C. Leigh Anderson

Microcredit, Social Capital, and Common Pool Resources

Abstract The paper presents a conceptual scheme for understanding the impact of microcredit—small loans to poor borrowers—on common pool resources. Impacts on common pool resources are posited to occur through changes in household production and consumption, the focus on women, and the social capital created from group training, decision-making, and risk-bearing with the group lending techniques characteristic of many microcredit programs. Enhanced human and social capital can improve environmental outcomes. A nonrandom survey of microfinance organizations suggests increased environmental awareness and potential CPR stewardship through microcredit, but empirical research is needed to demonstrate actual impacts.

CULTURE AND FAIRNESS IN THE DEVELOPMENT OF INSTITUTIONS IN THE CALIFORNIA GOLD FIELDS

Earlier accounts of the creation of property rights in the California gold fields ignored culture and are incomplete. We argue that culture matters in solving collective-action problems. Such problems in the California gold fields were solved through reliance on cultural focal points. Focal points included individualism, equality, respect for property, and rewards commensurate to work. Cultural concepts of fairness served to create norms and institutions that miners were willing to defend, which included majority rule, election of officials, trial by jury, allocation of a first-come, first-served basis and rules for working claims.

Are Women as Likely to Take Risks and Compete? Behavioural Findings from Central Vietnam

Abstract Using controlled experiments to compare the risk attitude and willingness to compete of husbands and wives in 500 couples in rural Vietnam, we find that women are more risk averse than men and that, compared to men, women are less likely to choose to compete, irrespective of how likely they are to succeed. Relevant to development programmes concerned with lifting women out of poverty, our findings suggest that women may be more reluctant to adopt new technologies, take out loans, or engage in economic activities that offer higher expected returns, in order to avoid setups that require them to be more competitive or that have less predictable outcomes.

Environmental impacts and constraints associated with the production of major food crops in Sub-Saharan Africa and South Asia

Many environmental factors constrain the production of major food crops in Sub-Saharan Africa and South Asia. At the same time, these food production systems themselves have a range of negative impacts on the environment. In this paper we review the published literature and assess the depth of recent research (since 2000) on crop x environment interactions for rice, maize, sorghum/millets, sweetpotato/yam and cassava in these two regions. We summarize current understandings of the environmental impacts of crop production systems prior to crop production, during production and post-production, and emphasize how those initial environmental impacts become new and more severe environmental constraints to crop yields. Pre-production environmental interactions relate to agricultural expansion or intensification, and include soil degradation and erosion, the loss of wild biodiversity, loss of food crop genetic diversity and climate change. Those during crop production include soil nutrient depletion, water depletion, soil and water contamination, and pest resistance/outbreaks and the emergence of new pests and diseases. Post-harvest environmental interactions relate to the effects of crop residue disposal, as well as crop storage and processing. We find the depth of recent publications on environmental impacts is very uneven across crops and regions. Most information is available for rice in South Asia and maize in Sub-Saharan Africa where these crops are widely grown and have large environmental impacts, often relating to soil nutrient and water management. Relatively few new studies have been reported for sorghum/millets, sweetpotato/yam or cassava, despite their importance for food security on large areas of marginal farmland in Sub-Saharan Africa – however, there is mounting evidence that even these low-input crops, once thought to be environmentally benign, are contributing to cycles of environmental degradation that threaten current and future food production. A concluding overview of the emerging range of published good practices for smallholder farmers highlights many opportunities to better manage crop x environment interactions and reduce environmental impacts from these crops in developing countries.

Husband and Wife Perspectives on Farm Household Decision-making Authority and Evidence on Intra-household Accord in Rural Tanzania

Highlights • We use surveys of husbands and wives in Tanzania to explore rural household decision-making.• We find perceptions of household decision-making authority differ depending on the spouse asked.• Factors associated with a wife’s authority include age, education, health, children, and labor hours.• The allocation of intra-household authority also varies across thirteen different decision questions.• A lack of “intra-household accord” over authority may be a barrier to empowerment efforts.

