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Small-scale farming and hunger: the enabling role of social assistance programmes in South Africa’s former homelands

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  • von Fintel, Dieter
  • Pienaar, Louw

Abstract

Cash transfers successfully alleviate poverty in many developing countries. South Africa is a case in point, implementing one of the largest unconditional cash transfer programmes internationally, and with substantial benefits to household well-being along multiple dimensions. Yet, grants discourage formal labour market attachment, creating dependencies on the fiscus. This study uses a fuzzy regression discontinuity design to establish that state-funded Old Age Pensions encourage non-market economic activity (in the form of small-scale farming), and improve the self-reported food security of rural households that farm, vis-à-vis those that do not. The role of small-scale farming is of broader interest in rural development, given the context of the 1913 and 1936 Land Acts that constrained this form of livelihood in former apartheid homelands. This paper’s contribution is two-fold: grants are an effective channel to actively promote rural development through small-scale farming, and they improve food security by non-market mechanisms.

Suggested Citation

  • von Fintel, Dieter & Pienaar, Louw, 2015. "Small-scale farming and hunger: the enabling role of social assistance programmes in South Africa’s former homelands," 2015 Conference, August 9-14, 2015, Milan, Italy 211916, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211916
    DOI: 10.22004/ag.econ.211916
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    References listed on IDEAS

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    1. Victoria Hosegood & Anne Case & Cally Ardington, 2009. "Labor Supply Responses to Large Social Transfers: Longitudinal Evidence from South Africa," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 22-48, January.
    2. Jorge M. Aguero & Michael R. Carter & Ingrid Woolard, 2006. "The Impact of Unconditional Cash Transfers on Nutrition: The South African Child Support Grant," SALDRU Working Papers 8, Southern Africa Labour and Development Research Unit, University of Cape Town.
    3. Abel, Martin, 2013. "Unintended labour supply effects of cash transfer programmes: Evidence from South Africa's old age pension," SALDRU Working Papers 114, Southern Africa Labour and Development Research Unit, University of Cape Town.
    4. Marianne Bertrand & Sendhil Mullainathan & Douglas Miller, 2003. "Public Policy and Extended Families: Evidence from Pensions in South Africa," The World Bank Economic Review, World Bank, vol. 17(1), pages 27-50, June.
    5. Cally Ardington & Till Bärnighausen & Anne Case & Alicia Menendez, 2016. "Social Protection and Labor Market Outcomes of Youth in South Africa," ILR Review, Cornell University, ILR School, vol. 69(2), pages 455-470, March.
    6. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    7. repec:ldr:wpaper:96 is not listed on IDEAS
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    Cited by:

    1. Otterbach, Steffen & Rogan, Michael, 2017. "Spatial Differences in Stunting and Household Agricultural Production in South Africa: (Re-)Examining the Links Using National Panel Survey Data," IZA Discussion Papers 11008, Institute of Labor Economics (IZA).
    2. Otterbach, Steffen & Rogan, Michael, 2017. "Spatial differences in stunting and household agricultural production in South African: (re-)examining the links using national panel survey data," Hohenheim Discussion Papers in Business, Economics and Social Sciences 13-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.

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