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Peter Timmer and Selvin Akkus, The Structural Transformation as a Pathway out of Poverty: Analytics, Empirics and Politics,
Centre for Global Development, Working Paper Number 150, July 2008
Source Henley and Van Donge 2012
S. Wiggins : to stimulate agriculture: create an enabling environment for investment and innovation; and invest in rural public goods.
CAADP fertilizer consumption target of 50kg/ha by 2015
Many challenges for African agriculture
African Agriculture is challenged by a number of threats such as food price spikes, land and water not adequately exploited, rising energy and fertilizer prices and the impact of climate change on agriculture production and livelihoods. Feeding more than 9 billion people by 2050 will require doubling food
production on a sustainable basis. Therefore, agriculture should be resilient - able to withstand or recover from stresses and shocks. Developing resilient agriculture will require technologies and practices that build on agro-ecological knowledge and enable smallholder farmers to counter environmental degradation and climate change in ways that maintain sustainable agricultural growth.
Financial markets and rural finance institutions are weak. Development of competitive output and input markets has lagged, and
services for smallholders remain poor. Progress in science and technology is inadequate and agricultural
research, agricultural extension, and agriculture education remain persistently underfunded. These
factors threaten to condemn African agriculture to slow and inadequate technical change, contributing to
a growing technology divide. Africa will have to address these issues if it is to capitalize on today’s better
Because most African economies are open, international price increases are largely transmitted to the domestic economy. Food-importing countries were hardest hit, as they have few ways to prevent international prices from being passed on to consumers. Within these countries, urban populations and those rural poor who are net buyers of food were most affected. Food import bills rose for all net food importing countries in Africa. Many of these countries were at the same time even harder hit by the rise in global energy prices.
Potential of youth employment in the agricultural sector: Inclusive, remunerative, passing the knowledge
Fortunately the reforms undertaken — often painfully — in many African countries in the 1980s and 1990s have reduced some obstacles from what they were. While in the 1970s agriculture in Africa was on balance taxed by 15% or more — and for particular commodities in some countries by a great deal more than this, by 2005 the explicit and implicit taxation of agriculture had been reduced to less than 5%.
The growing opportunities for African Agricultural Development. Hans P. Binswanger-Mkhize, Derek Byerlee, Alex McCalla,
Michael Morris, and John Staatz. ASTI. 2011.
farm-level unit production costs in Mozambique, Nigeria, and Zambia are comparable to or lower than those in the Brazilian Cerrado and in Northeast Thailand, due to very low labor costs and limited use of purchased inputs
The competitiveness of Africa’s producers at the farm level makes
them generally competitive in domestic markets relative to imports. Since domestic and regional markets
for many of the targeted commodities are large and rapidly growing, and since significant imports are already taking place, prospects for import substitution are bright, especially for rice, soybeans, sugar, and maize
(iii) For the six commodities under consideration, African producers are more favorably positioned to serve regional markets than the countries that currently dominate international trade. Logistical costs are less when serving regional markets than when exporting overseas; moreover, as a result of population growth, income gains, and urbanization demand in regional markets is expected to grow.
Steven Haggblade and Peter Hazell. Successes in African Agriculture. Lessons for the future. IFPRI. 2010
The right-hand map shows countries in Africa where official development aid flows are smaller and larger than 50%. Basically, in half of African countries aid represents at least as much as half of collected taxes.
Indeed, mobilising Africa’s public resources is important because:
External dependence: The recent economic crisis has shown the dangers of the continent’s over-exposure to external resources. With their own budgets coming under heavy pressure, foreign donors looking for an exit strategy and the global recession are intensifying the debate over the legitimacy and effectiveness of aid. Domestic resource mobilization is a central part of the solution to closing the gap between the pressing investment needs of African states and the scarce levels of available domestic savings. (Monterrey consensus)
State building: There cannot be viable independent States without robust taxation systems. PRM is important to shift accountability away from donors and towards the country’s population. PRM is a way to ensure that states need to address the needs the needs of their population to function.
Aid effectiveness: PRM has the benefit of putting countries on the course to graduation from external aid. However, aid has and should retain a very important role to play during the medium-term. The key is that aid should be designed with an “exit strategy” at its core. When used to stimulate PRM, aid can have a high (up to x10) multiplier effect on States’ resources.
Ownership and governance: The advantage of aid spent on PRM is that as it is local governments who decide what to do with collected taxes. Hence, complete ownership of development priorities and strategies is assured by design. Whatmore, taxation tightens the social contract binding citizens with their States, and vice-versa, providing a natural platform to stimulate good governance.
Wallmart: Sourcing from women farmers groups
Cargill: training programmes in various commodities (Cocoa…) and women’s clubs (cotton made in Africa). 800 of these clubs reaching about 32,000 women
DSM: Fortified crops and products to support nutrition security
(i.e. in Ghana since economic reforms in 1983, agriculture grown for the next 25 years at rates of more than 5% a year and is one of the six fastest growing agricultures in the world, ahead of Brazil and China). S. Wiggins. What prompted this? The reforms of the early 1980s that began with currency devaluation, control of rampant inflation and reform of the cocoa marketing board, seem to have led to the turn-round in Ghana’s agriculture and indeed the economy as a whole.