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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.
An ongoing stream of EPAR research considers how public good characteristics of different types of research and development (R&D) and the motivations of different providers of R&D funding affect the relative advantages of alternative funding sources. For this project, we seek to summarize the key public good characteristics of R&D investment for agriculture in general and for different subsets of crops, and hypothesize how these characteristics might be expected to affect public, private, or philanthropic funders’ investment decisions.
This report provides a general overview of trends in public and private agricultural research and development (R&D) funding and expenditures in Sub-Saharan Africa (SSA). The request is divided into two sections, covering public funding and private funding. Within each section, relevant data is presented on historical funding patterns, the types of research conducted, and which countries within SSA are financing R&D at the highest level. We find that the majority of growth in African public agricultural research funding took place in the 1960s, when real public spending on agricultural research increased 6% a year. From 1971 to 2000 annual growth averaged 1.4% a year. Public financing of agricultural R&D experienced a moderate shift in the 1990s from bilateral and multilateral donor funding to domestic government financing. The shift varied by country, but donor funding dropped for all SSA countries an average of 10%. Private research and development funding is heavily concentrated in developed countries with the United States and Japan the two biggest spenders. Within SSA, private R&D expenditures comprise 2% of all R&D spending. The main private actors in SSA are companies based in South Africa and Nigeria. The private sector is focused on research areas that involve marketable inputs, such as chemicals, seeds, and machines/
Special Economic Zones (SEZs) are generally defined as geographically delimited areas administered by a single body, offering certain incentives (duty-free importing and streamlined customs procedures, for instance) to businesses that physically locate within the zone. This literature review provides a baseline analysis of SEZs and their potential impacts on smallholder farmers in SSA. Criticism on SEZs is distinctly divided between those who criticize on social or environmental grounds versus those who question the economic impact of SEZs. SEZs are often criticized based on perceived negative socio-economic impacts—particularly their negative impact on women, labor, and working conditions. This review includes several country-specific studies that find evidence that SEZs actually have higher environmental standards and higher worker satisfaction than outside the SEZ. Most responses to criticisms do note, however, that the case studies’ results are not necessarily generalizable to SEZs throughout the world. The literature review includes key elements of successes and failures pulled from the case studies of SEZs in SSA. Though the evidence is insufficient to conclusively determine if smallholder farmers receive direct benefits from SEZs and their associated agroindustrial contracts, this review finds that resources provided to farmers (credit at rates lower than bank rates, technical or managerial assistance, pesticides, seeds, and fertilizer on credit) tend to be concentrated among larger farmers. The report concludes with a note on donor involvement as well as recommendations for further research.