Neha Kumar

Adoption of Weather-Index Insurance: Learning from Willingness to Pay Among a Panel of Households in Rural Ethiopia

In this paper we examine which farmers would be early entrants into weather indexinsurance markets in Ethiopia, were such markets to develop on a large scale. We do this by examining the determinants of willingness to pay for weather insurance among 1,400 Ethiopian households that have been tracked for 15 years as part of the Ethiopia Rural Household Survey. This provides both historical and current information with which to assess the determinants of demand. We find that educated, rich, and proactive individuals were more likely to purchase insurance. Risk aversion was associated with low insurance take-up, suggesting that models of technology adoption can inform the purchase and spread of weather index insurance. We also assess how willingness to pay varied as two key characteristics of the contract were varied and find that basis risk reduced demand for insurance, particularly when the price of the contract was high, and that provision of insurance through groups was preferred by women and individuals with lower levels of education.

Access, adoption, and diffusion: understanding the long-term impacts of improved vegetable and fish technologies in Bangladesh

This paper assesses long-term impacts of early adoption of vegetable and polyculture fish production technologies on household and individual well-being in Bangladesh. In 1996–1997 and 2006–2007, a panel of households were surveyed in three sites where non-governmental organisations and extension programmes disseminated agricultural technologies. Using nearest-neighbour matching to construct a statistical comparison group, the authors find that long-term impacts differ across agricultural technology interventions and across outcomes. Long-term impacts on household-level consumption expenditures and asset accumulation are, in general, insignificant in the improved vegetables sites, but are positive and significant in the individually operated fish ponds sites. However, the impacts on individual nutrient intake, nutrient adequacy, and nutritional status do not follow the pattern of household-level impacts. Differences in long-term and short-term impacts arise from several causes: differences in dissemination and targeting mechanisms that may affect household-level adoption decisions; initial differences between comparison and treatment groups; divisibility and ease of dissemination of the technology; and intrahousehold allocation processes that determine the allocation of gains from the new technology among household members.

Policy Reform Toward Gender Equality in Ethiopia: Little by Little the Egg Begins to Walk

There is growing interest in the role of policy reforms to promote gender equality and empower women, two key objectives of development policy. From a policy perspective, it would be ideal for reforms undertaken in different policy areas to be consistent, so that they reinforce each other in improving gender equity. We use data from the Ethiopian Rural Household Survey (ERHS) to show how two seemingly unrelated reforms—community-based land registration, undertaken since 2003, and changes in the Family Code implemented in 2000—may have created conditions for mutually reinforcing gender-sensitive reforms. Our analysis confirms previous studies’ findings of gender gaps in awareness and information about the land registration process. Male-headed households are, on average, more likely to have heard about the process, to have attended meetings (and a greater number of meetings), and to have received some written material with information about the process. Having female members in the Land Administration Committee (LAC) has a positive impact on attendance at meetings relating to land registration. In our analysis of the changes in the family law, we find that awareness about the land registration process is positively correlated with the shift in perceptions toward equal division of land and livestock upon divorce. The presence of female members in the LAC also has a positive effect on the shift in perceptions toward a more equal division of assets upon divorce. Taken together, these findings suggest that the land registration process and the reform of the Family Code may have mutually reinforcing effects on women’s rights and welfare. While this example is obviously rooted in the Ethiopian context, it raises the possibility that similar reform efforts may be complementary in other countries as well.

If They Grow It, Will They Eat and Grow? Evidence from Zambia on Agricultural Diversity and Child Undernutrition

Abstract In this article we address a gap in our understanding of how household agricultural production diversity affects the diets and nutrition of young children living in rural farming communities in sub-Saharan Africa. The specific objectives of this article are to assess: (1) the association between household agricultural production diversity and child dietary diversity; and (2) the association between household agricultural production diversity and child nutritional status. We use household survey data collected from 3,040 households as part of the Realigning Agriculture for Improved Nutrition (RAIN) intervention in Zambia. The data indicate low agricultural diversity, low dietary diversity and high levels of chronic malnutrition overall in this area. We find a strong positive association between production diversity and dietary diversity among younger children aged 6–23 months, and significant positive associations between production diversity and height for age Z-scores and stunting among older children aged 24–59 months.

Can Social Protection Work in Africa? The Impact of Ethiopia’s Productive Safety Net Programme

This study evaluates a large social protection program in rural Ethiopia, the Productive Safety Net Programme (PSNP). The effectiveness of the PSNP is of interest because the program was implemented at scale in one of Africa’s poorest countries, which has limited physical and communications infrastructure and scarce administrative resources. Using longitudinal survey data collected in 2006, 2008, and 2010 at the household and locality levels, we employ an extension of the propensity score matching method to continuous treatments to estimate the impact of transfers from the PSNP and a separate program on household food security. Against the formidable background of rising food prices and widespread drought, participation in the Public Works component of the PSNP has modest effects. The PSNP reduced the length of the last hungry season by 1.29 months among households that received transfers for 5 years compared to eligible households that received almost nothing. Five years of participation raises livestock holdings by 0.38 tropical livestock units relative to receipt of payments in only 1 year. There is no evidence that the PSNP crowds out private transfers. The joint impact of access to the PSNP along with a program that helps households to increase agricultural income and build assets is even higher. Having both of these programs reduced the length of the last hungry season by 1.5 months per year and increased livestock holdings by 0.99 tropical livestock units.

