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Agricultural Input SubsidiesThe Recent Malawi Experience$

Ephraim Chirwa and Andrew Dorward

Print publication date: 2013

Print ISBN-13: 9780199683529

Published to Oxford Scholarship Online: January 2014

DOI: 10.1093/acprof:oso/9780199683529.001.0001

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(p.293) Subject Index

(p.293) Subject Index

Source:
Agricultural Input Subsidies
Publisher:
Oxford University Press
affordability 25, 31–3, 35, 37, 53, 58, 203, 261–2
African Union 1, 149
agricultural development 1–7
Agricultural Development Division (ADD) 130
Agricultural Input Subsidy Programme (AISP) see Farm Input Subsidy Programme
Agricultural Input Subsidy Survey (AISS) 9–11, 125
Agricultural Input Suppliers Association of Malawi (AISAM) 183
Agricultural Marketing and Development Corporation see ADMARC
Agricultural Sector Wide Programme 90
agro-ecological sustainability 268–9
Asia 2, 3, 4, 23, 24, 25, 26, 32, 34, 217
Association of Smallholder Seed Multiplication Group (ASSMAG) 171
Banda, Hastings Kamuzu 63, 65–6
beans 183, 189
benefit-cost analysis 196–218, 265
improvements in 205–15
price/quantity demand and incremental production 210–12
prices and producer/consumer gains 206–10, 212–13
methods 200–210
regression models 144, 200, 201
problems and challenges 202–5
purposes and principles 196–9
Berg Report 24
borrowing see credit
buy back arrangements 90, 92, 122
carbon dioxide 27, 269
cash transfers 30, 39, 41
cassava 49, 50, 130
casual labour see ganyu
cereals
yields by region and selected countries 4
production by region and selected countries 3
see also individual cereal crops
child headed households 105, 139, 227, 278, 281
children
nutritional status 64, 130, 134, 162, 163, 164, 165, 264
stunting of growth 64, 163, 164, 165
wasting 164, 165
see also health
Civil Society and Civil Society Organisations (CSOs) 167
competition
fertilizer market 174–6, 177–8
seed market 183–4
computable general equilibrium (CGE) models 144, 146–7, 154, 159, 161, 165–6, 200, 201, 202, 216
consumer gains 206–10, 212–13
consumer surplus 16, 17, 18, 203
cooperatives and cooperative societies 168, 169, 171, 177–9, 187
corruption 67, 68, 90, 94, 102, 107, 113, 114, 177–8
cotton, cotton seed and inputs 56, 68, 90, 92, 93, 105, 122, 183, 228
coupons
distribution 99–108, 229, 232, 236
flows 115–8
redemption 108–13, 230
performance 110–13
systems 108–10
redistribution and sharing 106, 133, 140–2, 231, 236, 241, 243, 246, 264
security and fakes 37, 114, 116, 178, 190, 191
cow peas 183
credit and credit services 3, 16, 32, 33, 39, 40, 51, 66, 72, 74, 77–9, 81, 154, 217, 253–4, 256, 258
(p.294) Democratic People’s Party (DPP) 67
dependency 248, 251
discount rate 204–5
displacement 29, 36, 44, 59, 264–6
fertilizer sales 132, 173, 180–2, 211, 214–6
seed sales 182, 187
Mali 56
Tanzania 54
Zambia 50
District Agriculture Development Officers (DADOs) 88, 101
District Development Committees (DDCs) 105
diversion (of subsidies) 19, 21, 24, 34, 36, 44, 113–18, 217
Nigeria 51
diversification (crop and livelihood) 7, 71, 81, 252–8, 260, 269
Ghana 48
economic growth
Africa 1–3, 25
Malawi 63, 64, 66–7, 73, 78, 145–6, 148–9, 166
input subsidy effects 7, 19, 22–4, 26–7, 30, 34, 39, 42, 44, 57, 59, 60, 260–5, 267, 270
economic rents 18–19
education
input subsidy impacts 43, 76, 126, 127, 134–5, 204, 217
Malawi 62–4
primary school enrolment 127, 134, 141–3, 162, 263–4
efficiency
input subsidy efficiency 18, 20–2, 24. 30, 33–6, 38–42, 44 57, 60–1, 264–5, 268–9, 270–1
