Poverty is prevalent in the small-farm sector of many developing countries. A large literature suggests that contract farming —a preharvest agreement between farmers and buyers— can facilitate smallholder market participation, improve household welfare, and promote rural development. These findings have influenced the development policy debate, but the external validity of the extant evidence is limited. Available studies typically focus on a single contract scheme or on a small geographical area in one country.
This publication is based on invited papers presented at the conference "Agricultural Biotechnology in Developing Countries: Towards Optimizing the Benefits for the Poor", held in November 1999 at the Center for Development Research (ZEF), University of Bonn. The conference was convened in collaboration with the International Service for the Acquisition of Agri-biotech Applications (ISAAA), Hoechst Schering AgrEvo GmbH (now Aventis CropScience) and the German Foundation for International Development (Deutsche Stiftung fUr internationale Entwicldung - DSE).
It is often assumed that voluntary sustainability standards – such as Fairtrade – could not only improve the socioeconomic wellbeing of smallholder farmers in developing countries but could also help to reduce negative health and environmental impacts of agricultural production. The empirical evidence is thin, as most previous studies on the impact of sustainability standards only focused on economic indicators, such as prices, yields, and incomes.
It is now widely acknowledged that biotechnology will have significant implications for development. While biotechnology’s potential for low income economies is still the subject of controversy, this paper argues that it is precisely in these countries that food and agriculture related biotechnology could efficiently contribute to the achievement of development objectives. To date, however, biotechnological advances have been realized predominantly in industrialized countries.
Written employment contracts may improve the conditions of agricultural workers in developing countries, but farmers as employers often prefer less formal oral arrangements. We evaluate whether farmers’ preferences, which are deeply rooted in traditional norms, can be influenced through a group awareness campaign. In a randomised experiment in Côte d’Ivoire, we show that such a campaign increases farmers’ preferences for written contracts and for contract features involving social benefits for workers.
Innovations are fast changing the agricultural landscape driven by the increasing need to shift towards sustainable practices without sacrificing the productivity and profitability of farming. Innovations in technology, institutions, processes, and products have contributed to the growth of agriculture, globally and in developing countries including India and Africa, as observed in the cases of green revolution in cereals; and gene revolution in cotton.
To achieve food security for all, new resource policies for sustainable land and water use are needed. Land, water and energy need to be considered jointly in policies, not in isolation.