Papers

× We study how households in Egypt’s national cash transfer program decide to voluntarily join a new government-run poverty graduation program. Using a randomized experiment, we test official video messages providing respondents with new information on: T1) the duration of the cash transfers after joining the graduation program and T2) expected monthly income from the asset provided by the graduation program. Both video messages increase respondents’ beliefs on their respective topics and interest in recommending the graduation program to others. The evidence is consistent with a theoretical model where new information increasing the expected returns for the graduation program consequently increases preferences for the new program, though estimating the model reveals other factors also likely affect household decision-making. The findings highlight the importance of designing poverty graduation programs that provide compelling economic incentives relative to existing social protection programs.

× One argument in favor of quotas for women’s representation in political office is that female politicians can break down gender barriers more broadly, inspiring individual women to participate politically. In many African countries, where gender gaps in political participation are large, identifying effective strategies to reduce gender imbalances is critical. Recurring climate and conflict shocks are making this task more urgent, to ensure that women’s voices are included when designing responses to those shocks and as it is possible that climate and conflict shocks could widen participation gaps. Using data from 13 African countries on women’s representation in subnational political offices as well as survey data on individual political participation, we find, first, that women’s representation in local office is associated with higher political participation by individual women (but not by men) in this context. Second, using geo-referenced data on shocks, we show that violent conflict shocks in particular lower political participation for everyone, although the effects are stronger for men compared to women in the 12-month frame that we consider here. Third, we find that, when women leaders hold local political office, the negative effects of conflict shocks on political participation are mitigated for women. These analyses offer important new insights into the relationship between women’s political representation and women’s individual political activity within the context of shocks.

× Increasing formal employment for youth and women is a key goal of the Forsa pilot graduation intervention and Egyptian government policy in general. As detailed in Forsa evaluation reports, matching Takaful beneficiaries with jobs in the private sector is a major challenge from the perspective of households. In this policy note, we examine the challenges from the perspective of potential employers. We review literature of the market failures that may contribute to difficulties with job matching in rural Egypt and present results from a small telephone survey of Forsa employers.

× Forsa is a pilot economic inclusion program implemented by the Ministry of Social Solidarity (MoSS) in Egypt. The goal of the program is to graduate beneficiaries of Takaful to economic self-reliance by enabling them to engage in wage employment or small-scale productive enterprises. The Forsa program began in 2023 after significant delays. Obstacles to implementation included the Covid-19 pandemic, Egypt’s economic crisis following the Ukraine-Russia war, and administrative challenges with procurement approvals.

× Efficient water resources management is essential for the sustainable development of nations, and large dams are an important tool for achieving this endeavor. Here, we present an integrated approach to simulating the impacts of large dams, integrating river systems infrastructure, hydrodynamic, and economywide models. We apply the framework to examine the biophysical, GDP, and distributional impacts of the Grand Ethiopian Renaissance Dam (GERD) on Sudan.

× We evaluate the impacts of a traditional food distribution and a nutrition-sensitive food distribution intervention in the context of a rapidly increasing inflationary pressure in Egypt. Besides evaluating the relative and absolute impacts of these interventions on household food and nutrition security, we also examine their impacts on households’ preferences for in-kind versus cash transfers. We implement a clustered randomized control trial through which we randomly assigned communities into: (i) “nutrition-sensitive” food box, (ii) traditional “staple-heavy” food box, and (iii) control group. We find that the nutrition-sensitive food distribution cushioned falls in dietary quality and food security of targeted households relative to the control group while the impact of the traditional and staple-heavy food distribution appears to be negligible. The nutrition-sensitive food boxes increased beneficiary households’ dietary diversity by about 9 percent while also increasing energy, protein, and iron intake by 12, 13, and 19 percent, respectively. We also find that experience with the food boxes increases households’ preference for in-kind transfers, more so among households experiencing high inflation rates and among those households not covered by other food and cash transfer programs. Receiving food boxes increases preference for in-kind transfer by about 9-11 percentage points. Our findings have important implications for the debate on the efficacy of alternative interventions to support poor households as food prices rise and the relative efficacy of in-kind and cash-transfers. The lack of effectiveness of the staple-heavy food boxes suggests that the design and content of in-kind transfers are crucial when considering this policy option, including compared to cash.

× 1. Forsa, which means “Opportunity” in Arabic, is a new economic inclusion program of the government of the Arab Republic of Egypt. Implemented by the Ministry of Social Solidarity (MoSS), one major goal of the program is to graduate beneficiaries of Takaful to economic self reliance by enabling them to engage in wage employment or small-scale productive enterprises.
2. The Forsa program began in 2023, after significant delays. Obstacles to implementation in cluded the Covid-19 pandemic, nationwide inflation subsequent to the Ukraine-Russia war result ing in funding challenges for asset purchases, and administrative challenges with procurement approvals by the Ministry of Finance. Forsa implementation was conducted under MoSS super vision by local non-governmental organizations (NGOs). While a few NGOs received their first payments in the first quarter of 2022, most NGOs received their first payments in October 2022, delaying program implementation to February 2023. According to the MoSS, in the second half of 2023, households receiving assets through the program increased from around 3,000 (9%) to 10,302 (29%) out of a target of 35,000 households through 49 contracted NGOs and two private hiring firms, and the number of participants receiving a job has increased from 3,324 (23%) in August to 5,392 (38%) by end of November of 2023 out of a target of 14,314 households through 22 NGOs and two private firms.

