Policy Options for Focus Countries
Given the lessons learned from our analysis of transformed countries’ policy priorities from 1970 to 2015, we look at the countries that still need to complete their process of agricultural transformation and assess their policy options accordingly.
Please note an explanation of our chosen data sources can be found here, this includes descriptions of the indicators used and which institution prepared them.
Click dots below to show a specific contextual description.
Public Investment |
*Price Interventions |
Macroeconomic Policies |
Land and Other Institutional Reforms |
||||||||
Transformation Context (2015) |
Transformed Countries (1970) |
Matching Focus Countries (2015) |
R&D and Extension Services |
Rural Infrastructure |
Rural Health and Education |
Remove Anti-Agriculture Bias |
Trade Policy Reform |
Monetary and Exchange Rate Policy |
Economic Diversification |
Land Reform |
Credit |
High Birth Rates and Scarce Land |
China, Indonesia, Malaysia, South Korea and Vietnam |
Ethiopia |
X
Public expenditures in agriculture increased significantly, beginning in 2003. However, Ethiopia is ranked low among sub-Saharan African countries in research spending per farmer and is middle of the pack when counting the number of researchers. Problems with the extension system have reduced the uptake of new technologies. Improvements to the extension system have focused on training new development agents to improve connections between farmers and the research system. Data
Ref/Country Profile |
X
From 2000 to 2013, road length was tripled, reducing transport times and connecting many more cities and markets. However, Ethiopia is middle of the pack in regards to road quality, rated 3.72 out of 7. Progress has been made in rural electrification, but with only 8.2 per cent of rural people with access to electricity there is still a long way to go. Data
Ref/Country Profile |
X
Progress has been made in primary enrollment, with the proportion of illiterate farmers falling from 67 per cent to 58 per cent between 2004 and 2014. There is still room for growth in the share of primary enrolment, which was at 0.55 (out of 1) in 2015. Ref/Country Profile |
X
The relative rate of assistance in Ethiopia is significantly negative, at -0.416 in 2015. Data
Ref/Country Profile |
X
Ethiopia is very low on the Trade Openness Index, with only four countries scoring lower. However, Ethiopia has a relatively low average agricultural tariff based on the Overall Trade Restrictiveness Index. Data
|
X
Ethiopia’s exchange rate distortion index is 0.365, indicating undervaluation. Data
Ref/Country Profile |
X
At 0.811 on the UNCTAD Diversification Index, Ethiopia is less diversified than the average for developing economies in Africa (0.538). Economic diversification is an important strategy for countries with a high birth rate and scarce land, although it may not be as important for Ethiopia in the near term since it is at an early stage of agricultural transformation. Data
|
X
A land certification program in Ethiopia in the 1990s was one of the largest and most effective such programs in Africa. Land security contributes to higher investments, higher productivity and improved food security. Ref/Country Profile |
X
There has been significant growth in the microfinance industry in Ethiopia over the last two decades. There have also been substantial government loans through the Rural Saving and Credit Cooperative. Ref/Country Profile |
India |
X
The public agricultural research system in India is one of the largest in the world. Agricultural research spending increased significantly from 2000 to 2014. Research spending has had the largest impact on agricultural production among public investments in agriculture, at a ratio of 6 to 1 for rupees spent. Connectivity, particularly related to IT and communications, needs to be improved. Doing so is important for taking advantage of agriculture’s potential to contribute to wider growth in the economy. Data
Ref/Country Profile
|
X
Public expenditure in irrigation, electrification and roads increased farmers’ access to markets (primarily domestic, but also international), and had a substantial impact on poverty reduction and agricultural production. Public expenditures per farmer increased significantly from USD 78 PPP in 2000 to USD 243 PPP in 2015. However, the quality of road infrastructure is middling, with their quality at 4.14 (on a scale of 1-7), which was worse in rural areas. Further prioritization of rural infrastructure would pay dividends given India’s geographic size and the domestic market orientation of its agricultural sector. Data
Ref/Country Profile
