Investment In Rural Infrastructure Research Articles

Rational But Poor? An Explanation for Rural Economic Livelihood Strategy

AbstractUsing panel data for six rural sub‐Saharan Africa countries, this article tests two hypotheses: (i) household‐specific staple food price bands resulting from market failures in the presence of liquidity constraints and rainfed agriculture induces rural household specialisation in food crops as an economic livelihood strategy; (ii) specialisation in food crops yields inferior welfare than diversification, and keeps households trapped in poverty. The results lend strong support to both hypotheses, reinforcing the need for public investment in rural infrastructure in order to encourage household livelihood diversification for improved welfare.

Tapping the Vast Potential of the Data Deluge in Small-scale Food-Animal Production Businesses: Challenges to Near Real-time Data Analysis and Interpretation.

Food-animal production businesses are part of a data-driven ecosystem shaped by stringent requirements for traceability along the value chain and the expanding capabilities of connected products. Within this sector, the generation of animal health intelligence, in particular, in terms of antimicrobial usage, is hindered by the lack of a centralized framework for data storage and usage. In this Perspective, we delimit the 11 processes required for evidence-based decisions and explore processes 3 (digital data acquisition) to 10 (communication to decision-makers) in more depth. We argue that small agribusinesses disproportionally face challenges related to economies of scale given the high price of equipment and services. There are two main areas of concern regarding the collection and usage of digital farm data. First, recording platforms must be developed with the needs and constraints of small businesses in mind and move away from local data storage, which hinders data accessibility and interoperability. Second, such data are unstructured and exhibit properties that can prove challenging to its near real-time preprocessing and analysis in a sector that is largely lagging behind others in terms of computing infrastructure and buying into digital technologies. To complete the digital transformation of this sector, investment in rural digital infrastructure is required alongside the development of new business models to empower small businesses to commit to near real-time data capture. This approach will deliver critical information to fill gaps in our understanding of emerging diseases and antimicrobial resistance in production animals, eventually leading to effective evidence-based policies.

Vital factors for Chinese rural development: the reach of the state and lineage identity in villages

ABSTRACTThis paper, by a case study of Gao Village, examines how two factors, i.e. lineage identity and the reach of the state, impact on local governance in rural China. The paper argues that the withdrawal of the state was detrimental to local governance in the first 20 or so years of post-Mao rural China. With the abolition of agricultural tax and various levies, and the introduction of rural subsidies, rural healthcare and medical care insurances and some investment in rural infrastructure since the beginning of the twenty-first century the return of the state has improved local governance. The paper also argues that the restoration, and in many ways the reinventing, of Chinese tradition of lineage identity makes village elections difficult to be accountable.

What rural doctors want: a qualitative study in Chhattisgarh state.

The importance of addressing concerns of rural health worker welfare in order to improve their performance and retention is widely acknowledged; yet there is little empirical research on the needs of rural health professionals. We report findings from a qualitative research study in rural Chhattisgarh, involving indepth interviews with 37 practitioners and data analysis using the "framework" approach. Participants' expressions of their needs encompassed a range of reforms and improvements, including better salaries and job security, more rational posting and promotion procedures, and facility improvements. Opportunities for need-based skills training and better housing also emerged as key needs, as did better schools, assurance of personal security, and recognition and appreciation of their services by the administration. Increased investment in rural infrastructure and training, graded packages of benefits for rural doctors, and governance reforms to improve the internal accountability of government health services emerge as recommendations from the study.

