Trade and agroindustrialization in developing countries: trends and policy impacts

There have been important changes in the international trade of processed and high-value added food products from developing countries over the past several decades. One of them has been the emergence of oilseeds and fruits and vegetables, replacing traditional products such as sugar, coffee, and cocoa as the main exports from developing countries. Another trend has been the collapse of African agroindustrial exports and the increase of exports from Asia. The paper highlights key trends, and explores possible reasons for the trends, focusing on trade policies in less-developed countries (LDCs) and developed countries (DCs). The paper argues that national trade policies and other economic policies appear to have been relatively supportive of agroindustrial production and exports in Asia. In contrast, policies have had more mixed effects in Latin America and the Caribbean (LAC), and seem to have been just one component in a larger array of forces inhibiting economic development in Africa. The performance of agroindustrial production and exports from LDCs may be now more dependent than ever on the completion of reforms in the agricultural trade policies of DCs. For Africa, however, a more supportive international environment and better macroeconomic and trade policies will not be enough to ensure a thriving agroindustrial sector within a broader process of economic development until military confrontations stop.     

Agroindustrialization of the global agrifood economy: bridging development economics and agribusiness research

This paper examines the agroindustrialization process from two supposedly disparate views: development economics and agribusiness research. The evolution of conceptual and methodological approaches emanating from these fields is explored and general observations are made concerning farm economic interdependence, institutional and organizational change, differing scopes of interest, the causes of agroindustrialization, orientation, and the choice of microanalytic tools, terminology, and unit of analysis. Despite an impressive list of hurdles, disincentives, and disconnects, complementarities between the two fields are identified. The paper concludes by exploring the potential of bridging development economics and agribusiness research to inform the future agroindustrialization research agenda.     

Agricultural taxation in developing countries: a survey of issues and policy

This study surveys the experience of agricultural taxation in developing countries in the context of the ongoing policy debate about the tax structure and administration affecting agricultural producers. Using the examples of a number of countries, it analyzes the conceptual and practical problems associated with different tax regimes. Governments in most countries have reduced indirect (export) taxes on agricultural producers. However, the revenue from direct taxes on farmers has not increased. A major problem in most countries has been the measurement of (actual) agricultural income. Different measures for presumed income have been used with varying success. They seem to have the most potential for increased revenue in many countries, but their effective implementation is constrained by the political and administrative considerations.     

Efficiency of research investments in the presence of international spillovers: wheat research in developing countries⋆

Expenditures on agricultural research in the public sector, including the International Agricultural Research Centers (IARCs) have stagnated and in some cases, declined sharply in recent years. This has focused attention on issues of efficiency of agricultural research systems, especially the number, size, scope, type, and locations of their programs. This paper examines the issue of research efficiency through a case study of wheat improvement research in developing countries. The basic premise of this study is that the optimal level of research investment should be determined in a global model that incorporates direct research spill‐ins. An analytical framework is developed to determine the threshold levels of crop production in a country (or a region within a country) needed to justify crop improvement research programs of different sizes in the presence of spill‐ins from abroad. Spill‐in coefficients are estimated from yield performance of varieties of different origins grown across a range of environments. The model is then applied to analyze the efficiency of current investments in 69 wheat improvement research programs in 35 developing countries. A major conclusion of the paper is that given the magnitude of potential spill‐ins from the international research system, many wheat research programs could significantly increase the efficiency of resource use by reducing the size of their wheat research programs and focusing on the screening of varieties developed elsewhere. ©2000 Elsevier Science B.V. All rights reserved.     

Prices,institutions, and determinants of supply in the Malian cotton sector

Cotton, both a source of livelihood for millions of poor rural households and a major source of export revenues, is a vital commodity for the economic and social development of Mali. Inefficiencies in the Malian cotton system at the ginnery and producers’ cooperative levels (e.g., late payment to farmers and poorly functioning credit schemes) have recently led to an important decline in supply, threatening the sustainability of the sector. Using regional data from 1998/1999 to 2008/2009, this study aims to quantitatively assess the contribution of key determinants, such as cotton prices and timely payment, toward the downward trend in cotton area. A dynamic supply model, based on adaptive expectations and partial adjustment, is employed to estimate the effects of prices and institutional factors, such as credit recovery rates and date of payment to farmers, on the Malian cotton supply. Results show that supply responds significantly to cotton prices relative to cereal and fertilizer prices. Date of payment varies across agricultural cycles and late payment negatively influences land devoted to cotton. Low credit repayment rates create disincentives to grow cotton. Therefore, the revitalization of the Malian cotton sector depends upon getting both prices and institutions right.     

