Arresting the Killer in the Kitchen: The Promises and Pitfalls of Commercializing Improved Cookstoves

In a shift exemplary of neoliberal approaches to development, major funders of household energy interventions have begun to emphasize market-based stove dissemination over partially subsidized models. Stove promoters are increasingly expected to operate as self-sustaining businesses. This shift is viewed as a way to “scale-up” in order to reach millions of poor households lacking access to clean cooking technologies. Using the case of GIRA, an NGO that has successfully distributed cookstoves in Mexico’s Central Highlands for nearly two decades, we demonstrate how this trend presents challenges for organizations operating effectively with outside funding in highly contextual local conditions.     

Socio-Economic Impact of Super Typhoon Harurot in San Mariano, Isabela, the Philippines

This paper reports on the socio-economic effects and coping mechanisms of farm households affected by super typhoon Imbudo in San Mariano, Isabela, the Philippines. Estimations of economic losses are given based on 150 interviews among the rural population. The relative loss per crop as part of the annual household income for yellow corn, banana, and rice were 64%, 24%, and 27%, respectively. Unexpectedly, most farm households did not change their agricultural strategies and continued with “business as usual” (78%). The main explanation for this lack of adaptation is found in the cultural and societal structure of farm households and their traders. This paper concludes with a short-term and long-term vulnerability and resilience analysis for the households, the socio-agricultural system, and the ecological system.     

Estimating the economic cost of China's new desulfur policy during her gradual accession to WTO: The case of industrial SO2 emission

To understand the potential impacts of China's accession to WTO on her new desulphur policy (gradual reduction of 10% of annual SO₂ emission by 2005 with respect to that of 2000), we construct a CGE model in which SO₂ emission is directly linked to energy input consumption in production. The model equally considers the substitution possibility between energies of different SO₂ effluent ratios by including energy as labor and capital in the constant elasticity of transformation production function. The positive externality of trade in China's economy is also included. This model is then calibrated into a 55-sector Chinese SAM for the year 1997. Four policy simulations (Business as Usual, Openness policy only, desulfur policy only, and the combination of openness and desulfur policy) are made for the period from 1997 to 2005. The results show that the environmental impact of trade, though proven to be “negative”, stays rather modest. This is owing to the industrial composition transformation that deviates the specialization of the Chinese economy towards labor-intensive sectors under the new trade liberalization process. We do not find evidence for the “pollution haven” hypothesis. Seemingly ambitious, the new desulphur policy will only bring small economic growth loss. The pollution reduction objective will be realized mainly by substitution between polluting and less or non-polluting energies. The combination of trade liberalization and pollution control policy seems to give China more flexibility in adapting her economy to the new desulphur objective. Considering these different aspects together, the total economic loss due to the new desulphur policy will be limited to only − 0.26% under the presence of trade liberalization.     

Poverty Comparisons Over Time and Across Countries in Africa

We use Demographic and Health Surveys (DHS) to compare “poverty” at two or more points in time within and between African countries. Our welfare measure is an index resulting from a factor analysis of various household characteristics, durables, and household heads’ education. An advantage of this measure is that for intertemporal and intraregional comparisons, we need not rely on suspect price deflators and currency conversion factors. The wide availability and similarity of questionnaires of the DHS facilitate comparisons over both time and countries. Our results generally show declines in poverty during the previous decade, largely due to improvements in rural areas.     

Microcredit in Prefamine Ireland

Hundreds of independent, local, quasi-charitable microcredit societies, or “loan funds,” were lending to as many as 20% of Irish households in the mid-19th century. Their goal was to relieve poverty by providing credit to the “industrious poor” at competitive interest rates without public funding. They successfully mitigated informational, moral hazard, and enforcement problems, and operated at a surplus in a market where intermediation by the banks seems not to have been profitable. Loan fund activity offers new insights into capital formation in the 19th-century Irish economy and challenges traditional notions regarding the economic activities of the Irish poor. They are also relevant for economists studying current microcredit initiatives.     

