International Development

FSI researchers consider international development from a variety of angles. They analyze ideas such as how public action and good governance are cornerstones of economic prosperity in Mexico and how investments in high school education will improve China’s economy.

They are looking at novel technological interventions to improve rural livelihoods, like the development implications of solar power-generated crop growing in Northern Benin.

FSI academics also assess which political processes yield better access to public services, particularly in developing countries. With a focus on health care, researchers have studied the political incentives to embrace UNICEF’s child survival efforts and how a well-run anti-alcohol policy in Russia affected mortality rates.

FSI’s work on international development also includes training the next generation of leaders through pre- and post-doctoral fellowships as well as the Draper Hills Summer Fellows Program.

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Field experiments and simulation models are useful tools for understanding crop yield gaps, but scaling up these approaches to understand entire regions over time has remained a considerable challenge. Satellite data have repeatedly been shown to provide information that, by themselves or in combination with other data and models, can accurately measure crop yields in farmers’ fields. The resulting yield maps provide a unique opportunity to overcome both spatial and temporal scaling challenges and thus improve understanding of crop yield gaps. This review discusses the use of remote sensing to measure the magnitude and causes of yield gaps. Examples from previous work demonstrate the utility of remote sensing, but many areas of possible application remain unexplored. Two simple yet useful approaches are presented that measure the persistence of yield differences between fields, which in combination with maps of average yields can be used to direct further study of specific factors. Whereas the use of remote sensing may have historically been restricted by the cost and availability of fine resolution data, this impediment is rapidly receding.

Highlights:

  • Satellite data can help overcome spatial and temporal scaling issues that challenge simulation and experiment based analyses of yield gaps.
  • Yield gap profiles, based on multiple years of satellite data, provide a useful measure of how persistent yield-controlling factors are through time.
  • Satellite data capable of discriminating crop yields on individual fields are more available and affordable than ever.

The article is part of a special issue on crop yield gap analysis.

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Field Crops Research
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David Lobell
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David Lobell
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Human activities are currently estimated to produce around 40 billion tonnes of carbon-dioxide equivalent every year. Model results indicate that agricultural adaptation measures would prevent around 350 million tonnes of carbon-dioxide emissions annually – equivalent to around 1% of total global emissions.

Adapting to climate change or mitigating climate change – which would you choose to invest your cash in? Mitigation and adaptation are often viewed as separate activities, with the former aiming to reduce greenhouse-gas emissions and the latter helping adjust to expected increases in greenhouse gases. A new study shows that when it comes to agriculture, adaptation measures can also generate significant mitigation effects, making them a highly worthwhile investment.

Food production is big. If farmers fail to adapt to climate change we can expect to see more land being turned over to agriculture, in order to keep up with food demand. With this in mind, David Lobell, from Stanford University, US, and colleagues used a model of global agricultural trade to investigate the co-benefits of helping farmers adapt to climate change, thereby avoiding some of the emissions associated with land-use change.

Running their model to 2050, they show that an investment of $225 bn in agricultural adaptation measures can be expected to offset the negative yield impacts associated with predicted temperature and rainfall changes. But that’s not all – the model revealed that this investment would also save 61 million hectares from conversion to cropland, resulting in 15 Gtonnes carbon-dioxide equivalent fewer emissions by 2050.

"I don't think any of us expected the mitigation benefits to be as big as they were," said Lobell, whose findings are published in Environmental Research Letters (ERL). "We had a hunch that they would be big enough to be an important co-benefit, but the fact they were often big enough to rival other mitigation activities was surprising."

Click here to read the full article.

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Africa owns 60% of the world’s uncultivated land suited for crop production, but accounts for 30% of the world’s malnourished and only 3% of global agricultural exports. If there is one thing global agricultural policy experts Paul Collier and Derek Byerlee can agree on, it’s that Africa’s food system is struggling.Their different views on the causes and investment solutions to put Africa on a more prosperous and food secure path made for a provocative discussion at a symposium hosted last week by Stanford University’s Center on Food Security and the Environment.

Collier, a distinguished economist and author of the award-winning book “The Bottom Billion”, was direct in his opening remarks.