Potential impacts on local quality of life due to sugarcane expansion: a case study based on panel data analysis

Agribusiness participation in Brazil generates investments in rural infrastructure and employment, with direct effects on local quality of life. In this sense, government policies to support the production of ethanol from sugarcane and to promote bioelectricity from bagasse production have made Brazil a country of world leadership in this field. This paper reports an assessment of socioeconomic impacts due to sugarcane production in three regions in Brazil (Piracicaba, Presidente Prudente and Southwest Goias). Local quality of life is defined as five dimensions: income and inequality, education, infrastructure, health and general development, analysed using panel data modelling, with variables that could explain differences in development due to local characteristics, including sugarcane activity. Presidente Prudente has the highest levels of progress in education, poverty, infrastructure and general development indicators. The models indicate that participation of sugarcane has positive impacts on the indicators of the microregion. In case of Piracicaba microregion, in two models (“L-Theil” and “Illiteracy rate”) indicators related with sugarcane sector are significant explanatory variables, contributing for better indicators. Finally, Southwest Goias—where sugarcane activity develops later—is the single microregion in which the adjusted models have no significant explanatory variables related to sugarcane sector.

Assessment of sustainable livelihoods of different farmers in hilly red soil erosion areas of southern China

Livelihood vulnerability in environmentally fragile areas is emerging as a key issue due to its positive feedback to environmental degradation. Assessment of sustainable livelihoods is a crucial prerequisite for targeting interventions. However, aggregated analysis usually obtained ambiguous conclusions because they ignored the heterogeneity of rural households. Here, we evaluated the livelihood sustainability of different rural households by constructing an improved Livelihood Sustainability Index (LSI) in hilly red soil erosion areas of southern China. Changting County was selected as the study case by virtue of its unique representativeness in soil erosion and poverty. The results showed that livelihood sustainability among rural households was far from equivalent. Different from previous studies, higher nonfarm income share was not always consistent with higher extent of livelihood sustainability. Besides nonfarm employment, agricultural specialization could be another viable pathway to attain sustainable livelihoods. We also found that intergenerational sustainability was one primary cause for long-term livelihood differentiation of rural households. The poor education in rural areas would aggravate livelihood vulnerability of the poor and threaten the sustainable livelihoods of specialized agricultural households. Policy implications include further investment in rural infrastructure, irrigation and drainage, and stimulus for land transfer and concentration to facilitate agrarian specialization; enhancing investment in rural education to improve intergenerational sustainability; as well as targeting of the most vulnerable households, for example, promoting development of social insurance, social relief, and medical services for orphans and widows.

Determinants of Livelihood Choices

The study identifies socio-economic determinants of livelihood choices of rural households in Bangladesh (4,195 households from 139 villages) by applying a multinomial logit model of occupational choice and a multivariate Tobit model that allows for jointness in decision making. Results reveal that households choose multiple livelihood options. A number of socio-economic factors and resources at the household level as well as the state of rural infrastructure significantly determine households’ livelihood choice. Overall, resource-rich and educated households engage in diversified livelihoods and rural infrastructure promotes such diversification. Female-headed households fail to participate in any of the livelihood categories and consequently earn significantly lower income. Policy implications include investment in rural infrastructure, irrigation, rural electrification, education, livestock resources, as well as targeting of female-headed households, for example, creation of a hired labour market and skills/education programmes for females.

Transformation from Class Banking to Mass Banking through Inclusive Finance: A Paradigm Shift

The strategies of rural transformation in India focused on improving the standard of living of rural population has undergone several changes keeping in view the mammoth size of population, its changing dynamics and socio –cultural diversities of our country But the economic stagnation of vast chunk of rural population still suffers from social and financial exclusion resulting with high incidence of poverty, rising unemployment, growing inequality along with rich-poor divide widening. The high growth story of our country in the post reform era is not broad based, regionally imbalanced and socially inequitable Indian Banking industry in conformity with national policy objectives has reoriented from Class Banking to Mass Banking approach to enhance its outreach to bring the marginalized and excluded population into its fold for mainstream economic activity. The branch expansion was accelerated and institutional credit flow to poor rural households reached new heights to relieve them from the clutches of usurious informal money lenders. Modern banking in India has leveraged IT driven initiatives to bring the excluded population into the fold of mainstream banking, develop new products to suit their needs and more importantly educate them on financial products and services to enable them to take informed decisions. The Institutional mechanism, for enhancing access to institutional credit have been strengthened by establishing pro-poor institutions like Regional Rural Banks (RRBs) and National Agricultural Bank for Agricultural and Rural Development (NABARD) etc. The business delivery models like Self Help Groups (SHG)-Bank linkage programme, and Micro finance institutions have been encouraged to provide microfinance services at doorstep of marginalized households. The Agent/Correspondent Banking model of commercial Banks have been given a big boost to provide wide access of low income/marginalized people to Financial Markets. Financial inclusion being a gigantic task, it calls for an appropriate and well-coordinated/collaborative strategy by all the stake holders involved in its implementation. The government needs to increase investment in economic and social capital by increasing investment in basic rural infrastructure. Banking system is poised to provide efficient economic infrastructure like savings, access to easy credit and robust payment system. The community based organizations/NGOs should catalyze local participation to enhance efficiency and transparency in delivery of financial services to common man for making inclusive growth a reality.

