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This article contributes to the limited literature on farm size and productivity in smallholder agriculture in sub-Saharan Africa. Farm survey data, and the results from a linear programming farm-household model, provide evidence for a positive relationship between farm size and productivity in both labour-scarce and land-scarce smallholder farming in Malawi during the 1980's. (DSE/DÜI)

A definitive book on a pioneering agricultural input subsidy programme in Africa. It provides a detailed, comprehensive, and objective analysis of Malawi's agricultural input subsidy programme, its history, implementation, achievements, and shortcomings.

Agricultural input subsidies were a major feature of development policies in rural economies until the 1980s. Continuing rural poverty with low productivity and fertilizer use in smallholder staple crops has led to their resurgence in Africa. These subsidies are, however, controversial with claims of both large food security benefits and unsustainable, inefficient resource use. This book reviews current theory and evidence on the strengths and weaknesses of these programmes and the effects of programme context, design, and implementation. Theoretical arguments for agricultural subsidies are based on input promotion where farmers' private costs (benefits) are higher (lower) than wider economic costs (benefits). These arguments, and concerns about inefficiency and diversion, are reviewed and extended to consider input affordability constraints and 'smart' rationing and targeting. Recent programmes in Africa have a variety of generally producer-focused objectives, with varied implementation and programme outcomes. Most pay little attention to consumer interests and potential contributions to wider growth. A detailed examination of Malawi's controversial agricultural input subsidy programme follows. Drawing on a wide range of information sources, the political and agro-economic contexts of the programme are examined, with evidence on its implementation and impacts from 2005 to 2011. Positive impacts are recorded on beneficiaries' production, incomes, food consumption, school enrolment, child health, and reduced need for earnings from undertaking casual labour for others. There is evidence of indirect economy-wide impacts, but this is not as strong as might be expected. Targeting and graduation are identified as critically important issues requiring continuing attention.

Agricultural input subsidies were a major feature of development policies in rural economies until the 1980s. Continuing rural poverty with low productivity and fertilizer use in smallholder staple crops has led to their resurgence in Africa. These subsidies are, however, controversial with claims of both large food security benefits and unsustainable, inefficient resource use. This book reviews current theory and evidence on the strengths and weaknesses of these programmes and the effects of programme context, design, and implementation. Theoretical arguments for agricultural subsidies are based on input promotion where farmers' private costs (benefits) are higher (lower) than wider economic costs (benefits). These arguments, and concerns about inefficiency and diversion, are reviewed and extended to consider input affordability constraints and 'smart' rationing and targeting. Recent programmes in Africa have a variety of generally producer-focused objectives, with varied implementation and programme outcomes. Most pay little attention to consumer interests and potential contributions to wider growth. A detailed examination of Malawi's controversial agricultural input subsidy programme follows. Drawing on a wide range of information sources, the political and agro-economic contexts of the programme are examined, with evidence on its implementation and impacts from 2005 to 2011. Positive impacts are recorded on beneficiaries' production, incomes, food consumption, school enrolment, child health, and reduced need for earnings from undertaking casual labour for others. There is evidence of indirect economy-wide impacts, but this is not as strong as might be expected. Targeting and graduation are identified as critically important issues requiring continuing attention.

Agricultural input subsidies were a major feature of development policies in rural economies until the 1980s. Continuing rural poverty with low productivity and fertilizer use in smallholder staple crops has led to their resurgence in Africa. These subsidies are, however, controversial with claims of both large food security benefits and unsustainable, inefficient resource use. This book reviews current theory and evidence on the strengths and weaknesses of these programmes and the effects of programme context, design, and implementation. Theoretical arguments for agricultural subsidies are based on input promotion where farmers' private costs (benefits) are higher (lower) than wider economic costs (benefits). These arguments, and concerns about inefficiency and diversion, are reviewed and extended to consider input affordability constraints and 'smart' rationing and targeting. Recent programmes in Africa have a variety of generally producer-focused objectives, with varied implementation and programme outcomes. Most pay little attention to consumer interests and potential contributions to wider growth. A detailed examination of Malawi's controversial agricultural input subsidy programme follows. Drawing on a wide range of information sources, the political and agro-economic contexts of the programme are examined, with evidence on its implementation and impacts from 2005 to 2011. Positive impacts are recorded on beneficiaries' production, incomes, food consumption, school enrolment, child health, and reduced need for earnings from undertaking casual labour for others. There is evidence of indirect economy-wide impacts, but this is not as strong as might be expected. Targeting and graduation are identified as critically important issues requiring continuing attention.

Agricultural input subsidies were a major feature of development policies in rural economies until the 1980s. Continuing rural poverty with low productivity and fertilizer use in smallholder staple crops has led to their resurgence in Africa. These subsidies are, however, controversial with claims of both large food security benefits and unsustainable, inefficient resource use. This book reviews current theory and evidence on the strengths and weaknesses of these programmes and the effects of programme context, design, and implementation. Theoretical arguments for agricultural subsidies are based on input promotion where farmers' private costs (benefits) are higher (lower) than wider economic costs (benefits). These arguments, and concerns about inefficiency and diversion, are reviewed and extended to consider input affordability constraints and 'smart' rationing and targeting. Recent programmes in Africa have a variety of generally producer-focused objectives, with varied implementation and programme outcomes. Most pay little attention to consumer interests and potential contributions to wider growth. A detailed examination of Malawi's controversial agricultural input subsidy programme follows. Drawing on a wide range of information sources, the political and agro-economic contexts of the programme are examined, with evidence on its implementation and impacts from 2005 to 2011. Positive impacts are recorded on beneficiaries' production, incomes, food consumption, school enrolment, child health, and reduced need for earnings from undertaking casual labour for others. There is evidence of indirect economy-wide impacts, but this is not as strong as might be expected. Targeting and graduation are identified as critically important issues requiring continuing attention.

AbstractMarket failures affecting economic growth in poor rural areas are firmly on the agenda but for goods and services with private good characteristics are generally not conceptualized and understood in ways that help policy analysis and formulation to recognize and address these failures. We need greater recognition and understanding of the causes and nature of coordination failures that lead to these market failures. This paper examines core features of poor rural areas, the nature of coordination problems faced by different potential economic actors, the impacts of these problems on markets and economic development and ways that these have been addressed or ignored in different policies and policy approaches in Asia and Africa. We conclude by drawing out the implications for policies seeking to promote pro‐poor economic growth in poor rural areas today. Copyright © 2004 John Wiley & Sons, Ltd.

The recent food crisis in Malawi has drawn stark attention to the failures of development policies over the last forty years to create wealth and develop a robust economy or the markets on which such an economy must depend. Current market liberalisation policies have achieved at best mixed success in addressing the generic problems inhibiting smallholder agricultural development: low returns to farmers' and service providers' investments, with high risks from natural shocks, price variations, coordination failure and opportunistic behaviour. Post-independence institutional mechanisms in Malawi were more successful in addressing some of these problems, in particular those of coordination risk, although external and internal difficulties led to increasing costs and declining effectiveness of these mechanisms, and to their collapse. They do provide, however, important lessons about the different failures of both market intervention and market liberalisation policies. We suggest and discuss a set of critical elements needed for economic development and wealth creation in poor rural areas, and propose four basic principles to guide the search for, and design and implementation of, effective rural development strategies and policies.