Agricultural public spending, growth and poverty linkage hypotheses in the Eastern Cape Province of South Africa
- Authors: Ndhleve, Simbarashe
- Date: 2012
- Subjects: Poverty -- Economic aspects -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Agricultural industries -- South Africa -- Eastern Cape , Government spending policy -- South Africa -- Eastern Cape , Finance, Public -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11157 , http://hdl.handle.net/10353/493 , Poverty -- Economic aspects -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Agricultural industries -- South Africa -- Eastern Cape , Government spending policy -- South Africa -- Eastern Cape , Finance, Public -- South Africa -- Eastern Cape
- Description: The adoption of the Millennium Development Goal 1 (MDG1) of reducing the rate of poverty to half of the 1990-level by 2015, the advent of democracy in South Africa, among other things, have raised concerns over the potential role of the agricultural sector. There is a belief that the sector has the capacity to successfully reduce poverty among the rural masses and contribute to addressing the problem of inequality in South Africa. In line with that thinking, South Africa‘s agricultural sector has attracted considerable fiscal policy interest. For instance, South Africa‘s statistics show that public investments in agricultural development programmes have been growing. In spite of this, rural poverty is still a major concern on an overall basis. However, this might not be the case in the Eastern Cape Province and the situation might be different for each district municipality. This study assesses the linkages between public agricultural investment, agricultural growth and poverty reduction in the Eastern Cape Province. The study also addresses the question whether Eastern Cape Province is on course to meet several regional development targets. The study also aims to provide an estimate of the amount of agricultural investment required to attain the agricultural productivity growth rate which is sufficient to meet MDG1. The study reviewed the various theories of public spending, linkages between public investment and agricultural growth and how these components affect the incidence of poverty. The conventional wisdom that public expenditure in agriculture positively affects economic growth and this growth consequently reduces poverty was noted. The reviews also revealed that in many developing countries, the current level of public agricultural investment needs to be increased significantly for countries to meet the MDG1. This study employed the decomposition technique and growth elasticity of poverty concept to estimate the response of poverty to its key determinants. The size of public spending, prioritization of public spending and the intensity in the use of public funds emerged as important in increasing agricultural production. The relationship between government investment in agriculture and agricultural GDP shows iv that public funds were largely behind the province‘s success in increasing agricultural production throughout the period from 1990s to 2010. Agricultural spending went to sustainable resource management, administrative functions and then farmer support programme. Exceptional growth in the size of spending was recorded in respect to agricultural economic function, structured agricultural training, sustainable resource management and veterinary services. Overall output from the agricultural sector fluctuated, and the sector contributed less than 5 per cent to the total provincial GDP. Correlations between growth in agricultural sector and changes in the incidence of poverty in Eastern Cape show that during the period 1995 to 2000, increases in the agricultural GDP per capita may have failed to benefit the poor as poverty increased in all the reported cases.–However, for the period between 2005 and 2010, the situation was different and it was observed that increases in agricultural GDP per capita and were associated with reduction in the incidence of poverty. Growth elasticity of poverty (GEP) estimates reveal that agricultural GDP per capita was more important in reducing poverty in 5 out of the 7 district municipalities. Non-agricultural GDP per capita was only important in two district municipalities. It emerged that most of the district municipalities are not in a position to meet any of the regional set goals. This situation is largely attributable to the province‘s failure to boost agricultural production which is an outcome of low and inefficient public expenditure management, inconsistent and misaligned policies and failure to fully embrace the concept of pro-poor growth. Varied provisional estimates for the required agricultural growth rate and the increase in public spending on agriculture required in order to reach MDG1 were calculated for each district municipalities. All the district municipalities of Eastern Cape will need to increase public investment in agriculture for them to achieve MDG1.
