Poverty, Risk Aversion, and Path Dependence in Low-Income Countries: Experimental Evidence from Ethiopia

In most low-income countries, rural households depend on mixed rain-fed agriculture/livestock production, which is very risky. Due to numerous market failures, there are few ways to shift risks to third parties. The literature has focused on what determines the responses of households in such environments. Of special concern are path dependencies in which households experiencing failure are prone to further failure and potential poverty traps. This paper estimates levels and determinants of risk aversion in the highlands of Ethiopia. We find high risk aversion and evidence that constraints have important impacts on risk-averting behavior with perhaps significant implications for long-term poverty. The results also suggest the possibility of path dependence and offer insights into links between risk aversion and poverty traps.     

Roadmap for interactive exploration of sustainable development opportunities: The use of simple instruments in the complex setting of bottom-up processes in rural areas

Before embarking on the development of rural areas or regions it seems necessary to answer the following key questions: what goals of the parties involved can be realized, and where, when and how? To tackle these questions we have developed a ‘roadmap’, as part of an overall sustainable development procedure for physical planning and spatial management in rural areas. The roadmap is a tool for the process manager and the people involved. It helps to find the way in the exploration of the potential social, economic and ecological benefits of developing the area or region. The purpose of using the roadmap is to alleviate doubts about the advantages of cooperating in pursuit of sustainable development. A back-casting approach is applied to create appealing visions of the future and visualize mutual opportunities worth implementing. In this article we first describe the need for this new roadmap. We then describe its use, step by step and in some detail. An example of the exploration process is described and the strengths and weaknesses of the roadmap are discussed.     

An integrated approach for ex-ante evaluation of public policies for sustainable agriculture at landscape level

An integrated methodological framework for ex-ante evaluation and planning of public policies for sustainable agriculture at agro-landscape level is proposed. The components of the framework are to: (1) determine the private, i.e. farmers’, and public benefits associated to agro-landscapes, consisting of an agricultural land-use system, according to its performance for several market and non-market functions. Market forces determine the market benefits and preferences of society the non-market benefits; (2) explore and select potential sustainable agro-landscapes based on the private and public benefits associated with possible land-use alternatives; (3) define efficient public policy mechanisms for improving social net benefit of agro-landscapes.The framework is illustrated with a case study in a small dairy farming dominated agro-landscape in The Netherlands, with gross margin, landscape quality, nature value and environmental health as the analysed ecosystem functions. Alternative landscapes consisting of hedgerow configurations and grassland management practices were explored, yielding a set of alternatives representing the solution space in terms of change in private and public benefits. Policy mechanisms were defined to move from the current to a desired landscape based on changes in social net benefits. Moreover, the necessity of a modification in the current agri-environmental support was analysed for each landscape. The analysis considered all farmers in the agro-landscape jointly. The results for the case study showed potential prototypes of landscapes and their performance compared to the current landscape. Extension was the most efficient policy mechanism to promote the change to the socially optimum landscape alternative.     

Municipal commonage policy and livestock owners: Findings from the Eastern Cape,South Africa

The new African National Congress government announced after 1994 that municipal commonage would be a pillar of their land reform programme. The Department of Land Affairs spearheaded this by acquiring new land to complement the existing ‘old’ commonages. The aim of old commonage was to supplement the income of poor urban residents through the subsistence user system whereas new commonage was intended as a ‘stepping stone’ for emergent farmers. We investigated the differences between old and new commonage farmers as well as how they perceived the Makana local municipality's capacity to manage the commonage. The results showed that local institutions were weak. Only 46% of the old commonage farmers were members of a local livestock association whereas 74% of the new commonage farmers were members. Most old commonage farmers (59%) were dissatisfied with local government's management of the commonage. In contrast, only 37% of the new commonage farmers were dissatisfied with the management of the commonage. There were no differences between old and new commonage farmers in terms of livestock owners’ characteristics and mean annual net direct-use value of livestock. There were also no differences in the age of the two types of commonage farmers. Furthermore, there was no association between the type of commonage and level of education. The mean annual net direct-use value of livestock on old commonage was R6308 compared with R9707 on new commonage. Although the income from livestock for new commonage farmers varied slightly from that of old commonage farmers, the annual productive output per farmer on old commonage was R473 ha⁻¹, three times higher than that of new commonage farmers which was R134 ha⁻¹. We suggest that new land policy legislation is needed in which poverty as well as the legal arrangements between all stakeholders is clearly defined. Furthermore, national departments need to be more involved with local municipalities to increase local management capacity.     

