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This paper examines the effects of intra-household power dynamics particularly on food security and household nutrition. The novelty of this paper is that, beyond the standard approach, engendered ...

Agricultural commercialisation is widely recognised as a catalyst to economic growth and development in low and middle-income countries. This study investigates gender and social differences in agricultural commercialisation in rural Malawi. Specifically, the paper analyses different levels of agricultural commercialisation among gender and wealth categories; the specific gender and social issues that facilitate or impede agricultural commercialisation among gender and wealth categories; and their implications for commercialisation and livelihoods among gender and wealth categories.

The authors of this paper attempt use quantitative methods to determine the different factors of livelihood trajectories in the context of agricultural commercialisation. To do this, they draw on primary evidence from household surveys conducted over a span of ten years in Mchinji and Ntchisi districts, in rural Malawi. The authors hypothesise that households that are more commercialised are more likely to expand their investments in agriculture and/or take up livelihoods outside of agriculture. Crucially, they find that factors driving livelihood trajectories are not the same for farmers in different pathways, and highlight the need for policymakers to study findings emphasise the need to adopt context-dependent development approaches, in order to provide sustainable relief from poverty for farming households.

Food security, food safety, and healthy nutrition are key aspects of food systems with important implications for population health. Food safety addresses food-borne illness, and covers the handling, preparation and storage of food. Healthy nutrition is about the nutritional quality of diets. Food security encompasses both food safety and healthy nutrition, as well as a wider set of concerns related to food availability, access, utilization and stability. These three aspects of strong food systems are not only compatible, as important objectives and outcomes of food systems, but are complementary in principle, with important synergies existing between them in terms of their impact on population health outcomes. Yet tensions exist between food safety, healthy nutrition and the distinct aspects of food security. In practice, they are much less compatible, with political trade-offs between addressing them evident. This article critically assesses the compatibility of these concepts as a framework for achieving coherent food policy and global health.

