IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v11y2007i1p139-158.html
   My bibliography  Save this article

Aid, Agriculture and Poverty in Developing Countries

Author

Listed:
  • Paul Mosley
  • Abrar Suleiman

Abstract

The authors make two contributions to the debate on aid‐effectiveness, illustrating that for impact on poverty what matters is not just the level but also the composition and stability of aid. One specific implication of this for aid policy is that aid most effectively reduces poverty if it supports public (and other) expenditures which are supportive of agricultural development. Regression analysis confirms that these are not only direct expenditure on agriculture, but also on education and infrastructure, and military expenditure has a negative impact. Three factors appear to be particularly conducive to the development of stable pro‐poor expenditure patterns (and in particular pro‐agriculture expenditure patterns). These are expenditure strategies which protect the poor against risk, the development of stable relations between governments and aid donors, and long‐term political commitment to pro‐poor strategies by government. The argument is pursued partly by panel‐data econometric analysis of developing countries as a whole, and partly by case studies of sustained and non‐sustained green revolutions in heavily aid‐dependent countries in Africa.

Suggested Citation

  • Paul Mosley & Abrar Suleiman, 2007. "Aid, Agriculture and Poverty in Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 139-158, February.
    • Handle: RePEc:bla:rdevec:v:11:y:2007:i:1:p:139-158
    DOI: 10.1111/j.1467-9361.2006.00354.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9361.2006.00354.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9361.2006.00354.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lele, Uma & Goldsmith, Arthur A, 1989. "The Development of National Agricultural Research Capacity: India's Experience with the Rockefeller Foundation and Its Significance for Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 37(2), pages 305-343, January.
    2. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
    3. World Bank, 2005. "Ethiopia : Well-Being and Poverty in Ethiopia, The Role of Agriculture and Agency," World Bank Publications - Reports 8707, The World Bank Group.
    4. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    5. Wood, Geof, 2003. "Staying Secure, Staying Poor: The "Faustian Bargain"," World Development, Elsevier, vol. 31(3), pages 455-471, March.
    6. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
    7. Jayne, T. S. & Jones, Stephen, 1997. "Food marketing and pricing policy in Eastern and Southern Africa: A survey," World Development, Elsevier, vol. 25(9), pages 1505-1527, September.
    8. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1998. "Government spending, growth and poverty: an analysis of interlinkages in rural India," EPTD discussion papers 33, International Food Policy Research Institute (IFPRI).
    9. Howard, Julie A. & Kelly, Valerie A. & Stepanek, Julie & Crawford, Eric W. & Demeke, Mulat & Maredia, Mywish K., 1999. "Green Revolution Technology Takes Root in Africa The Promise and Challenge of the Ministry of Agriculture/SG2000 Experiment with Improved Cereals Technology in Ethiopia," Food Security International Development Working Papers 54667, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
    11. Hans P. Binswanger, 2000. "The Growth Performance of Agriculture in Subsaharan Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1075-1086.
    12. Abigail Barr, 2003. "Trust and expected trustworthiness: experimental evidence from zimbabwean villages," Economic Journal, Royal Economic Society, vol. 113(489), pages 614-630, July.
    13. Howard, Julie A. & Kelly, Valerie A. & Stepanek, Julie & Crawford, Eric W. & Demeke, Mulat & Maredia, Mywish K., 1999. "Green Revolution Technology Takes Root In Africa: The Promise and Challenge of the Ministry of Agriculture/SG2000 Experiment with Improved Cereals Technology in Ethiopia; Statistical Annex and Copies ," Food Security International Development Working Papers 54579, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    14. Xavier Irz & Lin Lin & Colin Thirtle & Steve Wiggins, 2001. "Agricultural Productivity Growth and Poverty Alleviation," Development Policy Review, Overseas Development Institute, vol. 19(4), pages 449-466, December.
    15. Paul Mosley & John Hudson & Arjan Verschoor, 2004. "Aid, Poverty Reduction and the 'New Conditionality'," Economic Journal, Royal Economic Society, vol. 114(496), pages 217-243, June.
    16. Brautigam, Deborah A & Knack, Stephen, 2004. "Foreign Aid, Institutions, and Governance in Sub-Saharan Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 255-285, January.
