scholarly journals The Dynamic Impact of Agricultural Fiscal Expenditures and Gross Agricultural Output on Poverty Reduction: A VAR Model Analysis

2021 ◽  
Vol 13 (11) ◽  
pp. 5766
Author(s):  
Guanglu Zeng ◽  
Chenggang Zhang ◽  
Sanxi Li ◽  
Hailin Sun

China was the first developing country to achieve the poverty eradication target of the 2030 Agenda for Sustainable Development Goals (SDG) 10 years ahead of schedule. Its past approach has been, mainly, to allocate more fiscal spending to rural areas, while strengthening accountability for poverty alleviation. However, some literature suggests that poor rural areas still lack the endogenous dynamics for sustainable growth. Using a vector autoregression (VAR) model, based on data from 1990 to 2019, we find that fiscal spending plays a much more significant role in reducing the poverty ratio than agricultural development. When poverty alleviation is treated as an administrative task, each poor village must complete the spending of top-down poverty alleviation funds within a time frame that is usually shorter than that required for successful specialty agriculture. As a result, the greater the pressure of poverty eradication and the more funds allocated, the more poverty alleviation projects become an anchor for accountability, and the more local governments’ consideration of industry cycles and input–output analysis give way to formalism, homogeneity, and even complicity. We suggest using the leverage of fiscal funds to direct more resources to productive uses, thus guiding future rural revitalization in a more sustainable direction.

Agriculture ◽  
2021 ◽  
Vol 11 (5) ◽  
pp. 462
Author(s):  
Hongyu Wang ◽  
Xiaolei Wang ◽  
Apurbo Sarkar ◽  
Lu Qian

Market-based initiatives like agriculture value chain (AVC) are becoming progressively pervasive to support smallholder rural farmers and assist them in entering larger market interventions and providing a pathway of enhancing their socioeconomic well-being. Moreover, it may also foster staggering effects towards the post-era poverty alleviation in rural areas and possessed a significant theoretical and practical influence for modern agricultural development. The prime objective of the study is to explore the effects of smallholder farmers’ participation in the agricultural value chain for availing rural development and poverty alleviation. Specifically, we have crafted the assessment employing pre-production (improved fertilizers usage), in-production (modern preservation technology), and post-production (supply chain) participation and interventions of smallholder farmers. The empirical data has been collected from a micro survey dataset of 623 kiwifruit farmers from July to September in Shaanxi, China. We have employed propensity score matching (PSM), probit, and OLS models to explore the multidimensional poverty reduction impact and heterogeneity of farmers’ participation in the agricultural value chain. The results show that the total number of poor farmers who have experienced one-dimensional and two-dimensional poverty is relatively high (66.3%). We also find that farmers’ participation in agricultural value chain activities has a significant poverty reduction effect. The multidimensional poverty level of farmers using improved fertilizer, organizational acquisition, and using storage technology (compared with non-participating farmers) decreased by 30.1%, 46.5%, and 25.0%, respectively. The multidimensional poverty reduction degree of male farmers using improved fertilizer and participating in the organizational acquisition is greater than that of women. The multidimensional poverty reduction degree of female farmers using storage and fresh-keeping technology has a greater impact than the males using storage and improved storage technology. Government should widely promote the value chain in the form of pre-harvest, production, and post-harvest technology. The public–private partnership should also be strengthened for availing innovative technologies and infrastructure development.


Author(s):  
Liu ◽  
Hu ◽  
Song ◽  
Chen ◽  
Zhu

Water eutrophication caused by agricultural production has become one of the most important factors that impede sustainable rural environmental governance in China. As a result, the Chinese central and local governments want to reduce the use of nitrogen and phosphorus fertilizer and gain socioeconomical profit simultaneously by promoting crayfish and rice integrated system (CRIS) in the rural areas with abundant water resources. In this article, we investigated whether CRIS in Qianjiang, Hubei, the origin place of the system in China, contributes to fulfilling the governments’ expectations. We found that CRIS efficaciously cuts the fertilizer rate in rice production and boosts farmers’ incomes because crayfish has a demand for water quality and holds a large internal market requirement. However, higher profit encourages farmers to expand crayfish production and thus discourages the initiatives in rice production. The area of the ditch for crayfish production expands ceaselessly and exceeds the limit of regulation of CRIS. As a result, the CRIS in the areas has emerged as a practice of aquaculture but in farmland. This is a regulatory gap. The input–output analysis of CRIS by material balance method can also reveal that excessive feed for crayfish has become a new source of agricultural pollution. Beyond that, due to the changed irrigation system and increased water exchange frequency of CRIS, the pollution has transformed from passive distribution to active, which will increase the risk of water eutrophication on a large area.


