Can the public sector meet the challenge of private research? Commentary on “Falcon and Fowler” and “Pingali and Traxler”

The growth of private sector participation in agricultural research has serious implications for pro-poor technology development, but there are other factors that must be considered. New plant varieties are not the only things standing between resource-poor farmers and secure livelihoods, and institutional strengthening is also necessary. In addition, the current state of public agricultural research is cause for concern. It is not clear how many effective public–private partnerships can be formed; the public sector needs a much clearer definition of its targets and priorities; and funding strategies for national and international agricultural research must be overhauled.     

Agriculture in integrated rural development: A critique

This critique comes in response to an article by Montague Yudelman with the same title published in November 1976. Dr Ahmed reviews Yudelman's discussion of the World Bank's experience and approach. Their strategy, which aims at aiding small farmers without regard to what happens to landless labourers, is basically production oriented and differs little from the conventional approach to agricultural development. The alternative approach suggested by Ahmed has three basic components: agricultural development, non-farm rural occupations and public sector productive workers programmes.     

Alternatives for Danish agriculture

In the years prior to Denmark's entry into the European Common Market (EEC) in 1973, Danish agricultural exports began to encounter difficulties. As exports account for about two thirds of production in the sector, total agricultural production also stagnated in the 1960s and early 1970s. Entry into the EEC was expected to result in an increase in agricultural production; the increase has, however, failed to materialize.The fact that agricultural production has not increased in the years following entry into the EEC is due to a complex interaction of factors. One explanation is a fall in the number of agricultural holdings which has led to a considerable reduction in the productive capacity of the sector. The relatively high level of interest and costs has also had a dampening impact on the investment propensity. However, in 1977 and 1978 there has been a trend towards an increase in investment in livestock production which indicates an increase in total agricultural production for the years to come.An important part of the Danish economy is the integration of the agricultural sector with the large food processing industry.¹ The links between agriculture and other sectors are rising. The purchase of raw materials and means of production, plus the depreciation of machinery and building requirements, now account for up to 60% of the total agricultural production in terms of value. There is consequently a strong general interest in the future development of Danish agriculture. The recent international recession has also furthered an increased political interest in the exploitation of agriculture. Agricultural policy is thus tending towards a more central importance in the general and the specific economic policies.The central elements of the current discussion have been the volume of the production potential of Danish agriculture, and the market potential existing in the years to come. These considerations are discussed below, on the basis of both historical trends and of a study recently published on alternative development possibilities for Danish agriculture.²     

Passing the food and agricultural R&D buck? The United States and China

The global geographical balance of food and agricultural R&D spending is shifting, characterized by a declining U.S. share and a rising middle-income-country share, propelled heavily by the rapid rise of spending in China. Based on our newly compiled data, we estimate that China now outspends the United States on both public and private food and agricultural research on a purchasing power parity basis. The public-private orientation of the research has also changed markedly, with the private sector now accounting for around two-thirds of the food and agricultural R&D spending total in both China and the United States. Our estimates indicate that China’s private sector tilts heavily towards post-farm R&D activities, whereas the U.S. private sector is split more evenly between on-farm and post-farm spending. While the intensity of Chinese investment in food and agricultural R&D (relative to agricultural GDP) is beginning to grow, it still lags well behind the food and agricultural R&D investment intensities of the United States and other higher-income Asian countries (e.g., Japan and South Korea). The development regularities we reveal in the longer-run trends are indicative of future R&D investment patterns with potentially profound long-run implications for the size, shape and accessibility of the global stocks of scientific knowledge that underpin food and agricultural sectors worldwide.     