- Full Text:
- Authors: Ndhleve, Simbarashe
- Date: 2012
- Subjects: Poverty -- Economic aspects -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Agricultural industries -- South Africa -- Eastern Cape , Government spending policy -- South Africa -- Eastern Cape , Finance, Public -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11157 , http://hdl.handle.net/10353/493 , Poverty -- Economic aspects -- South Africa -- Eastern Cape , Rural poor -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Agricultural industries -- South Africa -- Eastern Cape , Government spending policy -- South Africa -- Eastern Cape , Finance, Public -- South Africa -- Eastern Cape
- Description: The adoption of the Millennium Development Goal 1 (MDG1) of reducing the rate of poverty to half of the 1990-level by 2015, the advent of democracy in South Africa, among other things, have raised concerns over the potential role of the agricultural sector. There is a belief that the sector has the capacity to successfully reduce poverty among the rural masses and contribute to addressing the problem of inequality in South Africa. In line with that thinking, South Africa‘s agricultural sector has attracted considerable fiscal policy interest. For instance, South Africa‘s statistics show that public investments in agricultural development programmes have been growing. In spite of this, rural poverty is still a major concern on an overall basis. However, this might not be the case in the Eastern Cape Province and the situation might be different for each district municipality. This study assesses the linkages between public agricultural investment, agricultural growth and poverty reduction in the Eastern Cape Province. The study also addresses the question whether Eastern Cape Province is on course to meet several regional development targets. The study also aims to provide an estimate of the amount of agricultural investment required to attain the agricultural productivity growth rate which is sufficient to meet MDG1. The study reviewed the various theories of public spending, linkages between public investment and agricultural growth and how these components affect the incidence of poverty. The conventional wisdom that public expenditure in agriculture positively affects economic growth and this growth consequently reduces poverty was noted. The reviews also revealed that in many developing countries, the current level of public agricultural investment needs to be increased significantly for countries to meet the MDG1. This study employed the decomposition technique and growth elasticity of poverty concept to estimate the response of poverty to its key determinants. The size of public spending, prioritization of public spending and the intensity in the use of public funds emerged as important in increasing agricultural production. The relationship between government investment in agriculture and agricultural GDP shows iv that public funds were largely behind the province‘s success in increasing agricultural production throughout the period from 1990s to 2010. Agricultural spending went to sustainable resource management, administrative functions and then farmer support programme. Exceptional growth in the size of spending was recorded in respect to agricultural economic function, structured agricultural training, sustainable resource management and veterinary services. Overall output from the agricultural sector fluctuated, and the sector contributed less than 5 per cent to the total provincial GDP. Correlations between growth in agricultural sector and changes in the incidence of poverty in Eastern Cape show that during the period 1995 to 2000, increases in the agricultural GDP per capita may have failed to benefit the poor as poverty increased in all the reported cases.–However, for the period between 2005 and 2010, the situation was different and it was observed that increases in agricultural GDP per capita and were associated with reduction in the incidence of poverty. Growth elasticity of poverty (GEP) estimates reveal that agricultural GDP per capita was more important in reducing poverty in 5 out of the 7 district municipalities. Non-agricultural GDP per capita was only important in two district municipalities. It emerged that most of the district municipalities are not in a position to meet any of the regional set goals. This situation is largely attributable to the province‘s failure to boost agricultural production which is an outcome of low and inefficient public expenditure management, inconsistent and misaligned policies and failure to fully embrace the concept of pro-poor growth. Varied provisional estimates for the required agricultural growth rate and the increase in public spending on agriculture required in order to reach MDG1 were calculated for each district municipalities. All the district municipalities of Eastern Cape will need to increase public investment in agriculture for them to achieve MDG1.
- Full Text:
Implications of food value chain support structures for water resource management by smallholder farmers in the Eastern Cape Province
- Authors: Arowolo, Steven Alaba
- Date: 2012
- Subjects: Agricultural assistance -- South Africa -- Eastern Cape , Agricultural productivity -- South Africa -- Eastern Cape , Agricultural extension work -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Farm produce -- South Africa -- Eastern Cape -- Marketing , Sustainable development -- South Africa -- Eastern Cape , Water resources development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11181 , http://hdl.handle.net/10353/d1001027 , Agricultural assistance -- South Africa -- Eastern Cape , Agricultural productivity -- South Africa -- Eastern Cape , Agricultural extension work -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Farm produce -- South Africa -- Eastern Cape -- Marketing , Sustainable development -- South Africa -- Eastern Cape , Water resources development -- South Africa -- Eastern Cape
- Description: Smallholder agriculture is faced with so many challenges despite all the policies and programmes that have been channelled towards ensuring improvement in this sector. Improving smallholder agricultural productivity requires that smallholder farmers gain access to reliable and adequate farmer support services such as physical infrastructures like good road network, functional irrigation facilities, extension services, finance and efficient marketing system. However, these support services are lacking in a vast majority of the rural communities in which the smallholder farmers live and work. This study is centred on governance within the food value chains, with specific focus on butternuts and chicken value chains;with a view to identifying those factors preventing smallholder farmers from accessing the mainstream market. Ciko and Mbozi villages in Mbashe local municipality were used as the research sites for the study. Data were collected across the two villages through sampling of 100 individual farming households based on random selection; questionnaires and checklist of questions were used as tools to access information from farmers through focus group discussions, personal interviews and key informants. In addition,Ciko Santrini project and foundation community project, which are the two agricultural community projects located within the study area were also investigated. Conceptual and analytical frameworks were employed in the research analysis. Williamson’s 4-level of social analysis and the sustainable livelihood frameworks were used to conceptualize the analysis. Inferential analysis was carried out using binary logistic regression and discriminant analysis with focus on butternuts and cSmallholder agriculture is faced with so many challenges despite all the policies and programmes that have been channelled towards ensuring improvement in this sector. Improving smallholder agricultural productivity requires that smallholder farmers gain access to reliable and adequate farmer support services such as physical infrastructures like good road network, functional irrigation facilities, extension services, finance and efficient marketing system. However, these support services are lacking in a vast majority of the rural communities in which the smallholder farmers live and work. This study is centred on governance within the food value chains, with specific focus on butternuts and chicken value chains;with a view to identifying those factors preventing smallholder farmers from accessing the mainstream market. Ciko and Mbozi villages in Mbashe local municipality were used as the research sites for the study. Data were collected across the two villages through sampling of 100 individual farming households based on random selection; questionnaires and checklist of questions were used as tools to access information from farmers through focus group discussions, personal interviews and key informants. In addition,Ciko Santrini project and foundation community project, which are the two agricultural community projects located within the study area were also investigated. Conceptual and analytical frameworks were employed in the research analysis. Williamson’s 4-level of social analysis and the sustainable livelihood frameworks were used to conceptualize the analysis. Inferential analysis was carried out using binary logistic regression and discriminant analysis with focus on butternuts and chicken production among the smallholder farmers in the study area to determine factors that could encourage farmers ‘access markets. The results showed that factors such as; assistance from government agency, partnerships with private and public institutions and farmers’ decision due to access to information were significant at 1% level for both butternuts and chicken production. On the other hand, factors such as provision of input subsidy and farmers’ membership of agricultural development projects are significant at 5% level. The findings suggest that adoption of any or combination of the significant factors could serve as good support structures for farmers and they could directly help them market their produce efficiently.
