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on Africa |
| By: | Devarajan, Shantayanan; Go, Delfin S.; Robinson, Sherman; Thierfelder, Karen |
| Abstract: | Noting that South Africa may be one of the few African countries that could contribute to mitigating climate change, the authors explore the impact of a carbon tax relative to alternative energy taxes on economic welfare. Using a disaggregate general-equilibrium model of the South African economy, they capture the structural characteristics of the energy sector, linking a supply mix that is heavily skewed toward coal to energy use by different sectors and hence their carbon content. The authors consider a"pure"carbon tax as well as various proxy taxes such as those on energy or energy-intensive sectors like transport and basic metals, all of which achieve the same level of carbon reduction. In general, the more targeted the tax to carbon emissions, the better the welfare results. If a carbon tax is feasible, it will have the least marginal cost of abatement by a substantial amount when compared to alternative tax instruments. If a carbon tax is not feasible, a sales tax on energy inputs is the next best option. Moreover, labor market distortions such as labor market segmentation or unemployment will likely dominate the welfare and equity implications of a carbon tax for South Africa. This being the case, if South Africa were able to remove some of the distortions in the labor market, the cost of carbon taxation would be negligible. In short, the discussion of carbon taxation in South Africa can focus on considerations other than the economic welfare costs, which are likely to be quite low. |
| Keywords: | Environmental Economics&Policies,Transport Economics Policy&Planning,Taxation&Subsidies,Energy Production and Transportation,Environment and Energy Efficiency |
| Date: | 2009–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4933&r=afr |
| By: | Nganou, Jean-Pascal; Wodon, Quentin; Zoyem, Jean-Paul; Mabushi, Eric; Kebede, Ephrain |
| Abstract: | Due in part to 40 years of cyclical violence, economic growth in Burundi has remained well below the sub-Saharan Africa average, and Burundi is now the third poorest country in the world. The status quo is unacceptable, and it is essential that the Government drive the changes needed to achieve sustainable growth. This chapter provides an overview of past and current macroeconomic trends and describes how the poverty profile could influence policy reforms. |
| Keywords: | Burundi; growth; poverty |
| JEL: | O4 I32 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15409&r=afr |
| By: | Nganou, Jean-Pascal; Wodon, Quentin; Zoyem, Jean-Paul; Mabushi, Eric; Kebede, Ephraim |
| Abstract: | Due in part to 40 years of cyclical violence, economic growth in Burundi has remained well below the sub-Saharan Africa average, and Burundi is now the third poorest country in the world. The status quo is unacceptable, and it is essential that the Government drive the changes needed to achieve sustainable growth. This chapter provides an overview of past and current macroeconomic trends and describes how the poverty profile could influence policy reforms. |
| Keywords: | Burundi; growth; poverty |
| JEL: | O4 I32 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15408&r=afr |
| By: | Makoka, Donald |
| Abstract: | Access to high-value markets remains one of the major challenges facing smallholder farmers in Africa. The paper applies a value chain analysis to the pigeonpea sub-sector in Malawi to determine ways of improving the access of small farmers to the global pigeonpea markets. The value chain analysis, complemented by primary data from a sample of 200 farmers, investigates the nature of the pigeonpea value chain by highlighting the main actors and the sources of inefficiency along the chain. The study shows that pigeonpea production is dominated by smallholder farmers with limited access to market information and who are also faced with lack of access to improved varieties. For the Malawian exporters, their competitiveness is being undermined by high freight costs and low pigeonpea grain quality. Policies to improve market institutional innovations through the use of the leading farmer organization, NASFAM, have the potential of improving the competitiveness of the producers. |
| Keywords: | Pigeonpea; value chain; smallholder farmers; Malawi |
| JEL: | N57 D13 B21 |
| Date: | 2009–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15397&r=afr |
| By: | Wilkinson K |
| Abstract: | This paper describes the construction of a microsimulation model for South Africa (SAMOD), which is based upon the EUROMOD platform. The paper discusses the need for a new microsimulation model in South Africa, the reasons why EUROMOD was a particularly suitable candidate as a basis for the new model and the challenges encountered in building the model. The intention of this paper is to provide necessary background material on the construction of the model to anyone wishing to work with SAMOD and to record the lessons learned in the model-building process which may be helpful to those considering developing their own microsimulation models in other countries. Particular attention is given to the way that South Africa, as a developing country, raises challenges that have not previously been encountered in the development of EUROMOD. |
| Keywords: | tax-benefit policy; microsimulation; developing country; |
| JEL: | I32 I38 H24 |
| Date: | 2009–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:ese:emodwp:em5/09&r=afr |
| By: | Obinyeluaku, Moses; Viegi, Nicola |
| Abstract: | Fiscal policy can affect monetary policy either through debt monetisation or through a direct effect on price dynamics. The former is the conventional classical view rooted in the quantity theory of money while the latter is the modern view of the Fiscal Theory of Price Determination. Based on the dynamic response of inflation to different shocks, we test the relationship between fiscal balances and monetary stability in 10 SADC countries. Results show that five out of 10 countries considered here were characterised throughout the period 1980-2006 by fiscally dominant regimes, with weak or no response of primary surpluses to public liabilities. The remaining five countries exhibit a monetary dominant regime. The study also finds that changes in primary surpluses affect price variability via aggregate demand, suggesting that fiscal outcomes could be a direct source of inflation variability, hence, the need for policy coordination in the region. |