This Campbell systematic review examines the effects of input subsidies on agricultural productivity, beneficiary incomes and welfare, consumer welfare and wider economic growth. The review summarizes evidence from 15 experimental and quasi‐experimental studies and 16 studies that use computable models, the majority concerning sub‐Saharan Africa. This review examines studies that evaluate the impact of agricultural input subsidies, including subsidies for agricultural machinery, seeds or fertilisers, on farmers, farm households, wage labourers or food consumers in low‐ or lower‐ middle‐income countries. It includes 15 experimental and quasi‐experimental studies and 16 simulation modelling studies. The majority relate to sub‐Saharan Africa (15 to Malawi) and to subsidised fertilizers and seeds. Fertiliser and seed subsidies are associated with increased use of these inputs, higher agricultural yields and increased income among farm households, but evidence of their effects on poverty is limited. There is much evidence that subsidy schemes are prone to inefficiency, bias and corruption. Models show that introducing or increasing subsidies generally results in positive effects for consumers and wider economic growth. However, the models indicate that the way subsidies are funded, world input prices and beneficiary targeting all have important influences on predicted outcomes. The authors were not able to find any studies examining subsidies for machinery. Plain language summary Agricultural input subsidies raise input use, yields and farm income. The review in brief Agricultural input subsidies raise input use, yields and farm income, but the evidence base is small and comes from a limited number of schemes and countries. What is this review about? Greater use of improved seeds and inorganic fertilisers, and increased mechanisation, could boost agricultural productivity in some low‐ or lower‐middle‐income countries, but there is disagreement about whether subsidising these inputs is an effective way to stimulate their use. This review examines the evidence for impacts of input subsidies on agricultural productivity, beneficiary incomes and welfare, consumer welfare and wider economic growth. What is the aim of this review? This Campbell systematic review examines the effects of input subsidies on agricultural productivity, beneficiary incomes and welfare, consumer welfare and wider economic growth. The review summarizes evidence from 15 experimental and quasi‐experimental studies and 16 studies that use computable models, the majority concerning sub‐Saharan Africa. What are the main findings of this review? What studies are included? This review examines studies that evaluate the impact of agricultural input subsidies, including subsidies for agricultural machinery, seeds or fertilisers, on farmers, farm households, wage labourers or food consumers in low‐ or lower‐ middle‐income countries. It includes 15 experimental and quasi‐experimental studies and 16 simulation modelling studies. The majority relate to sub‐Saharan Africa (15 to Malawi) and to subsidised fertilizers and seeds. What are the main results of this review? Fertiliser and seed subsidies are associated with increased use of these inputs, higher agricultural yields and increased income among farm households, but evidence of their effects on poverty is limited. There is much evidence that subsidy schemes are prone to inefficiency, bias and corruption. Models show that introducing or increasing subsidies generally results in positive effects for consumers and wider economic growth. However, the models indicate that the way subsidies are funded, world input prices and beneficiary targeting all have important influences on predicted outcomes. The authors were not able to find any studies examining subsidies for machinery. What do the findings of this review mean? Input subsidies can increase input use, and raise agricultural productivity with wider benefits. However, the design of subsidy schemes is crucial to their effectiveness, if they are to reach the desired farmers and stimulate input use. The effectiveness of subsidies in comparison to other interventions requires further study. A relatively small number of appropriate studies were found, and well‐documented research in countries beyond sub‐Saharan Africa is needed to ensure the wider relevance of these results. Mixed‐methods, theory‐based impact evaluations would help explore the impacts of different levels of subsidies for different beneficiaries. Simulation models studies could make more use of rigorous evidence from experimental and quasi‐experimental studies and examine more helpful subsidy comparisons. More clarity is needed in the reporting of methodological approaches, statistical information and the type and size of input subsidy implemented or modelled. How up‐to‐date is this review? The review authors searched for studies up to 2013. This Campbell systematic review was published in 2018. Executive summary/Abstract Background In recent decades, agricultural productivity in low‐ and lower‐middle‐income countries, particularly in Africa, has fallen increasingly behind that of upper middle‐income countries. Adequate use of agricultural inputs such as improved seeds and inorganic fertilisers has been identified as one way of enhancing agricultural productivity. However, these inputs can be financially unaffordable or unattractive to many poor farmers in developing countries. Agricultural input subsidies aim to make inputs available to users at below market costs as a way of incentivising adoption, increasing agricultural productivity and profitability, increasing food availability and access and ultimately reducing poverty and stimulating economic growth. They were common in poor rural economies in the 1960s and 70s. Their use declined in the 1980s and 90s, but recent years have witnessed a resurgence of interest and investment, mainly in Africa. There remains considerable debate about the effectiveness and efficiency of their use and the conditions under which they may or may not work. Objectives This systematic review explores the effects of agricultural input subsidies on agricultural productivity, farm incomes, consumer welfare and wider growth in low‐ and lower‐middle‐income countries. This research question is divided into the following primary and secondary research questions: 1. What are the effects of agricultural input subsidies on agricultural productivity and beneficiary incomes and welfare? 2. What are the effects of agricultural input subsidies on consumer welfare and wider economic growth? Search methods We carried out a systematic search for includable studies in a wide range of sources and using a variety of search methods. We searched academic and online databases, carried out forwards and backwards citation tracking of included studies, and consulted experts. There were no restrictions on publication year, type or language, though searches were undertaken in English. The main searches were completed in November 2013. However, we incorporated additional papers after this date where they became available before our analysis was completed. Selection criteria To be included, studies had to examine the effects of agricultural input subsidies, including products, machinery, seeds or fertilisers, on farmers, farm households, wage labourers or food consumers in low‐ or lower‐ middle‐income countries. Eligible comparisons included no active agricultural input subsidy intervention, wait‐list, alternate input subsidy intervention, or other interventions providing access to inputs. We included experimental or quasi‐experimental studies to address our primary research question regarding primary outcomes of adoption, productivity and farm income. We included econometric modelling studies to address our secondary research question on consumer welfare and wider economic growth outcomes. Studies were assessed by a single reviewer at both title and abstract level and full‐text level. A second reviewer then checked screening decisions taken at full‐text level. Data collection and analysis We extracted a range of data including bibliographic details, outcomes, time period covered, study design and outcomes data. For our primary research questions we synthesised evidence from experimental and quasi‐experimental studies using meta‐analysis, meta‐regression analysis and a qualitative synthesis of relevant implementation and contextual factors. For our secondary research questions we synthesised evidence from modelling studies narratively and displayed effects in scatter plots where possible. Results We identified 15 experimental and quasi‐experimental studies that assess the effectiveness of agricultural input subsidies on adoption, yield and farm incomes. We also identified 16 studies that use computable models that simulate the effect of agricultural input subsidies on measures of consumer welfare and wider growth. Overall, the evidence base is limited with a disproportionate focus on subsidy programmes in sub‐Saharan Africa and in particular on the case of Malawi. Most studies also have a focus on fertilisers and/or seeds rather than other types of inputs. We undertook meta‐analysis of experimental and quasi‐experimental studies to examine the effect of agricultural input subsidies on adoption, productivity, household income and poverty. The findings for primary outcomes are as follows: Adoption: Meta‐analysis of seven experimental and quasi‐experimental studies indicates an increase in adoption by 0.23 standard deviations (SD) (95% confidence interval (CI) [0.08, 0.38]) for farmers receiving agricultural input subsidies versus those not receiving agricultural input subsidies. Productivity: Across five studies, which were able to account adequate for confounding, there is an increase in yields of 0.11 SD (95% CI [0.05, 0.18]) for agricultural input subsidy recipients, compared to non‐recipients. Farm income: Recipient farmer income, measured by household expenditure and income and crop income and revenue from four studies, increases by 0.17 standard deviations (SD) (95% CI [0.10, 0.25]), over that of non‐recipients. Poverty: Only two studies report the effects of agricultural input subsidies on poverty, making it difficult to draw any clear conclusion. Meta‐regression found no association (positive or negative) between subsidy size and agricultural outcomes. However, narrative synthesis of data relating to programme implementation, input subsidy delivery mechanisms, farmer take‐up and usage of inputs, leakage of vouchers or inputs, and other associated factors indicates several points at which the theory of change for input subsidies breaks down. Subsidy vouchers do not always reach farmers in the quantities intended. Furthermore, where they do reach farmers they are not always used, and as a result providing subsidised inputs may not necessarily increase the amount of inputs used by farmers in absolute terms. We also synthesised data from simulation modelling studies of consumer welfare‐ and economic growth‐related outcomes including staple food prices and consumption, labour demand and agricultural wages, poverty incidence and gross domestic product (GDP). Results suggest that the relationships between the size of the change in subsidy and the outcomes of interest to be in line with our theory of change. However, analysis of modelling studies also indicates that factors such as how subsidies are funded, world input prices and beneficiary targeting can all play important roles in determining the effectiveness of input subsidies and their relative value compared to alternative policy options for agricultural development and poverty alleviation. Authors' conclusions Implications for research Overall, this review finds generally positive results for both primary and secondary outcomes across our theory of change. Included studies provide evidence linking fertiliser and seed subsidies to increased use of the subsidised inputs, higher agricultural yields and increased income among farm households, while the limited evidence relating to effects on poverty make it difficult to draw any clear conclusion. Models simulating subsidy effects show the introduction or increase in subsidies generally results in positive effects for consumers and wider economic growth. However, the review also indicates the importance of programme implementation and wider contextual factors. A narrative synthesis of data from experimental and quasi‐experimental studies finds implementation problems, with inputs not always made available or used as planned. Modelling studies indicate that the positive effects of subsidies are sensitive to changes in contextual factors endogenous and exogenous to the subsidy itself. There are also a number of implications for research. The review finds a relatively small evidence base of both experimental and quasi‐experimental studies, and econometric modelling studies. The evidence base focuses on a limited number of countries and evidence from a wider set of contexts where subsidies are used would be welcome. Implications for policy and practice Mixed‐methods, theory‐based impact evaluations can explore different levels of subsidies and unpack outcomes and assumptions along the causal chain, for different sub‐groups of beneficiaries. Simulation models studies should make more use of rigorous evidence from experimental and quasi‐experimental studies in determining coefficients used for household behaviour and the micro‐economic effects of subsidies. Furthermore, including multiple simulations in modelling studies to offer a range of different possible scenarios may be of more use to policy makers rather than simple ‘with or without subsidy’ comparisons. Researchers should ensure that they more clearly report methodological approaches, relevant statistical information and the type and size of input subsidy implemented or modelled.

