Structural Change and the Future of Indian Agriculture
Binswanger-Mkhize's talk will look at past and likely future agricultural growth and rural poverty reduction in the context of the overall economy of India, in which growth has accelerated sharply since the 1980s, but agriculture still has not followed suit. Despite slow growth, urban-rural consumption, income and poverty differentials have not risen. This is because urban-rural spillovers have led to a sharp acceleration of rural non-farm growth and income. Binswanger-Mkhize proposes an optimistic vision can be realized if agricultural growth accelerates, high and widely shared economic growth leads to strong spillovers to the rural economy, and the rural non-farm sector continues to flourish. This would enable the rural sector to keep up with income growth in the urban economy and rural poverty would rapidly decline. However, if agricultural growth fails to accelerate, and overall economic growth falters, a more pessimistic vision is also possible. Binswanger-Mkhize will also discuss the role of prices and wages in determining agricultural growth, rural poverty and nutrition, and the two interlinked income parity issues: rural-urban and agricultural-non-agricultural incomes parity.
Marianne Banziger, Deputy Director, Research & Partnership at International Maize and Wheat Improvement Center (CIMMYT) will provide commentary.
Bechtel Conference Center
Aiding Conflict: The Impact of U.S. Food Aid on Civil War
Abstract:
Nunn's paper examines the effect of U.S. food aid on conflict in recipient countries. To establish a causal relationship, he and Nancy Qian exploit time variation in food aid caused by fluctuationsin U.S. wheat production together with cross-sectional variation in a country's tendency to receive any food aid from the United States. Their estimates show that an increase in U.S. food aid increases the incidence, onset and duration of civil conflicts in recipient countries. The results suggest that the effects are larger for smaller scale civil conflicts. No effect is found on interstate warfare.
Speaker Bio:
Professor Nunn was born in Canada, where he received his PhD from the University of Toronto in 2005. In 2009, Professor Nunn was selected as an Alfred P. Sloan Research Fellow and grant recepient.
Professor Nunn’s primary research interests are in economic history, economic development, political economy and international trade. One stream of Nunn’s research focuses on the long-term impact that historic events can have on current economic development. In “Historical Legacies: A Model Linking Africa’s Past to its Current Underdevelopment”, published in the Journal of Development Economics in 2007, Nunn develops a game-theoretic model showing how the slave trade and colonial rule could have had permanent long-term effects on economic performance. In “The Long-Term Effects of Africa’s Slave Trades” (Quarterly Journal of Economics, 2008), Nunn documents the long-term adverse economic effects of Africa’s slave trades. His current research continues to examine the specific channels through which the slave trade affects current development within Africa. In "The Slave Trade and the Origins of Mistrust in Africa" (American Economic Review, forthcoming), coauthored with Leonard Wantchekon, he empirically documents how the slave trade engendered a culture of mistrust amongst the descendants of those heavily threatened by the slave trade.
A second stream of Professor Nunn’s research focuses on the importance of hold-up and incomplete contracting in international trade. He has published research showing that a country’s ability to enforce written contracts is a key determinant of comparative advantage (“Relationship-Specificity, Incomplete Contracts and the Pattern of Trade,” Quarterly Journal of Economics, 2007). Other work, coauthored with Daniel Trefler, examines the relationship between the cross-industry structure of a country's tariffs and its long-term economic growth (“The Structure of Tariffs and Long-Term Growth,” American Economic Journal: Macroeconomics, 2010). The study identifies growth-promoting benefits of a tariff structure focused in skill-intensive industries. It also shows how and why governments that succumb to political influence and rent-seeking are unable to focus tariffs in these key industries.
Philippines Conference Room
Geoengineering and global food supply
Extreme heat shortens wheat growing season, reduces yield
A new study out of Stanford University finds extreme temperatures are cutting wheat yields by 20 to as much as 50 percent, a finding worse than previously estimated. FSE center fellow David Lobell and his colleagues used nine years of satellite measurements of wheat growth in northern India's breadbasket, the Indo-Gangetic Plains, to analyze rates of wheat ageing after exposure to temperatures higher than 34 degrees Celsius.
