Enabling poor rural people
to overcome poverty
This study examines changes in diet over the period 1993-2009. Diets have shifted away from cereals towards higher consumption of fruits, vegetables, oils and livestock products. Using household data, a food diversity index (FDI) was constructed based on five food commodities. Significant price effects that vary over time have been confirmed, as have income/expenditure effects. Over and above these, more sedentary lifestyles and less strenuous activity patterns have played a significant role in shaping dietary patterns. An important finding is the slowing of dietary transition in the more recent subperiod 2004-2009. Clues relate to the weakening or strengthening of food price, expenditure and lifestyle effects over time. Using an instrumented measure of FDI in the second stage and all other exogenous variables, FDI effects on nutrient intake are analysed. A common finding – that food diversity is associated with a better- quality diet and higher intake of nutrients – is not corroborated. While there is a reduction in calorie intake, there are increases in protein and fat intakes.
No 15: Remittances, growth and poverty: New evidence from Asian countries (2012)
The present study re-examines the effects of remittances on the growth of GDP per capita using annual panel data for 24 Asia/Pacific countries. The results generally confirm that remittance flows have been beneficial to economic growth. However, our analysis also shows that the volatility of capital inflows such as remittances and foreign direct investment is harmful to economic growth. In other words, while remittances contribute to better economic performance, they are also a source of output shocks. Finally, remittances contribute to poverty reduction – especially through their direct effects. Migration and remittances are thus potentially a valuable complement to broad-based development efforts.
No 14: Role of agriculture
in achieving MDG1 in the
Asia and the Pacific region (2011)
This paper examines whether agricultural growth through public expenditure, official
development assistance (ODA) or investment will significantly improve the
prospects of achieving the first Millennium Development Goal (MDG1) target of
halving poverty in the Asia and the Pacific region. As more than a few countries in
this region recorded impressive economic growth in the early years of the present
decade, the case for the widely used poverty threshold of US$1.25 per day (at 2005
purchasing power parity [PPP]) in assessing progress towards MDG1 is not as
compelling now. Accordingly, the present assessment uses two poverty thresholds:
US$2 and US$1.25 per day (both at 2005 PPP). Our analysis, based on country panel
data, confirms robustly that increases in public agricultural expenditure, agricultural
ODA, agricultural investment or fertilizer use (as a proxy for technology) accelerate
agricultural and GDP growth.
No 13: Women's empowerment
and microfinance (2011)
While there is a shared understanding and general consensus on the functions of
microfinance institutions (MFIs), their potential for the empowerment of women has
been much debated. This paper focuses on the nature of this debate. Studies have
indicated both the promise of MFIs and the challenges they present for women's
empowerment. In this context, various factors – economic, organizational, political
and cultural – have been emphasized. The present study, while acknowledging all these
factors, makes a case for a more-sophisticated and nuanced analysis of culture for a
deeper understanding of the linkages between MFIs and women's empowerment, and
suggests areas of enquiry for informed policymaking.
No 12: Policy responses to the
food price crisis and their
implications (2011)
The rapid rise of food prices in 2007-2008, dubbed 'the food crisis', forced country
governments – including those in the Greater Mekong Subregion (GMS) – to adopt
policy measures to reduce the transmission of higher international prices into domestic
markets, and to protect the food security of vulnerable populations. This report
discusses the impact of these measures on domestic and international prices, on food
production (particularly by smallholders), and on the nutritional and poverty levels of
four GMS countries – Cambodia, the Lao People's Democratic Republic, Thailand and
Viet Nam – in order to gather valuable lessons learned and hopefully provide guidance
on the formulation of appropriate policy responses to address similar or related
incidences should these reoccur. The analysis focuses primarily on understanding the
pressures experienced by the GMS economies as a result of the rice market crunch.
No 11: Interrelationships between labour outmigration, livelihoods, rice productivity and
gender roles (2010)
This paper summarizes the main results and implications of a research study analysing interrelationships among outmigration, livelihood, rice productivity and gender roles in rice-growing villages in the Philippines, Thailand and Viet Nam.
The goal of this research study was to guide rice researchers and agricultural extension workers in the design, evaluation and dissemination of appropriate technologies in areas of high labour outmigration. To pursue this major objective, the study:
- Assessed the incidence and patterns of labour outmigration in major rice production systems.
