Evans School Policy Analysis & Research Group (EPAR)

This report summarizes current trends in the application of Development Finance Institution (DFI)-based returnable capital finance in developing countries, with an emphasis on “pro-poor” development initiatives. We begin by reviewing the financial instruments used by DFIs. We then review the major DFI providers of returnable-capital based finance, drawing on past and present peer-reviewed articles and published reports exploring trends in the uses of different returnable capital instruments over time. Finally, we conclude by further examining recent efforts to use returnable capital to finance development initiatives explicitly targeting the poor.

The commercial alcohol industry in Africa may provide opportunities to increase market access and incomes for smallholder farmers by increasing access to agriculture-alcohol value chains. Despite the benefits of increased market opportunities, the high costs to human health and social welfare from increased alcohol use and alcoholism could contribute to a net loss for society. To better understand the tradeoffs between increased market access for smallholders and societal costs associated with harmful alcohol consumption, this paper provides an inventory of the societal costs of alcohol in Sub-Saharan Africa (SSA). We examine direct costs associated with addressing harmful effects of alcohol and treating alcohol-related illnesses, as well as indirect costs associated with the goods and services that are not delivered as a consequence of drinking and its impact on personal productivity. We identified resources using Google Scholar and the University of Washington libraries, and utilized the Global Burden of Disease (GBD) database by the Institute for Health Metrics and Evaluation (IHME) and the World Health Organization’s Global Information System on Alcohol and Health (GISAH) database. We also utilized FAOSTAT to retrieve raw data on national-level alcohol production and export statistics. We find that hazardous alcohol use contributes to early mortality and morbidity, loss of productivity, property damage, and other social costs and harms for drinkers and those around them. Drinking also affects vulnerable segments of the population disproportionately. Policymakers, local authorities, and donor agencies can use the information presented in this paper to plan and prepare for the higher consumption levels and subsequent social costs that may follow through agricultural development and economic growth in the region.  

Bt maize technology involves developing hybrid maize crops that incorporate genes from the soil-dwelling bacteria Bacillus thuringiensis (Bt). The primary benefit of Bt maize technology is the heightened crop protection from stem borers, which are maize pests that can inflict serious crop losses. Bt maize has been cultivated in Mexico, South Africa and several countries in the European Union, with limited cultivation in Sub-Saharan Africa (SSA). This report provides a summary of literature on the potential benefits and challenges associated with Bt maize production in SSA. Research studies of Bt maize in the Philippines and South Africa are also briefly reviewed. There is little peer-reviewed literature available, with evidence challenging the assumed benefits of Bt maize for smallholder farmers in SSA. As a result, we also review research briefs and conference proceedings available from reputable international organizations. Although some of the available literature references the ethical concerns over Bt maize production, we focus on searching for science-based discussions related to any potential biodiversity, biosafety, or socio-economic impacts of Bt maize technology for smallholder farmers in SSA.

Though not indigenous to Sub-Saharan Africa (SSA), cassava plays, to varying degrees, five major roles in African development: famine-reserve crop, rural food staple, cash crop for urban consumption, livestock feed, and industrial raw material. Cassava production in SSA was historically a significant staple crop for smallholder farmers and continues to be the second most important food crop in Africa (after maize) in terms of calories consumed. Subsistence crops such as cassava are often considered women’s crops with the standard explanation that women are responsible for feeding the family and thus prefer to grow crops for the household. This brief reviews the role that women play in cassava production, and considers ways to better address gender issues from planting through post-harvest production. We find that the potential gains to cassava production made possible through improved technology will not be fully realized without the participation of women farmers and without women farmers having access to credit, markets, and extension services. Additionally, evidence from SSA suggests that labor for harvesting and processing, rather than labor for weeding, has become the key labor constraint for cassava, and addressing this concern may be more important than further yield increases for raising production levels.