Land use and climate change in the UK

This paper reviews the relationships between land use and climate change. It explores how land use decisions will be affected by future changes in the climate, but also the feedbacks from land use change to the global climate system through greenhouse gas (GHG) fluxes. Past changes in land use were characterised by decreasing areas of agricultural use and increasing areas of forested and urbanised land. This has led to UK land use being a net sink for GHGs, mostly due to forestation. However, existing forests have on average passed their age for maximum net removals of carbon from the atmosphere. In the next decade at least, net removals from UK forests are likely to decrease significantly.Longer term scenarios of future land use change are consistent in their expectation of further declines in the agricultural area used for food production – offset to some extent by increased bioenergy cropping – along with increases in forested and urban areas. These trends are broadly consistent with the observed past land use change, but are calculated from various assumptions about future changes in drivers rather than by extrapolation from the past. Socio-economic and technological changes are likely to be the most important drivers for land use, with climate change having a smaller influence. The land use changes represented in these scenarios would likely reduce GHG emissions and enhance carbon sinks. These trends would be reinforced by small future changes in the climate, but large climatic changes are likely to cause net GHG fluxes to switch from being a sink to a source. Land use change will also be moderated by potential policy goals that seek to reduce GHG emissions from land and/or increase the size of land-based sinks. This includes strategies to reduce carbon and nitrogen emissions through increased efficiency, afforestation and biofuel production.     

At‐home meat consumption in China: an empirical study*

The remarkable economic changes occurring within China since 1978 have resulted in a striking alteration in food consumption patterns, and one marked change is the increasing consumption of meat. Given China’s large population, a small percentage change in per capita meat consumption could lead to a dramatic impact on the production and trade of agricultural products. Such changes have major implications for policy makers and food marketers. This paper concentrates on meat consumption patterns in the home in China. A censored linear approximate almost ideal demand system model was employed in the study, and major economic parameters were estimated for different meat items. Data used in this study were collected from two separate consumer surveys – one urban and one rural in 2005.     

Marketing Organic Pasta from Big Sandy to Rome: It's a Long Kamut ®

Bob Quinn spent 20 years propagating an ancient Egyptian wheat variety that is generally known as Khorasan wheat. Bob trademarked his wheat variety using the brand name "Kamut^®." Kamut^® brand wheat contains some nutritional, health, and taste advantages over modern wheat varieties, but lacks some of modern wheat's agronomic advantages. Kamut^® brand wheat is organically produced, and is used to make cereals, breads, cookies, snacks, pancakes, bread mixes, bulgur, pasta, and baked goods. Whole wheat products produced from Kamut^® brand wheat are less bitter than those produced from modern wheat varieties. Europe represents approximately two-thirds of the market for this product.     

Evaluation of subsidiary marketing performance: combining process and outcome performance metrics

Issues in evaluating marketing performance and devising appropriate metrics for measurement have taken center stage in marketing thought and practice in recent years. We propose an empirical model that enables a multinational enterprise (MNE) to assess the marketing performance of its subsidiaries, taking into explicit consideration the fact that tactical actions by subsidiaries contribute to the creation of assets that can be harnessed for marketing outcomes. Thus, our model captures the asset creation abilities of marketing expenditures and also takes in to account the environmental differences of the context in which each MNE subsidiary operates. We evaluate comparative, overall, and process-level (creation of market assets and market yield) marketing performance in the context of multi-country operations. This simultaneous examination of marketing process and marketing outcome performance enables a global corporation to gain strategic, operational, and diagnostic insights into the performance of its subsidiaries. Our approach is empirically illustrated with an evaluation of the marketing performance of subsidiaries of a large global corporation.     

The evolving brand logic: a service-dominant logic perspective

The meanings of brand and branding have been evolving over the past several decades. This evolution is converging on a new conceptual logic, which views brand in terms of collaborative, value co-creation activities of firms and all of their stakeholders and brand value in terms of the stakeholders’ collectively perceived value-in-use. The authors argue that this new logic parallels and reflects the related, evolving service-dominant (S-D) logic in marketing. They provide an historical account of the branding literature, organize it into eras, and connect it to the evolution in marketing as captured by S-D logic. The analysis provides further support for the S-D logic of marketing and suggests a related research agenda for furthering the understanding of brand and branding. It also suggests that marketing managers might benefit from investing resources in building strong brand relationships with all of their stakeholders and a service-dominant firm philosophy built around brand value co-creation.