The new political economy of food and agricultural development

This paper emphasizes the benefits of an agricultural strategy of development in developing countries. It begins by analyzing the close links between food and employment in the development process. In an underdeveloped country, food production is minimal, but demand is as well because of the small population growth. After development begins, income rises and food demand outstrips production. Only at later stages of development can food production meet demand. The middle stage of development describes most developing countries, which have averaged annual growth rates of 3% per capita in 1966-80. The growth in food demand must be met through technological advance in agriculture: high-yield seeds, fertilizers, and irrigation, which, for example, helped India increase cereal yields 29% between 1954-55 and 1964-65. The rate of growth in cropped areas has declined between 1961-1980, making increased yields more necessary. Growth in employment and income leads to higher food demand, which leads to higher prices and labor costs and a tendency towards capital-intensive agriculture. As the rural sector becomes wealthier, there is also more opportunity for non-agricultural rural workers, creating still more demand. In the final development stage, agricultural products can generate foreign exchange. In Asia, the priority is to ensure efficient outcomes of capital allocations, while in Africa, technology must be instituted. Public investment has been shown to be essential to rapid development in Japan, Taiwan, and the Punjab of India. The absence of this investment in Africa, partly because of an overemphasis on urban sector investment, is largely responsible for the backward state of African agriculture. Often rural areas are overtaxed, agricultural experts are lacking, and there is a growing presence of urban bureaucrats. Both experts in the donor community and farmers themselves must become more vocal in demanding investment in the agricultural sector.     

Food policy research for improving the reform of agricultural input and output markets in Central Asia

Agriculture is a significant component of the Central Asian economies. Since independence, the republics have implemented agricultural reforms in varying measure, yet production has fallen sharply across the region. The more ambitious agricultural reform programs have included measures aimed at liberalizing agricultural marketing, trade and prices. However, so far the expected supply response has yet to emerge. The objective of this paper is to highlight key policy and research issues surrounding reform of agricultural markets. It summarizes the main features of agricultural performance since the reforms, highlighting trends in grain and cotton, livestock, input use, and trade and analyzes key constraints to improvement of the sector, emphasizing price policy, sequencing problems, and institutional weakness. It presents a research agenda by identifying the main research needs for better agricultural policy design. It calls for more research on input and output market efficiency, private sector development, the effects of reform on farmers, sequencing issues, comparative advantage, water management, land tenure and farm size.     

Economic and agricultural development in West Asia and North Africa : The need for agricultural research

This paper analyses the role of agriculture in the economic development of West Asia and North Africa, with special reference to the interactions between oil wealth, population growth, agricultural development and the need for agricultural research. Since the 1960s agricultural supply lagged behind demand, which grew rapidly as a result of population increases and rising incomes. Following the oil recession of the 1980s it was felt that the development of the agricultural sector should be less dependent on other sectors, particularly oil. The possible roles of agriculture in the region's future economic development are outlined, with the implications for agricultural research. Special attention is given to the natural resource constraints affecting the region's agriculture (particularly water), and to the issues influencing the identification of research priorities.     

Pro-poor agricultural biotechnology: Can the international research system deliver the goods?

While global investment in agricultural research by the private sector is increasing with growth in developing country markets and the emergence of new technologies, complementary public sector investment is stagnating or declining in many developing countries. This review argues that the changing roles of the public and private sectors in generating new scientific knowledge may adversely affect the diffusion of explicitly pro-poor technologies—technologies that are simultaneously yield-enhancing and poverty-reducing. Comparing historical evidence from the Green Revolution with recent evidence from the emerging era of agricultural biotechnology, this review argues that a more pluralistic international system for agricultural research will be more responsive to poverty only if the strategic leadership role of the public sector is strengthened, certain research functions are reallocated to the private sector, and new policy and organizational mechanisms are used to stimulate pro-poor research in and for developing-country agriculture.     

Policy for organic farming: Rationale and concepts

Since the mid 1980s, organic farming has become the focus of significant attention from policy-makers, consumers, environmentalists and farmers in Europe and state institutions have become increasingly involved in regulating and supporting the organic sector. Reflecting the multiple goals for organic farming and for agricultural policy, a varied and complex range of policy measures have been developed and implemented to support the organic sector. However, balancing societal and consumer/market goals and balancing institutional and private stakeholder interests in the organic sector present particular challenges for policy-making. The key issues of current organic farming policy addressed in this special issue therefore specifically consider the two different dimensions of policy development – the dimension of policies and the dimension of politics. This paper provides an introduction to the special issue by outlining organic farming policy development in the EU, providing the basic concepts of organic farming policies in Europe and introducing the key themes of the papers published in this special issue.     

