How best to target agricultural subsidies? The case for an indicator-based targeting system in Malawi

Over the past few years Malawi made remarkable progress toward increasing its national maize production and achieving food security owing to its long-running policy of subsidizing fertilizer. The implementation of these subsidy programs is continuously being improved upon as the country learns from...

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Main Authors: Houssou, Nazaire, Droppelmann, Klaus
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2013
Subjects:
Online Access:https://hdl.handle.net/10568/153510
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author Houssou, Nazaire
Droppelmann, Klaus
author_browse Droppelmann, Klaus
Houssou, Nazaire
author_facet Houssou, Nazaire
Droppelmann, Klaus
author_sort Houssou, Nazaire
collection Repository of Agricultural Research Outputs (CGSpace)
description Over the past few years Malawi made remarkable progress toward increasing its national maize production and achieving food security owing to its long-running policy of subsidizing fertilizer. The implementation of these subsidy programs is continuously being improved upon as the country learns from past experiences.1 Recent evaluations of the current Farm Input Subsidy Program by Dorward and Chirwa (2011, 2012) suggest that various components of the program have been redesigned over time. These include timeliness of fertilizer delivery, fertilizer coupon receipts, regional distribution, area targeting, allocation and distribution processes, and coupon use and re-demption. However, the issue of beneficiary identification and targeting remains a challenge for the program. Draw-ing on recent research by Houssou and Zeller (2010, 2011, 2012), this note proposes an alternative approach to effec-tively target the poor within the group of potential program beneficiaries. In our analysis we are mindful of the fact that targeting criteria for the current program are vague at best. One interpretation of these criteria is that the pro-gram intends to target the “productive poor”, and since poverty is widespread in Malawi, some would argue that the focus of the targeting mechanism should be on identifying farmers who would make best use of subsidized fertilizer (e.g., as measured by their marginal productivity per unit of fertilizer applied). Many evaluations, however, have criti-cized the program for not being pro-poor enough; hence a
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spelling CGSpace1535102025-11-06T05:17:47Z How best to target agricultural subsidies? The case for an indicator-based targeting system in Malawi Houssou, Nazaire Droppelmann, Klaus subsidies fertilizers farm inputs agricultural policies economic development agricultural development Over the past few years Malawi made remarkable progress toward increasing its national maize production and achieving food security owing to its long-running policy of subsidizing fertilizer. The implementation of these subsidy programs is continuously being improved upon as the country learns from past experiences.1 Recent evaluations of the current Farm Input Subsidy Program by Dorward and Chirwa (2011, 2012) suggest that various components of the program have been redesigned over time. These include timeliness of fertilizer delivery, fertilizer coupon receipts, regional distribution, area targeting, allocation and distribution processes, and coupon use and re-demption. However, the issue of beneficiary identification and targeting remains a challenge for the program. Draw-ing on recent research by Houssou and Zeller (2010, 2011, 2012), this note proposes an alternative approach to effec-tively target the poor within the group of potential program beneficiaries. In our analysis we are mindful of the fact that targeting criteria for the current program are vague at best. One interpretation of these criteria is that the pro-gram intends to target the “productive poor”, and since poverty is widespread in Malawi, some would argue that the focus of the targeting mechanism should be on identifying farmers who would make best use of subsidized fertilizer (e.g., as measured by their marginal productivity per unit of fertilizer applied). Many evaluations, however, have criti-cized the program for not being pro-poor enough; hence a 2013 2024-10-01T13:56:28Z 2024-10-01T13:56:28Z Brief https://hdl.handle.net/10568/153510 en Open Access application/pdf International Food Policy Research Institute Houssou, Nazaire; Droppelmann, Klaus 2013. How best to target agricultural subsidies? The case for an indicator-based targeting system in Malawi. https://hdl.handle.net/10568/153510
spellingShingle subsidies
fertilizers
farm inputs
agricultural policies
economic development
agricultural development
Houssou, Nazaire
Droppelmann, Klaus
How best to target agricultural subsidies? The case for an indicator-based targeting system in Malawi
title How best to target agricultural subsidies? The case for an indicator-based targeting system in Malawi
title_full How best to target agricultural subsidies? The case for an indicator-based targeting system in Malawi
title_fullStr How best to target agricultural subsidies? The case for an indicator-based targeting system in Malawi
title_full_unstemmed How best to target agricultural subsidies? The case for an indicator-based targeting system in Malawi
title_short How best to target agricultural subsidies? The case for an indicator-based targeting system in Malawi
title_sort how best to target agricultural subsidies the case for an indicator based targeting system in malawi
topic subsidies
fertilizers
farm inputs
agricultural policies
economic development
agricultural development
url https://hdl.handle.net/10568/153510
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