Governments and development partners looking to accelerate progress in addressing malnutrition have been examining how to use interventions in value-chains to improve diets. However, the links between interventions in value chains and diets involve a range of direct and indirect effects that are not yet well understood. We apply a mixed-method multisectoral diagnostic to examine potential interventions in food systems to improve diets of smallholder farmers in Malawi. We examine entry points for interventions involving public and private-sectors, and explore the methodological requirements for undertaking this type of multisectoral analysis. We find that although food consumption is dominated by maize, a range of nutritious foods are also being consumed; including leafy greens, fruits, chicken, dried fish, dried beans and peas, and groundnuts. Yet important deficits in nutrient intake remain prevalent in low-income households due to inadequate quantity of consumption. While increasing consumption through own-production is one potentially important channel to increase quantity of nutritious foods available (particularly fruits and leafy green vegetables), markets also play a potentially important role. Nutritious foods are available on markets year-round, although strong seasonality impacts the availability and price of perishable products. For beans, peas and groundnuts, supply appears to be available throughout the year, with price fluctuations relatively controlled due to storage capacity and imports. The capacity of markets to supply safe and nutritious food is limited by a number of issues, including poor hygiene; lack of infrastructure for storage and selling; limited information on nutrition, and weak coordination among sellers and producers. Other bottlenecks include: on-farm constraints for expanded production, consumers with limited purchasing capacity, intense competition among sellers and few services for sellers to increase volume of product sold during peak demand. The diagnostics identify the role of information-related interventions to optimize decisions related to food choices, involving a range of different foods and value-chains, that could potentially lead to short- and medium-term improvements in diets. Longer-term and more resource-intensive interventions are also identified, such as improving capacity for product differentiation, processing, storage, and market infrastructure across a different range of food chains, so as to maximise coherence between short- and long-term planning. The findings highlight the benefits of applying a strategic, food systems-based approach of identifying specific and complementary actions for both the public and private sectors that can improve the diets of low-income populations.

Food markets have been found to be, in many settings, important in shaping diets and nutritional outcomes. However, more evidence and improved metrics are needed to understand these relationships. We examined relationships between food market participation and household dietary diversity in populations of rural Malawi facing hunger and poor nutrition. We analysed, using Poisson regression, survey data from 400 households in two districts of rural Malawi in post-harvest and lean seasons of 2017/18. We also developed a new metric of food purchases to support our examination of food market participation. The findings include clear associations between food purchase diversity and household dietary diversity, and suggest households engaging more with food markets are more likely to have diversified diets and better nutrition.

Childhood stunting holds consequences for child development. A nutrition program delivering small-quantity lipid based nutrient supplements (SQ-LNS) to children 6-23 months and child feeding messages was implemented in Malawi to reduce stunting. This study sought to understand the facilitators and barriers to program participation using in-depth interviews, pile sorts, direct observations, and focus group discussions with caretakers, village leaders and program volunteers. Perceptions of the LNS were positive, and visible changes in child health contributed to program participation. Conflicting priorities that prevented monthly collection of SQ-LNS and limited knowledge of child feeding messages constituted barriers to program participation.