Extreme heat beyond the plant's tolerance zone damages photosynthetic cells. This causes wheat to age faster, reducing the length of the growing season and the amount and size of the wheat grains. The team's crop models found that a two degree increase in temperatures would reduce the growing season by nine days, yielding 20 percent less wheat.
As the world's second-biggest crop, lost wheat yields may become a major threat to global food security. Especially given the projection that global yields need to rise 50 percent by 2050 to feed a growing, more affluent population. The results imply that warming presents an even greater challenge to wheat than previous studies estimated, and that the effectiveness of adaptations will depend on how well they reduce crop sensitivity to very hot days, particularly in areas of the world such as India already experiencing warming conditions.
Food security, climate change and climate variability focus of Stanford-led symposium at AAAS
The demand for food, feed and fuel will continue to rise as the world population grows and becomes more affluent. Meeting this demand will be especially challenging because of global warming, say climate experts, and the impacts of climate variability could make food markets even more volatile, adds Rosamond L. Naylor, professor of environmental Earth system science at Stanford University.
Naylor led a symposium on the compound effects of climate change and climate variability on food security at the annual meeting of the American Association for the Advancement of Science (AAAS) February 17th.
The symposium focused on two examples of climate variability: changes in growing-season temperature extremes beyond the range observed in the historical record, and changes in the El Niño–Southern Oscillation (ENSO) phenomenon – the most energetic form of year-to-year climate variability known.
Panelist David S. Battisti, professor of atmospheric sciences at the University of Washington, addressed key challenges in assessing the impact of extreme temperatures in coming decades. According to Battisti, global warming models forcast that temperature variability will increase as the average temperature warms, greatly compounding the likelihood of extreme heat and droughts. Unfortunately, these models typically have too much temperature variability in their simulations of present-day climate, he said. Battisti's talk focused on the cause of these modeling biases and their impact on climate forecasting.
Panelist Daniel J. Vimont, associate professor of atmospheric and oceanic sciences at the University of Wisconsin-Madison, discussed the impacts of El Niño in a warmer world. ENSO impacts can be severe in regions in and surrounding the tropical Pacific, and can extend around the globe, he said. ENSO variability – its return period and intensity – are very sensitive to changes in mean conditions in the tropical Pacific, he added, but these conditions are notoriously difficult to simulate using the present generation of global climate models. Vimont presented results from the linear ocean atmosphere model (LOAM), a new scientific tool for estimating global warming's impact on ENSO variability.
Naylor addressed the impacts of climate on global markets for major staple commodities, which are already under pressure from increased population-, income-, and energy-driven demands. She outlined the potential effects of climate variability on regional trade patterns, price volatility, policy responses and human welfare.
Mark Shwartz is the Communications/Writer at Precourt Institute for Energy at Stanford University.
Extreme heat effects on wheat senescence in India
An important source of uncertainty in anticipating the effects of climate change on agriculture is limited understanding of crop responses to extremely high temperatures. This uncertainty partly reflects the relative lack of observations of crop behaviour in farmers’ fields under extreme heat. We used nine years of satellite measurements of wheat growth in northern India to monitor rates of wheat senescence following exposure to temperatures greater than 34 °C. We detect a statistically significant acceleration of senescence from extreme heat, above and beyond the effects of increased average temperatures. Simulations with two commonly used process-based crop models indicate that existing models underestimate the effects of heat on senescence. As the onset of senescence is an important limit to grain filling, and therefore grain yields, crop models probably underestimate yield losses for +2 °C by as much as 50% for some sowing dates. These results imply that warming presents an even greater challenge to wheat than implied by previous modelling studies, and that the effectiveness of adaptations will depend on how well they reduce crop sensitivity to very hot days.
