Arie Kuyvenhoven

Integrating agricultural research and policy analysis: analytical framework and policy applications for bio-economic modelling

Interdisciplinary approaches to identify suitable incentives for enhancing sustainable natural resource use require an analytical framework that satisfies both practical purposes of policy support and disciplinary requirements regarding the specification of underlying technical and behavioural relations. Different approaches for agricultural policy analysis are distinguished according to the nature of problems addressed and the analytical procedures applied. Major drawbacks of more disciplinary analysis can be circumvented through functional integration of these approaches. The methodological foundations of an integrated bio-economic modelling framework for the simultaneous appraisal of agro-ecological and socio- economic parameters are presented, and assumptions on farm household decision making regarding crop and technology choice, labour use, market exchange and price responsiveness are discussed. Implications of this integrated approach are analysed against the background of policy discussions on land markets, incentives for innovation, and public investment for agricultural intensification. Policy analysis for sustainable land use proves to be critically dependent on the specification of the linkages between decision-making procedures regarding resource allocation by farm households and their supply response to changes in the economic and institutional environment.

Analytical framework for disentangling the concept of sustainable land use

Definitions of sustainability have till now failed to suit both conceptual and operational purposes for lack of an appropriate analytical framework that can be used by biophysical and socio-economic sciences with equal ease. A framework for analysing sustainable land use is proposed which distinguishes between agro-ecological and socio-economic components and between different hierarchical system levels. In some detail the agro-ecological component is discussed in terms of changes in the stock of natural resources. Two decision-making levels with regard to land use, the farm level and the policy level are discussed in terms of the trade-offs between agro-ecological sustainability and socio-economic objectives.

Technology, market policies and institutional reform for sustainable land use in southern Mali

To identify appropriate interventions that support sustainable land use, a farm household modelling approach is applied to analyze micro-economic supply reactions to various policy measures. The modelling framework links agro-technical and economic data, and takes both production and consumption decisions into account, allowing land use and production technology adjustments in accordance with farm household objectives. Different types of farm households are distinguished on the basis of their resource endowments, savings coefficients and time discount rate. Actual and alternative (sustainable) cropping and livestock activities for different weather regimes are defined for southern Mali. The effects on sustainable land use and expected farm household welfare of adopting alternative technologies and modifying prices, transaction costs, access to credit and land taxes are demonstrated. Even with full information on sustainable technologies, strong policy interventions are required to halt soil degradation. Structural policies proved to be more effective than price policies to reduce soil degradation while maintaining positive income effects. When prices are determined endogenously, structural policy loses some effectiveness as an incentive for sustainable land use due to the effect of additional supply on local cereal and meat prices.

Sustainable poverty reduction in less-favoured areas

Designing and evaluating alternatives for more sustainable natural resource management Dimensions of vulnerability of livelihoods Market imperfections Rural development and sustainable land use Resource use efficiency on own and sharecropped plots in Northern Ethiopia Food Security Changing gender roles in household food security Does social capital matter in vegetable markets? Making markets work for the poor: the challenge in the age of globalisation Market access, agricultural productivity and allocative efficiency Land and labour market participation decisions under imperfect markets Land and labour allocation decisions in the shift from subsistence to commercial agriculture Effects of deregulation of the rice market on farm prices in China Consequences of abolition of the Multi-Fibre Arrangement import quotas on the apparel industry of Bangladesh Poverty targeting with heterogeneous endowments Less-favoured areas: looking beyond agriculture towards ecosystem services Livelihood strategies, policies and sustainable poverty reduction in LFAs: a dynamic perspective.

Climate Variability, Risk Coping and Agrarian Policies in Sub-Saharan Africa

In this chapter we use a bio-economic model to assess the influence of market and structural policies on farm household resource allocation in different rainfall conditions. We present the simulated effects on income level, soil nutrient balances, food security and labour use for three types of households with different farm resource endowment. The model simulates production and consumption decisions taking into account weather conditions, off-farm employment opportunities, market functioning, risk motives and saving and investment behaviour. The results show that a changing frequency of dry years hardly affects farm income because major decisions are based on dry-year conditions. Output price policies particularly enhance the income of the more wealthy households but have a negative effect on soil nutrient balances. Input price subsidies bring about a more sustainable land use. Structural policies that reduce transaction costs generate the largest income improvements while, particularly during dry years, poor farmers benefit relatively more than wealthy farmers. Market reform programmes therefore continue to be a relevant instrument for reducing poverty and enhancing food security.

Capacity Development for Food Policy Analysis: What works best? Adding evidence from IFPRI's experience

This article presents major results of a meta†assessment of experience of the International Food Policy Research Institute (IFPRI) with different kinds of capacity strengthening (CS) activities for food policy analysis. Collaborative research, on†the†job†training, and ID support for building data systems and analysis came up as best†practice approaches. Equally successful were new initiatives such as visiting fellow programmes, thesis support schemes, and delivering CS work embedded in country or thematic programmes. Challenges emerged as well: how to address the low CS impact of formal training and work with local collaborators, the uncertain results for outreach and strengthening capacity of organizations over individuals, especially in the policy cycle, and the best way to enter into partnerships and create incentives to deliver and sustain CS. Some policy implications are indicated.