Tanzania 53–4
Zambia 49–50
fiscal efficiency 202, 206, 212–216
elasticity
produce demand elasticity 17–9, 28, 35, 86, 208, 210–214, 216, 218
produce supply elasticity 17–9, 28, 35, 86
input supply elasticity 28, 86
input demand elasticity 182
entitlement (to input subsidies) 36, 37, 38, 41, 42, 44, 58, 60, 241, 257, 262, 270
Extension Planning Areas (EPAs) 100–1, 104, 177
Farm Input Subsidy Programme (FISP) 6, 9, 33, 68, 77, 82–3, 144, 180, 262–6
activities and achievements 87–123
coupon allocation and distribution 99–108, 229, 232, 236
coupon flows 115–8
coupon redemption 108–13, 230
design and evolution 89–93
finance and costs 118–21
input procurement and distribution 93–9
graduation 251–5
female headed households and input subsidies
subsidy impacts 137, 139–40, 236–42
Tanzania 53–54
targeting 105, 118, 126, 128, 227–228, 232, 236–40
Fertilizer Association of Malawi (FAM) 168
fertilizers
and cereal yields 4
commercial sales Malawi 172–3
imports Malawi 173
maize 90, 106, 107, 109
market development 169–70, 174–83
organic 255
politics of 67–8
procurement and distribution 93–9
competition 174–7
purchase and use 172–3
by poverty status 181
displacement 180–3, 215
retail competition 177–8
sales trends 178–80
value cost ratio 73
FEWSNET 150
fiscal deficit/GDP ratio 149
fiscal efficiency 202, 206, 212–216
fiscal sustainability 268
flexi-seed vouchers 105, 185
food
availability 133, 134, 160
consumption 133, 141–3, 146, 160, 232, 233, 263, 265
crops 5, 19, 22–6, 31–2, 42, 53, 56, 58, 70, 261
deficit producers/ buyers 26–7, 31, 40, 70, 146, 253
for work 33, 80
markets 40–1, 43–4, 74, 261
(p.295) prices 1, 2, 5, 23–6, 30–1, 40–3, 55–59,
Ghana 47
Mali 56
Rwanda 55
Senegal 56
Tanzania 53
production 2, 34, 139, 140
security 1, 3, 5, 7, 22–7, 35, 43–4, 57–8, 61, 260–2, 266, 268
Mali 56
Nigeria 51–2
Rwanda 55
Senegal 56
Zambia 49–50
FAOStat 150
ganyu 75–6, 136, 140, 143, 146, 161, 166, 223, 233–5
wage rates 155–9
gender issues in subsidy use 236–41
Ghana, input subsidies 47–8
‘ghost’ beneficiaries 102, 114
graduation from subsidy programmes 12, 33, 37–38, 42, 44, 58, 60–1, 243–4, 248–59, 261, 266–7
actual 249
conceptual framework 248–51
conditions of 252–3, 254
FISP 251–5
pathway design/implementation 256–8
political issues 257
potential 249
termination 249, 250
Green Revolution 2, 23, 24, 25, 32, 217
greenhouse gases 269
gross domestic product (GDP) 148
fiscal deficit/GDP ratio 149
groundnuts 183, 189
growth multipliers and linkages 20–26, 76, 78, 79, 80, 145, 200, 202, 204, 212–14
health 5, 43, 56, 63, 64, 76, 124, 127, 134–5, 141–3, 162, 261, 264
household real incomes 136–7
human capital 76, 125, 137, 265
incomes, subsidy impacts 136–137
incremental production 60, 128, 130, 132, 203–4, 210–12, 225, 230, 260–261
India, input subsidies 24, 28, 217
Indonesia, input subsidies 23–4, 200
Informal Rural Economy (IRE) model 10, 127, 137, 147, 154, 159, 165
input subsidies
African experience 46–61
conceptual framework 41–5, 75, 86
conditions for success 38–41, 261
complementary investments/policies 20, 25, 31, 36, 41–2, 44, 58, 60–1, 261
Tanzania 53
Zambia 50
design and implementation 35–8, 44, 58
dynamic effects 26–35
leakages 19–20, 38–40, 44, 59, 60
Mali 56
Nigeria 52
Tanzania 52
Zambia 50
objectives 22, 23, 26–34, 36, 41–2, 44–5, 57, 60, 270
outcomes 23, 44–5, 58–9
political economy 5, 16, 21–2, 33–6, 43–4, 57, 59, 61, 261, 268, 270
Ghana 48
and private sector development 21–2, 24, 29–30, 32, 43–4, 60–1, 261
Ghana 47–8
Mali 56
Nigeria 51–2
Senegal 56
Tanzania 52–53
Zambia 49–50
rationing 36, 42–4