|
X
The share of primary enrollment in India increased from 0.52 in 1970 to 0.94 in 2015. Investments in education had a positive impact on both agricultural production and poverty reduction. Ref/Country Profile |
X
Price policies included substantial subsidies for water, electricity and fertilizer, as well as government price and quota setting in many agricultural product markets. These policies—resulting in an anti-ag bias—are thought to have had a negative impact on productivity growth. Data
Ref/Country Profile
|
X
There has been a shift towards trade liberalization in India that began in the late 1990s. Export controls, quantitative controls and tariff rates have all been reduced. Despite these advances, trade openness remains low overall (even allowing for India’s large economy/internal market) and it has a relatively high average agricultural tariff based on the Overall Trade Restrictiveness Index. The country still has low participation rates in regional or wider free trade agreements. Data
Ref/Country Profile
|
X
India’s exchange rate distortion index is 0.29, indicating undervaluation. Data
Ref/Country Profile |
X
Economic diversification is an important strategy for countries with a high birth rate and scarce land, and India’s UNCTAD Diversification Index of 0.434 implies that it is middling but can be improved further. Data
|
X
India has taken steps to increase access to land and to limit concentration. However, the reform efforts have not been as effective as hoped and there remain issues to address. Ref/Country Profile
|
X
India is at a stage where farmers can benefit significantly from further credit at reasonable rates. |
||
Kenya |
X
Investments in the agricultural research system in the 1970s and 1980s had a number of successes and breakthroughs. Funding has since declined but remains relatively high among sub-Saharan African countries. The research system is middle of the pack among sub-Saharan African countries in terms of the number of researchers employed. Coupled with an ineffective extension system, agricultural research in Kenya has not been a major contributor to agricultural productivity in recent years. Data
Ref/Country Profile |
X
Lack of investment in rural infrastructure has led to insufficient irrigation and road networks. Kenya is rated 4.19 out of 7 on road quality. Lack of irrigation is a significant concern given that Kenya is largely arid or semi-arid. Data
Ref/Country Profile |
|
X
Grain tariffs were used in Kenya to raise grain prices in order to support domestic farmers. However, many smallholders in Kenya are net maize buyers who were hurt by high prices. The relative rate of assistance to agriculture was negative in Kenya, at -0.158 in 2015. Data
Ref/Country Profile |
X
The export sector in Kenya has limited diversity, concentrated in low value-added products. This is due in part to limited capacity in quality assurance and non-tariff barriers to trade. The government has also not fully integrated into regional economic communities such as the East African Community and Common Market for Eastern and Southern Africa. The weighted agricultural tariff is relatively high in Kenya, based on the Overall Trade Restrictiveness Index. Data
Ref/Country Profile |
X
Kenya moved to support the export sector in the 1990s with a stabilization program that removed controls on foreign exchange and floated the exchange rate in order to allow the currency to depreciate. Data
Ref/Country Profile |
X
At 0.650 on the UNCTAD Diversification Index, Kenya is less diversified than the average for developing economies in Africa (0.538). Economic diversification is an important strategy for countries with a high birth rate and scarce land, and may be particularly important for Kenya as agricultural transformation advances and labour begins to move out of agriculture. Data
|
X
Following independence, the government redistributed land to indigenous farmers, which allowed a large number of smallholders to participate in commercial agriculture. Ref/Country Profile |
X
The availability of agricultural credit has diminished over time, with small-scale farmers and women having especially limited access. A lack of finance reduces the ability of these farmers to increase production and invest in value-adding processes. Ref/Country Profile |
||
Rwanda |
X
The government has invested in the extension system and helped in developing the research capacity of farmer associations. Spending on research, and the number of researchers per 100,000 farmers, are both very low. Data
Ref/Country Profile |
X
