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Food insecurity and public agricultural spending in Bolivia : putting money where your mouth is ?

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  • Cuesta, Jose
  • Edmeades, Svetlana
  • Madrigal, Lucia

Abstract

This paper explores the reduction of food insecurity in Bolivia, adopting a supply side approach that analyzes the role of agricultural spending on vulnerability. Vulnerability to food insecurity is captured by a municipal level composite -- developed locally within the framework of World Food Program food security analysis -- that combines welfare outcomes, weather conditions and agricultural potential for all 327 municipalities in 2003, 2006 and 2007. Our econometric results indicate that levels of public agricultural spending are positively associated with high or very high vulnerability. The authors interpret this to indicate that agricultural spending allocation decisions are driven by high or very high vulnerability levels. In other words, more agricultural spending appears to be destined to where it is more needed in line with previous findings in other sectors in Bolivia. This is confirmed through a number of specifications, including contemporaneous and lagged relationships between spending and vulnerability. They also find evidence of public spending on infrastructure and research and extension services having a significant (but very small) effect towards reducing high vulnerability. This indicates the importance of the composition of public agricultural spending in shaping its relationship with vulnerability to food insecurity.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5604.

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Date of creation: 01 Mar 2011
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Handle: RePEc:wbk:wbrwps:5604

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Related research

Keywords: Food&Beverage Industry; Rural Poverty Reduction; Public Sector Economics; Population Policies; Agricultural Knowledge&Information Systems;

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References

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  1. Crist�bal Kay, 2011. "Rural Poverty Reduction Policies in Honduras, Nicaragua and Bolivia: Lessons from a Comparative Analysis," The European Journal of Development Research, Palgrave Macmillan, Palgrave Macmillan, vol. 23(2), pages 249-265, April.
  2. Per Pinstrup-Andersen, 2009. "Food security: definition and measurement," The Science, Sociology and Economics of Food Production and Access to Food, Springer, Springer, vol. 1(1), pages 5-7, February.
  3. Faguet, Jean-Paul & Sánchez, Fabio, 2008. "Decentralization's Effects on Educational Outcomes in Bolivia and Colombia," World Development, Elsevier, Elsevier, vol. 36(7), pages 1294-1316, July.
  4. Faguet, Jean-Paul, 2004. "Does decentralization increase government responsiveness to local needs?: Evidence from Bolivia," Journal of Public Economics, Elsevier, Elsevier, vol. 88(3-4), pages 867-893, March.
  5. Cuesta, Jose & Kabaso, Pamela & Suarez-Becerra, Pablo, 2012. "How pro-poor and progressive is social spending in Zambia ?," Policy Research Working Paper Series 6052, The World Bank.
  6. José Cuesta & Suzanne Duryea & Fidel Jaramillo & Marcos Robles, 2010. "Distributive impacts of the food price crisis in the Andean region," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 846-865.
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Cited by:
  1. World Bank, 2011. "Plurinational State of Bolivia : Agriculture Public Expenditure Review," World Bank Other Operational Studies 12311, The World Bank.

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