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Income risk is substantial for farmers in developing countries. Formal insurance markets for this risk are poorly developed, and as a result there has been an increasing trend to sell weather hedges to smallholder farmers to manage their risk. This paper analyzes the demand for rainfall-based weather hedges among farmers in rural India. We explore the predictions of a standard expected utility theory framework on the nature of demand for such products, in particular testing whether demand behaves as predicted with respect to price, the basis of the hedge, and risk aversion using data from a randomized control trial in which price and basis risk was varied for a series of hedging products offered to farmers. We find that demand behaves as predicted, with demand falling with price and basis risk, and appearing hump-shaped in risk aversion. Second, we analyze understanding of and demand for hedging products over time, examining the impact of increased investments in training on hedging products as well as evidence for learning by doing among farmers. We find evidence that suggests that learning by doing is more effective at increasing both understanding and demand.
Book Synopsis Demand for Weather Hedges in India by : Ruth Vargas Hill
Download or read book Demand for Weather Hedges in India written by Ruth Vargas Hill and published by Intl Food Policy Res Inst. This book was released on 2013-07-23 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Income risk is substantial for farmers in developing countries. Formal insurance markets for this risk are poorly developed, and as a result there has been an increasing trend to sell weather hedges to smallholder farmers to manage their risk. This paper analyzes the demand for rainfall-based weather hedges among farmers in rural India. We explore the predictions of a standard expected utility theory framework on the nature of demand for such products, in particular testing whether demand behaves as predicted with respect to price, the basis of the hedge, and risk aversion using data from a randomized control trial in which price and basis risk was varied for a series of hedging products offered to farmers. We find that demand behaves as predicted, with demand falling with price and basis risk, and appearing hump-shaped in risk aversion. Second, we analyze understanding of and demand for hedging products over time, examining the impact of increased investments in training on hedging products as well as evidence for learning by doing among farmers. We find evidence that suggests that learning by doing is more effective at increasing both understanding and demand.
As climate variability gains prominence in the international policy agenda, public and private sectors alike are increasingly considering strategies to cope with its economic and social consequences. In turn, the general publicfaced with a growing number of extreme weather events and natural hazardsis beginning to demand concrete action. One sector where climate variability and its associated risk have the most damaging impact is the rural economy, in particular smallholder farmers. This brief outlines some of the adverse effects that climate variability has on the rural economy and describes how different insurance mechanisms can contribute to reducing vulnerability and increasing resilience to weather risks.
Book Synopsis Weather risks and insurance opportunities for the rural poor by : Ceballos, Francisco
Download or read book Weather risks and insurance opportunities for the rural poor written by Ceballos, Francisco and published by Intl Food Policy Res Inst. This book was released on 2014-05-04 with total page 4 pages. Available in PDF, EPUB and Kindle. Book excerpt: As climate variability gains prominence in the international policy agenda, public and private sectors alike are increasingly considering strategies to cope with its economic and social consequences. In turn, the general publicfaced with a growing number of extreme weather events and natural hazardsis beginning to demand concrete action. One sector where climate variability and its associated risk have the most damaging impact is the rural economy, in particular smallholder farmers. This brief outlines some of the adverse effects that climate variability has on the rural economy and describes how different insurance mechanisms can contribute to reducing vulnerability and increasing resilience to weather risks.