- Examined the roles of rice, non-farm activities and remittances in livelihoods.
- Assessed the effects of migration on the gender division of labour and on rice productivity.
- Identified key constraints on the women who stayed behind to manage farms; and
- Recommended strategies (research and extension) and government policy options in response to the constraints and problems encountered by farming households, especially women farmers, due to labour outmigration.
No 10: Fiscal stimulus, agricultural growth
and poverty in Asia and the Pacific (2010)
Recent debates on a sustainable recovery of the global economy have tended to overemphasize the ‘savings glut’ hypothesis and the unavoidable imperative of higher consumption in China and other emerging Asian countries. The view that oversaving and not underinvestment is hindering a quicker and more durable recovery is not just simplistic, but misleading, from a medium-term growth perspective for emerging and other developing Asian countries. The present study makes a case for a bold and coordinated fiscal stimulus, directed at stimulating agricultural and overall growth and mitigating poverty and hunger. The study results further suggest that poverty reduction is likely to be larger if the fiscal stimulus is directed at social spending in health and education sectors. Indeed, the study indicates that the dire predictions of millions becoming trapped in poverty and hunger may turn out to be exaggerated. Although few would dispute the strong recovery led by the stimulus, a consensus must be built towards continuing the fiscal expansion.
No 9: Institutions and rural services. Lessons from IFAD-supported projects in Asia
This paper summarizes the findings of a study supported by IFAD’s Asia and the Pacific Division with the aim of enhancing understanding of those ongoing institutional changes relevant to the development impact of IFAD-supported operations. The study reviewed the changing roles and responsibilities of the diverse players in the provision of rural services for sustainable agricultural growth, and offered recommendations for IFAD’s future institutional development support to countries in the region. It included desk reviews of completed and ongoing agricultural/rural development projects in Bangladesh, Cambodia and Viet Nam, which were supplemented by a field visit to Cambodia and Viet Nam. The work assessed the successes and shortcomings of IFAD-supported projects in providing rural services to smallholders in these countries and recommended measures for future interventions.
No. 8: Sustainability of rural development projects
The present paper represents the culmination of a multiphase research process. The first
step involved a comprehensive desk review of ongoing efforts to promote the
sustainability of IFAD programmes in the Asia and the Pacific region. The review was
based on an analysis of the sustainability issues encountered by a range of international
development and lending institutions operating in the region and elsewhere, and of
relevant internal documents, including IFAD policy and strategy initiatives, project
design guidelines, supervision reports and monitoring and evaluation (M&E) findings.
During the desk review, valuable information was also gained from individual
interviews with the Office of the Vice President, the Director of the Asia and the Pacific
Division (PI), IFAD country programme managers (CPMs), the Office of Evaluation
(OE) and technical staff.
| Case studies |
Following the desk review, case studies were carried out in India, Laos, the Philippines and Viet Nam. A selected number of IFAD-funded projects were chosen on an agreed set of criteria (including status at implementation, type of project, previous work on sustainability, environmental context) in order to offer a wide representation of IFAD’s experience on sustainability in Asia. |
No. 7: Drought, coping mechanisms
and poverty Insights from rainfed rice farming in Asia
Drought represents a major constraint on food production in the Asia and the Pacific
region. Some 23 million hectares are drought-prone, representing a fifth of the total
rice area of the region. A recent report of the Intergovernmental Panel on Climate
Change highlights the increasing frequency and intensity of droughts in many parts of
Asia. These increases are attributed mainly to a rise in temperature, in particular during
the summer and normally drier months and during El Niño Southern Oscillation
(ENSO) events. Drought is affecting large tracts of the main rice-producing areas of
Asia. In China, for example, the increase in area affected has exceeded 6.7 million
hectares since 2000. In South Asia nearly half the droughts are associated with El Niño,
and consecutive droughts in 1999 and 2000 in Pakistan and north-western India led to
sharp declines in water tables and crop failures. In South-East Asia, as well, droughts
are normally associated with ENSO years.
No. 6: Assessment of likely
impacts of avian influenza on
rural poverty reduction in Asia:
Responses, impacts and
recommendations for
IFAD strategy
IFAD’s experience shows that village or backyard poultry production is fundamentally
important to the poor, and especially to rural women. For many poor households,
poultry is primarily a form of savings, which can be used in building up assets or
generating cash quickly by sale in time of need. Studies conducted in Bangladesh have
shown that when appropriate support is provided, women poultry producers have
been able to increase incomes, buy more food, send children to school and augment
their assets.
