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Accelerating Africa's food production in response to rising food prices: Impacts and requisite actions

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Author Info
Diao, Xinshen
Fan, Shenggen
Headey, Derek
Johnson, Michael
Nin Pratt, Alejandro
Yu, Bingxin

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Abstract

"In Africa the global food crisis threatens the livelihoods of millions of people who because of high rates of poverty, hunger, malnutrition, and food dependency are already exceptionally vulnerable. In better circumstances, Africa's agricultural sector would respond to rising prices by increasing food supply. But such a response is impossible without significant new policy actions on both the production and marketing of African agriculture. This paper assesses the likely impacts of two strategic policy options: doubling African staples production, and improving “market access” through regional integration and lowering transaction costs. Using an economywide multimarket model for 17 African economies and econometrically estimated parameters describing the relationships between growth and poverty and between public spending and growth, we assess the impacts of these two strategic options on Africa's food markets and its broader economic development. Doubling staples production significantly increases food security, reduces consumer food prices by roughly 25 percent, reduces producer prices by 10 percent (thus raising farm revenue), accelerates agricultural growth rates, facilitates broader economic growth through new agroprocessing and export opportunities, and lifts more than 100 million Africans out of poverty. Key policy actions are needed to move from this strategic vision to implementation. The first set of actions requires investing $38 billion from 2009 to 2013, or $7.5 billion per year, in a well-designed package of modern agricultural inputs and provisions. The second requires improving and extending transport infrastructure, especially major transport corridors and rural feeder roads. The third requires reducing tra*de barriers, which still remain much higher in agriculture than in other sectors. All of these actions are technically and financially feasible, but their timely implementation requires urgent initiatives by both national and international policymakers." from authors' abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 825.

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Date of creation: 2008
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Handle: RePEc:fpr:ifprid:825

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Related research
Keywords: Food prices; Green Revolution; Staple foods; Agricultural productivity; Market access; infrastructure; economic modeling;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  2. Abdulai, Awudu & Diao, Xinshen & Johnson, Michael, 2005. "Achieving regional growth dynamics in African agriculture," DSGD discussion papers 17, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  5. von Braun, Joachim, 2008. "Rising food prices: What should be done?," Policy briefs 1, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Diao, Xinshen & Pratt, Alejandro Nin, 2007. "Growth options and poverty reduction in Ethiopia - An economy-wide model analysis," Food Policy, Elsevier, vol. 32(2), pages 205-228, April. [Downloadable!] (restricted)
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  10. Xinshen Diao & Paul Dorosh, 2007. "Demand Constraints on Agricultural Growth in East and Southern Africa: A General Equilibrium Analysis," Development Policy Review, Overseas Development Institute, vol. 25(3), pages 275-292, 05. [Downloadable!] (restricted)
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  13. Diao, Xinshen & Pratt, Alejandro Nin & Ghautam, Madhur & Keough, James & Chamberlin, Jordan & You, Liangszi & Puetz, Detlev & Resnick, Danielle & Yu, Bingxin, 2005. "Growth options and poverty reduction in Ethiopia," DSGD discussion papers 20, International Food Policy Research Institute (IFPRI). [Downloadable!]
  14. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI). [Downloadable!]
  15. Hertel, Thomas & Keeney, Roman & Ivanic, Maros & Winters, Alan, 2006. "Distributional Effects of WTO Agricultural Reforms in Rich and Poor Countries," GTAP Working Papers 2185, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University. [Downloadable!]
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  16. Diao, Xinshen & Dorosh, Paul A. & Rahman, Shaikh Mahfuzur, 2003. "Market opportunities for African agriculture," DSGD discussion papers 1, International Food Policy Research Institute (IFPRI). [Downloadable!]
  17. von Braun, Joachim & Ahmed, Akhter & Asenso-Okyere, Kwadwo & Fan, Shenggen & Gulati, Ashok & Hoddinott, John & Pandya-Lorch, Rajul & Rosegrant, Mark W. & Ruel, Marie & Torero, Maximo & van Rheenen, Te, 2008. "High food prices: The what, who, and how of proposed policy actions," Policy briefs 1A, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  19. Rosegrant, Mark W. & Hazell, Peter B. R., 2001. "Transforming the rural Asian economy," 2020 vision briefs 69, International Food Policy Research Institute (IFPRI). [Downloadable!]
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Cudjoe, Godsway & Breisinger, Clemens & Diao, Xinshen, 2008. "Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana," IFPRI discussion papers 842, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Mogues, Tewodaj, 2008. "A two-dimensional measure of polarization:," IFPRI discussion papers 837, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Ruan, Jianqing & Zhang, Xiaobo, 2008. "Credit constraints, organizational choice, and returns to capital: Evidence from a rural industrial cluster in China," IFPRI discussion papers 830, International Food Policy Research Institute (IFPRI). [Downloadable!]
  4. Dercon, Stefan & Gilligan, Daniel O. & Hoddinott, John & Woldehan, Tassew, 2008. "The impact of agricultural extension and roads on poverty and consumption growth in fifteen Ethiopian villages:," IFPRI discussion papers 840, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  5. Cororaton, Caesar B., 2008. "The Philippines: Shadow WTO Agricultural Domestic Support Notifications," IFPRI discussion papers 827, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Gilligan, Daniel O. & Hoddinott, John & Taffesse, Alemayehu Seyoum, 2008. "The impact of Ethiopia's Productive Safety Net Programme and its linkages:," IFPRI discussion papers 839, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Yesuf, Mahmud & di Falco, Salvatore & Deressa, Temesgen & Ringler, Claudia & Kohlin, Gunnar, 2008. "The impact of climate change and adaptation on food production in low-income countries: Evidence from the Nile Basin, Ethiopia," IFPRI discussion papers 828, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  8. Bryan, Elizabeth & Akpalu, Wisdom & Yesuf, Mahmud & Ringler, Claudia, 2008. "Global carbon markets: Are there opportunities for Sub-Saharan Africa?," IFPRI discussion papers 832, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  9. Akpalu, Wisdom & Hassan, Rashid M. & Ringler, Claudia, 2008. "Climate variability and maize yield in South Africa: Results from GME and MELE methods," IFPRI discussion papers 843, International Food Policy Research Institute (IFPRI). [Downloadable!]
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