Do Supermarkets Change the Food Policy Agenda?

Policy makers want supermarkets to serve the interests of important groups in society, especially small farmers and the owners of traditional, small-scale food wholesale and retail facilities. But consumer issues are also important, including “internalizing” the full environmental costs of production and marketing, and helping supermarkets be part of the solution to the health problems generated by an “affluent” diet and lifestyle. This paper places the supermarket debate in the broader evolution of food policy analysis, a framework for integrating household, market, macro, and trade issues as they affect hunger and poverty. Increasingly, supermarkets provide the institutional linkages across these issues.     

From New Order to Regional Autonomy: Shifting Dynamics of “Illegal” Logging in Kalimantan, Indonesia

In recent years there has been a tendency to view the seemingly irremediable spread of “illegal” logging in Indonesia in isolation, or as a result of disassociated and premeditated criminal acts. This paper proposes a different view of the problem by discussing the changing dynamics of the “illegal” logging sector in the two districts of Berau, East Kalimantan and Kotawaringin Timur, Central Kalimantan. It suggests that “illegal” logging is not a simple case of criminality, but a complex economic and political system involving multiple stakeholders. Furthermore, “illegal” logging is not a stationary condition that can be effectively dealt with through coercive or repressive measures alone. Rather, it should be viewed as a dynamic and changing system deeply engrained in the realities of rural life in Indonesia. Regional autonomy has also created a supportive environment for the “illegal” logging trade and allowed it to gain resilience.     

Energy consumption patterns and supply problems in underdeveloped areas in South Africa

Energy usage provides one striking example of processes and conditions of development and underdevelopment in South Africa and the concomitant inequalities in fulfilment of basic needs. Access to affordable and convenient fuels increases as households shift from underdeveloped rural and peri‐urban areas to the developed metropolitan centres. The form and quantity of fuels used by households is constrained by levels of urbanization, the availability and cost of fuels, and household income.

The energy supply problems in developing areas centre on two critical and immediate issues. Firstly, in rural areas the demand for fuelwood is exceeding supply with quite devastating social, economic and environmental consequences. A fuelwood supply and demand model has been developed which indicates the urgency for implementing afforestation programmes, although lack of sufficient suitable land implies that other energy supply strategies will also have to be considered. The second major problem is that the standard, most convenient and affordable domestic energy supply option, electricity, has still not been made available to many black townships and most peri‐urban areas. With increases in population and urbanization, the problem of adequate household energy supply is shifting to peri‐urban areas, which experience major social and economic costs as a result of dependence on costly and inconvenient fossil fuels and batteries. Electricity has been shown to be the most economical and preferred option.     

Restricted electricity use among poor urban households

For a variety of reasons, this article argues, electricity must be seen by policy‐makers in South Africa not as the sole provider of all future household energy needs, but rather as one component of an energy mix which includes such ‘transitional’ fuels as coal, gas and paraffin. The reasons for this are that electricity is expensive for poor households; it is subject to power failures and disconnections for non‐payment; the poor find it difficult to monitor and to control their consumption; appliances are expensive and several are required to make best use of electricity; people prefer other fuels because they are familiar and have strong personal and cultural associations, and because Eskom is not trusted owing to its past ties to illegitimate local authorities and misunderstanding of electricity and how its use is monitored and charged for. Further, it is mistaken to equate ‘development’ with total electrification: most developed countries have fuel mixes which include gas and coal, particularly for cooking and heating. Accepting an affordable fuel mix for the poor in particular would focus attention on the problems currently associated with paraffin, gas and coal, namely fires, poisoning and air pollution.     

Pay differences between teachers and other occupations: Some empirical evidence from Bangladesh

This paper addresses a popular debate on teacher pay in a developing country context, namely whether teachers are under-paid or over-paid. Using national level household survey data from Bangladesh, we find that teachers are significantly under-paid in comparison to non-teachers who possess similar human capital and other observed characteristics. A decomposition exercise of the teacher non-teacher wage gap reveals that the teacher non-teacher salary difference is driven mostly by differential returns to observed characteristics. Our results suggest that there is some equity justification for allowing an “across-the-board” increase in teacher pay particularly for female, rural and aided school teachers in Bangladesh.     