sustainability 2, 22, 24, 42, 44, 267–9
timeliness 31, 59–61 261, 266
Ghana 47–8
Mali 56
Nigeria 51–2
Rwanda 55
Tanzania 52–55
Zambia 49–50
targeting 21–2, 35–6, 42–4, 58, 60, 261–2, 266–7
Nigeria 52
Tanzania 52–54
Zambia 49–50
termination 21, 249–51, 256–8
theory and practice 15–43, 260–2
input supply systems 28–30, 73
transportation 167, 170, 242
inputs for work 80
(p.296) insurance 250
market integration 17, 200
Integrated Household Surveys (IHS) 9–10, 12, 134, 159, 162–5
Internal Rate of Return (IRR) 205, 214, 215, 216
Kasungu–Lilongwe Plain 127, 161
Kenya
cereal yields and fertilizer use 4
National Accelerated Agricultural Input Programme 46
Latin America/Caribbean, 3
legumes
and graduation 254–5
Malawi seed subsidy 89–95, 105, 110–13, 122, 171, 174, 183–6, 189
Malawi Targeting Input Programme 81
Zambia seed subsidy 49
liberalization 2, 21, 24
in Malawi 66–8, 74, 79–80
livelihoods
Malawi 70–7
Zones, Malawi 9–11
low maize productivity trap 71–4, 78, 83, 147, 154, 255, 262, 266
macro-economy
Malawi 63, 67–68
Malawi subsidy impacts 43–44, 147–50, 165
maize
Malawi export bans 73
Malawi policies 66–7, 77–82
Malawi exports/imports 150–1
seed subsidies 90–92, 109–113, 174, 183–9, 192
price/quantity demand relations 204, 210–12
storage chemicals 90, 92
yields and production 71–2, 81, 128–133, 211
varieties see seed subsidies, above
Malawi 62–83
agricultural policies 77–82
input provision programmes 80–2
liberalization 79–80
post-independence 77–9
cereal yields and fertilizer use 4
Democratic People’s Party (DPP) 67–8
livelihoods 70–7
politics and policies 63–70
socioeconomic indicators 64–5
Special Crops Act 67
Targeted Input Programme 6, 67, 80, 135
Malawi Congress Party 66
United Democratic Front (UDF) 67
Malawi Congress Party (MCP) 67, 68, 82
Malawi Farm Input Subsidy Programme see Farm Input Subsidy Programme
Malawi Vulnerability Assessment Committee (MVAC) 9
Mali
input subsidies 56
markets thickening 27, 260
thin 71–3
market failure 3, 16–7, 19–22, 25, 33, 36–42, 70–1, 201–4, 261
Mauritius
cereal yields and fertilizer use 4
Millennium Villages Project 56, 83
Ministry of Agriculture and Food Security (MoAFS) 9, 90, 100–1, 102–3, 105, 109, 114
Muluzi, Bakili 63, 67, 69
Mutharika, Bingu wa 65, 67, 69, 82, 130, 262
National Association of Smallholder Farmers of Malawi (NASFAM) 168, 175, 183
neo-patrimonialism 34, 65
net deficit producers 26–7, 31, 40–1, 70, 146, 253
Nigeria
fertilizer use 51–2
input subsidies 51–2
nitrous oxide 269
North America
cereal yields and fertilizer use 4
Northern Africa
cereal yields and fertilizer use 4
nutrition 63–4, 76, 134–5, 162–5, 217, 264
anthropometric measures 64, 135, 162–164
open pollinated maize varieties 90, 130–1, 171, 183, 184, 189
orphan headed households see chid headed households
Pacific region, cereal production 3
panel data 9, 10, 124–6, 136, 144, 146
parastatals 66, 78, 91, 171
fertilizer procurement 174
fertilizer sales 179
fraud 177–8, 190
SFFRFM 9, 93, 98, 108, 112, 118–19, 168, 171–2, 174, 193
partial equilibrium models 10, 124, 127, 141, 144, 147, 154, 165, 200, 201, 204, 205, 213, 216, 218, 265
patronage 34, 65–70, 74, 78, 82, 261, 268
pigeon peas 183
policy reversals, Malawi 66, 263
(p.297) political issues 63–70
economics 33–5
fertilizers 67–8
graduation from subsidy programmes 257
sustainability of subsidies 268
poverty 72–3, 127, 161–2, 251
and fertilizer use 181
traps 3, 251
Malawi trends 163
prices see fertilizer, maize, tobacco
private sector 167–95
challenges and opportunities 189–93
mistrust of 190–1