“Smallholder agriculture has been a persistent productivity disaster for Africa,” said Collier. “Despite a huge land area to population ratio and higher proportion of its labor force engaged in food production, Africa is still not able to feed itself. The smallholder business model of the last 50 years is fundamentally flawed…maybe it is time for a Plan B.”

African agricultural productivity remains astoundingly low and stagnant at about $500 per person per year. His solution: debunk the ‘myth of the efficient peasant’ and rural romanticism and support commercial agriculture and urban growth.

Commercial agriculture reaps economies of scale that provide advantages often beyond reach for smallholder farmers yet are critical to agricultural production in Africa—risk finance, liquidity, technology, logistics, and knowledge of markets. Collier points to the success of Brazil and Thailand—two emerging economies that differ in scale of commercial organization, but have become major agricultural exporting countries.

Byerlee, a renowned economist and director of the 2008 World Development Report, agreed with Collier that commercial agriculture is likely Africa’s future, but that market-oriented smallholder farmers will play the lead role.

“We have much to learn from emerging business models,” said Byerlee. “Smallholders and agribusiness have complementary assets that can contribute to commercial agriculture, and states and investors must help facilitate smallholder inclusion in these models.”

Byerlee noted that the choice between small-scale or large-scale production models depend on transaction costs and type of commodity, and are context specific. Small- to medium scale production is best suited to most types of products in Africa especially food staples and many labor intensive products (e.g, diary). This follows the example of Thailand that not only has succeeded in food production but alone exports more than the value of all sub-Saharan Africa. Value chains that require stronger coordination with processing and shipping (e.g., sugar and palm oil), demand market standards (e.g, export horticulture) or are taking pioneering risks (e.g., new crops in new areas) may be better suited for large-scale production. Benefits may still be large if they create good jobs—a major challenge for Africa’s future.

Where to invest in Africa’s future?

"Young Africans are voting with their feet in droves to leave smallholder agriculture because it is impoverishing and boring, “ said Collier. “The economic tragedy for Africa is that cities haven’t been the engines of economic opportunity and wage employment.”

Collier argued investments in cities over agriculture are needed to prepare for an urban future and must be done quickly due to one dangerous fact—climate change.

“Climate change is the train coming down the tracks and it is already happening in Africa,” warned Collier. “The continuing deterioration of African agriculture is already set in stone. The last 50 years of carbon emissions are going to continue to devastate Africa’s climate over the next 50 years.”

Collier fears climate change will shift Africa’s competitive advantage in agriculture to Northern Eurasia and North America. Therefore, limited investment dollars must shift to cities which are more climate resilient. Byerlee disagrees.

“There is overwhelming and convincing evidence that agricultural growth is important for poverty reduction and food security,” said Byerlee. “Look at the Green Revolution in Asia and the institutional reforms in China in the early 1980s.”

The 2008 World Development Report also found GDP growth from agriculture benefits the income of the poor two to four times more than GDP growth from non-agriculture. So why isn’t this working for sub-Saharan Africa?

Byerlee points to Africa’s history of poor macroeconomic policies that have disadvantaged African farmers. Smallholder farmers have traditionally been taxed at high levels (as much as 50 percent 20 years ago before liberalization programs started kicking in). Rates have come down dramatically to 15-20 percent, but are still significantly higher than other countries.

“African states must level the playing field,” said Byerlee.

Government investment in public goods at four percent of agricultural GDP still lags behind that enjoyed by most other countries. That is less than half of what has been spent in Asia over the last couple of decades where investment in core public goods, R&D, rural roads, and irrigation have really made a difference.

Access to land and finance must also improve to support the growth of smallholder agribusiness. This especially includes secure, low cost, and transferrable land rights to allow efficient smallholders to expand.

Greater investment is also needed in technology and information. Research and development in Africa have been traditionally underfunded and understaffed. Despite involvement of agricultural research groups such as CGIAR over the last 40 years, only 35 percent of food crop area is planted to improved varieties. Smallholder farmers also often lack business development skills and access to primary education – a critical constraint to growth.

Reasons for optimism

Many of these macropolicies are slowing changing, and that makes Collier and Byerlee hopeful.

“After four decades in sub-Saharan Africa I feel optimistic about Africa’s food systems and future,” said Byerlee. “I see exciting opportunities in terms of market growth, private interest, and improved policies.”