Collective forest tenure reform and household energy consumption: A case study in Yunnan Province,China

The recent Collective Forest Tenure Reform in China has started the process of devolving forest management rights from village collectives to households since 2003. In this paper, we study the impact of the reform on rural energy consumption. Devolving forest tenure improves farmers' access to forest products on their newly acquired forestland, and is therefore expected to increase farmers' fuelwood consumption. The reform also allows farmers to adopt some revenue-enhancing forest technologies which may lead to energy switching in farmer households. Our empirical study finds that the devolution significantly increases household fuelwood consumption for both lower and higher income households; the lower income households benefit more. This is welfare-improving in places where alternative fuels are still too costly. We find limited evidence that higher income households in Yunnan begin to substitute alternative commercial fuels for fuelwood when those are available. Our findings suggest further devolution of forest rights, especially in the poor, forest-rich regions.     

How Big is the Crowding-Out Effect of User Fees in the Rural Areas of Ethiopia? Implications for Equity and Resources Mobilization

Using a nested multinomial logit model, this study investigates the demand “reduction” and “diversion” effects of user fees in rural areas of Ethiopia. The results reveal that an increase in user fees of public clinics, which are the most widely used alternative, can have a significant demand reduction effect on the poorest of the poor. This implies that despite cost recovery has been advocated as an alternative means of health care financing in most of the developing world, increasing user fees may drive the poorest segment of the population out of the health care market unless some protective measures are taken.     

A new institutional approach to pro-poor agricultural development: Lessons from Asia

Dr. Naya has been one of only two instructors of a course unique to the University of Hawaii called, “The Economics of Cooperation.” He was an early observer of deliberation councils and other institutions whereby the investment coordination problem was partly solved by extra-market cooperation in the East Asian “miracle” countries. These insights contributed to The Economics of Cooperation (1992), which featured the role of government as facilitator—a theme of Hawaii State Development Planning when Dr. Naya served on the Governor’s cabinet.Reconsidering government as a facilitator, and not as a replacement for markets, is one of the primary contributions of the New Institutional Economics (NIE). This paper extends and applies the facilitation perspective to the problem of agricultural development. Policy failures are detailed and sourced to the fallacy of misplaced exogeneity. In contrast, the method of fundamental explanation, inherent in NIE, acts as a corrective to misguided interventionism that has prevented pro-poor rural development from taking place.     

Adjustment with a human face: Still relevant or overtaken by events?

This paper describes the extent to which the policy recommendations of “Adjustment with a Human Face” have been accepted. The concept has been accepted in principle, but large gaps remain in actual implementation. Some policy recommendations, such as the need for compensatory programs, have been more fully accepted and implemented than others, such as the need to stimulate productivity by poor households and to involve different social groups in policy making. The paper concludes that adjustment policies should be part of a long-term development strategy which emphasizes structural changes for countries to grow out of structural poverty. As such, the policy recommendations of “Adjustment with a Human Face” still remain valid, albeit with changes in emphasis on their various components.     

Europe and East Asia in the context of regionalization: Theory and economic policy

Much academic interest has recently centered on economic regionalism as a framework of international economic relations. The European Community (EC) has been a focal point. Other regional economic organizations (APEC, NAFTA), have been subjects of debate.This paper discusses three principal arguments: (1) the “natural”/“optimal” regional grouping, (2) transaction cost advantage in a regional model, and (3) the balancing of intraregional and extra-regional economies. Indeed, the argument is most certainly for an international regime of an “open,” not a “fortress” economic regionalism.This paper examines the subject relative to economic theory and policy.     