2021 ◽  
pp. 65-80
Author(s):  
Novita Briliani Saragi

To stimulate rural development and reduce poverty in rural areas, The Government of Indonesia enacted the policy of Village Fund in 2014. However, a few studies have been conducted to examine this program. This study describes how poverty alleviation goes following Village Fund Program in Indonesia between 2015-2019. The poverty reduction was represented by holistic data, including insufficient and village status improvement through the Village Development Index (VDI). The analysis is conducted using a descriptive method by dividing the areas into six regions, Sumatera, Java & Bali, Kalimantan, Sulawesi, Maluku & NT, and Papua. The result showed that over five years, the village fund dramatically increases. Moreover, this growth is along with the slight decline the poverty. The researchers found that the decreasing number of poverty from 2015 to 2019 is about 15%. The VDI status for districts/municipalities shows that the status improved from underdeveloped villages in 2015 to developing villages in 2019. Java is the region that contributed to making the status improved either to be developing, developed, or independent. At the same time, it is the Papua region known as the region consisting of most of the least underdeveloped villages. Since the goal of this policy in poverty reduction still works slowly, it needs a lot of effort from many levels of government, from the village, regional, and national officials, to work together cooperatively.


Author(s):  
Muhamad Rusliyadi ◽  
Wang Libin

The purpose of this chapter is to provide an overview description of important differences in agricultural development China and Indonesia in poverty reduction efforts in rural areas and some strategy. This chapter hopes to provide an objective picture of the development from agricultural sector level of evidence both Indonesia and China. China and Indonesia are agriculture-based countries with a program of integrated rural development as a whole to be a target of poverty reduction programs. Several farm programs related to poverty alleviation have been launched and had a good impact or significance, especially in China that is able to reduce extreme poverty from 30% in 1978 to less than 3% in 2008. Certainly many lessons can be obtained from this success, especially the concept and strategy development in rural China to be a reference of other states in its development model, especially for poverty alleviation programs.


2016 ◽  
Vol 12 (22) ◽  
pp. 305
Author(s):  
Ntiedo B. Ekpo

The study examined the effects of informal capital markets on people-oriented development at the grassroots level in Nigeria. It was motivated by the prevalent speculations and differences of opinion in the literature about the effects of the markets on rural development in most third world countries, including Nigeria. The study adopted the exploratory survey research design and used mean score and Mann-Whitney U test in analyzing the data. The outcome of the analysis, among others, shows first, that all the benchmarks for rural developments, such as poverty reduction, women empowerment and housing development, were significantly related to informal capital market participation. Second, the utilization of micro credits was a major factor in the profitability and growth of business in the rural areas. It is recommended that the monetary authorities and other policymakers recognize the cooperative finance efforts of this group of financial institutions, and devise appropriate means of integrating it with the formal financial sector for improved financial intermediation and wellbeing of the rural poor as well as sustainable growth of the national economies.


2015 ◽  
Vol 31 (2) ◽  
pp. 307
Author(s):  
Ida Zulfida ◽  
Akhmad Fauzi ◽  
Ernan Rustiadi ◽  
Yusman Syaukat

There have been many studies in assessing the performance of the PNPM Ruralproduct, but in general, the assessment analyzed using qualitative descriptive approach.This study aims to measure changes in the productivity performance of the NationalProgram for Community Empowerment (PNPM) Rural in Bandung District from 2009 to2013. In this study the performance assessment PNPM Rural measured using instrumentsData Envelopment Analysis (DEA) based on measures Malmquist Total Factor ProductivityIndex. The result shows an increase in the performance of PNPM Rural in Bandung. Theresults also showed that among subdistricts receiver PNPM Rural program which hasthe best performance is dominated by the agricultural business sector. Based on thesefindings, given the experience and knowledge of both central and local governments inimproving the PNPM Rural program to accelerate poverty reduction in rural areas 