Rwanda’s agricultural spending is low at the national level, but when infrastructure, school feeding programs and district level spending are taken into account, public spending on agriculture averaged 13 per cent annually, above the 10 per cent goal recommended by Comprehensive Africa Agriculture Development Programme (CAADP). Lack of infrastructure and road networks is a barrier to development. Infrastructure spending has primarily focused on irrigation. The quality of roads is relatively good. Data
Ref/Country Profile |
X
The share of primary enrollment in 2015 was 0.602, which implies significant room for improvement. Ref/Country Profile |
X
Anti-ag bias has been reduced over the last few years, to the point where it has shifted into becoming a small pro-ag bias (with a relative rate of assistance of +0.226 in 2015). Data
Ref/Country Profile |
X
Rwanda has a below average Trade Openness Index at 51.02 (for the size of its economy). The weighted average tariff for agriculture based on the Overall Trade Restrictiveness Index is relatively high. Data
|
X
A primary goal of the National Bank of Rwanda is to maintain price stability and low inflation. The Bank uses a monetary targeting regime. Data
Ref/Country Profile |
X
Government efforts at diversifying the economy have been unsuccessful, with little growth in industry (the UNCTAD Diversification Index ranks it at 0.748). Economic diversification is an important strategy for countries with a high birth rate and scarce land. Data
Ref/Country Profile |
X
Rwanda’s 2004 land reform increased tenure security for both men and women, improved the functioning of land markets, and allocated 11.3 million land parcels in less than three years. Ref/Country Profile |
X
Credit is provided under a number of programs, including the Rural Investment Facility, the Agricultural Guarantee Fund, and the Girinka Programme. Credit is subsidized and sometimes provided as a grant. The development of credit cooperatives has also been encouraged in rural areas. Ref/Country Profile |
||
High Birth Rates and Scarce but Fertile Land |
Ghana and Thailand |
Burkina Faso |
X
Spending on agricultural research and researchers employed in Burkina Faso is relatively low compared to other sub-Saharan African countries. Investment in agricultural research is important for improving productivity in countries with high birth rates and scarce but fertile land, especially when combined with a strong extension system. Data
Ref/Country Profile |
X
The level of public expenditure per farmer is relatively low in Burkina Faso, at USD 212.1 PPP in 2015. The rate of rural electrification is low at only 2.2 per cent in 2015. Data
Ref/Country Profile |
|
X
The anti-agricultural bias has declined from -0.164 in 2000 to -0.094 in 2015, but is still relatively negative. Price policies in favour of agriculture are important for countries with high birth rates and scarce but fertile land. Data
Ref/Country Profile |
X
Burkina Faso is ranked below average by the Trade Openness Index at 62.83. The weighted average tariff for agriculture based on the Overall Trade Restrictiveness Index is relatively high. Data
|
X
Burkina Faso’s currency, the CFA Franc, is a common currency for a group of eight West African countries and is fixed against the Euro. The inability to adjust the currency unilaterally removes a policy tool for Burkina Faso. Data
Ref/Country Profile |
X
At 0.884 on the UNCTAD Diversification Index, Burkina Faso is significantly less diversified than the average for developing economies in Africa (0.538). Economic diversification may be particularly important for Burkina Faso as agricultural transformation advances and labour begins to move out of agriculture. Data
|
X
Burkina Faso has developed participatory rural land tenure map pilot programs as a cost-effective means for registering land. Ref/Country Profile |
X
Lack of access to credit is a constraint for smallholders in Burkina Faso. Credit is more readily available for commodity export crops like cotton. The 2012 Programme Nationale du Secteur Rural (PNSR) was developed to coordinate agricultural planning, including funding activities. The PNSR supports access to finance by developing financial products that are tailored to the needs of farmers. Ref/Country Profile |
Malawi |
X
Investment in agricultural research is important for improving productivity in countries with high birth rates and scarce but fertile land, especially when combined with a strong extension system. Spending on research and number of researchers per 100,000 farmers is very low. Data
Ref/Country Profile |
X
The level of public expenditure per farmer is relatively low in Malawi, at 95.40 PPP USD in 2015. The rate of rural electrification was 3.4 per cent in 2015. Road quality is also low. Data