Summary boxMuch of the global burden of malnutrition, particularly shifts towards an increased prevalence of overweight and obesity, is driven by dietary changes described as the ‘nutrition transition’.The nutrition transition appears to be driven by shifts in diets towards more ‘ultraprocessed’ foods high in sugar, fat, salt, low in fibre and less nutrient dense - but little is known about actual food consumption in many populations.Standard instruments used for measuring diets in low-income and middle-income countries are inadequate for assessing changing diets in the context of the nutrition transition, as they do not provide appropriate provision in response to categories for consumption of ultraprocessed food products.There is a need for a validated standardised food frequency questionnaire designed to measure changing dietary patterns that have appropriate provision for highly processed food types - and with the implementation of such questonnaires there is a need to consider food source and the importance of capturing foods eaten outside of the home as well as in the home.Malnutrition in all its forms—both underweight and micronutrient deficiencies, as well as overweight, obesity and associated non-communicable disease—is a global health issue, with the majority of cases arising in low-income and middle-income countries (LMICs).1 Much of this malnutrition, particularly shifts towards an increased prevalence of overweight and obesity, is driven by dietary changes described as the ‘nutrition transition’, whereby populations move from traditional diets high in fibre and micronutrients, to more highly processed diets high in sugar, fat, salt, low in fibre and less nutrient dense–with these dietary changes accompanied by changes in eating behaviours and physical activity patterns.2 Ultraprocessed food products have been defined by Monteiro et al as ‘not entirely or mostly made from foods, but from industrial ingredients and additives, and are highly profitable’.3 Distinctions are made between processed …

Jayne et al. make a valuable contribution to emerging empirical evidence on agricultural input subsidy programs in Africa by examining the effects of corrupt “diversion” of subsidized fertilizers on the displacement or crowding out effects of farmers’ purchases of subsidized fertilizer on purchases of unsubsidized fertilizer. Unfortunately, their estimation of the effects of this on economic and financial benefit cost ratios (BCRs) is methodologically flawed and, for Malawi, is also undermined by problematic use of data. This comment presents a consistent methodology for revised estimates of both economic BCR and fiscal efficiency for the Malawi program. This shows that the underlying economic BCR of subsidized fertilizers in Malawi has been higher than estimated by Jayne et al. and is largely unaffected by diversion and displacement, but that the fiscal efficiency of investments in the program is strongly affected by diversion and displacement in program implementation.

Background Global attention to the study of nutrition program implementation has been inadequate yet is critical for effective delivery and impact at scale. Objectives The objective of this mixed-methods process evaluation study was to measure the recruitment, fidelity, and reach of a large-scale, community-based nutrition program in Malawi. Methods The nutrition program delivered a small-quantity lipid-based nutrient supplement (SQ-LNS) and social and behavior change communication (SBCC) to improve infant and young child feeding (IYCF) and water, sanitation, and hygiene (WASH) practices in households with children aged 6–23 mo. Program monitoring and evaluation data were used to measure program recruitment, reach, and fidelity. Structured direct observations and knowledge questionnaires with program volunteers measured quality aspects of program fidelity. The number of times activities were done correctly was used to tabulate proportions used to represent program functioning. Results Half (49.5%) of eligible children redeemed program benefits by 8 mo of age during the first 4 y of program implementation. Implementation of training activities for SBCC cadres exceeded program targets (100.6%), but the completion of certain modules (breastfeeding and complementary feeding) was lower (22.9% and 18.6%, respectively). Knowledge of IYCF, WASH, and SQ-LNS messages by volunteers was >85% for most messages, except ability to list the 6 food groups (35.7%). Structured direct observations of SQ-LNS distributions indicated high fidelity to program design, whereas those of household-level counseling sessions revealed lack of age-appropriate messaging. Program reach showed participation in monthly distribution sessions of 81.0%, group counseling of 93.3%, and individual-level counseling of 36.9%. Conclusions This community-based nutrition program was implemented with high fidelity and quality, with specific interventions requiring further attention. The documentation of implementation contributes to our understanding about how program impacts were achieved.

Background: There is evidence that social transfers increase food consumption, improving the quantity and quality of food consumed by poor households. Questions remain on how to improve the effectiveness of social programs.Objective: The aim was to assess the impact of a lean-season food transfer on household food security, diet, and nutrition status of young children during the lean season in Malawi and to understand processes through which transfers operated.Methods: This was a longitudinal, quasi-experimental study based on 2 survey rounds in the Zomba district in Malawi. Data were collected from 60 communities randomly selected among food-insecure villages. Twenty households were randomly selected for interviews within each community. Study outcomes included household expenditures and food consumption (measured by using 7-d recall) and child-level dietary diversity (measured by using 24-h recall) and nutritional status (anthropometric measurements). We followed a mixed-methods approach involving child- and household-level assessments, as well as interviews with community stakeholders. We estimated program impact by combining propensity score matching and difference-in-difference methods.Results: The per capita effect of food transfers on food expenditure was estimated at 36 Malawian kwachas/d, corresponding to an increase of 19% from baseline. There was evidence of increased iron availability in household intake. Highly significant effects were found on children's dietary diversity score, corresponding to an increase of 15%, as well as a positive effect on weight-for-height z scores (WHZs) of >0.25 SDs. Effects on food expenditure and dietary diversity were robust to alternative matching specifications, although the effect on WHZs was not. Examination of the targeting of the transfer showed evidence of large errors of inclusion and exclusion.Conclusion: During the lean season in food-insecure settings, where important declines in food insecurity, diet quality, and nutrition status are present, food transfers may have a protective effect on household food security and diets of young children.

