Structural changes in U.S. agriculture: Implications for African American farmers

Structural changes in U.S. agriculture, influenced by technological and institutional forces, have altered the economic and social characteristics of rural America, especially that segment of rural America populated by farmers and their families. Changes in the structure of agriculture have greater implications for small scale farmers, many of whom are African American, in that strategic options for their farm-firms are constrained to: increasing their farm size, exiting farming, and obtaining off-farm employment to survive. This article presents a rationale for public support of limited resource farmers, identifies structural trends in U.S. agriculture and their impacts on African American farmers, discusses economic problems unique to these farmers, and recommends needs for specific public policies and development programs.     

Investment in soil conservation in northern Ethiopia: the role of land tenure security and public programs

A double hurdle statistical analysis of 250 farms in the Tigray region of Ethiopia reveals different causal factors for soil conservation adoption versus intensity of use. Farmers' reasons for adopting soil conservation measures vary sharply between stone terraces and soil bunds. Long‐term investments in stone terraces were associated with secure land tenure, labour availability, proximity to the farmstead and learning opportunities via the existence of local food‐for‐work (FFW) projects. By contrast, short‐term investments in soil bunds were strongly linked to insecure land tenure and the absence of local food‐for‐work projects. Public conservation campaigns on private plots reduced adoption of both stone terraces and soil bunds. Whereas capacity factors largely influenced the adoption decision, expected returns carried more influence for the intensity of stone terrace adoption (measured as metres of terrace per hectare). More stone terracing was built where fertile but erodible silty soils in higher rainfall areas offered valuable yield benefits. Intensity of terracing was also greater in remote villages where limited off‐farm employment opportunities reduced construction costs. These results highlight the importance of the right kind of public interventions. Direct public involvement in constructing soil conservation structures on private lands appears to undermine incentives for private conservation investments. When done on public lands, however, public conservation activities may encourage private soil conservation by example. Secure land tenure rights clearly reinforce private incentives to make long‐term investments in soil conservation.     

Risk arbitrage opportunities in petroleum futures spreads

This article investigates the long-term pricing relationship among crude oil, unleaded gasoline, and heating oil futures prices, and finds that these commodities futures prices are cointegrated. The study finds that the spreads between crude oil and its end products are stationary. Furthermore, this article investigates the risk arbitrage opportunities in three types of popularly traded petroleum futures spreads and finds that historically profitable risk arbitrage opportunities existed and were statistically significant. However, one cannot be certain that these opportunities still exist. The research also finds that moving averages are valid test variables for measuring spreads. Statistical and tabular constructions are used to illustrate findings. © 1999 John Wiley & Sons, Inc., Jrl Fut Mark 19: 931–955, 1999     

An empirical examination of the relation between futures spreads volatility,volume, and open interest

This study investigates the relation between petroleum futures spread variability, trading volume, and open interest in an attempt to uncover the source(s) of variability in futures spreads. The study finds that contemporaneous (lagged) volume and open interest provide significant explanation for futures spreads volatility when entered separately. The study also shows that lagged volume and lagged open interest, when entered in the conditional variance equation simultaneously, have greater effect on volatility and substantially reduce the persistence of volatility. This finding seems to support the sequential information arrival hypothesis of Copeland (1976). Finally, the findings of this study also suggest a degree of market inefficiency in petroleum futures spreads. © 2002 Wiley Periodicals, Inc. Jrl Fut Mark 22:1083–1102, 2002     

NGOs,the State,and Development in Africa

This paper discusses the impact of the rise of non-governmental organizations (NGOs) and social entrepreneurs on economic development, with a special focus on how they have been used in Africa. The paper describes the decline of the state and the rise of NGOs as a force in economic development under neoliberalism. We then turn to two of the major problems with the roll-back of the state in Africa: the inherent weaknesses of nonstate actors in the development process, and the significant cost that is incurred by undermining the role of state. The paper concludes by suggesting the necessity of reinserting the state as the major vehicle for economic development, albeit in productive partnership with NGOs and social entrepreneurs.     

Democracy,Development and Comparative Institutional Advantage in Africa

Development in Africa has been stalled for decades in a vicious cycle of poverty, underdevelopment, corruption, and conflict. In this paper, we argue that donors should focus on democracy and accountability as a first priority in development aid. We use the theory of comparative institutional advantage to identify the key institutions that are most likely to facilitate economic development in communities in the modern world. These institutions include an efficient non-corrupt government sector. Subsequently, we discuss how a lack of democracy and accountability inevitably undermines development efforts and investment, referring especially to the Ethiopian experience but also considering the experiences of other African dictatorships. Finally, we discuss how donors, by emphasizing democracy and accountability along with other policies that support democratic institutions, have a greater chance of effectively contributing to African economic development.     

Persistent Stasis in a Tributary Mode of Production: The Peasant Economy of Ethiopia

The paradox of Ethiopia's agrarian economy is that, despite underwriting a world civilization, the transition to an industrial economy has eluded it. Using a model of Afro-Asiatic tributarism, we attribute this outcome to endemic extractive contests between a predominantly landed peasantry and a titled, prebendary overlord class. The latter's strategy of political accumulation inevitably engendered immiserization of overlord and peasant alike by privileging diversion over production. The surplus was then dissipated on unproductive consumption, national defence and internecine strife. Lacking a strong state to mitigate predation and political instability, the Ethiopian peasant rationally 'chose' to be efficiently, albeit self-sufficiently, poor.     

Short Changing the Value of Democracy for Economic Development in Africa

Official donor policy towards Africa seems to be informed by the twin requirements of alleviating poverty on the one hand and ensuring respect for human rights and democratization on the other. In practice, when these interests conflict, as they usually do in Africa, donors tend to choose to continue supporting dictatorships, arguing that economic development will eventually lead to democratization. This paper argues that this faulty reasoning is a product of modernization theory that has had undue influence in western policy circles. Based on a broad survey of the literature, the paper shows that there is no theoretical or empirical basis for the claim that authoritarian regimes would provide better economic performance than democracies in general and particularly in Africa. Furthermore, available evidence suggests that the lack of democratization (defined broadly to include the substance of democracy such as government accountability and basic freedoms in addition to meaningful democratic elections) is a key constraint on economic and social development in Africa. Finally, the paper argues that even when the empirical case to establish a definite causal relationship between democratization and development cannot be ascertained, a very strong case can be made for prioritizing democratization for the long term societal transformation of the continent.     

Social and cultural determinants of collective management of community forest in Nepal

The main goal of the study is to determine which socio-economic factors affect level of participation in the community forest management of “Ludhi-Damgade” of Gorkha district in Nepal. The empirical evidence for level of participation as a function of social status is obtained by using an ordered probit and two-stage least-squares model. The model also estimates the marginal effects of socio-economic factors on different levels of participation suggesting how per unit change in such socio-economic characters affects the level of participation. Empirical results from the model also verify that participation in forest management determines the quantity and type of benefits received from the community forest. The research findings of the study suggest that participation in community forest management is based on the socio-economic profile of an individual and the level of participation is determined by the benefits obtained from the common forest resources. Lack of participation in community forest management excludes the disadvantaged groups from decision-making in product distribution. Consequently, the disadvantaged groups get less benefit from the community forest. The empirical results are expected to aid policy makers in empowering people of lower socio-economic status to understand the importance of participation in community forest management in order to have equal distribution of benefits accrued by community forest.