Ref/Country Profile |
X
The share of primary enrollment in Malawi was 0.73 in 2015, but can be improved. Data
Ref/Country Profile |
X
The Fertilizer Input Subsidy Program has been a major part of agricultural policy in Malawi since 2005. The program has faced difficulties with targeting farmers in need of support and with economic returns. The anti-agricultural bias is relatively high in Malawi, at -0.288 in 2015. Price policies in favour of agriculture are important for countries with high birth rates and scarce but fertile land. Data
Ref/Country Profile |
X
Malawi has a below average Trade Openness Index at 65.03 (for the size of its economy). The weighted average tariff for agriculture based on the Overall Trade Restrictiveness Index is middling at 35.9. Data
|
X
Interest rates were liberalized in 1990 and exchange rates followed suit in 1994. The primary goal of monetary policy in Malawi is to maintain stable prices and low inflation. Data
Ref/Country Profile |
X
Economic diversification is an important strategy for countries with a high birth rate, but to date Malawi has been relatively unsuccessful (the UNCTAD Diversification Index was 0.815 in 2015). Data
|
X
Malawi implemented a “willing seller, willing buyer” land reform model that attempts to redistribute land through the market. The program has had success raising farmer incomes, but may create inequalities as better off farms receive greater benefits. Ref/Country Profile |
X
Access to credit is a significant barrier to growth for business owners in Malawi, and 58 per cent of rural individuals were excluded from finance in 2008, largely because of low incomes. Commercial banks have a limited presence in rural areas. Ref/Country Profile |
||
Tanzania |
X
Public expenditure on agriculture averaged only 3 per cent of the total budget in Tanzania from 2004 to 2007, and only 15 per cent of the agriculture budget was spent on research and extension. Consequently, spending on research and number of researchers per 100,000 farmers is very low. Evidence indicates that spending on research and extension has a high rate of return. Investment in agricultural research is important for improving productivity in countries with high birth rates and scarce but fertile land, especially when combined with a strong extension system. Data
Ref/Country Profile |
X
Lack of a road network greatly increases costs for farmers in Tanzania, especially because road quality is also very low. The average distance to a market was 3.3 km as of 2007, and the density of paved roads in Tanzania is well below the low-income country average. Data
Ref/Country Profile |
|
X
Fertilizer subsidies are used on a limited basis in Tanzania. These subsidies are particularly necessary in areas with poor road networks where markets are not well developed and fertilizer prices are too high (because of additional transportation costs) for many farmers as a result. Price policies in favour of agriculture are important for countries with high birth rates and scarce but fertile land. While mildly pro-ag, Tanzania must prioritize a more pro-ag approach. Data
Ref/Country Profile |
X
Marketing boards maintain control over some important crops in Tanzania, despite evidence that agricultural productivity in the country would respond well to changes in relative prices. However, the weighted average tariff for agriculture based on the Overall Trade Restrictiveness Index is middling at 39.1. Data
Ref/Country Profile |
X
Partial liberalization and currency devaluation was undertaken in Tanzania in 1984. Further reforms were adopted in 1986. A floating exchange rate was fully implemented by 1996.The reforms helped expand the importing of transport equipment and consumer goods. Data
Ref/Country Profile |
X
Economic growth from 2000 to 2004 was not accompanied by the emergence of an industrial sector, an important part of ensuring sustained growth, and economic diversification remains low (0.794 on the UNCTAD Diversification Index). Data
Ref/Country Profile |
X
Implementation of the 1999 Land Act has been hampered by insufficient funding, with implementation delayed until 2005 and only a relatively small number of land titles issued by 2015. Ref/Country Profile |
X
The Warehouse Receipt Program established in 2007 allows farmers to deposit grain as collateral for loans. The program is widely viewed as a successful mechanism to overcome access to credit problems faced by farmers with little income or collateral. Ref/Country Profile |
||
Togo |
X