Crop yields in a geoengineered climate
Crop models predict that recent and future climate change may have adverse effects on crop yields. Intentional deflection of sunlight away from the Earth could diminish the amount of climate change in a high-CO2 world. However, it has been suggested that this diminution would come at the cost of threatening the food and water supply for billions of people. Here, we carry out high-CO2, geoengineering and control simulations using two climate models to predict the effects on global crop yields. We find that in our models solar-radiation geoengineering in a high-CO2 climate generally causes crop yields to increase, largely because temperature stresses are diminished while the benefits of CO2 fertilization are retained. Nevertheless, possible yield losses on the local scale as well as known and unknown side effects and risks associated with geoengineering indicate that the most certain way to reduce climate risks to global food security is to reduce emissions of greenhouse gases.
Emerging Land Issues in African Agriculture: Implications for food security and poverty reduction strategies
Despite the fact that sub-Saharan Africa in 2012 contains much of the world’s unutilized and underutilized arable land, a significant and growing share of Africa’s farm households live in densely populated areas. Based on two alternative spatial databases capable of estimating populations at the level of one square kilometer and distinguishing between arable and non-arable land, we find that in at least five of the 10 countries analyzed, 25 percent of the rural population resides in areas exceeding 500 persons per square kilometer, estimated by secondary sources as an indicative maximum carrying capacity for areas of rain-fed agriculture in the region. The apparent paradox of a large proportion of Africa’s rural population living in densely populated conditions amidst a situation of massive unutilized land is resolved when the unit of observation is changed from land units to people.
A review of nationally representative farm surveys shows a tendency of (1) declining mean farm size over time within densely populated smallholder farming areas; (2) great disparities in landholding size within smallholder farming areas, leading to highly concentrated and skewed patterns of farm production and marketed surplus; (3) half or more of rural farm households are either buyers of grain or go hungry because they are too poor to afford to buy food; most households in this category control less than one hectare of land; and (4) a high proportion of farmers in densely populated areas perceive that it is not possible for them to acquire more land through customary land allocation procedures, even in areas where a significant portion of land appears to be unutilized.
Ironically, there has been little recognition of the potential challenges associated with increasingly densely populated and land-constrained areas of rural Africa, despite the fact that a sizeable and increasing share of its rural population live in such areas. Inadequate access to land and inability to exploit available unutilized land are issues that almost never feature in national development plans or poverty reduction strategies. In fact, since the rise of world food prices after the mid-2000s, many African governments have made concerted efforts to transfer land out of customary tenure systems (where the majority of rural people reside) to the state or to private individuals who, it is argued, can more effectively exploit the productive potential of the land to meet national food security objectives. Such efforts have nurtured the growth of a relatively well-capitalized class of “emergent” African farmers. The growing focus on how best to exploit unutilized land in Africa has arguably diverted attention from the more central and enduring challenge of implementing agricultural development strategies that effectively address the continent’s massive rural poverty and food insecurity problems, which require recognizing the growing land constraints faced by much of its still agrarian-based population. The final section of the paper considers research and policy options for addressing these problems.
Tavneet Suri- Liberation Technology Seminar Series
Tavneet Suri is a development economist, with a regional focus on sub-Saharan Africa. Broadly, she studies the evolution of markets and various market failures in these economies. In particular, her main areas of focus are agriculture and formal and informal financial access. For example, she has worked on the adoption of seed technologies in Kenya and the extent of informal risk pooling mechanisms in rural Kenya. Her ongoing research includes understanding the adoption and impact of mobile money (M-PESA) in Kenya; the role of infrastructure in agricultural markets in Sierra Leone; the diffusion of improved coffee farming practices through social networks in Rwanda; the role of different types of formal and informal collateral in credit markets for assets in Kenya. She regularly spends time in the field, managing her various research projects and data collection activities.
Tavneet is a Faculty Research Fellow at the NBER, an Affiliate of BREAD, J-PAL and CEPR, and Co-Director of Agriculture Research Program at the International Growth Center.
Sloan Mathematics Center