By the teeth: A critical examination of James Scott's The moral economy of the peasant

Peasant households in Southeast Asia and elsewhere live on the margin of subsistence. Their survival strategies make them technological conservatives and weavers of reciprocal webs of social obligation and dependence. James C. Scott has argued that the fabric of this “moral economy” both guarantees subsistence for the peasants and forms the touchstone on which their judgements of social justice are tested. When those who should offer succor withdraw it, peasants are outraged and from their anger springs peasant rebellion. Two South Asian peasant rebellions of the 1940s (Telengana and Tebhaga) fail to support Scott's account and raise major questions about his historical method. Two others case studies focused on the early years of colonial contact (the Padri Wars and the capitalist transformation of the Kaveri delta) lead the authors to question sharply the existence of a “moral economy of the peasant” and to suggest that Scott has inadvertently presented a landlord's view of peasant society.     

Which Way is “Up” in Upgrading? Trajectories of Change in the Value Chain for South African Wine

Global Value Chain (GVC) analysis uses the concept of upgrading to highlight paths for developing country firms to “move up the value chain,” usually through the lenses of four categories—product, process, functional, and inter-sectoral upgrading. The implicit normative expectation is that these firms move toward producing higher value-added products and/or take on more sophisticated functions along a value chain. In this article, upgrading is approached more broadly as “reaching a better deal,” including a balance between rewards and risk. The case study of South African wine shows that better product quality, improved processes, and some functional upgrading have co-existed with processes of “downgrading,” higher risks, and limited rewards, especially in traditional export markets. A reflection on further conceptual development and directions for empirical research is also provided.     

A behavioral model of work-trip mode choice in Shanghai

This paper analyzes travelers' choice behavior by using combined revealed preference/stated preference (RP/SP) survey data on work-trip mode choice in Shanghai, taking into consideration different scales across the two data sources. Several versions of a multinomial choice model are specified and estimated. The estimation results suggest that the utility function with money cost divided by income by equivalence scale be chosen as the preferred model. Based on the preferred model, values of time and sample aggregate elasticities of choice probabilities are calculated. The results show that values of “in-vehicle time” and “out-of-vehicle time” are 64 and 82% of the sample mean wage, and that in terms of elasticities, “in-vehicle time”, “out-of-vehicle time” and “money cost” are the most important attributes for bus, subway and taxi passengers, respectively. The conditional elasticities given low, middle and high income levels indicate that bicycles seem to be an inferior good for all income levels. Bus and subway transport are inferior goods for people at middle and high income levels but normal goods for those at a low income level. Taxis are a normal good only for low income levels; for middle and high income levels, they are a luxury good. The results obtained may be used for transportation policymaking in Shanghai.     

The strategy of production and distribution of improved charcoal stoves in Kenya

Over 125,000 fuel-efficient, ceramic-lined charcoal stoves for household cooking have been disseminated in Kenya. This program has been relatively successful because (1) it was built on the design of the traditional stove and incorporated features of improved stoves from another LDC; (2) it allowed the evolution of the stove through extensive field testing and modification of the design; and (3) it emphasized the importance of the private sector in production and distribution of stoves. The recent introduction of a simple device for molding liners, the most critical component of the stove, has improved quality control and productivity. A new pop-in liner will increase consumer acceptance of the stove by reducing the cost and facilitating replacement. Further upgrading of the ceramics technology is still desirable.     

Struggling with Sustainability—A Comparative Framework for Evaluating Sustainable Development Programs

“Sustainability” is an inherently dynamic, indefinite and contested concept. “Sustainable development” must, therefore, be seen as an unending process—defined not by fixed goals or the specific means of achieving them, but by an approach to creating change through continuous learning and adaptation. How, then, do we evaluate a development program’s contribution to such a process? This paper constructs a framework for evaluating sustainable rural development programs using both process- and outcome-oriented criteria, and demonstrates its application. The SANREM CRSP/SEA research and development program in The Philippines—including ICRAFs efforts to organize communities around agroforestry and environmental conservation—is assessed.