Malawi's implementation of a large-scale agricultural input subsidy programme has attracted significant international interest. This paper reviews the programme from 2005/06 to 2008/09. Nationwide disbursement of heavily subsidized fertilizers and seed to large numbers of beneficiaries represents a significant logistical achievement and substantially increased national maize production and productivity, contributing to increased food availability, higher real wages, wider economic growth and poverty reduction. However, the latter years of the programme have been accompanied by high international fertilizer prices and costs and high maize prices, the latter undermining the programme's food security, poverty reduction and growth benefits for many poor Malawian farmers relying on purchased maize for substantial amounts of their staple food requirements. Estimated economic returns to the programme have been satisfactory, given other programme benefits not captured in cost—benefit analysis. With substantial re...

This article uses a double-hurdle model with panel data from Malawi to investigate how fertilizer subsidies affect farmer demand for commercial fertilizer. The article controls for potential endogeneity caused by the nonrandom targeting of fertilizer subsidy recipients. Results show that on average 1 additional kilogram of subsidized fertilizer crowds out 0.22 kg of commercial fertilizer, but crowding out ranges from 0.18 among the poorest farmers to 0.30 among relatively nonpoor farmers. This indicates that targeting fertilizer subsidies to the rural poor is likely to maximize the contribution of the subsidy program to total fertilizer use. Copyright 2010, Oxford University Press.

This interdisciplinary approach differs from previous Millennium Development Goal (MDG) studies that have either examined individual goals or made broad sociopolitical assessments of the MDGs as a development mechanism. Instead it uses the analysis of cross-cutting challenges as the basis to identify a set of principles for future goal development after 2015. It emphasizes that this is not an assessment of the MDGs and instead it focuses deliberately on challenges with the implementation of the MDGs so as to inform future goal setting.

This paper investigates factors that determine child malnutrition in Malawi. Measuring child nutrition using anthropometric measures, the study finds that child malnutrition worsens with age until a certain critical age beyond which it starts to improve and that boys are more at risk than girls. We also find evidence that child malnutrition is more prevalent in children that fall sick regularly and in households that draw water from a well, protected or not. In addition, children who come from households that have mother/female household heads who are economically empowered, in terms of being in salaried employment or working in a family business, tend to be better nourished.

Women are increasingly venturing into ownership of micro and small enterprises, either on their own or in partnership with male entrepreneurs. Using national survey data from Malawi, this study compares the performance of enterprises owned by females with those owned by males. The results show that the relationship between gender and business performance is complex. While there are no significant differences in profit margins, female-owned enterprises tend to grow more rapidly in terms of employment than male-owned ones. Gender-based regression results also show that while there are common factors that affect the performance of both kinds of enterprise, there are also differential effects in which education is a critical factor for the success of female-owned enterprises.

Despite decades of agricultural policies that promoted the adoption of fertiliser and hybrid seed technologies as ways of improving productivity in maize farming, smallholder farmers in Malawi have been relatively slow to adopt the new technology. Using bivariate probit analysis and controlling for technology acquisition through grants, we found that fertiliser adoption was positively associated with higher levels of education, larger plot sizes and higher non-farm incomes, but negatively associated with households headed by women and distance from input markets. The adoption of hybrid seeds is positively associated with market-based land tenure systems and fertile soils, but negatively associated with age of the farmer and distance from input markets.

This study evaluates the impact of privatization on technical efficiency using panel data from privatized enterprises, state-owned enterprises and private enterprises competing in oligopolistic Malawian manufacturing industries in which privatization took place. The results of the technical efficiency model, based on the period 1970–1997, provide evidence that privatization increases the technical efficiency of all firms (industry effects). Further incentives for improvements in technical efficiency are due to more domestic competition, multinationality and structural adjustment.

This article reports on factors influencing participation in the poverty-oriented public works programme in rural Malawi and analyses the determinants of the revealed positive socio-economic impact among the participants. The programme targets poor households through self-selection by offering a wage below the official minimum for rural areas. The empirical results show that most participants are poor and with little education. Probability of particpation is higher for members of female-headed households and households with longer periods of food insecurity, excess supply of labour, few assets and reservation wages below the wage offered in the programme. Taking account of selectivity bias, the impact of the programme increases with the gender (female) of participants and the numbers per household participating.