Since the outbreak in December 2003, highly pathogenic avian influenza (or avian
flu) has affected millions of birds in many Asian countries, particularly in the South-
East Asian countries of Cambodia, Indonesia, Thailand and Viet Nam, as well as in
China. More than 230 million poultry in affected countries have died or been
slaughtered as of end 2006. Despite considerable control efforts, the avian flu virus
continues to be detected, at least sporadically, in humans or birds in these countries.
Poultry industries have been badly hit by both direct losses and a fall in prices due to
the drop in consumer confidence. However, the most vulnerable groups are
smallholders, many of whom are rural poor women with few assets and no animals
other than poultry. Poor poultry raisers both contribute to the risks and are directly and
indirectly vulnerable to avian flu under both animal and human health aspects.
The health dimension of the epidemic, particularly the increased risk of the virus
mutating to become a potentially dangerous human-to-human pandemic virus, has
received much attention internationally. However, there have been few studies of the
impact of the disease on poor, small-scale poultry producers or of ways to build their
capacity to mitigate this impact and prevent future outbreaks. The present study was
designed to fill this gap. It has identified concrete measures to mitigate adverse impacts
of future epidemics, reduce the vulnerability of poor poultry producers, rehabilitate
affected producers and foster sustainable poultry-raising through enhanced biosecurity
in the poultry sector.
The study findings and recommendations will be of interest to implementers of development projects focusing on smallholder poultry production – as well as to policy-makers, development practitioners and donors for the design of conducive policies and programmes in support of poor poultry producers.
No. 5: Agricultural technology choices for poor farmers in less-favoured Areas of South and East Asia
Between 1965 and 1990, improved bioagricultural technology and water control lifted hundreds of millions of people out of poverty in several countries of the Asia and the Pacific Region, mainly by raising employment and the production of food staples and making products more affordable.
However, this Green Revolution technology bypassed millions of rural people in less-favoured environments (uplands and mountains, marginal coastal areas and drylands). Rainfed agriculture dominates in these areas, which are also subject to critical socio-economic constraints such as poor access to markets, infrastructure and services. The incidence of poverty is high in many of these areas. Agricultural productivity growth is slow and declining due to natural resource degradation, particularly soil erosion and soil fertility decline, the overgrazing of livestock and the limited use of soil and water conservation measures.
The IFAD Strategic Framework 2007-2010 places a high priority on enhancing the access of rural poor people to improved agricultural technologies and effective production services. In Asia and the Pacific, IFAD’s focus has been on the development and dissemination of agricultural technologies for poor farmers in less-favoured areas.
This paper reviews the available evidence on the adoption and impacts of these technological approaches, the farm-level and community-level constraints and the policy and institutional issues. Based on this, the paper assesses the potential of these technological approaches to improve productivity and natural resource management and reduce poverty in the less-favoured areas of South and South East Asia. It then provides recommendations concerning technology strategies to reduce poverty among poor farmers in these areas.
This study was undertaken by the International Food Policy Research Institute, in collaboration with the Asia and the Pacific Division of IFAD. The findings and recommendations of the study might be of interest to policymakers, development practitioners, donors, academics and civil society.
No. 4: Supermarkets, smallholders and livelihood prospects in selected Asian countries
Recent literature has drawn attention to the speedy rise of supermarkets in different regions of the developing world and forecast their rapid spread. The emergence of supermarkets has transformed agrifood markets, but at different rates and to a different extent across regions and countries. This transformation is a challenge for smallholders. While the risk of their exclusion is real, it is argued that there are opportunities as well.
This paper first analyses the difficulties and comparative advantages of smallholders in supplying high-value agricultural commodities to supermarkets. It undertakes an econometric analysis of factors determining the expansion of supermarkets: per capita incomes, female participation rates, income inequality, urbanization and the openness of the economy. It concludes that, contrary to conventional wisdom, the growth of supermarkets and dramatic changes in the food supply chain will not lead to the demise of smallholders if appropriate measures are taken to address the constraints on smallholders. It further argues that smallholder participation in supermarkets can be promoted through mutually beneficial partnerships between supermarkets and smallholders, on the one hand, and a macropolicy framework that protects the economic interests of smallholders, on the other. Finally, it identifies some measures to promote public-private partnerships so that smallholders may benefit from supermarket expansion in Asian countries.