Yields in Africa are low, but there is room for significant improvement. The continent is home to potentially 240 million hectares of uncultivated land and less then 20 percent of irrigation potential has been tapped.

African agricultural systems are transforming rapidly in response to rising rates of income growth, urbanization, and shifts in demand for high value and processed food, and feed for livestock. Higher food prices are incentivizing farmers to enter the market and increasing farmer income. Regional markets now accounting for only 5-10% of trade have much potential to expand, and Byerlee projects the value of African urban food markets to quadruple over the next 20 years.

Renewed investment in Africa is another reason for optimism. After decades of declining support donor agencies are refocusing their efforts on supporting agricultural development in Africa. Private sector investment, ranging from local to foreign investors, is also increasing. Collier spoke of the value pioneer commercial investors are bringing to unused and underutilized, but arable lands in Africa. These larger investors are better able to internalize the benefits of infrastructure supply while creating jobs and opening new markets.

The spur in foreign investment has drawn some fire from opponents worried about ‘land grabbing’. Collier and Byerlee both pointed out the need to differentiate between commercial investors and land speculators. The latter are being scrutinized, and for good reason.

Land speculators are leasing huge tracts of land over long time horizons and banking on the land’s option value if there is a big spike in food prices. This takes potentially arable land out of near-term production and out of the hands of local communities. Byerlee suggests governments impose controls on how rapidly the land is developed as one way of managing this problem.

What will a successful African food system look like in 2050?

"African peasantry as we know it today will not be preserved," projects Collier.

“If commercialization is successful most Africans will live in big coastal cities like the US and Europe,” said Collier. “Most of the remaining rural population will move to the hinterland of the big cities, because profitable agriculture will be selling into the big cities from close vicinity."

He envisions a mixture of different types of commercial agriculture ranging from consolidated family farms as is the norm in the US to large-scale enterprises as seen Brazil, but agriculture will not employ a lot of people. He sees an opportunity for commercial agriculture to piggyback off the infrastructure put in place by extractive natural resource companies.

Byerlee foresees Africa headed down a path similar to Thailand where a more egalitarian, smallholder commercial farmer model dominates (2-5 hectares). Large-scale farming has a legacy of failure in Africa, he said. He sees better prospects for large-scale irrigated rice and perhaps oil palm. Oil palm was actually an African crop prior to moving primarily to Malaysia and Indonesia. The value of South East Asian exports of palm oil is now greater than all agricultural exports from sub-Saharan Africa. In fact, Africa now imports $3.5 billion in palm oil.

“With billions of dollars at stake, big Asian companies are investing in Africa with the potential to create millions of jobs,” said Byerlee. “Oil palm could be a really big opportunity to transform African agriculture in the humid tropics, but state support is needed to facilitate inclusion of smallholders and safeguard social and environmental standards."

Africa has the natural resources to become a major player in the global agricultural export market and to bring down its alarmingly high malnutrition and poverty rates. What’s needed now is the political will, guidance, and investment to make that happen.

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Successful adaptation of agriculture to ongoing climate changes would help to maintain productivity growth and thereby reduce pressure to bring new lands into agriculture. In this paper we investigate the potential co-benefits of adaptation in terms of the avoided emissions from land use change. A model of global agricultural trade and land use, called SIMPLE, is utilized to link adaptation investments, yield growth rates, land conversion rates, and land use emissions. A scenario of global adaptation to offset negative yield impacts of temperature and precipitation changes to 2050, which requires a cumulative 225 billion USD of additional investment, results in 61 Mha less conversion of cropland and 15 Gt carbon dioxide equivalent (CO2e) fewer emissions by 2050. Thus our estimates imply an annual mitigation co-benefit of 0.35 GtCO2e yr−1 while spending $15 per tonne CO2e of avoided emissions. Uncertainty analysis is used to estimate a 5–95% confidence interval around these numbers of 0.25–0.43 Gt and $11–$22 per tonne CO2e. A scenario of adaptation focused only on Sub-Saharan Africa and Latin America, while less costly in aggregate, results in much smaller mitigation potentials and higher per tonne costs. These results indicate that although investing in the least developed areas may be most desirable for the main objectives of adaptation, it has little net effect on mitigation because production gains are offset by greater rates of land clearing in the benefited regions, which are relatively low yielding and land abundant. Adaptation investments in high yielding, land scarce regions such as Asia and North America are more effective for mitigation.

