paper, we examine the processes of initiation, construction and transformation of the organic cocoa network from Ghana. We address in particular how the state responded to and engaged with civil‐society actors in the organic cocoa network and to what extent state involvement reshaped state–business–civil society relations? While most of the literature argues that globalization and liberalization processes weakened the state's position as key player in the development and management of agro‐food networks, the case of the (organic) cocoa sector in Ghana is often depicted as an exception because of the strong position the state still occupies in it. Employing a global commodity network perspective to analyse the Ghanaian organic cocoa case, this paper demonstrates that although the state is still a major player in the contemporary (organic) cocoa network, some hybrid governance arrangements, involving state, transnational and national NGO networks, and businesses, are emerging. The organic cocoa network also prompted a double process of ‘dis‐ and re‐embedding’ at the local level that helped shape and strengthen the organic cocoa network.     

The social cost of labor in rural development: job creation benefits re-examined

Job creation effects are examined as they would apply to social analysis of rural development programming by public or private sector agencies. A synthesis and critique are provided of approaches to valuing the social opportunity cost of labor. These approaches vary according to whether or not unemployment is present in the pre‐project state and according to whether or not there is interregional migration in response to project hiring. Graphical, partial equilibrium analysis illustrates why, in general, job creation and project employment give rise to social costs, not benefits. The magnitude of these social costs is shown to depend upon the presence of payroll taxes, wage subsidies and unemployment, in addition to the market's supply and demand elasticities. These social costs may be reduced or offset in specific instances where projects increase the value of labor's productivity or reduce its costs, such as with job training, worker mobility and skill development projects. Careful attention to these approaches can help society choose correctly among alternative development proposals and among alternative (labor‐intensive versus capital‐intensive) technologies.     

Market-based grazing land transfers and customary institutions in the management of rangelands: Two case studies on the Qinghai-Tibetan Plateau

Beginning in the early 1990’s, grazing lands once held in common were contracted to individual households in the rangeland regions of China. The resulting fragmentation of rangelands has led to ecological and social problems. As China seeks to address intractable poverty and rangeland degradation, attention has turned to rental, or transfer, of contracted grazing land as a market-based approach to re-aggregating grazing land into larger units that support economies of scale. However, given that many pastoral regions still maintain community customary institutions, what the relationship between market mechanisms and local customary institutions should be in rangeland management needs further analysis. This paper applies comparative case studies of two types of relationships between market mechanisms and customary institutions: (1) market mechanisms that replace customary institutions in the case of Axi village, and (2) market mechanisms that are embedded within customary institutions in Xiareer village. This allows contrast of the impacts of differing approaches on livelihoods, livestock production, and wealth differentiation among pastoral households. We found that there is a higher level of livestock mortality, lower livestock productivity, and higher livestock production cost in Axi Village compared to Xiareer Village. In addition, household asset levels are higher and there is less income differentiation in Xiareer Village. It is concluded that embedding market mechanisms within customary institutions has had notable benefits for the herders of Xiareer Village, because it is a better fit to the coupled pastoral social-ecological system. Based on these findings, we argue that in pastoral communities where the rangeland transfer system for contracted grazing land has not yet been implemented, it is critical to reconsider China’s current policy approach to pay greater attention to the innovative management systems being developed in local regions. Instead of considering market-based approaches as oppositional to traditional institutions, options that derive from the interaction of market-based and customary institutions should be considered.     

Establishing a modern cadastral system within a transition country: Consequences for the Republic of Moldova

This paper examines the current situation following from the implementation of a land cadastre in the Republic of Moldova, a transition country that is seeking to establish a market economy as a means of facilitating greater prosperity. After consolidating the concepts of the functions land property serve within a capitalist-based economy, we examine the current state of affairs as it exists on the ground within this former socialist state and examine the consequences of imposing western-derived views on land reform in terms of tenure security and credibility. This reveals an extensive problem of land fragmentation in the rural sector, which is in part being countered by the emergence of a land lease market that sees new individual landowners providing land for the use of commercial enterprises. However, given the unique political economy present within Moldova, this situation in many ways contradicts, if not constrains, many of the potential benefits that a formal property system is thought to allow for, and therefore the objectives behind the transition phase have yet to be fully achieved. This has forced a re-examination of theory versus the practice of land property privatisation and land market interactions.     

Customary vs Private Property Rights? Dynamics and Trajectories of Vernacular Land Markets in Sub‐Saharan Africa

Contemporary discourse on land in Africa is polarized between advocates of tenure reform through state registration of individual titles to land and others who claim that customary or 'communal' tenure is the only check against landlessness among the poor in the African countryside, and that 'pro-poor' land policy should therefore strengthen customary rights to land. This paper draws on a growing body of evidence on the emergence of vernacular rural land sales and rental markets to question assumptions that underlie the non-market 'ideal type' communal tenure model that has historically dominated policy thinking in Africa, and continues to be shared by both sides of the current land tenure reform debate. The paper argues that recognition of the specific characteristics of 'vernacular land markets'– commoditized transfers of land within the framework of customary tenure – is essential if state land policies are to succeed in promoting the interests of the poor.     

Returns to public sector plant breeding in the presence of spill‐ins and private goods: the case of bean research in Michigan

This article illustrates a methodology for assessing economic returns to a publicly funded breeding program in the presence of private sector investments, and spill‐ins from other contemporary public institutions and past research efforts. The approach consists of determining yield gains from bean improvement research; applying these yield gain estimates to measure benefits attributable to different institutional players and time periods; and then assessing the benefit‐cost ratios of investments in a bean improvement program since 1980 by Michigan State University (MSU). The results indicate that investments in MSU's bean breeding program have yielded benefits to costs ratio in the range of 0.7 to 2.2, depending on the attribution rule used to estimate the benefits. The estimated benefit/cost ratios reported in this study are lower‐bound estimates, as they do not account for potential benefits from area planted to MSU varieties outside of Michigan (spillover effects), which was 1.5 times greater than the area planted to MSU‐bred varieties within Michigan in the period 1998–2002. The implications of the increasingly privatized bean seed markets for the role of public sector research in bean improvement research are discussed.