No. 3: History and spread of the self-help affinity group movement in India – the role played by IFAD
Experience worldwide shows that when microfinance services reach the rural poor, particularly women, there are considerable improvements in incomes, child nutrition and education, family health, and women’s empowerment. Self help groups (SHGs) were piloted by NGOs, notably MYRADA in India in the mid-1980s, to provide financial services to the rural poor. This has now become a movement for social empowerment in India, particularly for poor rural women.
This paper traces the origins and progress of the self-help group (SHG) movement in India from 1985 to 2006. It looks chronologically at the roles of non-governmental organizations (NGOs), the National Bank for Agriculture and Rural Development (NABARD) and, other banks, central and state governments, and IFAD as they entered into the movement. It also analyses major factors contributing to or limiting the rapid expansion of SHGs in India. It is believed that this paper will be of interest to policy makers, development practitioners, academics and civil society and will enrich the understanding of SHGs.
No. 2: A methodology for assessment
of the impact of microfinance on
empowerment and vulnerability
One of IFAD’s strategic objectives in contributing to the goal of reducing rural poverty
is to provide improved financial and related non-financial services in rural areas. In
fact, two thirds of the Fund’s current projects have a rural finance component and
approximately one fifth of the Fund’s resources are dedicated to rural finance. Rural
finance interventions provide small-scale credit and other financial services to poor
households and very small, informal businesses. They provide a mechanism for the
poor to smooth the effects of income shocks on consumption, find safe and affordable
repositories for their savings, take advantage of profitable investment opportunities
and insure against risk.
Experience worldwide shows that when microfinance services reach women, the benefits are particularly sustainable. Savings rates are higher; group life is more intensive; repayment rates are remarkable; enterprise growth and graduation are stronger; and there are measurable improvements in child nutrition and education, family health and household sanitation, shelter and general welfare.
The present paper offers a broad framework for assessing the impact of microfinance projects on the empowerment and vulnerability of the rural poor, going well beyond the conventional criteria of rates of return and financial sustainability of microfinance institutions. These are new and emerging strategic concerns in the Asia and the Pacific region, and we hope that the methodology proposed will enrich the criteria for IFAD’s interventions in microfinance through contextual adaptation. Empowerment is defined as “increasing poor people’s freedom of choice and action to shape their own lives”, while the addressing of vulnerability builds resilience to various shocks.
This study is based on a small but detailed survey of members of self-help groups in six villages in the Pune district of India, where the IFAD-supported Maharashtra Rural Credit Project was implemented. There is no dearth of studies that examine targeting accuracy in microfinance programmes, reduction in the transaction costs of borrowing by and lending to self-help groups, microenterprise development and capacity-building in self-help groups.
Rather than providing a checklist of impact indicators, this paper identifies a few key indicators that impinge on aspects of social capital, empowerment of the poorest and self-insurance. The indicators used are familiar and easy to construct. As there are few detailed empirical reviews, an attempt is made to propose a selective list of indicators that could be adapted, refined and extended through systematic application.
No. 1: Millennium Development Goal
of halving poverty
in Asia and the Pacific Region:
Progress, prospects and priorities
The paper reviews progress towards attaining the MDG of poverty reduction, assesses the prospects for achieving it by 2015 and identifies priorities for accelerating process. Despite impressive gains in the Asia and the Pacific Region represented by high economic growth and poverty reduction over the last three decades, the region still accounts for two thirds of the world’s poor. Therefore, achievement of the goal to halve the proportion of the world’s extremely poor people by 2015 depends to a large extent on this region’s performance in further reducing poverty over the next 10 years.
Several studies have shown that the first MDG will be achieved overall in the region, as well as in many countries within the region. However, these studies are based on projections of past trends and do not consider how agricultural growth, trade and institutional factors influence poverty through their effects on overall income growth. Therefore, they do not offer useful policy insights. This study, based on an econometric analysis, was commissioned to fill that gap and to deepen our understanding of policy changes in attaining the MDG of poverty reduction.