Recommendations arising from an analysis of changes to the Australian agricultural research,development and extension system

The business of agricultural research, development and extension (RD&E) has undergone considerable change in Australia since the late 1980s, moving from a domain largely dominated by government departments to a situation of multiple actors, and where rural industries now directly contribute funds towards RD&E efforts. However, the transition has not been without impacts on the overall agricultural RD&E agri-food capacity of the nation, and there are now indications of reduced capacity and slowing productivity gains in certain sectors. If not addressed, there is the risk that the future resilience of industries could be threatened, affecting parts of the Australian economy and compromising Australian contributions to global food supply on export markets and a slowing of agricultural innovation. There are also comparable divestment trends and the loss of capacity and risks to future resilience of agricultural systems in other developed nations. Importantly, research and extension are discussed as interdependent partner disciplines, and that the separation of the two has deleterious effects on capacity and resilience building. The authors investigate, through six case study institutions, organisational innovations that may provide direction towards the future restructuring of agricultural RD&E effort in Australia. These insights have application to both the Australian and the international reader, warning about the consequences of reduced investment in agricultural RD&E, and learning about how research and extension can transition from traditional public sector models to systems that have greater flexibility and, importantly, ownership by the industries themselves.     

Cerrado meets savannah,family farmers meet peasants: The political economy of Brazil’s agricultural cooperation with Mozambique

Brazil’s development cooperation policy with sub-Saharan Africa has intensified since the end of the 2000s, with Mozambique being the country’s largest partner. This South–South Cooperation enterprise has shown intentions to share elements drawn from previous experiences of programmes implemented in Brazil, particularly in the rural sector. However, Brazilian agricultural policy is notorious for its dualistic structure, and dominant political strategy has been marked by the accommodation of two different – occasionally contradictory – agricultural policy agendas, reflecting how current political forces are organized. This article demonstrates how such a dualistic structure shapes Brazil’s technical cooperation with Mozambique, pointing out that it is still unclear how far rural development perspectives rooted in the particularities of Brazilian agrarian dynamics would be useful for projects implemented in different rural contexts. We argue that, since Mozambican agricultural plans primarily emphasize a perspective that focuses on market-oriented agricultural modernization, a potential reform of the current cooperation policy toward more inclusive agenda, focused on family farming, faces political economy constraints. We conclude that the appropriation of a foreign project relies on the political economy dynamics of related contexts and power relations of involved stakeholders, an area that could deserve further attention from researchers investigating Brazil–Mozambique relations.     

Are China’s regional agricultural productivities converging: How and why?

This article tests the hypotheses of convergence to a single level of total factor productivity (TFP), and a steady state of TFP growth rate in China’s agricultural sector. Based on multilateral TFP estimates we found that China’s agricultural sector has rebounded in recent years from a slower TFP growth in the 2005–2007 period. While convergence test results confirm a “catch-up” effect that provinces with lower TFP levels tend to grow faster than others, estimated rates of β convergence are conditional on how we capture the heterogeneity effect across regions. The rates of β convergence range from 0.016 to 0.039 under different model specifications. Estimates show that higher growth rates of educational attainment, R&D, and intermediate goods density (per unit of labor) can enhance TFP growth. Unfortunately, there is no evidence of an overall σ convergence, indicating that TFP levels are not converging except in the South region. It implies that to catch up with leading provinces, it would require extra efforts for those lagging behind by increasing their region-specific research investment, promoting rural educational attainment, and enhancing embodied technical change.     

Policies to promote cereal intensification in Ethiopia: The search for appropriate public and private roles

Over the past decade, policymakers have been searching for an appropriate blend of public and private sector roles to accelerate the intensification of food staple production, smallholder commercialization, and sustainable market development in sub-Saharan Africa. In Ethiopia, steps taken to liberalize markets in the 1990s and promote fertilizer and seed packages have yet to generate payoffs in terms of higher cereal yields, lower food prices, or reduced dependency on food aid. This raises concern about the performance of the agricultural sector, specifically in terms of the systems for providing improved seed, fertilizer, credit, and extension services. This paper examines the evolving roles of the public and private sectors in intensifying cereal production in Ethiopia. Findings suggest that while Ethiopia has an admirable record of supporting agriculture, its state-led policies has now outlived their usefulness. These findings for Ethiopia offer lessons that are potentially applicable to other sub-Saharan African countries facing similar challenges.     

