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Category: Social Sciences

Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries

That’s the title of a forthcoming article of mine (co-authored with Chris Barrett, Maren Elise Bachke, Hope Michelson, Sudha Narayanan, and Tom Walker) in World Development, in which we lay out a conceptual framework to study the participation of farm households in agricultural value chains in developing countries and survey the recent empirical evidence on the topic.

Here is the abstract:

Supermarkets, specialized wholesalers, processors, and agro-exporters are transforming the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework with which to study contracting between smallholders and a commodity-processing firm. We then synthesize results from empirical studies of contract farming arrangements in five countries (Ghana, India, Madagascar, Mozambique, and Nicaragua). The resulting meta-narrative documents patterns of participation, the welfare gains associated with participation, reasons for nonparticipation, the significant extent of contract noncompliance, and the considerable dynamism of these value chains as farmers and firms enter and exit frequently.

Looking for the Next Big Research Questions in Development Economics?

A little more than a year ago, the National Science Foundation’s (NSF) Directorate for the Social, Behavioral and Economic Sciences commissioned 54 papers from leading economists on long-term research agendas. That is, on questions that are “likely to drive next generation research in the social, behavioral, and economic sciences.”

If I were a second-year Ph.D. student looking for a set of great research questions, I would be all over these. I certainly wish that the emphasis on applied theory Esther Duflo foresees in development economics had been in fashion when I hit the market in 2006!

Here is a list of the papers that should be of interest to readers of this blog:

Horn of Africa: Famine Is Not Going Away, Still Appears Man-Made

Image Credit: BBC.

From a BBC news article:

Three months after famine was declared in Somalia, the scale of the crisis in the Horn of Africa remains huge, says a British official.

International Development Secretary Andrew Mitchell said hundreds of people, mainly children, were dying every day.

The coming rainy season is expected to bring disease to crowded refugee camps.

In Somalia alone, Mr Mitchell points out, more than 400,000 children remain at risk of death.

While the rains can bring more misery and death in their wake, they can of course be part of the recovery from this disaster too.

What I find puzzling is the title of the article: “East Africa Drought ‘Remains Huge Crisis’.”

Sure enough, the drought in East Africa is the worst in over 50 years. But to blame it for the famine is a huge stretch. After all, many other areas of the world have experienced drought in the past without then experiencing famine.

More convincingly, why is it that Somalia is experiencing famine, but that Kenya and Ethiopia are not? The different institutions on either side of the Kenya-Somalia and the Ethiopia-Somalia borders make for a nice social experiment and point to the idea that famines are man-made.

In other words, while natural disasters can certainly cause food shortages, it really looks as though bad institutions — the lack of government accountability in most cases — are really the root cause of famine.

For more on the current famine in the Horn of Africa and its human causes, I encourage readers to listen to this excellent podcast.