This study evaluates the impact of privatization on the technical efficiency of six privatized enterprises, three state-owned enterprises and six private enterprises competing in three oligopolistic manufacturing industries in which privatization took place between 1984 and 1991 using panel data between 1970 and 1997. Technical efficiency scores are computed using Data Envelopment Analysis (DEA) based on the ‘intertemporal frontier’ approach for panel data. The results show that privatization in Malawi is associated with high mean technical efficiency in privatized enterprises and competing state-owned enterprises and private enterprises. If we account for other sources of technical efficiency, in the full sample we find evidence that the competitive process is more important than privatization in increasing the technical efficiency of all enterprises competing in the same industries. However, the results of the subsample of privatized enterprises show that privatization significantly increases the technical efficiency of privatized enterprises, although we cannot ignore the role of domestic competition, capital intensity, multinationality and structural adjustment programmes as sources of technical efficiency. Cette etude mesure a l’aide de donnees de panel de 1970 a 1997, l’incidence de la privatisation sur l’efficacite technique de six entreprises privatisees, trois entreprises publiques et six entreprises privees en concurrence, dans trois industries manufacturieres oligopolistiques ou la privatisation est intervenue entre 1984 et 1991. Les notes d’efficacite technique sont calculees au moyen de l’Analyse de donnees “envelopment”, en se basant sur l’approche “frontiere inter-temporelle” pour les donnees du panel. Les resultats montrent qu’au Malawi, la privatisation est liee a l’utilisation de grands moyens pour l’efficacite technique dans les entreprises privatisees et dans les entreprises publiques et privees en concurrence. Si l’on tient compte d’autres sources d’efficacite technique, dans l’echantillonnage complet, nous avons des elements qui montrent que le processus concurrentiel est un facteur plus important d’accroissement de l’efficacite technique que la privatisation, pour toutes les entreprises en concurrence dans les memes industries. En revanche, les resultats du sous-echantillonnage compose d’entreprises privatisees montrent que la privatisation accroit tres sensiblement l’efficacite technique des entreprises privatisees; toutefois, on ne saurait ignorer le role joue par la concurrence nationale, l’intensite du capital, le caractere multinational et les programmes d’ajustement structurel comme sources d’efficacite technique.

This paper examines the efficiency of firms within the structural adjustment period in four sub-sectors in Malawian manufacturing industry: food processing, tea processing, clothing and footwear, and pharmaceuticals and soaps. We first estimate stochastic production frontiers for each sub-sector and predict firm level efficiencies using panel data between 1984 and 1988. Secondly, we attempt to associate predicted firm level efficiencies with firm-specific and industry characteristics using a censored Tobit regression analysis. Results reveal that the average annual technical efficiency ranges from 53 per cent in the pharmaceuticals and soaps sub-sector in 1984 to 83 per cent in the clothing and footwear sub-sector in 1984. Technical efficiencies decline over time in the food processing, tea processing, and clothing and footwear sub-sectors while those in the pharmaceuticals and soaps sub-sector increase over time. We also find that technical efficiency significantly declines with firm size, domestic monopoly power and tariffs, while it is a positive function of factor intensity and skills of workers. Cet article examine l’efficience des entreprises en periode d’ajustement structurel dans quatre sous-secteurs de l’industrie manufacturiere au Malawi: agroalimentaire, transformation du the, vetements et chaussures, produits pharmaceutiques et savons. Nous estimons d’abord pour chaque sous-secteur des frontieres stochastiques des possibilites de production et nous predisons le niveau d’efficience des entreprises sur la base des donnees recueillies au moyen d’un panel entre 1984 et 1988. En second lieu, nous tentons d’associer le niveau d’efficience predit a des caracteristiques propres a l’entreprise ou au metier en utilisant une analyse de regression censuree. Les resultats montrent que l’efficience technique varie en moyenne de 53% dans le sous-secteur des produits pharmaceutiques et savons en 1984 a 83% dans le sous-secteur des vetements et chaussures en 1984. L’efficience technique diminue avec le temps dans les sous-secteurs de l’agroalimentaire, de la transformation du the ainsi que des vetements et chaussures, tandis qu’elle s’ameliore dans celui des produits pharmaceutiques et savons. On constate egalement que l’efficience technique baisse sensiblement avec l’accroissement de la taille de l’entreprise, l’acquisition d’une position de monopole et la protection tarifaire, tandis qu’elle augmente avec l’intensite des facteurs et la qualification de la main-d’oeuvre.

This chapter provides evidence on the direct impacts of Malawi’s Farm Input Subsidies programme, based on analysis of household level survey data collected by the authors and findings from other studies. There are, however, difficulties with maize production data, and the economy-wide effects may mask direct beneficiary impacts. Using several household welfare indicators, analysis of four panels of household data, and qualitative studies, the results suggest that subsidy receipt has positive impacts on beneficiaries’ maize production, net crop income, food consumption, household income, school enrolment, child health, and reduced supply of ganyu labour.

Malawi, a small landlocked country, is highly dependent on the agricultural sector, particularly smallholder agriculture. The structure of production and of the economy have not changed significantly since independence in 1964: smallholder agricultural productivity, which is dominated by maize, remains low while agriculture continues to contribute more than a third to GDP. Over 50% of the rural population in Malawi is classified as poor with fragile livelihoods susceptible to shocks. Attempts to address these socio-economic problems through agricultural and other policies, including fertilizer subsidies, have been central to the strategies and policies of different political regimes. The chapter reviews agricultural policies in the context of changing economic and political environments and the constraints that smallholder farmers face in the use of improved inputs. It is argued that smallholder farmers are locked into a low productivity maize production trap, leading to low incomes and inability to afford inputs at commercial prices.

