Simulating the Impacts of Rural Social Cash Transfers and Farmer's Subsidies in Malawi and Ghana
A considerable body of experimental economics research examines the impacts of cash transfer programmes. In many developing countries, though, cash transfers are relatively minor compared to other transfer mechanisms in terms of their claim on public resources. In Malawi, fertilizer subsidies dwarf cash transfers, while next door in Zambia, the government pays farmers prices well above market levels for their maize. Yet no study to our knowledge has attempted to compare the full impact of social cash transfers and other kinds of transfers on rural incomes and welfare in low-income countries. (?)
A simulation impact evaluation of rural income transfers in Malawi and Ghana
We use a disaggregated rural economy-wide modelling framework to simulate and compare the impacts of an input subsidy, cash transfer, and output price support on production and welfare in rural Malawi and Ghana. Household groups in the models are defined by their eligibility for current transfers. Simulations are calibrated to official government spending. No intervention appears as unequivocally superior. The impacts and efficiency of each transfer mechanism are shaped by the structure of the economy, market conditions, and programme design.
GHANA'S FERTILIZER SUBSIDY POLICY: EARLY FIELD LESSONS FROM FARMERS IN THE CENTRAL REGION
This paper presents early field lessons on Ghana’s Fertilizer Subsidy Program from two farming communities in the Central Region. A combination of quantitative and qualitative approach was used to assess the availability, access, and use of subsidized fertilizer by small-holder farmers in the two communities. The findings show that there is considerable scope for improvement in the distribution of coupons and fertilizers to ensure higher effectiveness of fertilizer and to render farmers’ participation in the program more sustainable. Price and nonprice factors combine to constrain access to subsidized fertilizer. Finally, few farmers have actually benefited from the subsidy program. The respondents, though were generally dissatisfied, conceded that the program is essential and needs to be continued. The paper signals the need for adjustments, which could have macro-scale implications for the sustainable management of the subsidy program.