Public expenditure per farmer is relatively low in Togo, at USD 109.3 PPP in 2015. Spending on agricultural research and researchers employed in Togo is relatively low compared to other sub-Saharan African countries. Investment in agricultural research is important for improving productivity in countries with high birth rates and scarce but fertile land, especially when combined with a strong extension system. Data
Ref/Country Profile
|
X
Public expenditure per farmer is relatively low in Togo, at 109.3 PPP USD in 2015. The rate of rural electrification was 41 per cent in 2015. Data
Ref/Country Profile
|
|
X
Price policies in favour of agriculture are important for countries with high birth rates and scarce but fertile land. Data
Ref/Country Profile |
X
Togo performs relatively well on the Trade Openness Index (99.98) and the Overall Trade Restrictiveness Index (11.5). Data
Ref/Country Profile |
X
Togo’s exchange rate distortion index is 0.348, indicating undervaluation Data
|
X
At 0.716 on the UNCTAD Diversification Index, Togo is less diversified than the average for developing economies in Africa (0.538). Economic Diversification may be particularly important for Togo as agricultural transformation advances and non-agricultural sectors become more important for growth. Data
|
X
Author’s analysis, based on data. |
| ||
Uganda |
X
Uganda’s spending on research has been relatively high, but the country has struggled with the deployment of extension services, often due to a lack of extension agents. The National Agricultural Advisory Services was created in 2001, before being suspended in 2008 and again in 2010. Low productivity remains a major issue for agriculture in Uganda. Investment in agricultural research is important for improving productivity in countries with high birth rates and scarce but fertile land, especially when combined with a strong extension system. Data
Ref/Country Profile |
X
The poor road network in Uganda has been identified as an obstacle to agricultural development, as many farmers struggle to access markets. The lack of a good transportation system also negatively impacts the development of a rural non-farm sector. Uganda is rated 3.41 out of 7 for quality roads. Data
Ref/Country Profile |
|
X
Uganda removed many distortions to agricultural prices in the 1990s, including the liberalization of state marketing boards. The relative rate of assistance to agriculture remains negative at -0.192 in 2015. Price policies in favour of agriculture are important for countries with high birth rates and scarce but fertile land. Data
Ref/Country Profile |
X
Uganda has a relatively low weighted average tariff for the economy as a whole, and for the agricultural sector specifically. Data
|
X
Following political and economic stability through the 1970s and early 1980s, the 1987 Economic Recovery Programme implemented macroeconomic stabilization measures, including exchange rate reforms, as well as market and price reforms. Data
Ref/Country Profile |
X
The construction and services sectors have contributed to Uganda’s growth over the last 30 years. However, most of this growth is domestic, with little growth in export sectors. At 0.728 on the Diversification Index, Uganda is less diversified than the average for developing economies in Africa (0.538). Economic diversification may not be as important for Uganda in the near term since they are at an early stage of agricultural transformation. Data
Ref/Country Profile |
X
Uganda has less than 10 land surveyors per one million people, creating an obstacle to land titling efforts. Land tenure problems have contributed to declines in agricultural productivity. Land holding is subject to multiple tenure systems, and a minority of agricultural land is titled. Ref/Country Profile |
X
As part of the Prosperity for All policy in 2007, low-interest loans were provided to rural communities through the Savings and Credit Cooperative Societies. Ref/Country Profile |
||
Zambia |
X
Public expenditure on agricultural research has been low in Zambia since the 1990s. New investments have been supported by bilateral donors. Investment in agricultural research is important for improving productivity in countries with high birth rates and scarce but fertile land, especially when combined with a strong extension system. Data
Ref/Country Profile |
X
Public expenditure per farmer has declined since 1985 and stood at USD 144.9 in 2015 (on a PPP basis). Moreover, funding for rural infrastructure and research and extension has been limited, as the majority of government spending on agriculture has gone to fertilizer subsidies and the Food Reserve Agency. Data
Ref/Country Profile |
|
X