producer gains 206–10, 212–13
producer surplus 16, 17, 18, 203
profitability constraints 30–2
rationing of input subsidies 35–6, 42
Rwanda, input subsidies 55
Sachs, Jeffrey 83
sampling (in AISS) 9–10
scale (of input subsidies) 18, 22, 25, 28, 33–4, 42, 44, 81
seasonal
constraints 11, 33, 39, 72, 78
finance 25, 29, 32
poverty adjustment 161, 163
income 254
seasonality 72, 245, 254
Seed Traders Association of Malawi (STAM) 109, 168, 171
seeds 170–2
market development 183–9
competition 183–4
purchase and use 174, 265
preferences 185–9
suppliers 183
Senegal
input subsidies 56
SFFRFM 9, 93, 98, 108, 112, 118–19, 168, 171–2, 174, 193
Shire Highland Livelihood Zone (SHI) 127, 161
shocks/stresses 127, 138–9
Smallholder Farmer Fertilizer Revolving Fund of Malawi see SFFRFM
smart subsidies 22, 33, 37, 46, 53, 61, 258, 267, 269–70
Social Accounting Matrix (SAM) 147
social protection
and agriculture 30
and input subsidies 21–3, 36, 38
and graduation 248–50, 254
Malawi policies and programmes 67–69, 78–81
soil fertility and input subsidies 22–3, 27, 44, 55, 59–61, 269
and graduation 254–5
Malawi 90, 121, 141
and targeting 224
Tanzania 53–55
Zambia 50
South Africa
cereal yields and fertilizer use 4
South/Central America
cereal yields and fertilizer use 4
soya beans 183, 189
Starter Pack programmes 80–1, 82, 243
‘stepping up’ and ‘stepping out’ 26, 249–253
stock-outs 112
storage chemicals 90
stunting 64, 135, 162–164
Sub-Saharan Africa
cereal production, yields and fertilizer use 4
subsidies see also input subsidies
supply inelasticity 18
supply shifts 20
sustainability 267–9
agro-ecological 268–9
fiscal 268
Tanzania
input subsidies 52–5
National Agricultural Input Voucher Scheme (NAIVS) 53
National Microfinance Bank 53
Targeted Input Programme (TIP) 6, 67, 80, 135
targeting of subsidies 21, 35–6, 42–4, 58, 82, 221–47, 266–7
criteria and processes 226–9
and displacement 180
gender issues 236–41
and graduation 248–9, 257
Malawi 95, 105–6,
Nigeria 52
objectives and impacts 222–6
options for 242–6
outcomes 229–32
and subsidy returns 217
Tanzania 54
Zambia 49–50
tax 16, 21
tax payers 17–19, 30, 35
taxation 78
Tembo, John 82
tenders, tendering 93–98, 169, 190, 264
termination of subsidy programmes 21, 249–51, 256–7
Tanzania 53
theft 37, 89, 113–4, 242
see fraud
(p.298) tobacco 66–7, 78–9, 173
cultivation 129, 140, 233–4, 237–40
fertilizers 90–2, 110, 132, 173, 181
sales values 145
traditional authorities see Traditional leaders
traditional leaders 101–106, 114
and targeting 235, 240, 245
UK, Income Support Allowance 117
United Nations Economic Commission for Africa (UNECA) 1
United Democratic Front (UDF) 67, 68, 82
value cost ratio (VCR) 73
Village Development Committees (VDCs) 101, 104
vouchers see coupons
vulnerability 43, 48, 63, 66, 69, 71, 73–4, 79, 121, 138, 233, 245, 250
vulnerable groups and input subsidies 30
and subsidy access and impact 139–40, 240–2
targeting 89, 91, 105, 222–3, 226–8, 234–6
Zambia 48–49
wages 161–2
and input subsidies 23, 26, 30, 35, 44, 75–6, 81–2, 86, 135
and Farm Input Subsidy 140, 146, 154–9, 161, 166
Washington Consensus 2, 68
welfare, input subsidy impacts 135–9
assets 137–8
household real incomes 136–7
shocks/stresses 127, 138–9
subjective wellbeing assessment 135–6
theory 16–17
women 73
subsidy impacts 27, 32
subsidy use by 236–41
World Bank
policy in Malawi 66, 68
Tanzania input subsidy support 53
World Development Reports 2, 22
Zambia
cereal yields and fertilizer use 4
Fertilizer Support Programme 48–51, 57
Food Security Pack 48–51
Zimbabwe
cereal yields and fertilizer use 4