Bargaining power and biofortification: The role of gender in adoption of orange sweet potato in Uganda

We examine the role of gender in adoption and diffusion of orange sweet potato, a biofortified staple food crop being promoted as a strategy to increase dietary intakes of vitamin A among young children and adult women in Uganda. As an agricultural intervention with nutrition objectives, intrahousehold gender dynamics regarding decisions about crop choice and child feeding practices may play a role in adoption decisions. Also, most households access sweet potato vines through informal exchange, suggesting again that gender dimensions of networks may be important to diffusion of the crop. We use data from an experimental impact evaluation of the introduction of OSP in Uganda to study how female bargaining power, measured by share of land and nonland assets controlled by women, affect adoption and diffusion decisions.

Inheritance Practices and Gender Differences in Poverty and Well‐Being in Rural Ethiopia

This article examines the role of mens and womens asset inheritance in poverty and well‐being in rural Ethiopia. Data from the Ethiopian Rural Household Survey (1997, 2004, and 2009) are used to investigate the following. (i) What is the long‐term impact of gender differentials in inheritance on household consumption, poverty and food security? (ii) Are there significant differences in poverty and well‐being between male‐and female‐headed households? The most important finding is that it is the amounts of inheritance received, and not whether women inherit at all, that have the most profound impacts. The area of land inherited is particularly important for womens long‐term well‐being. These findings underscore the importance of womens rights to inherit equally with men.

Evaluating the long-term impact of anti-poverty interventions in Bangladesh: an overview

This paper provides an overview of a research project that assessed the long-term impact of three antipoverty interventions in Bangladesh – the introduction of new agricultural technologies, educational transfers, and microfinance – on monetary and non-monetary measures of well-being. It begins by setting out the conceptual framework, methodology, and empirical methods used for the evaluation of long-term impacts. It discusses the context of the evaluations and the longitudinal data used. Key findings from the papers are then presented, followed by an indicative analysis of the cost-effectiveness of these interventions. The overview concludes with implications for programmes and policy.

Demand for Complementary Financial and Technological Tools for Managing Drought Risk

Financial and technological innovations that mitigate weather-related production risks have the potential to greatly benefit farmers in many risk-prone areas. In this study we examine farmers’ preferences for two distinct tools that allow them to manage drought risk: weather index insurance and a recently released drought-tolerant rice variety. We illustrate how these tools can independently address drought risk and demonstrate the additional benefits gained by combining them into a complementary risk management product. Findings indicate that farmers are generally unwilling to adopt the drought-tolerant variety independent of insurance, largely due to a yield penalty under non-drought conditions. When bundled with insurance, however, farmers’ valuation of the variety increases. Farmers value insurance on its own, but even more so when bundled with the drought-tolerant variety. The results provide evidence that farmers value the complementarities inherent in a well-calibrated bundle of risk management tools.

Microinsurance Decisions: Gendered Evidence from Rural Bangladesh

Abstract Most index-based insurance products have been developed without giving explicit attention to gender. However, there is ample of evidence that shocks affect men and women differently and that they allocate resources in different ways. In Bangladesh, it is often assumed that women are less involved in agriculture, and, therefore, agricultural insurance might not be of interest to rural women. However, this assumption has not been tested in the field. This article draws from a field research experiment to examine the gendered aspects of willingness to pay for index-based insurance in Bangladesh. Participants were presented with risky lotteries and a specific insurance contract and were asked to choose how much, if any, of the insurance they wanted to buy at a given price. The probability structure, whether the risk was catastrophic or moderate and whether there was high or low basis risk, varied within sessions. The price of the insurance varied across sessions. Each participant was also given a short questionnaire, which collected information on the demographic characteristics, risk preferences, agricultural risks, knowledge of insurance products, and asset ownership. In the study, 97 percent of the participants decided to buy agricultural insurance, with no significant differences between men and women, even though women were less involved in agricultural decision-making. We found a small decrease in take-up for the low-probability event, driven by the women in the sample. When we examined the number of units bought, we found that men were likely to buy more units than women. Total wealth, as captured by total land owned, had no effect on the units bought. However, among women, total wealth mattered and had a positive correlation. Finally, we found that women had less education and lower financial literacy than their male counterparts, and did not have the experience possessed by men to understand agricultural risks. It placed them at a disadvantage when making insurance purchase decisions.