2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Riana Permani

The main strategy of poverty alleviation in Bandung is directed to reduce the poverty rate. But the countermeasures that have been done by the relevant parties have not reached the target set. BPS data in 2019 showed the number of poor people reached 84,670 or 3.38% of the total population. In the last five years, the poverty rate has never reached 1% in accordance with the RPJMD target. On the other hand, all parties agree on the importance of building a system of partnership, coordination, and collaboration between local governments, communities, and non-governmental organizations in collaborative governance. The establishment of the Coordination Team for The Acceleration of Poverty Alleviation (TKPK) Kota Bandung became an important forum in achieving the target of reducing poverty rates. This research aims to find out how the implementation of collaborative governance principles at TKPK Kota Bandung. This study uses a qualitative approach with a descriptive analysis method to find out the existing condition of ongoing collaboration. The data source is obtained from in-depth interviews, field observations as well as secondary data. The results showed that the principles of collaborative governance by TKPK Kota Bandung have not been optimal. The existence of a special meeting forum is more often very important to build a common understanding of the roles and responsibilities of each stakeholder. Optimization of facilitative leadership and institutional design is also indispensable to provide encouragement to the collaboration process that tends to be slow to show temporary results.


2015 ◽  
Vol 54 (4I-II) ◽  
pp. 671-683
Author(s):  
Anwar Shah ◽  
Karim Khan

The primary focus of economics is to allocate resources in order to achieve the well-being of humans. Wellbeing has many dimensions, ranging from the level of mere subsistence to the equality of opportunities to accumulate, and to safeguard life and wealth. Poverty, thus, is one of the parameters for measuring the welfare of society in general. Given this importance, the Millennium Development Goals aim at halving the world poverty by 2015. Many organisations in the world set poverty eradication as one of their key objectives. Likewise, poverty reduction has got a central place in the international politics. Accordingly, each country including Pakistan has launched programmes for the alleviation of this great menace. The election manifesto of all the mainstream political parties in Pakistan includes poverty alleviation as one of their main goals. Additionally, poverty alleviation is one of the major subjects of talks in electronic media and in the editorials of newspapers, both at the national and at the international level. Nevertheless, poverty is still a major problem of humanity across the globe.


2021 ◽  
Vol 13 (21) ◽  
pp. 11691
Author(s):  
Xiaoning Li ◽  
Lingling Li

To achieve comprehensive poverty alleviation and the establishment of a “moderately prosperous society” in China, it is crucial to evaluate the targeted poverty alleviation (TPA) policies. In this study, China’s poverty alleviation statistics and the Foster-Greene-Thorbecke (FGT) indices are used to measure the poverty reduction effects of the TPA policies. A panel regression model is applied to analyze the poverty reduction mechanism while the Shapley index decomposition method is used to analyze poverty reduction effects in terms of income growth and the income gap adjustment. The paper concludes that the poverty breadth index (H index), poverty depth index (PG index), and poverty intensity index (SPG index) from 2013 to 2019 show a significant decline overall. This indicates that the poverty reduction effect of the TPA policies is significant. In addition, the regression analysis shows that the implementation of TPA policies can significantly increase the income level of residents and narrow the income gap among residents in rural areas. Results of the Shapley index decomposition analysis revealed that the income growth effect and income gap adjustment effect accounted for 92.78% and 7.22% of the poverty reduction effects, respectively. So the focus of future poverty alleviation work is to combine the rural revitalization strategy and to continue increasing the income level and the income growth rate of poor groups, which will enhance the ability of impoverished residents to increase their income, further contributing to the alleviation of poverty.


2018 ◽  
Vol 10 (6) ◽  
pp. 91
Author(s):  
Mandla Abednico Mubecua

During the evaluation of the Millennium Development Goals (MDGs) from 2000 to 2015, it was discovered that there was no country managed to meet the envisioned goal of eradicating poverty. However, it was observed that China is the only country that managed to half its poverty levels. Just like other developing countries, South Africa is one of the countries whose performance in the attainment of the first goal of MDGs was not satisfactory. Through the utilization of secondary data in a qualitative approach, this paper argues that South Africa can perform better if it can learn and follow the strategies used by China to shrink its poverty levels. The study shows that China mostly supports State Owned Enterprises, which make the economy to grow and help in poverty alleviation. For that reason, the study recommends that in order for South Africa to attain the poverty eradication goal by 2030 more SOEs have to be established.


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