| Keywords: | African Economic Integration; Fiscal Monetary Policy Coordination; VAR Analysis. |
| JEL: | C22 E63 C01 |
| Date: | 2009–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15372&r=afr |
| By: | Makoka, Donald |
| Abstract: | Vulnerability to poverty in Malawi is highly associated with risk. Households face multiple shocks, most of which threaten their livelihoods and impact negatively on their welfare. Among the important risks that rural households face is drought, which is exacerbated by environmental change. This study analyzes the impact of drought on household’s vulnerability using a two-period panel dataset of 259 rural households in Malawi. In the framework of vulnerability as expected poverty, the study employs the methodology proposed by Christiaensen and Subbarao (2004). The results show that recurrent drought makes households more vulnerable to the extent that households that were affected by drought in both periods were twice as vulnerable as those who experienced drought in only one period. Policies that are aimed at building poor households’ resilience to recurrent drought hold more promise of enabling the households cope with this livelihood-threatening hazard. |
| Keywords: | Drought; vulnerability; poverty; rural Malawi |
| JEL: | B21 |
| Date: | 2008–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15399&r=afr |
| By: | Muhammad, Andrew; Ngeleza, Guyslain K. |
| Abstract: | "United Kingdom (UK) demand for carnations by exporting country was estimated using a production version of the Rotterdam model, and model estimates were used to assess the effects of EU preferential trade agreements on import demand. Of particular importance was how these agreements affected Colombian and Kenyan carnation exports to the UK, the second largest market for Colombian carnations and the largest market for Kenyan carnations. Results showed that Colombia benefited from preferential access to the UK more so than Kenya: the benefit to Colombia was due to both trade creation and diversion, whereas the benefit to Kenya was mostly due to trade diversion. Results further showed that the competition between Colombian and Kenyan carnations was insignificant, and there was no evidence that the preferences given to Colombia harmed Kenya or vice versa." from authors' abstract |
| Keywords: | Carnations, Preferential trade agreements, Trade diversion, Development strategies, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:862&r=afr |
| By: | Asenso-Okyere, Kwadwo; Asante, Felix A.; Tarekegn, Jifar; Andam, Kwaw S. |
| Abstract: | "Malaria afflicts many people in the developing world, and due to its direct and indirect costs it has widespread impacts on growth and development. The global impact of malaria on human health, productivity, and general well-being is profound. Human activity, including agriculture, has been recognized as one of the reasons for the increased intensity of malaria around the world, because it supports the breeding of mosquitoes that carry the malaria parasite. Malaria can cause illness (morbidity), disability, or death; and all three effects have direct and indirect costs that can affect productivity. Since agriculture is the main activity of rural people in many endemic areas, it has been suggested that effective malaria control measures can be devised if attention was paid to the two-way effects of agriculture and malaria. There is the need to compute the direct costs of malaria treatment and control and the impacts of those costs on the ability of farm households to adopt new agricultural technology and improved practices, and keep farm and household assets. It is equally important to know the indirect costs of seeking health care and taking care of children and others who are afflicted by malaria and the relationship of the indirect costs to the farm labor supply and productivity. On the other hand, many agricultural activities like irrigation projects, water-harvesting and storage, land and soil management techniques, and farm work sequencing can lead to increase in mosquito populations and therefore increase the incidence of malaria in agricultural regions. This paper has raised issues on the two-way effects of agriculture and malaria and recommended areas that require policy actions and further research. The research findings can then be used in devising effective policies for controlling malaria in endemic areas of the world and assist in preparing a tool kit for capacity development on agriculture and malaria." from authors' abstract |
| Keywords: | Malaria, Agriculture, Development, technology, Impact, Research, Policy, Capacity strengthening, Innovation, Institutional change, Science and technology, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:861&r=afr |
| By: | Wodon, Quentin; Morris, Michael; Glaesener, Vincent; Zoyem, Jean-Paul; Larbouret, Patricia; Moens, Marc; Dianga, Evalyne; Mdaye, Ba; Kavalec, Alexandre |
| Abstract: | Burundi is still experiencing a major food crisis. One important element that will help to avoid new episodes of violence is revised agricultural policies that support sustainable food security. Food crops and livestock supply 91 percent of agricultural GDP and the major livelihood for most households, thus it is essential to promote production and commercialization of subsistence crops and livestock. These subsectors currently perform poorly and foster a chronic food deficit, a condition that underlines the extreme vulnerability of the population to production-related risks. With food demand increasing at an annual rate of 3 to 6 percent, it is urgent to improve the contribution of the subsistence crops and livestock subsectors. The potential for improvement is great, and beyond the need for reforms that will benefit all sectors, improvements will require public investments to enhance productivity and better market access. Necessary changes in the short-run include fostering the use of high quality seed and fertilizer, and improving the management of small livestock. In the long run, research-extension links should be strengthened, producer organizations should be encouraged and supported, and sustainable land and water management practices should be promoted. Investments in infrastructure and market intelligence will need to meet demands generated by the development of urban centers and foster competitiveness of Burundian agricultural commodities relative to those from the region. This chapter explains the food security issue in Burundi and identifies priority actions that will help overcome the major obstacles that prevent growth and improvement of the subsistence crops and livestock subsectors. |