中国电力行业融资问题研究

电力行业的融资方式与过程是与其在国民经济中的地位、作用以及自身的经济技术特征密切联系的,作为资金密集型行业,电力行业的发展,主要靠扩大投入来实现。我国目前电力融资仍然没有脱离计划经济的融资特征,还存在一系列阻碍电力产业资金融通的问题,这在很大程度上影响了整个行业特别是电网经营企业的发展。因此,必须积极寻求符合电力行业发展客观要求的融资方式。     

Generating agricultural technology: Triticale for the Himalayan Hills

This article is concerned with the process of generating agricultural technologies in public sector research and development (R & D) institutions. The case study examines a research programme to develop triticale as a food crop for the people of the Himalayan hills. It explains how significant changes occurred in the priorities and organization of a triticale improvement programme in India as a result of the timely analysis of information from on-farm trials and surveys, a review of past triticale data and a field workshop in the Himalayas.     

The case for a real options approach to ex-ante cost-benefit analyses of agricultural research projects

The United States Agency for International Development (USAID), like many other development agencies and donors, increasingly emphasizes evidence-based programming. This requires assessments of project performance at all stages of implementation, comprising ex-ante impact assessment, monitoring and evaluation, and ex-post attribution of outcomes. Ex-ante impact assessment, in particular, involves performing Cost-Benefit Analysis (CBA) to determine the Expected Net Present Value (ENPV) of the project in question. Unfortunately, the traditional ENPV approach has proven inadequate for dealing with uncertainty in the timing of investments and flexibility in future decision making. This is especially relevant for Research and Development (R&D) projects which require several stages of product development and multiple rounds of testing prior to releasing final products. As a consequence, the real-options approach to CBA has increasingly been used to evaluate private sector R&D projects. This paper advocates for the adoption of the real options approach in the evaluation of public investments in agricultural research, and illustrates its practical utility with an assessment conducted by USAID to determine the economic viability of a proposed project to develop improved varieties of critical food security crops in Uganda.     

Dynamics of agricultural research organization in Latin America

The authors summarize the conditions that led to the development of national research institutes in Latin America and to the creation of the international centres of agricultural research. The authors review the modernization process of the agricultural sector and the role played by public and international organizations in the appearance of non-public research. The authors discuss the impact of these institutional developments on the effectiveness of national research institutes, and the implications for agricultural science, technology policy, and the organization of agricultural research in the Third World.     

Cooperation in the agro-food industry: Spain,Greece and Portugal

This article is concerned with some characteristics of the agro-food industry in Spain, Greece and Portugal, countries that will soon enter the European Community. The analysis is based on an examination of the ways in which the agro-industry and food consumption patterns influence the economic development of those countries. The article also considers the problems of agreements between the food industry and the agricultural sector and the role played by public administration.     

Towards regional food security in southern Africa: a (new) policy framework for the agricultural sector

In the southern African Region (SAR) large populations, mainly concentrated in rural areas, face food insecurity and poverty. Food insecurity is intensified by adverse weather conditions and droughts which impact negatively on farm level food production throughout the region. Agriculture constitutes an important economic sector in the majority of countries in the region. This is measured as share of agricultural value added to the GDP and as agriculture's share in employment. Based on these facts alone, it must be obvious that sustained agricultural performance will play a significant role in the improvement of food security and livelihoods in the region. However, food security is not only attained in rural areas and by the consumption of home produced food stuffs. Urbanisation is expected to increase dramatically over the next few decades and feeding the urban masses, at affordable prices, must be considered to be a high future priority for governments in the region. Food security must not be viewed as an agricultural issue per se. The drive to food self sufficiency through domestic agriculture production in many countries in the region did not enable these countries to feed their own population. Food security should rather be defined as the acquirement of sufficient and nutritious quantities of food (Sen, 1981, Poverty and Famines: An essay on Entitlement and Deprivation). An approach, whereby attention is given to the macro level availability of food, access to income streams as well as improved production capacity to acquire food at a household level and the utilisation of nutritious food, should therefore be guiding food security policies (SADC: FSTAU, 1997, A Strategic Framework for Food Security in the Region). This broader view emphasises household level poverty reduction, economic development and growth as important components of a food security strategy (World Food Summit, Rome, 1996). An important issue which therefore needs to be explored is whether agriculture does have the potential to contribute to economic processes, which will support broad based development and food security. This paper is intended to argue the importance of agricultural development for food security in the region and to develop a diverse policy framework to strengthen this new, more comprehensive role of agriculture in the region.