The persistence of undernutrition in the face of Indias impressive economic growth is of enormous concern. Less than 55 percent of mothers and children receive any essential health and nutrition inputs that are critical for improving maternal and child nutrition. We conducted a desk review (1) to document the extent to which national and civil society/NGO programs in India reflect current technical recommendations for nutrition and (2) assess the operational evidence base for implementing essential interventions for nutrition in the Indian context. We reviewed the design of the two major national programs, Integrated Child Development Services (ICDS) and the National Rural Health Mission (NRHM). Subsequently, we used Google Scholar to search the published literature from 2000 to 2012 for evidence of interventions addressing the inputs to improve child nutrition. Finally, we contacted 70 program stakeholders to identify the unpublished evidence on inputs in program models implemented by civil society/nongovernment organizations. We find that, by design, the two national programs (ICDS and NRHM) together appear to incorporate all the essential inputs and use evidence-based interventions. There is an expectation by design that the frontline workers of ICDS and NRHM coordinate and collaborate to deliver the interventions. A review of 22 program models shows that a majority focused on improving breastfeeding and timely initiation of complementary feeding. However, only a few addressed the full spectrum of complementary feeding, vitamin A deficiency, pediatric anemia, and severe acute malnutrition. None addressed how to reduce intestinal parasitic burdens or prevent malaria. There is limited published literature on the effectiveness of the recommended interventions to deliver the essential inputs. There are few efficacy studies and even fewer effectiveness studies or program evaluations on delivering essential nutrition interventions in the Indian context. The most commonly used delivery strategies across multiple essential inputs were home visits that involved individual or group counseling by community health workers or by self-help groups. Mass media and community events such as marriages and fairs were used as avenues to generate support for the interventions. Some programs used community mobilization to promote the interventions. Several of these programs worked to improve coordination and convergence between ICDS and NRHM and to strengthen these existing systems through training, improved monitoring, and supervision. Overall, a large gap persists in both the published and gray literature on how to promote interventions to address the essential inputs. Much more operational evidence is needed to ensure high-quality delivery of the evidence-based interventions that are already being implemented nationwide. Given the potential for the national programs to effectively deliver interventions to achieve maximum coverage and impact, and the government of Indias current interest in ICDS system strengthening, this is an opportune time to test some of the innovations using the ICDS and NRHM platforms.
Book Synopsis The Operational Evidence Base for Delivering Direct Nutrition Interventions in India by : Rasmi Avula
Download or read book The Operational Evidence Base for Delivering Direct Nutrition Interventions in India written by Rasmi Avula and published by Intl Food Policy Res Inst. This book was released on 2013-10-01 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: The persistence of undernutrition in the face of Indias impressive economic growth is of enormous concern. Less than 55 percent of mothers and children receive any essential health and nutrition inputs that are critical for improving maternal and child nutrition. We conducted a desk review (1) to document the extent to which national and civil society/NGO programs in India reflect current technical recommendations for nutrition and (2) assess the operational evidence base for implementing essential interventions for nutrition in the Indian context. We reviewed the design of the two major national programs, Integrated Child Development Services (ICDS) and the National Rural Health Mission (NRHM). Subsequently, we used Google Scholar to search the published literature from 2000 to 2012 for evidence of interventions addressing the inputs to improve child nutrition. Finally, we contacted 70 program stakeholders to identify the unpublished evidence on inputs in program models implemented by civil society/nongovernment organizations. We find that, by design, the two national programs (ICDS and NRHM) together appear to incorporate all the essential inputs and use evidence-based interventions. There is an expectation by design that the frontline workers of ICDS and NRHM coordinate and collaborate to deliver the interventions. A review of 22 program models shows that a majority focused on improving breastfeeding and timely initiation of complementary feeding. However, only a few addressed the full spectrum of complementary feeding, vitamin A deficiency, pediatric anemia, and severe acute malnutrition. None addressed how to reduce intestinal parasitic burdens or prevent malaria. There is limited published literature on the effectiveness of the recommended interventions to deliver the essential inputs. There are few efficacy studies and even fewer effectiveness studies or program evaluations on delivering essential nutrition interventions in the Indian context. The most commonly used delivery strategies across multiple essential inputs were home visits that involved individual or group counseling by community health workers or by self-help groups. Mass media and community events such as marriages and fairs were used as avenues to generate support for the interventions. Some programs used community mobilization to promote the interventions. Several of these programs worked to improve coordination and convergence between ICDS and NRHM and to strengthen these existing systems through training, improved monitoring, and supervision. Overall, a large gap persists in both the published and gray literature on how to promote interventions to address the essential inputs. Much more operational evidence is needed to ensure high-quality delivery of the evidence-based interventions that are already being implemented nationwide. Given the potential for the national programs to effectively deliver interventions to achieve maximum coverage and impact, and the government of Indias current interest in ICDS system strengthening, this is an opportune time to test some of the innovations using the ICDS and NRHM platforms.