- Full Text:
- Authors: Arowolo, Steven Alaba
- Date: 2012
- Subjects: Agricultural assistance -- South Africa -- Eastern Cape , Agricultural productivity -- South Africa -- Eastern Cape , Agricultural extension work -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Farm produce -- South Africa -- Eastern Cape -- Marketing , Sustainable development -- South Africa -- Eastern Cape , Water resources development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11181 , http://hdl.handle.net/10353/d1001027 , Agricultural assistance -- South Africa -- Eastern Cape , Agricultural productivity -- South Africa -- Eastern Cape , Agricultural extension work -- South Africa -- Eastern Cape , Agricultural development projects -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Farm produce -- South Africa -- Eastern Cape -- Marketing , Sustainable development -- South Africa -- Eastern Cape , Water resources development -- South Africa -- Eastern Cape
- Description: Smallholder agriculture is faced with so many challenges despite all the policies and programmes that have been channelled towards ensuring improvement in this sector. Improving smallholder agricultural productivity requires that smallholder farmers gain access to reliable and adequate farmer support services such as physical infrastructures like good road network, functional irrigation facilities, extension services, finance and efficient marketing system. However, these support services are lacking in a vast majority of the rural communities in which the smallholder farmers live and work. This study is centred on governance within the food value chains, with specific focus on butternuts and chicken value chains;with a view to identifying those factors preventing smallholder farmers from accessing the mainstream market. Ciko and Mbozi villages in Mbashe local municipality were used as the research sites for the study. Data were collected across the two villages through sampling of 100 individual farming households based on random selection; questionnaires and checklist of questions were used as tools to access information from farmers through focus group discussions, personal interviews and key informants. In addition,Ciko Santrini project and foundation community project, which are the two agricultural community projects located within the study area were also investigated. Conceptual and analytical frameworks were employed in the research analysis. Williamson’s 4-level of social analysis and the sustainable livelihood frameworks were used to conceptualize the analysis. Inferential analysis was carried out using binary logistic regression and discriminant analysis with focus on butternuts and cSmallholder agriculture is faced with so many challenges despite all the policies and programmes that have been channelled towards ensuring improvement in this sector. Improving smallholder agricultural productivity requires that smallholder farmers gain access to reliable and adequate farmer support services such as physical infrastructures like good road network, functional irrigation facilities, extension services, finance and efficient marketing system. However, these support services are lacking in a vast majority of the rural communities in which the smallholder farmers live and work. This study is centred on governance within the food value chains, with specific focus on butternuts and chicken value chains;with a view to identifying those factors preventing smallholder farmers from accessing the mainstream market. Ciko and Mbozi villages in Mbashe local municipality were used as the research sites for the study. Data were collected across the two villages through sampling of 100 individual farming households based on random selection; questionnaires and checklist of questions were used as tools to access information from farmers through focus group discussions, personal interviews and key informants. In addition,Ciko Santrini project and foundation community project, which are the two agricultural community projects located within the study area were also investigated. Conceptual and analytical frameworks were employed in the research analysis. Williamson’s 4-level of social analysis and the sustainable livelihood frameworks were used to conceptualize the analysis. Inferential analysis was carried out using binary logistic regression and discriminant analysis with focus on butternuts and chicken production among the smallholder farmers in the study area to determine factors that could encourage farmers ‘access markets. The results showed that factors such as; assistance from government agency, partnerships with private and public institutions and farmers’ decision due to access to information were significant at 1% level for both butternuts and chicken production. On the other hand, factors such as provision of input subsidy and farmers’ membership of agricultural development projects are significant at 5% level. The findings suggest that adoption of any or combination of the significant factors could serve as good support structures for farmers and they could directly help them market their produce efficiently.
- Full Text:
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