To identify data needs, we conduct a sensitivity analysis using the Morris method (Morris 1991 Technometrics 33 161–74). The three most critical parameters for improving estimates of mitigation potential are (in descending order) the emissions factors for converting land to agriculture, the price elasticity of land supply with respect to land rents, and the elasticity of substitution between land and non-land inputs. For assessing the mitigation costs, the elasticity of productivity with respect to investments in research and development is also very important. Overall, this study finds that broad-based efforts to adapt agriculture to climate change have mitigation co-benefits that, even when forced to shoulder the entire expense of adaptation, are inexpensive relative to many activities whose main purpose is mitigation. These results therefore challenge the current approach of most climate financing portfolios, which support adaptation from funds completely separate from—and often much smaller than—mitigation ones.

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Environmental Research Letters
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David Lobell
Thomas Hertel
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Rapid population growth, urbanization and rising incomes will present an unprecedented opportunity for growth of commercial agriculture and agribusiness in coming years. The value of food consumed in urban areas is set to expand by four times to 2030, but given evidence of a continuing decline in competitiveness much of this could be sourced from imports even in countries with an apparent comparative advantage in agriculture. At the same time, the number of youth entering the labor force will rise to 25 million annually by 2025 putting tremendous pressure on job creation, especially through agriculture. Rising investments in large-scale farming seen in recent years may contribute to increased food supply (although this is highly uncertain given the track record) but some investment, especially in mechanized grain farms, provide few jobs. Even so there is a dire need for increased investment in the sector, both public and private, if it is to realize its potential for growth and poverty reduction.

This paper lays out a number of models of inclusive agribusiness growth, grouped into three categories (i) institutional arrangements for improving productivity of smallholders operating in spot markets, (ii) various types of contract farming arrangements, and (iii) large-scale farms that generate jobs and/or include community equity shares. The institutional and policy context as well as commodity characteristics that favor these models are discussed within a simple transactions cost framework. Examples of apparent successes with each of these models are provided, many based on direct interviews and case studies of innovative firms.

The final section discusses cross-cutting policy priorities to enable the growth of commercial agriculture and agribusiness. These include continuing reforms to liberalize product and input markets, access to technology and skills, stimulating financial and risk markets, securing land rights, and investment in infrastructure through public-private partnerships. Priorities differ by value chain and implementation presents challenges of delicately balancing state intervention and leadership with private initiative. These challenges are illustrated through examples from Africa as well as emerging countries of Asia and Africa.

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Center on Food Security and the Environment, Stanford University
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For decades, earnings from farming in many developing countries, including in Sub-Saharan Africa, have been depressed by a pro-urban and anti-trade bias in own-country policies, as well as by governments of richer countries favoring their farmers with import barriers and subsidies. Both sets of policies reduced global economic welfare and agricultural trade, and almost certainly added to global inequality and poverty and to food insecurity in many low-income countries. Progress has been made over the past three decades in reducing the trend levels of agricultural protection in high-income countries and of agricultural disincentives in African and other developing countries. However, there is a continuing propensity for governments to insulate their domestic food market from fluctuations in international prices, which amplifies international food price fluctuations. Yet when both food-importing and food-exporting countries so engage in insulating behavior, it does little to advance their national food security. This paper argues that there is still plenty of scope for governments to improve economic welfare and alleviate poverty and food insecurity by further reducing interventions at their national border (and by lowering trade costs). It summarizes indicators of trends and fluctuations in trade barriers before pointing to changes in both border policies and complementary domestic measures that together could improve African food security.