Many development programs that aim to alleviate poverty and improve investments in human capital consider womens empowerment a key pathway by which to achieve impact and often target women as their main beneficiaries. Despite this, womens empowerment dimensions are often not rigorously measured and are at times merely assumed. This paper starts by reflecting on the concept and measurement of womens empowerment and then reviews some of the structural interventions that aim to influence underlying gender norms in society and eradicate gender discrimination. It then proceeds to review the evidence of the impact of three types of interventionscash transfer programs, agricultural interventions, and microfinance programson womens empowerment, nutrition, or both. Qualitative evidence on conditional cash transfer (CCT) programs generally points to positive impacts on womens empowerment, although quantitative research findings are more heterogenous. CCT programs produce mixed results on long-term nutritional status, and very limited evidence exists of their impacts on micronutrient status. The little evidence available on unconditional cash transters (UCT) indicates mixed impacts on womens empowerment and positive impacts on nutrition; however, recent reviews comparing CCT and UCT programs have found little difference in terms of their effects on stunting and they have found that conditionality is less important than other factors, such as access to healthcare and child age and sex. Evidence of cash transfer program impacts depending on the gender of the transfer recipient or on the conditionality is also mixed, although CCTs with non-health conditionalities seem to have negative impacts on nutritional status. The impacts of programs based on the gender of the transfer recipient show mixed results, but almost no experimental evidence exists of testing gender-differentiated impacts of a single program. Agricultural interventionsspecifically home gardening and dairy projectsshow mixed impacts on womens empowerment measures such as time, workload, and control over income; but they demonstrate very little impact on nutrition. Implementation modalities are shown to determine differential impacts in terms of empowerment and nutrition outcomes. With regard to the impact of microfinance on womens empowerment, evidence is also mixed, although more recent reviews do not find any impact on womens empowerment. The impact of microfinance on nutritional status is mixed, with no evidence of impact on micronutrient status. Across all three types of programs (cash transfer programs, agricultural interventions, and microfinance programs), very little evidence exists on pathways of impact, and evidence is often biased toward a particular region. The paper ends with a discussion of the findings and remaining evidence gaps and an outline of recommendations for research.
Book Synopsis Womens Empowerment and Nutrition by : Mara van den Bold
Download or read book Womens Empowerment and Nutrition written by Mara van den Bold and published by Intl Food Policy Res Inst. This book was released on 2013-11-01 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many development programs that aim to alleviate poverty and improve investments in human capital consider womens empowerment a key pathway by which to achieve impact and often target women as their main beneficiaries. Despite this, womens empowerment dimensions are often not rigorously measured and are at times merely assumed. This paper starts by reflecting on the concept and measurement of womens empowerment and then reviews some of the structural interventions that aim to influence underlying gender norms in society and eradicate gender discrimination. It then proceeds to review the evidence of the impact of three types of interventionscash transfer programs, agricultural interventions, and microfinance programson womens empowerment, nutrition, or both. Qualitative evidence on conditional cash transfer (CCT) programs generally points to positive impacts on womens empowerment, although quantitative research findings are more heterogenous. CCT programs produce mixed results on long-term nutritional status, and very limited evidence exists of their impacts on micronutrient status. The little evidence available on unconditional cash transters (UCT) indicates mixed impacts on womens empowerment and positive impacts on nutrition; however, recent reviews comparing CCT and UCT programs have found little difference in terms of their effects on stunting and they have found that conditionality is less important than other factors, such as access to healthcare and child age and sex. Evidence of cash transfer program impacts depending on the gender of the transfer recipient or on the conditionality is also mixed, although CCTs with non-health conditionalities seem to have negative impacts on nutritional status. The impacts of programs based on the gender of the transfer recipient show mixed results, but almost no experimental evidence exists of testing gender-differentiated impacts of a single program. Agricultural interventionsspecifically home gardening and dairy projectsshow mixed impacts on womens empowerment measures such as time, workload, and control over income; but they demonstrate very little impact on nutrition. Implementation modalities are shown to determine differential impacts in terms of empowerment and nutrition outcomes. With regard to the impact of microfinance on womens empowerment, evidence is also mixed, although more recent reviews do not find any impact on womens empowerment. The impact of microfinance on nutritional status is mixed, with no evidence of impact on micronutrient status. Across all three types of programs (cash transfer programs, agricultural interventions, and microfinance programs), very little evidence exists on pathways of impact, and evidence is often biased toward a particular region. The paper ends with a discussion of the findings and remaining evidence gaps and an outline of recommendations for research.
