Discussion Paper

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Discussion Paper

  • The effects of a CAADP-compliant budget on poverty and inequality in Ghana
    Younger, Stephen D.; Benin, Samuel. IFPRI Discussion Paper. Washington DC: IFPRI. 2017
    Abstract | Download
    Ghana has accepted the CAADP commitment to dedicate 10 percent of government spending to the agricultural sector. In a 2014 paper, Benin argues that Ghana falls short of that goal, and in a 2016 paper, Younger shows that despite the current fiscal crisis, there is fiscal space to meet the commitment. Benin estimates the rates of return to increased public expenditure on agriculture, finding that they are quite high, especially if the investments are made in the noncocoa sector. This paper uses Benin’s estimates to examine the poverty and inequality consequences of increasing public expenditure on agriculture. Key conclusions are that public expenditure on agriculture is surprisingly progressive, especially if spent in the grains subsector. This progressivity, combined with the high rate of return, means that public investment in agriculture may actually be more efficient at reducing poverty than LEAP, Ghana’s targeted conditional cash transfer program.
  • The role of agriculture in the fast-growing Rwandan economy: Assessing growth alternatives
    Diao, Xinshen; Bahiigwa, Godfrey; Pradesha, Angga. IFPRI Discussion Paper. Washington DC: IFPRI. 2014
    Abstract | Download
    This study assesses the future growth prospects of Rwanda. The report first focuses on broad economic growth using a rather aggregated 18-sector dynamic general equilibrium model to display the trade-off between rapid growth and structural change. The analysis shows that with the current investment pattern, rapid growth is possible but structural transformation is slow. With an overvalued exchange rate, growth in the tradable sector slows down and its share in the economy stays small. The importance of agriculture thus should be considered in the broad development strategy, for its role not only in poverty reduction but also in economic growth.

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