Applying Behavioural Economics to International Development Policy

Many development policies and programmes are premised on a traditional economic model of rationality to predict how individuals will respond to changes in incentives. Despite the emphasis of these programmes on poverty reduction, economists and the development community in general are still unable to understand fully how the poor make decisions, especially under uncertainty and over time. We do not understand why, for example, individuals do not regularly adopt subsidized technologies, such as ventilated cooking stoves to reduce health risks. Even when cultural norms and other constraints are considered, our models do not explain why a massive HIV/AIDS information campaign does not encourage individuals to regularly use condoms. Individuals avail themselves less than predicted in health programmes, participate less than expected in market opportunities, under- or over-insure themselves and make short-run decisions that are inconsistent with their long-run welfare. The rise and fall of different descriptive models and paradigms of poor-household behaviour can partly be attributed to this limited understanding. We believe that some more helpful answers may lie within behavioural economics, that these insights are particularly important for poor populations, and that they can improve the future design, implementation and subsequent effectiveness of development programmes.

Savings and Personal Discount Rates in a Matched Savings Program for Low‐Income Families

The ability to save for future needs is critical to family well‐being and is especially challenging for low‐income families with little extra income and limited access to institutional structures like employment‐based retirement funds or low cost savings mechanisms. Many nonprofits and governments have created new savings vehicles to fill this void. The ability of families to succeed in these programs may depend on their personal discount rates (time preferences). In this paper, we use survey data from a matched savings program and factor analysis to characterize family time preferences in order to predict their influence on savings levels. We find that a single latent factor describing the level of discount rates (rather than other dimensions of time or amount inconsistency) best describes family differences and is significantly related to the ability of families to save within the program.

Variability in Cross-Domain Risk Perception among Smallholder Farmers in Mali by Gender and Other Demographic and Attitudinal Characteristics: Variability in Cross-Domain Risk Perception

Abstract Previous research has shown that men and women, on average, have different risk attitudes and may therefore see different value propositions in response to new opportunities. We use data from smallholder farm households in Mali to test whether risk perceptions differ by gender and across domains. We model this potential association across six risks (work injury, extreme weather, community relationships, debt, lack of buyers, and conflict) while controlling for demographic and attitudinal characteristics. Factor analysis highlights extreme weather and conflict as eliciting the most distinct patterns of participant response. Regression analysis for Mali as a whole reveals an association between gender and risk perception, with women expressing more concern except in the extreme weather domain; however, the association with gender is largely absent when models control for geographic region. We also find lower risk perception associated with an individualistic and/or fatalistic worldview, a risk‐tolerant outlook, and optimism about the future, while education, better health, a social orientation, self‐efficacy, and access to information are generally associated with more frequent worry—with some inconsistency. Income, wealth, and time poverty exhibit complex associations with perception of risk. Understanding whether and how mens and womens risk preferences differ, and identifying other dominant predictors such as geographic region and worldview, could help development organizations to shape risk mitigation interventions to increase the likelihood of adoption, and to avoid inadvertently making certain subpopulations worse off by increasing the potential for negative outcomes.

Delivering development? Evidence on self-help groups as development intermediaries in South Asia and Africa

Donors and governments increasingly seek to deliver development projects through community-based organizations such as self-help groups (SHGs), but little is known about the effectiveness of such arrangements. This article briefly summarizes hypotheses regarding the effectiveness of interventions using SHGs and presents the results of an evidence review on the impacts of interventions delivered through SHGs on health, finance, agriculture and empowerment outcomes in South Asia and sub-Saharan Africa. Though the impacts of SHG-based interventions are generally positive, the evidence base is limited and does not generally test whether alternative delivery mechanisms might be more effective.

Relating Seasonal Hunger and Prevention and Coping Strategies: A Panel Analysis of Malawian Farm Households

Abstract Relative to chronic hunger, seasonal hunger in rural and urban areas of Africa is poorly understood. This paper examines the extent and potential correlates of seasonal hunger in Malawi using panel data from 2011–2013. We find that both urban and rural households report seasonal hunger in the pre-harvest months. Certain strategies to smooth consumption, including crop storage and livestock ownership, are associated with fewer months of hunger. In addition, we find that Malawian households that experience seasonal hunger harvest their crops earlier than average – a short-term coping mechanism that can reduce the crop’s yield and nutritional value, possibly perpetuating hunger.