Diversity of incentives for private forest landowners: An assessment of programs in Indiana, USA

 Many government and private programs provide incentives for non-industrial private forest (NIPF) owners. Due to the complexity of this web of programs, the incentives of the programs are unclear. We focus on four specific programs that represent different rule structures—a federal cost-share program, a state tax incentive program, a nationwide private stewardship program, and a local private conservation organization. We perform institutional analysis of the formal and informal rules of the programs based on literature review, discussions with officers, and formal guidelines of the programs. We classify different types of rule structures, and explain them in relation to goals and organizational structures of the programs.     

Agrarian reform and cooperation between settlers in the Midwest of Brazil: An institutional approach

Cooperation is an important factor in improving the efficiency of agrarian reform, but hardly occurs, which is a serious problem in Brazil. This research tries to explain why cooperation is so difficult in Brazilian settlements. It focuses on the Midwest of Brazil, a region with a high concentration of land, located in the main region for production of commodities. Research combines a New Institutional approach with aspects from the economic sociology. The model developed in the paper is original and highlights factors responsible for cooperation. Research differentiates institutional arrangements according to asset specificity and sunk costs. Beside associations for representation with public authorities, where cooperation is easier, cooperative arrangements need specific investments from the settlers, who require warranties before participating. Institutions serve as warranties for adopted governances. In the case of cooperation in Brazilian settlements, these warranties should come from informal institutions, which can be a problem in some communities. Leadership of a producer can also have an important role in hierarchical networks.     

An overview of hydrogen prospects: Economic,technical and policy considerations

Hydrogen is expected to play a role in the future low-carbon economy as an energy carrier, but its market penetration remains to be seen. Much of the existing literature generally focuses on comparison of marginal production costs and prices to make rather optimistic projections. This study argues that such analysis is myopic as important barriers are ignored. Following Porter’s five-force approach, we methodologically identify the economic market forces that shape the development of hydrogen markets, and discuss key obstacles in the supply chain. Using evidence of available hydrogen technologies and costs, the distribution network is identified as a major fixed-investment barrier to market entry, but it is argued that much of it could be overcome if natural gas infrastructure and technology is shared with the hydrogen sector. Natural gas, in turn, is projected to function as a transition fuel under current carbon emissions targets. This study finds that policy costs needed to promote hydrogen to achieve environmental goals can be substantially reduced if government and private investment decisions strategically focus on synergies with natural gas. The possible formulation of such policies is discussed using Australia’s hydrogen industry as a case study.     

Climate change: scenarios,impacts, policy,and development opportunities

This article is divided into three parts. First, it provides an overview of the main outcomes of the last IPCC assessment report, both in terms of economic drivers of greenhouse gas (GHG) emissions, and in terms of impacts of climate change, in particular for the agriculture sector. Then, it focuses on policy options and their optimal design, taking into account technological availability, international cooperation, and above all the stringency of the remaining carbon budget. Finally, it analyzes the size and direction of investment decisions required to stabilize GHG emissions and their implications for economic development.     

Toward the sustainable development of urban areas: An overview of global trends in trials and policies

Achieving sustainable urban development (SUD) remains one of the most important goals for many countries. Numerous nations have made attempts to attain sustainable development (SD) by fixing one or more of the problems facing urban development, which has resulted in various approaches to SUD. However, a main issue that could help decision-makers deal effectively with SD needs to be emphasized.This study covers 10 topics that have recently become highly relevant to SUD:(1) A balanced approach to SUD, (2) Socio-cultural awareness, (3) Urban sprawl, (4) Economic urban development, (5) Transportation, (6) Urban renewal, (7) Mitigating greenhouse gases (GHG), (8) Urban vegetation, (9) Assessment systems, and (10) City structure and land use. The methodology is based on an overview of these themes via a critical reading of different publications, mostly from the last five years. This study classifies these topics both quantitatively and qualitatively in order to highlight hot-button issues at the domestic and international levels. The publications that were analyzed showed that Asian countries, especially China, are making changes towards SUD more than nations of other continents. The study concludes that transportation is the most prominent challenge in the field of SUD, followed by socio-cultural awareness. The concern of transportation and socio-cultural conscious issues can propel SUD forward and improve other problems related it.     

The effects of China's growth on the food prices and the food exports of other developing countries

This article explores the impacts of China's growth in the international markets of agricultural products along two dimensions: food price inflation and export growth in other developing countries. China's food imports of vegetable oils have grown dramatically over the last decade, linking China's economic growth to the recent increases in global food prices. If China is a source of global food price inflation, exporting countries will benefit whether they sell directly to China or not. These direct and indirect linkages are explored using a short‐run, partial‐equilibrium model of international trade in agricultural products in which consumer prices and trade costs are derived from bilateral trade flows. China's effects on food prices and exports are estimated by reducing Chinese food expenditures in 2007 by half, roughly China's level of expenditures in 1995. Results indicate that food prices as measured by CES price indexes in developing Asia, Africa, and Latin America would have been reduced by 1.27%, 0.32%, and 0.22%, respectively. China has been an important source of growth for exporters selling directly to China. There is no evidence of export growth due to an overall increase in food prices caused by China's growth.     