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Center on Food Security and the Environment
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Jennifer Burney
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FSE's Benin solar market garden project was picked as one of the most five hopeful energy stories of 2012 by National Geographic. Jennifer Burney, FSE fellow and lead on the Benin project, is a National Geographic Emerging Explorer. FSE began its partnership with the Solar Electric Light Fund in 2007 and continues to work together to spread the technology into new villages in West Africa.
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Currently, more than two-thirds of the population in Africa must leave their home to fetch water for drinking and domestic use. The time burden of water fetching has been suggested to influence the volume of water collected by households as well as time spent on income generating activities and child care. However, little is known about the potential health benefits of reducing water fetching distances. Data from almost 200 000 Demographic and Health Surveys carried out in 26 countries were used to assess the relationship between household walk time to water source and child health outcomes. To estimate the causal effect of decreased water fetching time on health, geographic variation in freshwater availability was employed as an instrumental variable for one-way walk time to water source in a two-stage regression model. Time spent walking to a household’s main water source was found to be a significant determinant of under-five child health. A 15-min decrease in one-way walk time to water source is associated with a 41% average relative reduction in diarrhea prevalence, improved anthropometric indicators of child nutritional status, and a 11% relative reduction in under-five child mortality. These results suggest that reducing the time cost of fetching water should be a priority for water infrastructure investments in Africa.

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Environmental Science and Technology
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Jenna Davis
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Sharon Gourdji
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Scientists are making progress in helping millions of wheat farmers adapt to hotter conditions, but the gains have been uneven, reports a new study led by Stanford University. New approaches to breeding are needed to withstand increasingly common heat waves and keep pace with growing global food demand.

Wheat is the most widely grown crop in the world; unfortunately it is also one of the most sensitive to future global warming. Scientists around the world strive to develop new wheat varieties each year that incorporate improved features, much like car companies release new models each year. Different strategies are commonly used; some target fully irrigated conditions that favor very high yields, while others focus on dry and hot conditions where yield maintenance under stress is a priority.

The team, which includes scientists from Stanford and the International Maize and Wheat Improvement Center (known as CIMMYT), evaluated 25 years of data from historical trials around the globe and analyzed the outcome of different past breeding approaches to help prioritize future strategies. The fully irrigated nursery, known as the elite spring wheat yield trials, produces varieties that are released for the majority of wheat farmers in countries like India and Egypt each year. While cultivars selected under stressed conditions showed significant yield progress at higher temperatures, the elite trials did not.

“There has been very impressive progress in improving yields for the elite varieties at the cooler temperatures that wheat prefers,” explains lead author Sharon Gourdji, a post-doctoral scholar in Stanford’s department of Environmental Earth System Science and Center on Food Security and the Environment (FSE).

“However, to date, our analysis shows a lack of yield gains for these varieties in hot environments over the past 25 years. Along with the gains in cool conditions, this means that the yield difference between cool and hot conditions is getting larger.”

A CIMMYT researcher plants wheat seed in pots in the center's greenhouse facilities. Photo credit: X. Fonseca/CIMMYT

"I think we have learned that the current main approach to breeding won't quite cut it in terms of adapting wheat to climate change,” said co-author David Lobell, assistant professor in Environmental Earth System Science and FSE center fellow. “That is useful information as breeding centers try to raise their game to contend with long-term warming."

Lobell notes that there are good reasons why improved heat tolerance for the elite varieties has not happened naturally.

“Breeding is tough since scientists are aiming for so many traits at once – for example, disease resistance, high yields, and good quality for bread making. Adding heat tolerance is like telling a scout looking for a superstar athlete, ‘by the way, make sure he’s a straight A student’,” said Lobell.

One important lesson from the study is that sifting through historical data can help identify what works and what does not.

“It can often be a hard sell to have breeders take the time to send their data back once they have selected their varieties and moved on,” explains CIMMYT wheat physiologist and co-author Matthew Reynolds. “This study clearly demonstrates the advantage of having these data to assess progress. It shows the genetic potential of wheat to adapt to warmer-than-usual conditions, and reinforces the value of screening under stress as a strategy for adaptation to climate change.”

The progress in the nursery targeted towards stress conditions shows that it is possible to make sizable gains in improving heat tolerance. But whether this can be combined with continued high performance under cooler conditions remains to be seen.

“It is critically important for farmers that they not only survive the bad or hot years, but that they can take full advantage of the favorable years” says Gourdji. “What is needed is a breeding strategy that can successfully achieve both.”

This work was supported by a grant from the Rockefeller Foundation. Additional co-authors of the study include CIMMYT’s Ky Mathews and Jose Crossa.

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