Aid, agriculture and poverty in developing countries
We 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 – these, our regression analysis confirms, are not only direct expenditure on agriculture, but also 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 patterms (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.
|Date of creation:||Jun 2005|
|Date of revision:||Jun 2005|
|Contact details of provider:|| Postal: 9 Mappin Street, SHEFFIELD, S1 4DT|
Phone: +44 114 222 3399
Fax: + 44 (0)114 222 3458
Web page: http://www.shef.ac.uk/economics
More information through EDIRC
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.:
- David Dollar & Craig Burnside, 2000.
"Aid, Policies, and Growth,"
American Economic Review,
American Economic Association, vol. 90(4), pages 847-868, September.
- 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).
- 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 305-43, January.
- Paul Mosley & Abrar Suleiman, 2005. "Budget support, conditionality and poverty," Working Papers 2005012, The University of Sheffield, Department of Economics, revised Jun 2005.
- 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.
- Collier, Paul & Dollar, David, 1999.
"Aid allocation and poverty reduction,"
Policy Research Working Paper Series
2041, The World Bank.
- 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.
- Paul Mosley & John Hudson & Arjan Verschoor, 2004. "Aid, Poverty Reduction and the 'New Conditionality'," Economic Journal, Royal Economic Society, vol. 114(496), pages F217-F243, 06.
- 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.
- 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.
- Abigail Barr, 2003. "Trust and expected trustworthiness: experimental evidence from zimbabwean villages," Economic Journal, Royal Economic Society, vol. 113(489), pages 614-630, 07.
- 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 255-85, January.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:shf:wpaper:2005010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jacob Holmes)
If references are entirely missing, you can add them using this form.