| Keywords: | Burundi; agriculture; food security |
| JEL: | O13 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15410&r=afr |
| By: | Wodon, Quentin; Morris, Michael; Glaesner, Vincent; Zoyem, Jean-Paul; Larbouret, Patricia; Moens, Marc; Dianga, Evalyne; Mdaye, Ba; Kavalec, Alexandre |
| Abstract: | Burundi is still experiencing a major food crisis. One important element that will help to avoid new episodes of violence is revised agricultural policies that support sustainable food security. Food crops and livestock supply 91 percent of agricultural GDP and the major livelihood for most households, thus it is essential to promote production and commercialization of subsistence crops and livestock. These subsectors currently perform poorly and foster a chronic food deficit, a condition that underlines the extreme vulnerability of the population to production-related risks. With food demand increasing at an annual rate of 3 to 6 percent, it is urgent to improve the contribution of the subsistence crops and livestock subsectors. The potential for improvement is great, and beyond the need for reforms that will benefit all sectors, improvements will require public investments to enhance productivity and better market access. Necessary changes in the short-run include fostering the use of high quality seed and fertilizer, and improving the management of small livestock. In the long run, research-extension links should be strengthened, producer organizations should be encouraged and supported, and sustainable land and water management practices should be promoted. Investments in infrastructure and market intelligence will need to meet demands generated by the development of urban centers and foster competitiveness of Burundian agricultural commodities relative to those from the region. This chapter explains the food security issue in Burundi and identifies priority actions that will help overcome the major obstacles that prevent growth and improvement of the subsistence crops and livestock subsectors. |
| Keywords: | Burundi; agriculture; food security |
| JEL: | Q17 O13 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15411&r=afr |
| By: | Makoka, Donald |
| Abstract: | Smallholder farming households in most of the developing countries, live in environments that are characterized by substantial risk. They consequently develop a range of risk management strategies. However, analyzing household consumption smoothing behaviour requires the availability of both income and consumption data. Since household income data are usually unavailable in many developing countries, including Malawi, this paper develops an asset-based framework to analyze consumption smoothing behaviour at household and community levels using a two-period panel dataset on 259 rural households in Malawi. The results show that while consumption smoothing takes place at the household level, it is not perfect. Food consumption is protected more than non-food consumption. Risk sharing also takes place at the community level. The major policy implication is that social protection programmes should promote household asset accumulation to enable rural households manage livelihood risks better. |
| Keywords: | Consumption smoothing; risk; rural Malawi |
| JEL: | B21 |
| Date: | 2009–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15398&r=afr |
| By: | Mghenyi, Elliot |
| Keywords: | Agricultural credit, joint liability, productive inputs, productivity, Agricultural Finance, International Development, Productivity Analysis, Risk and Uncertainty, D24, Q14, R34, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea09:49470&r=afr |
| By: | Bandyopadhyay, Sushenjit; Tembo, Gelson |
| Abstract: | Game management areas in Zambia aim to combine nature conservation with economic empowerment of rural households. By looking at households inside and outside game management areas, this study advances the knowledge of the impact of community based natural resource management on household welfare. The paper focuses on the economic welfare of households living inside game management areas. It tries to answer the question: Do the households in game management areas enjoy higher levels of welfare relative to the conditions they would have been in had the area not been designated as a game management area? Within the game management area, the paper tries to determine the factors that influence household participation in natural resource management, and whether the participating households get any extra benefits. Also of interest is whether such benefits of living in a game management area, and, once in such an area, those of participating accrue more to the poorer segments of the communities. The study finds that the gains from living in a game management area and from active participation in natural resource management are large but unevenly distributed. Only game management areas near Kasanka, Lavushi, Isangano, and South Luangwa national parks in the sample show significant benefits to general and participating households. And in those areas, the poor do not seem to gain even when they participate actively. More even distribution of gains from game management areas across households near different park systems and across the poor and the non-poor should be a continuing goal of national policy makers. |
| Keywords: | Housing&Human Habitats,Access to Finance,Small Area Estimation Poverty Mapping,Poverty Lines,Community Development and Empowerment |
| Date: | 2009–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4932&r=afr |