Assessment of Wildfire Hazards with a Semiparametric Spatial Approach

Rural households in agricultural economies are vulnerable to several environmental risks such as fires, floods, and droughts that may affect their productivity in whole or in part. These hazards are especially relevant in developing countries where farmers have few or no access to traditional risk-transfer techniques, such as insurance and finance, and where low governmental investments in rural infrastructure, risk assessment techniques, or early warning systems makes the aftermath of such hazards more expensive and results in slower recovery for those who are affected. In this paper, we use historical satellite data (Terra) of burned areas in South America to fit a semiparametric spatial model, based on kernel smoothing and on a nonlinear relationship between average time between events and damage, to assess the environmental hazard affecting the land’s productivity. The results were twofold: first, we were able to develop a spatial assessment of fire hazard, and second, we were able to evaluate how much a farmer may lose in terms of productivity per hectare due to the environmental hazard. The methodology may be easily adapted to other world regions; to different environmental hazards such as floods, windbreak, windthrow, or related land-use changes; or to integrate various environmental hazards simultaneously, as long as they can be monitored via remote sensing (e.g., satellite imagery, aerial photographs, etc).

Impact of Rural Infrastructure on Farm and Non-Farm Enterprise Choice and Income in Bangladesh

Impact of rural infrastructure on economic development is indirect and complex. The present study jointly determines the impact of rural infrastructure on the decision to choose between farm and non-farm enterprises vis-à-vis income by Bangladeshi rural households (4,195 households from 139 villages) using a bivariate Tobit model. The model diagnostic reveals that the decision to choose enterprises is significantly correlated, justifying use of a bivariate approach. Rural infrastructure has a significant but opposite impact on enterprise choices vis-à-vis income. Other major determinants with varying level of influences are farm size, livestock resources, education, farming experience and household assets. However, female-headed households are doubly disadvantaged as they have failed to participate in both enterprises and consequently earned significantly less. Policy implications include investment in rural infrastructure, irrigation, rural electrification, education, livestock resources, tenurial reforms, as well as targeted approach to promote welfare of the female-headed households, e.g., creation of a hired labor market for females.

Public Investment in Rural Infrastructure: Some Political Economy Considerations

We have constructed a unique dataset to study the extent of the relationship between political marginalisation, public investment in transport infrastructure, and food security in Benin, Ghana, Mali and Senegal. We first show a strong relation between food security and road infrastructures after controlling for other factors known to affect food security, including climate and land productivity. To trace a potential mechanism by which political marginalisation impacts on food security, we then look at its relation with the allocation of roads within countries. We find support for the argument that political factors affect the location of roads after controlling for the economic importance of the areas, as well as many other factors. This finding is robust to a number of alternative specifications. We conclude that politically marginalised areas have significantly fewer roads, thus supporting our claim that political marginalisation indirectly affects food security, by undermining the quality and the allocation of transport infrastructures. Although we do not establish a causal effect here, this study is the first to empirically substantiate this relationship at the micro-level. Copyright 2013 , Oxford University Press.