Resurgent interest in agricultural input subsidies has led a number of countries in Africa to implement agricultural input subsidy programmes focusing particularly on fertilizers. This chapter reviews available information on recent agricultural input subsidy programmes in Ghana, Zambia, Nigeria, Tanzania, Rwanda, Mali, and Senegal. These programmes are of different scales and pursue different, sometimes, multiple objectives, with the private sector playing different roles, and have varied implementation and programme outcomes. The chapter notes that while there are a number of objectives in different programmes, most focus on production objectives and producer welfare and ignore the interests of consumers and the processes by which subsidy programmes contribute to wider pro-poor economic growth. The review also shows that graduation from subsidies has not been an explicit design feature of these programmes.

Targeting of input subsidies is a critical element of the Malawi agricultural subsidy programme, and a highly debated issue. This chapter analyses the experiences of targeting and presents options for improving targeting. The analysis shows that targeting at area level has considerably improved with more equitable allocations consistent with the geographic distribution of poverty. Criteria for household targeting are very broad and the analysis shows that vulnerable households such as the poor- and elderly-headed are less likely than other households to receive fertilizer coupons and they receive less of the subsidized fertilizers. However the use of open meetings in the allocation of coupons tends to favour the poor who also receive more fertilizer compared with non-open allocations of coupons. Although there are gender biases in allocation of coupons, there is no gender bias in the use of subsidized fertilizers on plots controlled by different members of the households.

This chapter develops benefit–cost estimates for the Malawi Farm Input Subsidy Programme. It argues the need for caution in comparing estimates across different investments as analyses often include and exclude different benefits, and use of the standard partial equilibrium methods for benefit–cost analysis of agricultural input subsidies does not take into account wider benefit to poor consumers and the economy from lower food prices. Demand and supply curve analysis is used to estimate ‘without subsidy’ prices and producer and consumer gains for benefit–cost analysis without and with allowance for further gains from consumer expenditure linkages or growth multipliers. Average benefit–cost ratio (BCR) is likely to be around 1.35, depending on assumptions, with BCR above unity estimated in all years except 2008/9, when there were very high fertilizer prices. The analysis suggests attention to raising yield responses, targeting and a balance of complementary investments to raise programme returns.

The involvement of the private sector in the FISP has changed over the life time of the programme with increasing participation in fertilizer procurement, inclusion and them exclusion in fertilizer retailing, and increased participation in seed sales and in the fertilizer transportation. This chapter documents these changes and identifies benefits and challenges of private sector participation in programme implementation. The analysis shows that commercial sales of fertilizers although lower than the pre-subsidy levels have been increasing, suggesting some medium term stimulation of fertilizer demand. This has occurred at a time when the private sector has increasingly participated in the procurement of subsidy fertilizer but been excluded from retailing of subsidy fertilizers. In addition, there is evidence that the private sector-led seed component of the subsidy programme has attracted additional seed growers and expanded the number of varieties for maize seeds and legumes.

The implementation of the FISP as a national programme is complex, involving several activities and interaction and coordination of various stakeholders at different levels. Drawing on programme records and household surveys, this chapter provides detailed information on the changes that have taken place in the design and implementation of the programme from 2005/6 to 2010/11. It is argued that implementation of the programme has largely been successful, with lesson learning and adaption allowing improvements in design and implementation. Cross party political commitment has been an important feature in the implementation of the programme. Nonetheless, major challenges remain in terms of targeting, timeliness of input delivery to farmers, the involvement of the private sector, payment of ‘tips’ by smallholder farmers, and cost control.

This chapter sets out the objectives and contents of the book as a whole. Despite increased economic growth in many African countries, high rates of rural poverty continue, associated with low productivity in smallholder staple crops with very low fertilizer use. Higher than average fertilizer use in some countries is associated with large-scale agricultural input subsidy programmes. These are being adopted by a number of countries, but are controversial and new approaches have been the subject of limited study. Malawi’s experience with a large-scale programme since 2005 offers insights into the benefits and difficulties of such programmes. The book therefore aims to develop understanding of new forms of agricultural input subsidy programmes, to derive insights into this from Malawi’s experience, and to promote more informed debate on these issues. The chapter concludes with an outline of the book’s contents and of the data and analytical methods on which it draws.

Graduation has emerged as an issue in debates about the future of the agricultural input subsidy programme in Malawi, amid concerns about the programme’s high cost and fiscal sustainability. However, graduation processes hardly feature in theoretical consideration of subsidy programmes and the current design of the programme does not make any explicit allowance for the graduation of some farmers from the subsidy over time. This chapter considers ways in which the concept of graduation may be usefully applied to the FISP and sets out a broad conceptualization of graduation for potential application in programme design and implementation. Graduation is conceptualized as a removal of access to the programme that ‘does not leave current beneficiaries supported by the programme unable to pursue sustainable independent livelihoods’. The chapter also highlights the need for a multi-scale approach to facilitate graduation and the political difficulties associated with programme reduction and increasing farmer contributions.