Organizing anarchy: The food security–biodiversity–climate crisis and the genesis of rural land use planning in the developing world

Shortfalls in global food production, coupled with the growing visibility of climate change's disruptive effects, have underlined for many observers the importance of devoting rural lands to their ‘optimal’ use, where they can make maximal contributions to the global imperatives of feeding the human population and maintaining vital environmental services. In this context observers have endorsed rural land use planning as a way to insure that, at least in theory, lands get devoted to their best uses. In practice, land use planning in the developing world has resembled ‘organized anarchy’. Small landholders with insecure land tenure, overseas investors seeking large land deals, NGOs representing indigenous peoples, government officials, and staff from international environmental NGOs and multilateral organizations have come together in strategic action fields to struggle over and sometimes negotiate land use plans for contested landscapes. These plans represent a strategic, spatially explicit response to the climate change–biodiversity–food security crisis.     

Parking futures: An international review of trends and speculation

The explosion of low-cost, on-demand taxi services and the anticipation of an autonomous vehicle future has made transportation the center of debate and discussion for the first time since the massive expansion of the US highway system in the 1950s. Yet the realm of parking boasts innovations and developments far beyond the high-profile issues of TNCs and AVs. Rather, innovation in parking is happening in many cases quietly on a wide variety of fronts, including technology, public policy, and design. This paper serves an overview of emerging trends in parking, primarily within the US context. We identify and outline five developments and the pertinent technologies helping to catalyze change: unbundling parking costs, reducing parking minimums, pricing and allocating curb space dynamically, designing hybrid parking structures, and preparing for the autonomous era and “mobility as a service.” This paper presents these trends with illustrative examples highlighting current practices, governance challenges, and possible future scenarios.     

Payments for agrobiodiversity conservation services: An overview of Latin American experiences,lessons learned and upscaling challenges

Many developing countries face a major challenge today: how to safeguard the biodiversity maintained in the fields of the rural poor - which constitute a national and global public good - whilst meeting those same people's development needs and rights? A solution to this dilemma has thus been sought in adapting the design and implementation of Payments for Ecosystem Services (PES) concepts to the conservation of agrobiodiversity.Here we review the application of nine such Payments for Agrobiodiversity Conservation (PACS) schemes that have been applied to date in four Latin American countries over the period 2010–2018. These covered 130 threatened varieties across a number of major food crops, and involved over 100 farming communities and 1,100 farmers (45 % of which were women). Conservation service offers were received through a competitive tender mechanism. Average bid offers revealed high heterogeneity, varying between US$675/ha. to ten times as much.In relation to issues identified as key to PES, such as spatial targeting, differentiated payments and conditionality, the underlying design of the PACS schemes may be considered solid. PACS-related prioritisation processes allow for the a priori identification of sites with high ecosystem service densities and high threat levels. The use of competitive tenders permits accounting for cost heterogeneity in the provision of conservation services and for payments to be differentiated. Conditionality is strong.In terms of implementation, a “back of the envelope” calculation based on the results of the competitive tenders suggests that conservation costs are modest. For a priority conservation portfolio of 100 varieties (which may be from different crops) each with a target area of five hectares, costs would amount to just under US$860,000 over twenty years or US$70,000 p.a. at a 5 % discount rate. The small-scale and one-off nature of the interventions realised to date, along with threatened crop variety seed availability constraints, have however meant that environmental effectiveness has been incomplete in the short-term (area cultivated with specific threatened varieties increased, but still below the “not at risk” threshold). The establishment of systematic monitoring systems is required to determine longer-term impacts and inform more regular PACS interventions within a dynamically evolving systems context.     

Market access,organic farming and productivity: the effects of Fair Trade affiliation on Thai farmer producer groups*

The study analyses the impact of Fair Trade (FT) and organic farming on a sample of FT rice producers in Thailand. It finds that per capita income from agriculture is positively and significantly affected by years of organic certification and FT affiliation. The estimated FT and organic certification contributions to producers’ economic well‐being are higher when account is taken of the relatively higher proportion of self‐consumption among affiliated farmers. But the per capita income effect does not translate into higher productivity owing to a concurrent increase in hours worked.     