By 2005 the government had become one of the largest actors in the maize market through the Food Reserve Agency, with a high level of spending on purchasing grain and providing subsidized fertilizer to the industry. Nevertheless, the anti-ag bias for crops other than maize remains high. Despite significant intervention, the marketing boards have not always been able to keep food prices low for consumers. Data
Ref/Country Profile |
X
Zambia has a middling Trade Openness Index (compared to peers) and very low weighted average tariff for the economy as a whole, as well as the agriculture sector. Data
|
X
High inflation was a problem in Zambia throughout the 1990s, but reforms including a switch to a floating exchange rate have been successful at managing volatility. Budget pressures brought about by the structural adjustment program resulted in cuts to a number of ministries, including agriculture, transport, energy and water. Data
Ref/Country Profile |
X
Economic diversification is an important strategy for countries with a high birth rate, but Zambia has been relatively unsuccessful in pursuit of this objective (UNCTAD Diversification Index was 0.856 in 2015). Data
|
X
The 1995 Land Act was aimed at stimulating investment in rural areas, but in practice has excluded local land users in favour of investors. Land titling has not been accessible to smallholder farmers. Ref/Country Profile |
X
Smallholder access to finance has been a problem historically in Zambia. The National Commercial Bank and National Farmers Union began implementing a scheme to enable smallholder farmers to receive seasonal credits for maize. The 2012 Rural Finance Policy aims to facilitate and coordinate rural financial services. Ref/Country Profile |
||
Abundant and Fertile Land |
Brazil, Colombia |
Mali |
X
The amount spent on research and extension (4 per cent of the agricultural budget) is low given the productivity issues the country faces. Spending on research and extension to maximize productivity is important in countries with abundant and fertile land. Data
Ref/Country Profile
|
X
Mali has achieved the Maputo Declaration objective of spending 10 per cent of its budget on agriculture. Of all agriculture spending, 21 per cent goes to infrastructure. However, the quality of roads in Mali is quite low, at 3.16. Data
Ref/Country Profile
|
|
X
Through the 2000s, Mali’s government has intervened in order to stabilize domestic cereal prices by temporarily suppressing the VAT and tariffs, and also by providing subsidies. These initiatives have resulted in a deterioration to the relative rate of assistance, which was -0.28 in 2015. Data
Ref/Country Profile
|
X
Mali put the West Africa Economic and Monetary Union common tariffs into place in 2000. However, interventions by the government to suppress the tariff has reduced the success of the liberalization program. Data
Ref/Country Profile
|
X
Mali’s membership in the Franc Zone and WAEMU helped the country maintain a sound macroeconomic policy with positive effects on some exporting sectors (like cotton) following the devaluation of the CFAF in 1994. Data
Ref/Country Profile
|
X
At 0.890 on the Diversification Index, Mali is significantly less diversified than the average for developing economies in Africa (0.538). Economic diversification may be particularly important for Mali as agricultural transformation advances and non-agricultural sectors become more important for growth. Data
|
|
X
Credit policies are important in countries with abundant and fertile land, in order to ensure farmers are able to access technologies and education to maximize productivity. |
Mozambique |
X
A weak extension services system has been detrimental in Mozambique, as few farmers have access to technical support, in part due to a lack of funding. Spending on research and extension to maximize productivity is important in countries with abundant and fertile land. Spending on research and number of researchers per 100,000 farmers are very low. Data
Ref/Country Profile |
X
Public expenditure per farmer is low in Mozambique, at only USD 24.82 PPP in 2015. The rural rate of electrification was 5.3 per cent in 2015. Road infrastructure is also relatively underdeveloped and of low quality. Data
Ref/Country Profile |
|
X
Prices for agricultural commodities began to be liberalized in the 1980s, but an anti-ag bias remains with the relative rate of assistance at -0.131 in 2015. Data
Ref/Country Profile |
X
Trade began to be liberalized in the 1990s, with regional restrictions and monopolies dismantled. Mozambique joined the GATT in 1992 and the WTO (which took the place of the prior GATT system) in 1995 and began lowering tariffs. The country has a very low weighted average tariff for the economy as a whole, as well as the agriculture sector. Data
