|
Executive summary
This paper pulls together insights from related farm-household and CGE modelling for
Malawi to suggest wider methodological and policy lessons for pro-poor policy analysis
in poor agrarian economies. The farm-household and CGE models and the principal
results are summarised, and their strengths and weaknesses discussed. The
discussion demonstrates the potential benefits of greater integration between farmhousehold
and economy wide models, and suggests ways in which this should be
achieved. A number of conclusions also emerge regarding policies promoting pro-poor
economic growth. These emphasise
-
the importance of growth that raises real wage rates,
-
the need for growth in smallholder agriculture where more productive labour
demanding technologies exist,
-
the complementary relationships between growth in agricultural and nonagricultural
activities,
-
the complementary relationships between growth promoting and welfare
supporting policies, and
-
the limited scope for substantial pro-poor economic growth without major
structural change and longer-term tradable non-agricultural growth drivers.
Policy interventions are needed to reduce transaction costs in agricultural output and
input markets and to increase household liquidity: infrastructural investments, market
interventions (to stimulate otherwise thin food grain and input markets) and welfare
support can all play important complementary roles in this, although there are particular
challenges in developing effective intervention policies. Good governance, good macroeconomic
management, and access to substantial and long-term external finance are
critical underlying conditions.
|
|
Related documents
- 158Kb ~ 1 min (25 pages)