How are Farmers Adapting to Climate Change in Vietnam? Endogeneity and Sample Selection in a Rice Yield Model

Vietnam is likely to be among the countries hardest hit by climate change, threatening its legacy as a champion in leveraging agriculture for development. This paper examines how a changing climate may affect rice production and how Vietnamese farmers are likely to adapt to various climatic conditions using an innovative yield function approach, taking into account sample selection bias and endogeneity of inputs. Model results suggest that although climate change can potentially reduce rice production, farmers will respond mainly by adjusting the production portfolio and levels of input use. However, investments in rural infrastructure and human capital will have to support farmers in the adaptation process if production levels and farm incomes are to be sustained in the future.

Rural Infrastructure and Agricultural Market Integration in the United States: A Long Run Perspective

In recent years, there has been an increasing focus by policymakers on rural infrastructure in the United States, including most recently tax credits to encourage investment. Previous work has documented the importance of railroad expansion for nineteenth century development, and demonstrated that policy failure led to the disintegration of agricultural markets in the interwar period, with potentially serious macroeconomic consequences. Using a database of average prices by state of seven agricultural products for the period ca. 1870-2010, we extend this analysis to the post‐Second World War period. We find a striking disintegration in recent decades, as measured by price dispersion, which we attribute to decades of underinvestment, particularly in railroads. We thus provide strong support for the present policy focus on investment in rural infrastructure.

Challenges for the Romanian agriculture in the context of the EU Common Agricultural Policy.

Although part of Common Agricultural Policy rural Romanian actors were still struggling tounderstand the philosophy and direction of evolution of European agricultural policy and agriculturalpolicies in the developed world. This article highlights the main challenges for the Romanianagriculture in the context of the EU Common Agricultural Policy. From January 1, 2014 will endrestrictions on purchases of agricultural land by non-residents. In these circumstances, the questionremains for brief use to strengthen local farms. Agriculture is not the business of unskilled and skilledphysical work. Romania needs to rehabilitate the reputation of this sector in the labor market, todevelop education and training system continues to stimulate the sector and attract young people torestore agricultural and rural elite. No non-agricultural activity is possible as long as there is minimalinfrastructure (water, sewer, electricity, gas). Any small business, business travel or shop facilities inrural areas require at least these basic utilities. Challenges mentioned that urgent consolidation ofholdings, investments in human capital and investment in rural physical infrastructure in rural areasare closely inter-related and conditioning. They must be addressed simultaneously and under greatpressure of time, given the liberalization of agricultural land from January 1, 2014.

Study on Rural Infrastructure Optimal Portfolio

Markowitz mean-variance model was the first applied to study rural infrastructure investment and a rural infrastructure optimal portfolio was established to find the optimal investment proportion of rural infrastructures with maximum total return. Fuzzy mathematical method was used to model solution for the fuzziness of rural infrastructure return and rural Shaanxi was taken as an application tested the feasibility of the model.

Can farmers’ adaptation to climate change be explained by socio-economic household-level variables?

A better understanding of processes that shape farmers’ adaptation to climate change is critical to identify vulnerable entities and to develop well-targeted adaptation policies. However, it is currently poorly understood what determines farmers’ adaptation and how to measure it. In this study, we develop an activity-based adaptation index (AAI) and explore the relationship between socioeconomic variables and farmers’ adaptation behavior by means of an explanatory factor analysis and a multiple linear regression model using latent variables. The model was tested in six villages situated in two administrative wards in the Morogoro region of Tanzania. The Mlali ward represents a system of relatively high agricultural potential, whereas the Gairo ward represents a system of low agricultural potential. A household survey, a rapid rural appraisal and, a stakeholder workshop were used for data collection. The data were analyzed using factor analysis, multiple linear regression, descriptive statistical methods and qualitative content analysis. The empirical results are discussed in the context of theoretical concepts of adaptation and the sustainable livelihood approach. We found that public investment in rural infrastructure, in the availability and technically efficient use of inputs, in a good education system that provides equal chances for women, and in the strengthening of social capital, agricultural extension and, microcredit services are the best means of improving the adaptation of the farmers from the six villages in Gairo and Mlali. We conclude that the newly developed AAI is a simple but promising way to capture the complexity of adaptation processes that addresses a number of shortcomings of previous index studies.