Interventions targeting adolescent girls are seen as a key component in the fight to break the cycle of poverty in developing countries. Policies that enable them to reach their full potential can have a strong impact not only on their own wellbeing, but also on that of future generations. This paper summarizes the short-term impacts of a cash transfer program on the empowerment of adolescent girls in Malawi during and immediately after the two-year intervention. We find that the program, which transferred cash directly to school-age girls as well as their parents, had effects on a broad range of important domains - including increased access to financial resources, improved schooling outcomes, decreased teen pregnancies and early marriages, better health - and generally enabled beneficiaries to improve their agency within their households. Underlying these overall impacts, the experiment revealed important differences in program effects between young women who were in school at the start of the intervention and those that were not, as well as between young women who received cash transfers conditional on regular school attendance and those who received cash unconditionally. The results point to the potential role that cash transfer programs can play in improving the lives of adolescent girls in Sub-Saharan Africa, as well as the heterogeneity of effects under different program designs.

Interventions targeting adolescent girls are seen as a key component in the fight to break the cycle of poverty in developing countries. Policies that enable them to reach their full potential can have a strong impact not only on their own wellbeing, but also on that of future generations. This paper summarizes the short-term impacts of a cash transfer program on the empowerment of adolescent girls in Malawi during and immediately after the two-year intervention. We find that the program, which transferred cash directly to school-age girls as well as their parents, had effects on a broad range of important domains - including increased access to financial resources, improved schooling outcomes, decreased teen pregnancies and early marriages, better health - and generally enabled beneficiaries to improve their agency within their households. Underlying these overall impacts, the experiment revealed important differences in program effects between young women who were in school at the start of the intervention and those that were not, as well as between young women who received cash transfers conditional on regular school attendance and those who received cash unconditionally. The results point to the potential role that cash transfer programs can play in improving the lives of adolescent girls in Sub-Saharan Africa, as well as the heterogeneity of effects under different program designs.

Recent evidence suggests that conditional cash transfer programs for schooling are effective in raising school enrollment and attendance. However, there is also reason to believe that such programs can affect other outcomes, such as the sexual behavior of their young beneficiaries. Zomba Cash Transfer Program is a randomized, ongoing conditional cash transfer intervention targeting young women in Malawi that provides incentives (in the form of school fees and cash transfers) to current schoolgirls and recent dropouts to stay in or return to school. An average offer of US$10/month conditional on satisfactory school attendance – plus direct payment of secondary school fees – led to significant declines in early marriage, teenage pregnancy, and self-reported sexual activity among program beneficiaries after just one year of program implementation. For program beneficiaries who were out of school at baseline, the probability of getting married and becoming pregnant declined by more than 40 percent and 30 percent, respectively. In addition, the incidence of the onset of sexual activity was 38 percent lower among all program beneficiaries than the control group. Overall, these results suggest that conditional cash transfer programs not only serve as useful tools for improving school attendance, but may also reduce sexual activity, teen pregnancy, and early marriage.

Recent evidence suggests that conditional cash transfer programs for schooling are effective in raising school enrollment and attendance. However, there is also reason to believe that such programs can affect other outcomes, such as the sexual behavior of their young beneficiaries. Zomba Cash Transfer Program is a randomized, ongoing conditional cash transfer intervention targeting young women in Malawi that provides incentives (in the form of school fees and cash transfers) to current schoolgirls and recent dropouts to stay in or return to school. An average offer of US$10/month conditional on satisfactory school attendance ? plus direct payment of secondary school fees ? led to significant declines in early marriage, teenage pregnancy, and self-reported sexual activity among program beneficiaries after just one year of program implementation. For program beneficiaries who were out of school at baseline, the probability of getting married and becoming pregnant declined by more than 40 percent and 30 percent, respectively. In addition, the incidence of the onset of sexual activity was 38 percent lower among all program beneficiaries than the control group. Overall, these results suggest that conditional cash transfer programs not only serve as useful tools for improving school attendance, but may also reduce sexual activity, teen pregnancy, and early marriage.

This article presents a new model based on the loan-pushing model by Basu (1991) to show how a domestic debt crisis can occur in a low-income country following donor herding. The model focuses on the rational herding behaviour of donors due to payoff and information externalities. Although there are many theoretical models on herding behaviour, these models have not formally considered the relationship between donor herding and domestic debt crisis in a low-income country. This article is an attempt to fill this gap. The article shows that due to donor herding behaviour a domestic debt crisis can occur once the actual debt level is above the desirable one.

This study investigates the impact of financial sector reforms on interest rate spreads in the commercial banking system in Malawi. The financial reform program commenced in 1989 when both the Reserve Bank Act and the Banking Act were revised with the easing of entry requirements into the banking system, and indirect monetary policy instruments were subsequently introduced in 1990. The adoption of a floating exchange rate in 1994 marked the end of major policy reforms in the Malawian financial sector. Using alternative definitions of spreads, our analysis shows that spreads increased significantly following liberalization, and panel regression results suggest that the observed high spreads can be attributed to high monopoly power, high reserve requirements, high central bank discount rate and high inflation.