Thomas F. Walker

Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents

Supermarkets, specialized wholesalers, and processors and agro-exporters’ agricultural value chains have begun to transform the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework through which to study contracting between smallholders and a commodity-processing firm. We then conduct an empirical meta-analysis of agricultural value chains in five countries across three continents (Ghana, India, Madagascar, Mozambique, and Nicaragua). We document patterns of participation, the welfare gains associated with participation, reasons for non-participation, the significant extent of contract non-compliance, and the considerable dynamism of these value chains, as farmers and firms enter and exit frequently.

Recent evolution of inequality in East Asia

This study uses a decomposition of the Theil inequality index across eight countries to examine the recent evolution of inequality in East Asia. It is found that inequality in the region rose between 1990 and 1997, but that the increase was driven by higher inequality within countries, rather than between them. The most significant contribution to the overall rise in regional inequality came from urban China, where inequality doubled between 1990 and 1997. Our analysis suggests that policies to tackle inequality should be aimed at national and sub-national levels, and particularly at addressing growing rural–urban disparities.

Household Shocks and Education Investments in Madagascar

This paper measured the extent to which households in Madagascar adjust childrens school attendance in order to cope with exogenous shocks to household income, assets and labour supply. Our analysis was based on a unique data set with 10 years of recall data on school attendance and household shocks. We found that the probability of a child dropping out of school increased significantly when the household experienced an illness, death or asset shock. We proposed a test to distinguish whether the impact of shocks on school attendance could be attributed to credit constraints, labour market rigidities, or a combination of the two. The results of the test suggested that credit constraints, rather than labour market rigidities, explain the inability of households in Madagascar to keep their children in school during times of economic distress.

Residential Electricity Subsidies in Pakistan : Targeting, Welfare Impacts, and Options for Reform

This paper examines the economic and social implications of the current system of residential electricity subsidies in Pakistan, and assesses the potential to improve the systems outcomes through alternative targeting and program design. The analysis is multi-disciplinary in nature, drawing on national household survey data, electric company data on household electricity consumption, a welfare database, and a specially commissioned qualitative assessment of household and service provider attitudes and experiences. Affordability is only one of many concerns among electricity users, with reliability of supply and customer service being arguably more important. The analysis finds that targeting could be improved considerably by allocating subsidies according to proxy-means test scores using an existing national proxy-means test database. Providing a flat credit rather than a price subsidy could also alleviate certain governance concerns. The paper concludes with some guidance on how to carry out these reforms based on international experience.