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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.
Cereals and pulses are important food and cash crops for farmers and rural households in Ethiopia. Despite the economic and food security importance of these crops, data and opinion suggest a yield gap: actual smallholder farm yields do not achieve estimated potential yields for wheat, sorghum, maize, lentils and peas. Furthermore, cereal prices in Ethiopia fall between import and export parity prices, limiting their international trading prospects. Although there are significant wheat imports, these reflect the influx of food aid, rather than competitive trade on the international market. The purpose of this brief is to estimate yield gaps in important Ethiopian crops in order to identify potential areas for productivity gains. We find that wheat, sorghum and maize all exhibit the potential for yield gains to increase domestic food availability. Additionally, all three crops experienced significant spikes in yield in the 2006 season. Further investigation into the climate conditions and policy in place that year may generate potential strategies to increase future yields. Analysis of Ethiopian lentil and pea yields suggest that productivity gains may be possible to increase food availability. Limited access to improved technologies appears to be the main constraint to pulse productivity in Ethiopia. Opportunities to increase lentil and pea yields appear to exist through increasing cultivation of improved varieties.
The Government of Kenya (GoK) has historically encouraged its farmers to use fertilizer by financing infrastructure and supporting fertilizer markets. From 1974 to 1984, the GoK provided a fertilizer importation monopoly to one firm, the Kenya Farmers Association. However, the GoK saw that this monopoly impeded fertilizer market development by prohibiting competing firms from entering the market and, in the latter half of the 1980s, encouraged other firms to enter the highly regulated fertilizer market. This report examines the state of fertilizer use in Kenya by reviewing and summarizing literature on recent fertilizer price increases, Kenya’s fertilizer usage trends and approaches, market forces, and the impact of government and non-government programs. We find that most studies of Kenya’s fertilizer market find it to be well functioning and generally competitive, and conclude that market reform has stimulated fertilizer use mainly by improving farmers’ access to the input through the expansion of private retail networks. Overall fertilizer consumption in Kenya has increased steadily since 1980, and fertilizer use among smallholders is among the highest in Sub-Saharan Africa. Yet fertilizer consumption is still limited, especially on cereal crops, and in areas where agroecological conditions create greater risks and lower returns to fertilizer use.