Green infrastructure and public policies: An international review of green roofs and green walls incentives

Worldwide, green infrastructure is increasingly used to mitigate the impacts of dense urban areas, contributing towards the naturalization of the built environment. However, for investors, these systems often emerge as requiring substantial upfront cost (high installation costs) and, depending on the solution, might also have significant maintenance costs. On the other hand, policymakers are placing green infrastructure on the agenda, as a solution to consider in urban planning and design. There is a mismatch between the economic/social/environmental value of green infrastructure and their financial analysis. As the quantified benefits of these solutions may not compensate the high implementation costs, discouraging building owners to invest in them. The alignment of both expectations, public and private agents, regarding the development of green infrastructure, is done through the use of incentives, with distinct configurations and nature, that promote and facilitate the adoption of green infrastructure by private investors. This research aims to identify and analyse the incentive policies used by several municipalities to promote the installation of green roofs and/or green walls. The data set includes 113 cities in 19 countries. The incentive policies were classified into six different categories: tax reductions, financing, construction permit, sustainability certification, obligations by law and agile administrative process. The results show that incentive policies are mainly concentrated in Europe and North America, and most incentive policies focus on the promotion of green roofs, as no exclusive incentive policies for the promotion of green walls were found. From all incentive policies studied, financial subsidies and obligations by law are the most used ways to promote green infrastructure worldwide.     

Crop diversification in Thailand: Status,determinants, and effects on income and use of inputs

Following the national policy, the Department of Agriculture of Thailand has implemented a crop diversification program in several provinces of the country. This study, which was conducted in Nakhon Pathom Province, analyzed the extent of crop diversification and its determinants using primary information collected from 245 farm households using a structured questionnaire, and from selected farmer leaders and agricultural development officials. The study also assessed the effects of crop diversification on income and the inputs used. The findings of the study revealed that nearly three fourths of the land is still being used for rice mono-cropping, indicating little success in the promotion of the crop diversification program. Paddy fields, including farms for cultivating rice under mono-cropping and diversified system, still account for 90% of the total farmland in the country. The limited impact of the program on the farming sector is attributed primarily to the variation in land and labor resources available at the farmers’ disposal as well as soil suitability. The farmers’ attendance in training and interaction with farmer groups are the other influential factors. Although cropping diversification has provided attractive financial return particularly to the small farmers, it has also accelerated the use of inorganic fertilizers and pesticides. Broad policy instruments are therefore suggested for the effective implementation of future crop diversification programs in Thailand and perhaps elsewhere in Southeast Asia.     

Socio-economic and biophysical determinants of land degradation in Vietnam: An integrated causal analysis at the national level

Recognizing the socio-economic and biophysical causes of land degradation at the national level is important for cause-targeted strategies when designing policies for combating land degradation. This study aims to identify the biophysical and socio-economic factors that significantly affect land degradation across Vietnam and to interpret the causalities underlying the effects. The dependent variables considered in the study are spatial, the extent and intensity of degradation in three land-use zones (agriculture, forest and severely degraded abandonment). The hypothesized explanatory variables are common economic and demographic drivers and bio-physical factors such as soil, terrain constraints, and neighborhood land-use structures that are often neglected in many large-scale land degradation assessments. Instead of using a single inferential statistic technique, we used multi-linear regression and binary logistic regression in a complementary manner to increase the detectability and credibility of the degradation cause analyses. The results showed agricultural production growth had strong and consistent effects on land degradation extent and intensity. Population growth, especially in rural areas, had a strong effect on the extent of overall land degradation. The importance of a neighboring forest was revealed for its ability to reduce land degradation intensity in abandoned, unproductive lands. The concrete faceting of the causal analysis for each land-use zone as social–ecological stratum allowed us to combine the defined social–ecological contexts, contemporary theories, and hypotheses in the field to clarify the causal factors of a complex phenomenon like land degradation. The study demonstrates these contemporary inferential statistics can be complementarily used to sufficiently detect and understand land degradation causes at the national level. The results suggest implications for national land management policy: internalizing land degradation costs in the farming system evaluation for payment for ecosystem services policy, restricting forest conversion, and improving extension services and education in agrarian communities.     

Economic development and farmland protection: An assessment of rewarded land conversion quotas trading in Zhejiang,China

Facing a substantial loss of farmland in the reform era, the Chinese central government established a highly centralized land management system in 1998 to guarantee its capacity to meet the domestic food needs. In order to maintain high-speed economic growth, local governments in China made great efforts to circumvent the stringent constraint on land use by launching various innovative land management schemes, among which Zhejiang's rewarded land conversion quotas (RLCQ) trading scheme, a program similar to the transfer of development rights (TDR) in Western countries, has attracted a lot of policy and scholarly attention. In this research, we first provide an overview of China's farmland protection policy and the RLCQ trading scheme in Zhejiang Province. Then, using the system GMM estimator for economic growth models and a panel dataset of 69 local jurisdictions in Zhejiang Province covering the period of 1989–2008, we assess the impacts of RLCQ trading on local economic growth. The empirical results corroborate our hypotheses that participation in land quota trading in general led to faster local economic growth, and that the trading had a stronger and more lasting impact on the economic growth of the quota buyers than on that of the sellers. The analysis suggests that in order to balance the competing goals of economic development and farmland protection, market-based land management tools have a good potential for further development in China and other countries confronting similar challenges.