    17. Paul Mosley, 2002. "The African green revolution as a pro-poor policy instrument," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(6), pages 695-724.
    18. Paul Mosley & Abrar Suleiman, 2005. "Budget support, conditionality and poverty," Working Papers 2005012, The University of Sheffield, Department of Economics, revised Jun 2005.
    19. Michael Johnson & Peter Hazell & Ashok Gulati, 2003. "The Role of Intermediate Factor Markets in Asia's Green Revolution: Lessons for Africa?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1211-1216.
    20. Jonathan Kydd & Andrew Dorward, 2001. "The Washington Consensus on Poor Country Agriculture: Analysis, Prescription and Institutional Gaps," Development Policy Review, Overseas Development Institute, vol. 19(4), pages 467-478, December.
    21. Freebairn, Donald K., 1995. "Did the Green Revolution Concentrate Incomes? A Quantitative Study of Research Reports," World Development, Elsevier, vol. 23(2), pages 265-279, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Mosley & Abrar Suleiman, 2005. "Budget support, conditionality and poverty," Working Papers 2005012, The University of Sheffield, Department of Economics, revised Jun 2005.
    2. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    3. Mina Baliamoune‐Lutz & George Mavrotas, 2009. "Aid Effectiveness: Looking at the Aid–Social Capital–Growth Nexus," Review of Development Economics, Wiley Blackwell, vol. 13(3), pages 510-525, August.
    4. Edmore MAHEMBE & Nicholas M. ODHIAMBO, 2017. "On The Link Between Foreign Aid And Poverty Reduction In Developing Countries," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 26(2), pages 113-128.
    5. Dierk Herzer & Oliver Morrissey, 2009. "The Long-Run Effect of Aid on Domestic Output," Discussion Papers 09/01, University of Nottingham, CREDIT.
    6. Balázs Szent-Iványi, 2015. "Are Democratising Countries Rewarded with Higher Levels of Foreign Aid?," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(4), pages 593-615, December.
    7. Wehkamp, Johanna & Aquino, André & Fuss, Sabine & Reed, Erik W., 2015. "Analyzing the perception of deforestation drivers by African policy makers in light of possible REDD+ policy responses," Forest Policy and Economics, Elsevier, vol. 59(C), pages 7-18.
    8. Kasuga, Hidefumi & Morita, Yuichi, 2012. "Aid effectiveness, governance and public investment," Economic Modelling, Elsevier, vol. 29(2), pages 514-521.
    9. Paul Mosley, 2011. "RETRACTED ARTICLE: Trust and conditionality; Or, can the World Bank ‘Leopard’ change its spots?," The Review of International Organizations, Springer, vol. 6(3), pages 483-483, September.
    10. Geetilaxmi MOHAPATRA & A. K. GIRI & Madhu SEHRAWAT, 2016. "Foreign aid, macroeconomic policies and economic growth nexus in India: An ARDL bounds testing approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(609), W), pages 183-202, Winter.
    11. Jonathan Kydd & Andrew Dorward & Jamie Morrison & Georg Cadisch, 2004. "Agricultural development and pro-poor economic growth in sub-Saharan Africa: potential and policy," Oxford Development Studies, Taylor & Francis Journals, vol. 32(1), pages 37-57.
    12. Keith Blackburn & Gonzalo F. Forgues-Puccio, 2011. "Foreign aid - a fillip for development or a fuel for corruption?," Centre for Growth and Business Cycle Research Discussion Paper Series 158, Economics, The University of Manchester.
    13. Fenske, James, 2010. "Institutions in African history and development: A review essay," MPRA Paper 23120, University Library of Munich, Germany.
    14. Feeny, Simon & de Silva, Ashton, 2012. "Measuring absorptive capacity constraints to foreign aid," Economic Modelling, Elsevier, vol. 29(3), pages 725-733.
    15. Edmore Mahembe & Nicholas Mbaya Odhiambo, 2019. "Foreign aid, poverty and economic growth in developing countries: A dynamic panel data causality analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1626321-162, January.
    16. Patrick GUILLAUMONT, 2009. "Aid effectiveness for poverty reduction: macroeconomic overview and emerging issues," Working Papers P05, FERDI.
    17. Mosley, Paul, 2015. "Fiscal Composition and Aid Effectiveness: A Political Economy Model," World Development, Elsevier, vol. 69(C), pages 106-115.
    18. Arjan Verschoor & Adriaan Kalwij, 2006. "Aid, social policies and pro-poor growth," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(4), pages 519-532.
    19. Hudson, John & Mosley, Paul, 2008. "Aid Volatility, Policy and Development," World Development, Elsevier, vol. 36(10), pages 2082-2102, October.
    20. Thomas Ziesemer, 2016. "The Impact of Development Aid on Education and Health: Survey and New Evidence for Low‐income Countries from Dynamic Models," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(8), pages 1358-1380, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:11:y:2007:i:1:p:139-158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.