Effects of Transaction Costs on Choice of Selling Point: A Case of Smallholder Banana Growers in the Great Lakes Region of Central Africa

This article examines the effects of transaction costs on the choice of marketing channel by smallholder banana producers (i.e. travel to the market to sell their produce versus selling at the farmgate). A probit analysis is used to identify the factors which determine the choice of a selling point. Variables capturing transaction costs are used in the analysis and these relate to searching for a trading partner, gathering information about the transaction, contracting, negotiating, monitoring and enforcing of contracts. The findings reveal that collective action, gender of household head, degree of dependence on the crop, geographical location and access to price information significantly affect the choice of selling point. This suggests that policies aimed at establishing market information systems, promotion of collective action among smallholder farmers, increased investment in rural infrastructure and achieving gender balance in trade are important.

Public-Private Partnerships and Sustainable Agricultural Development

Agriculture in Africa is not sustainable because average yields have been stagnating for decades due to underinvestment, especially in the development of agricultural markets, crop improvement and the sustainable management of agricultural systems. Low public sector funding for agricultural research and lack of incentives for the private sector to operate in areas where there is no market largely explain the yield gap in many food-importing developing countries. Yet, there are effective ways in which the public and the private sector could work together and jointly improve agricultural sustainability in poor countries. The public sector provides a favorable institutional environment for the development of agricultural markets and investment in rural infrastructure, facilitates local business development and funds research with local relevance. The private sector, in return, brings its considerable expertise in product development and deployment. This article illustrates how new forms of public-private partnerships (PPPs) for agricultural development can work in challenging environments. It discusses three promising examples of PPPs in which the Syngenta Foundation for Sustainable Agriculture (SFSA) is actively involved, and shows that an experimental approach can sometimes be more effective than social planning in efforts to achieve sustainable agriculture.

Internal versus external determinants of Schistosoma japonicum transmission in irrigated agricultural villages.

Currently schistosomiasis transmission has been suppressed to low levels in many historically endemic areas of China by widespread use of praziquantel in human and bovine populations and application of niclosamide for snail control. However, re-emergent transmission has signalled the need for sustainable interventions beyond these repeated chemical interventions. To take advantage of ongoing investment in rural infrastructure, an index of schistosomiasis transmission potential is needed to identify villages where environmental modifications would be particularly effective. Based on a retrospective analysis of data from 10 villages in Sichuan Province, an index linked to the basic reproductive number is shown to have promise in meeting this need. However, a lack of methods for estimating the spatial components of the proposed metric and for estimating the import of cercariae and miracidia from neighbouring villages leads to significant uncertainty in its estimation. These findings suggest a priority effort to develop methods for measuring the free-swimming forms of the parasite in surface waters. This need is underscored by the high cost and limited sensitivity of current methods for diagnosing human infection and mounting evidence of the inadequacy of snail surveys to identify environments supporting low levels of transmission.

Variation of Agriculture Sector Development: With Special Reference to West Bengal State

The present paper seeks to examine inter-district disparities in rural agricultural sector in West Bengal and its impact on agricultural development through a (cross- sectional study) inter-temporal analysis of 18 districts. Composite indices of rural economic have been prepared for selected 10 indicators, in the period of time 1980-81, 1990-91 and 2000-01. The technique of Principal Component Analysis (PCA), Rotate Factor Matrix (Kaiser Varimax Method) has been used to prepare the composite index of agricultural development and dimension index of agricultural development. The analysis reveals that extreme disparities continue to persist with respect to the availability of economic indicators in rural areas at the district level. The ranking pattern of districts in terms of development of rural infrastructure has also remained broadly unchanged. Similarly , a strong correlation between ranks of districts in economic infrastructure has been observed. Agricultural economic infrastructure was found to have a strong positive effect on gross value of agricultural produce and a strong negative effect on rural poverty. West Bengal agriculture should promotion of diversified and export oriented agriculture. Particular attention needs to be paid to the backward districts for more balanced regional development. This calls for increased investment in rural infrastructure by both the public and private sectors.