Evans School Policy Analysis & Research Group (EPAR)

Donor countries and multilateral organizations may pursue multiple goals with foreign aid, including supporting low-income country development for strategic/security purposes (national security, regional political stability) and for short-and long-term economic interests (market development and access, local and regional market stability). While the literature on the effectiveness of aid in supporting progress on different indicators of country development is inconclusive, donors are interested in evidence that aid funding is not permanent but rather contributes to a process by which recipient countries develop to a point that they are economically self-sufficient. In this report, we review the literature on measures of country self-sufficiency and descriptive evidence from illustrative case studies to explore conditions associated with transitions toward self-sufficiency in certain contexts.

According to AGRA's 2017 Africa Agriculture Status Report, smallholder farmers make up to about 70% of the population in Africa. The report finds that 500 million smallholder farms around the world provide livelihoods for more than 2 billion people and produce about 80% of the food in sub-Saharan Africa and Asia. Many development interventions and policies therefore target smallholder farm households with the goals of increasing their productivity and promoting agricultural transformation. Of particular interest for agricultural transformation is the degree to which smallholder farm households are commercializating their agricultural outputs, and diversifying their income sources away from agriculture. In this project, EPAR uses data from the World Bank's Living Standards Measurement Study - Integrated Surveys on Agriculture (LSMS-ISA) to analyze and compare characteristics of smallholder farm households at different levels of crop commercialization and reliance on farm income, and to evaluate implications of using different criteria for defining "smallholder" households for conclusions on trends in agricultural transformation for those households.

Local crop diversity and crop cultivation patterns among smallholder farmers have implications for two important elements of the design of agricultural interventions in developing countries. First, crop cultivation patterns may aid in targeting by helping to identify geographic areas where improved seed and other productivity enhancing technologies will be most easily applicable. Second, these patterns may help to identify potential unintended consequences of crop interventions focused on a single crop (e.g. maize). This report analyzes the distribution of crop diversity and crop cultivation patterns, and factors that can lead to changes in these patterns among smallholder farmers in Tanzania with a focus on regional patterns of crop cultivation and changes in these patterns over time, the factors that affect crop diversity and changes in crop diversity, and the level of substitutability between crops grown by smallholder farmers. All analysis is based on the Tanzania National Panel Survey (TNPS) datasets from 2008 and 2010. The paper is structured as follows. Section I provides a description of regional patterns of crop cultivation and crop diversity between the two years of the panel. Section II presents background on the theoretical factors affecting crop choice, and presents our findings on the results of a multivariate analysis on the factors contributing to crop diversity. Finally, Section 3 provides a preliminary analysis of the level of substitutability between cereal crop of importance in Tanzania (maize, rice and sorghum/millet) and also between these cereal crops and non-cereal crops.

Market-oriented agricultural production can be a mechanism to increase smallholder farmer welfare, rural market performance, and contribute to overall economic growth. Cash crop production can allow households to increase their income by producing output with higher returns to land and labor and using the income generated from sales to purchase goods for consumption. However, in the face of missing and underperforming markets, African smallholder households are often unable to produce efficiently or obtain staple foods reliably and cheaply. This literature review summarizes the available literature on the impact of smallholder participation in cash crop and export markets on household welfare and rural markets. The review focuses exclusively on evidence from Sub-Saharan Africa regarding top and emerging export crops, with the addition of tobacco and horticulture due to the volume of research relevant to smallholder welfare gains from the production of these crops. It includes theoretical frameworks, case studies, empirical evidence, and historical analysis from 42 primary empirical studies and 112 resources overall.