This paper develops a novel methodology to estimate the degree of spatial basis risk for an arbitrary rainfall index insurance instrument. It relies on a widelyused stochastic rainfall generator, extendedto accommodate nontraditional dependence patterns—in particular spatial upper-tail dependence in rainfall—through a copula function. The methodology is applied to a recentlylaunched index product insuring against excess rainfall in Uruguay. The model is first calibrated using historical daily rainfall data from the national network of weather stations, complemented with a unique,high-resolution dataset from a dense network of 34 automatic weather stations around the study area. The degree of downside spatial basis risk is then estimated by Monte Carlo simulations and the results are linked to both a theoretical model of the demand for index insurance and to farmers’ perceptions about the product.
Book Synopsis Estimating spatial basis risk in rainfall index insurance by : Ceballos, Francisco
Download or read book Estimating spatial basis risk in rainfall index insurance written by Ceballos, Francisco and published by Intl Food Policy Res Inst. This book was released on 2016-12-29 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a novel methodology to estimate the degree of spatial basis risk for an arbitrary rainfall index insurance instrument. It relies on a widelyused stochastic rainfall generator, extendedto accommodate nontraditional dependence patterns—in particular spatial upper-tail dependence in rainfall—through a copula function. The methodology is applied to a recentlylaunched index product insuring against excess rainfall in Uruguay. The model is first calibrated using historical daily rainfall data from the national network of weather stations, complemented with a unique,high-resolution dataset from a dense network of 34 automatic weather stations around the study area. The degree of downside spatial basis risk is then estimated by Monte Carlo simulations and the results are linked to both a theoretical model of the demand for index insurance and to farmers’ perceptions about the product.
Indias National Rural Employment Guarantee Scheme (NREGS) is one of the largest public works programs globally. Understanding the impacts of NREGS and the pathway through which its impacts are realized thus has important policy implications. We use a three-round 4,000-household panel from Andhra Pradesh together with administrative data to explore short- and medium-term poverty and welfare effects of NREGS. Triple difference estimates suggest that participants significantly increase consumption (protein and energy intake) in the short run and accumulate more nonfinancial assets in the medium term. Direct benefits exceed program-related transfers and are most pronounced for scheduled castes and tribes and households supplying casual labor. Asset creation via program-induced land improvements is consistent with a medium-term increase in assets by nonparticipants and increases in wage income in excess of program cost.
Book Synopsis Welfare and Poverty Impacts of Indias National Rural Employment Guarantee Scheme by : Klaus Deininger
Download or read book Welfare and Poverty Impacts of Indias National Rural Employment Guarantee Scheme written by Klaus Deininger and published by Intl Food Policy Res Inst. This book was released on 2013-09-13 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Indias National Rural Employment Guarantee Scheme (NREGS) is one of the largest public works programs globally. Understanding the impacts of NREGS and the pathway through which its impacts are realized thus has important policy implications. We use a three-round 4,000-household panel from Andhra Pradesh together with administrative data to explore short- and medium-term poverty and welfare effects of NREGS. Triple difference estimates suggest that participants significantly increase consumption (protein and energy intake) in the short run and accumulate more nonfinancial assets in the medium term. Direct benefits exceed program-related transfers and are most pronounced for scheduled castes and tribes and households supplying casual labor. Asset creation via program-induced land improvements is consistent with a medium-term increase in assets by nonparticipants and increases in wage income in excess of program cost.
Womens low status and persistent gender gaps in health and education in South Asia contribute to chronic child malnutrition (Smith et al. 2003) and food insecurity (von Grebmer et al. 2009), even as other determinants of food security, such as per capita incomes, have improved. This is particularly relevant for Bangladesh, where chronic food insecurity continues to be an important issue despite steady advances in food production. To be able to leverage agriculture as an engine of inclusive growth, there is a need to develop indicators for measuring womens empowerment, examine its relationship to various food-security outcomes, and monitor the impact of interventions to empower women. Using nationally representative survey data from Bangladesh, we examine the relationship between womens empowerment in agriculture and two measures of household food security: per adult equivalent calorie availability and dietary diversity. We use the Womens Empowerment in Agriculture Index to assess the extent of womens empowerment in agriculture and instrumental variables techniques to correct for the potential endogeneity of empowerment. We find that the overall womens empowerment score, the number of groups in which women actively participate, womens control of assets, and a narrowing gap in empowerment between men and women within households are positively associated with calorie availability and dietary diversity.
