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Sustainability of Agricultural Crop Policies in Rwanda: An Integrated Cost-Benefit Analysis

Author

Listed:
  • Mikhail Miklyaev

    (Department of Economics, Queen’s University, Kingston, Canada and Senior Associate/ economist Cambridge Resources International Inc.)

  • Glenn P. Jenkins

    (Department of Economics, Queen's University, Kingston, Canada and Eastern Mediterranean University, North Cyprus)

  • David Shobowale

    (Department of Economics, Eastern Mediterranean University, North Cyprus)

Abstract

Rwanda has aimed to achieve food self-sufficiency but faces binding land and budgetary constraints. A set of government policies have been in force for 20 years and have controlled the major cropping decisions of farmers. A cost-benefit analysis methodology is employed to evaluate the financial and resource flow statements of the key stakeholders. The object of the analysis is to determine the sustainability of the prevailing agricultural policies from the perspectives of the farmers, the economy, and the government budget. A total of seven crops were evaluated. In all provinces, one or more of the crops were either not sustainable from the financial perspective of the farmers or are economically inefficient in the use of Rwanda’s scarce resources. The annual fiscal cost to the government of supporting the sector is substantial but overall viewed to be sustainable. A major refocusing is needed of agricultural policies away from a monocropping strategy to one that allows the farmers to adapt to local circumstances. A more market-oriented approach is needed if the government wishes to achieve its economic development goal of having a sustainable agricultural sector that supports the policy goal of achieving food self-sufficiency.

Suggested Citation

  • Mikhail Miklyaev & Glenn P. Jenkins & David Shobowale, 2021. "Sustainability of Agricultural Crop Policies in Rwanda: An Integrated Cost-Benefit Analysis," Development Discussion Papers 2021-02, JDI Executive Programs.
  • Handle: RePEc:qed:dpaper:4566
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    More about this item

    Keywords

    Rwanda; agricultural policy sustainability; land scarcity; food self-sufficiency; integrated investment appraisal;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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