Ref/Country Profile |
X
A macroeconomic stabilization program was undertaken in the late 1980s and continued into the 1990s. The program helped to address concerns of exchange rate distortion because the official rate differed from the “market rate” as witnessed in parallel rates used for specific purposes, as well as unofficial rates used by traders. Data
Ref/Country Profile
|
X
Economic diversification for Mozambique is very low, with the UNCTAD Diversification Index for the country at 0.807. Data
|
X
Attempts at land reform beginning in 1997 aimed to increase private investment in rural areas. However, concessions lacked transparency and provided little benefit to local communities. Many investments were slow to start, with less than 50 per cent on schedule by 2009. Ref/Country Profile |
X
Access to credit in Mozambique is limited by a lack of rural infrastructure, with more than one third of rural people living more than 3 hours from financial services. The Mozambique Financial Sector Development Strategy 2011-2020 aims to expand access to financial services and develop financial products aimed at rural people. Ref/Country Profile |
||
Zimbabwe |
X
Zimbabwe is in the middle of the pack among sub-Saharan African countries in terms of spending per 100,000 farmers and number of researchers employed. Spending on research and extension to maximize productivity is important in countries with abundant and fertile land. Data
Ref/Country Profile |
X
Zimbabwe invests very little in agriculture, spending only 5 per cent of the total budget on the sector, well short of the Maputo Declaration goal of 10 per cent. Zimbabwe is rated 3.24 out of 7 for quality of roads. Rural infrastructure, particularly irrigation, is important in the country as drought is a regular occurrence. Data
Ref/Country Profile |
|
X
In Zimbabwe, inputs, outputs and prices were fully controlled by four state marketing boards, which resulted in significant taxation of the agricultural sector. The marketing boards ran up deficits and were unable to achieve their objectives. A liberalization process was begun in the 1990s, but was not sufficient to remove the anti-agricultural bias. The relative rate of assistance to agriculture was -0.4 in 2000. Data
Ref/Country Profile |
X
Zimbabwe ranks relatively low on the Trade Openness Index, at 61.2 per cent. Data
|
X
Zimbabwe maintained an overvalued currency, disincentivizing production of tradable crops. Macroeconomic policies contributed to a decline in GDP and the agricultural sector from 1999 to 2007. Data
Ref/Country Profile |
X
At 0.840 on the Diversification Index, Zimbabwe is less diversified than the average for developing economies in Africa (0.538). Economic diversification may not be as important for Zimbabwe in the near term since they are at an early stage of agricultural transformation. Data
|
X
Zimbabwe failed in a number of attempts at land reform through the 1980s and 1990s. Land reform in the 1980s was based on a “willing buyer, willing seller” market model, but many large-scale, predominantly white, farmers were unwilling to sell. Reform in the 1990s allowed for the acquisition of underutilized land, with compensation, but few resources were put into the program and land distribution remains skewed towards large-scale farmers. Ref/Country Profile |
X
Commercial banks withdrew from rural areas, viewing loans to smallholders as too risky, particularly as many did not hold land titles. Public finance efforts also faced issues, as the government focused more on providing loans and less on developing financial infrastructure and institutions, which compromised the effectiveness of government lending. Credit policies are important in countries with abundant and fertile land, in order to ensure farmers are able to access technologies and education to maximize productivity. Ref/Country Profile |
||
: Higher Priority : Medium Priority : Lower Priority
*The two sub-categories for price interventions are interrelated. Trade policy reform refers to the use of trade measures such as tariffs, export taxes, export promotion and sectoral policies. The anti-agricultural bias refers to the relative rate of assistance to agriculture compared to other sectors of the economy. It includes trade measures such as tariffs and subsidies but also other government policies that affect prices, such as input subsidies and direct price controls. It is expressed as positive, negative or neutral, relative to other sectors. This table shows that removing the negative relative rate of assistance (the anti-agricultural bias) was key in the agricultural transformation process.