Book Synopsis Womens Empowerment in Agriculture by : Esha Sraboni
Download or read book Womens Empowerment in Agriculture written by Esha Sraboni and published by Intl Food Policy Res Inst. This book was released on 2013-11-01 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Womens low status and persistent gender gaps in health and education in South Asia contribute to chronic child malnutrition (Smith et al. 2003) and food insecurity (von Grebmer et al. 2009), even as other determinants of food security, such as per capita incomes, have improved. This is particularly relevant for Bangladesh, where chronic food insecurity continues to be an important issue despite steady advances in food production. To be able to leverage agriculture as an engine of inclusive growth, there is a need to develop indicators for measuring womens empowerment, examine its relationship to various food-security outcomes, and monitor the impact of interventions to empower women. Using nationally representative survey data from Bangladesh, we examine the relationship between womens empowerment in agriculture and two measures of household food security: per adult equivalent calorie availability and dietary diversity. We use the Womens Empowerment in Agriculture Index to assess the extent of womens empowerment in agriculture and instrumental variables techniques to correct for the potential endogeneity of empowerment. We find that the overall womens empowerment score, the number of groups in which women actively participate, womens control of assets, and a narrowing gap in empowerment between men and women within households are positively associated with calorie availability and dietary diversity.
Agricultural extension is critical for agricultural growth and food security, but making the extension system effective, demand driven, and responsive to the needs of a diverse set of producers remains a challenge. As part of the institutional reforms in the Democratic Republic of Congo (DRC), the extension system is being reviewed to identify strategies and practical actions to transform the system to better respond to the knowledge needs in a rapidly changing agriculture and food sector. This paper provides an in-depth review of the agricultural extension system of DRC including an analysis of its policies and legal framework, organization, and management; links to critical institutions; and capacity and incentive of different actors in the system. This review involved document analyses, interviews with key informants, and surveys of 107 extension organizations and 162 extension agents in 156 randomly selected villages in western DRC. This review suggests serious funding constraints, human resource management problems, no linkage and coordination within the extension system and with research and education systems, and a majority of underserved communities and farmers. This review also highlights a good opportunity given the huge human resources (more than 11,000 agents) deployed into the sectors and territories as part of the Ministrys agricultural inspection system. However, their mandate is not clear and they currently focus on data collection (census) and checking what farmers do and limited in extension and advisory work. This review highlights the urgent need for human resource or civil service reform; public-sector commitment and funding; infrastructure rebuilding and skills upgrading in extension, education and training, and research organizations; and a unified policy or strategy with clear vision, mandate, targets, and performance-based incentive system.
Book Synopsis Assessment of the Capacity, Incentives, and Performance of Agricultural Extension Agents in Western Democratic Republic of Congo by : Catherine Ragasa
Download or read book Assessment of the Capacity, Incentives, and Performance of Agricultural Extension Agents in Western Democratic Republic of Congo written by Catherine Ragasa and published by Intl Food Policy Res Inst. This book was released on 2013-08-19 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Agricultural extension is critical for agricultural growth and food security, but making the extension system effective, demand driven, and responsive to the needs of a diverse set of producers remains a challenge. As part of the institutional reforms in the Democratic Republic of Congo (DRC), the extension system is being reviewed to identify strategies and practical actions to transform the system to better respond to the knowledge needs in a rapidly changing agriculture and food sector. This paper provides an in-depth review of the agricultural extension system of DRC including an analysis of its policies and legal framework, organization, and management; links to critical institutions; and capacity and incentive of different actors in the system. This review involved document analyses, interviews with key informants, and surveys of 107 extension organizations and 162 extension agents in 156 randomly selected villages in western DRC. This review suggests serious funding constraints, human resource management problems, no linkage and coordination within the extension system and with research and education systems, and a majority of underserved communities and farmers. This review also highlights a good opportunity given the huge human resources (more than 11,000 agents) deployed into the sectors and territories as part of the Ministrys agricultural inspection system. However, their mandate is not clear and they currently focus on data collection (census) and checking what farmers do and limited in extension and advisory work. This review highlights the urgent need for human resource or civil service reform; public-sector commitment and funding; infrastructure rebuilding and skills upgrading in extension, education and training, and research organizations; and a unified policy or strategy with clear vision, mandate, targets, and performance-based incentive system.
Knowledge of actual poverty prevalence is important for any society concerned with improving public welfare and reducing poverty. In this paper, we calculate and compare the poverty incidence rate in China using four nationally representative surveys: the China Family Panel Studies (CFPS) of 2010, the Chinese General Social Survey (CGSS) of 2010, the Chinese Household Finance Survey (CHFS) of 2011, and the Chinese Household Income Project (CHIP) of 2007. Using both international and official domestic poverty standards, we show that poverty prevalence at the national, rural, and urban levels based on the CFPS, CGSS, and the CHFS are much higher than the official estimation and those based on the CHIP. The study highlights the importance of using independent datasets to validate official statistics of public and policy concern in contemporary China.
Book Synopsis An Evaluation of Poverty Prevalence in China by : Chunni Zhang
Download or read book An Evaluation of Poverty Prevalence in China written by Chunni Zhang and published by Intl Food Policy Res Inst. This book was released on 2013-10-01 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Knowledge of actual poverty prevalence is important for any society concerned with improving public welfare and reducing poverty. In this paper, we calculate and compare the poverty incidence rate in China using four nationally representative surveys: the China Family Panel Studies (CFPS) of 2010, the Chinese General Social Survey (CGSS) of 2010, the Chinese Household Finance Survey (CHFS) of 2011, and the Chinese Household Income Project (CHIP) of 2007. Using both international and official domestic poverty standards, we show that poverty prevalence at the national, rural, and urban levels based on the CFPS, CGSS, and the CHFS are much higher than the official estimation and those based on the CHIP. The study highlights the importance of using independent datasets to validate official statistics of public and policy concern in contemporary China.
In recent years, the government of Tanzania, like other governments in Africa south of the Sahara, has periodically banned the export of staple crops (maize) in an attempt to ensure the domestic food supply and protect its citizens from international food price hikes. While this policy seems to be a common response to domestic production shortfalls or to high prices in international or neighboring countries markets, export bans not only have the potential to reduce producer prices locally but also, because the bans are often ad hoc, can cause significant market uncertainty for farmers and the private sector, ultimately making them less responsive in both supply and trade opportunities in the future. While complaints by farmers and traders regarding the export bans frequently appear in the newspapers in Tanzania, few rigorous analyses have been done to quantitatively measure the impacts of the policy. Given this knowledge gap and policy demand, we study the impact of export bans in Tanzania using a computable general equilibrium model. We find that although maize is an important food crop in Tanzania, its contribution to food price inflation is rather limited, and that banning cross-border maize exports lowers the national food price index by only 0.62.4 percent compared with the free-export scenario. The benefits of lower prices are captured primarily by urban households, but maize producer prices decrease by 726 percent, depending on the region. We also find that the export ban decreases the wage rate for low-skilled labor and the returns to land, while returns to nonagricultural capital and wage rate for the skilled labor increase, further hurting poor rural households and thus increasing poverty for the country as a whole.
Book Synopsis Economywide Impact of Maize Export Bans on Agricultural Growth and Household Welfare in Tanzania by : Xinshen Diao
Download or read book Economywide Impact of Maize Export Bans on Agricultural Growth and Household Welfare in Tanzania written by Xinshen Diao and published by Intl Food Policy Res Inst. This book was released on 2013-09-03 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, the government of Tanzania, like other governments in Africa south of the Sahara, has periodically banned the export of staple crops (maize) in an attempt to ensure the domestic food supply and protect its citizens from international food price hikes. While this policy seems to be a common response to domestic production shortfalls or to high prices in international or neighboring countries markets, export bans not only have the potential to reduce producer prices locally but also, because the bans are often ad hoc, can cause significant market uncertainty for farmers and the private sector, ultimately making them less responsive in both supply and trade opportunities in the future. While complaints by farmers and traders regarding the export bans frequently appear in the newspapers in Tanzania, few rigorous analyses have been done to quantitatively measure the impacts of the policy. Given this knowledge gap and policy demand, we study the impact of export bans in Tanzania using a computable general equilibrium model. We find that although maize is an important food crop in Tanzania, its contribution to food price inflation is rather limited, and that banning cross-border maize exports lowers the national food price index by only 0.62.4 percent compared with the free-export scenario. The benefits of lower prices are captured primarily by urban households, but maize producer prices decrease by 726 percent, depending on the region. We also find that the export ban decreases the wage rate for low-skilled labor and the returns to land, while returns to nonagricultural capital and wage rate for the skilled labor increase, further hurting poor rural households and thus increasing poverty for the country as a whole.