× Egypt’s Haya Karima (HK) Initiative aims at improving the quality of life in the country’s rural communities through interventions related to human development, infrastructure, and economic sectors. This presidential initiative, whose name translates to “Decent Life” in English, has four strategic goals, all targeting Egypt’s rural population: building human capital, improving quality of life, improving the standard of living for the most vulnerable, and providing decent and productive job opportunities. The initiative is aligned with the UN Sustainable Development Goals (SDGs) and the objectives of Egypt Vision 2030.
HK aims to not only curb material poverty but also multidimensional poverty by expanding the umbrella of comprehensive social protection, with a focus on education, health, infrastructure, and employment. It also focuses on achieving the goal of geographical equity by addressing regional disparities that affect rural areas such as Upper Egypt. Here, we describe a recently completed study that assesses the economywide effects of the first phase of HK. The analysis was done by the International Food Policy Research Institute (IFPRI), in collaboration with Egypt’s Ministry of Economic Planning and Development (MPED) under the project Evaluating Impact and Building Capacity (EIBC), funded by the United States Agency for International Development (USAID).

× "This study evaluates the potential impact of the recent rise in world food prices on the Moroccan economy and possible policy options to respond to it. The study focuses mainly on the poverty effects of such an external shock and the possible policy responses to it. A new social accounting matrix (SAM) and a computable general equilibrium (CGE) model have been developed for this study based on micro-level data in combination with sectoral and economywide data. The CGE model simulations show that while increased world food prices hurt poor consumers, the general equilibrium effect of welfare loss is modest. Agricultural producers gain, and benefits to small farmers are especially large. The simulation of import subsidies shows that while such policy options can temporarily stabilize domestic prices, the benefits to consumers are at the expense of producers. However, the model results indicate that there are win-win options for Morocco if policies are based on a longer-term objective. Direct transfers to poor consumers, combined with increased public investment in agriculture to improve agricultural productivity, is a win-win strategy that the government should consider. Low productivity in staple crop production is the dominant reason for poverty among Moroccan farmers. Improving this productivity can also benefit poor consumers by lowering domestic food prices." --from authors' abstract

× While a growing literature analyzes the economic effects of cash for work programs in developing countries, there remains little evidence about the longer-term effects of these interventions. This paper presents findings from a randomized controlled trial evaluating a three month intervention providing public works em ployment in rural Tunisia. The evaluation design incorporates two dimensions of randomization — community-level randomization to treatment and control, and individual-level randomization among eligible individuals — and a sample of 2,718 individuals was tracked over five years. The findings suggest that cash for work leads to significant increases in labor market engagement, assets, consumption, financial inclusion, civic engagement, psychological well being, and women’s em powerment one-year post-treatment; however, these effects have largely attenuated to zero five years post-treatment, with the exception of a positive effect on assets. There is also evidence of positive spillover effects within treatment communities, but these effects similarly attenuate over time.

× Key messages The participation of smallholder farmers in high-value and profitable value chains as well as contract farming remains low in Africa.
 Farmers with limited land resources are more likely to devote a larger share of their land to low-value crops such as cereals while this pattern weakens with increasing land size and slightly reverses for high-value crops such as spices and herbs.
 Smallholders in Egypt face a trade-off between ensuring food security to their house holds and maximizing profit, and land plays a major factor in moderating this trade-off.
 Younger and wealthier farmers are more likely to participate in the cultivation of high value crops such as spices and herbs as well as contract farming.
 There exist strong complementarities between participation in high-value value chains and contract farming.

× The participation of smallholder farmers in high-value and profitable value chains as well as contract farming remains low in Africa. This paper aims to identify observable and unobservable constraints that explain joint participation in profitable value chains and contract farming. We use a multivariate probit model to estimate potential complementarities between the cultivation of these various value chains (vegetables, fruits, spices, herbs, and cereals), and participation in contract farming. We identify several important observable factors that reinforce and hence limit smallholders’ participation in both low and highvalue chains as well as contract farming. For example, we find suggestive evidence that mallholders in Egypt face a trade-off between ensuring food security to their households and maximizing profit, and land plays a major factor in moderating this trade-off. We find that farmers with limited land resources are more likely to devote a larger share of their land to low-value crops such as cereals while this pattern weakens with increasing land size and slightly reverses for high-value crops such as spices and herbs. This suggests until some level of land resources, food security goals may dominate profit motives while this reverses after ensuring that food security goals are achieved. Younger and wealthier farmers are more likely to participate in the cultivation of high-value crops such as spices and herbs as well as contract farming. We also document strong complementarities between participation in high-value value chains and contract farming. Particularly, farmers who cultivate high-value crops are more likely to be engaged in contract farming. Intuitively, this implies that addressing smallholders’ binding constraints, including risk and access to land, can encourage participation in profitable value chains and contract farming. Our findings offer suggestive evidence that may serve in targeting smallholders to join profitable value chains in Egypt and other comparable contexts.

× This paper analyzes transaction data from agricultural surveys carried out in five countries in low-and-middle-income countries to test for a difference in the prices received by men and by women marketing the same crop in the same village. In a unique finding, we identify a gap between the price received by women and the price received by men on three separate continents. Echoing similar results from other countries in subSaharan Africa, using mobile phone ownership and use data, we provide evidence to suggest that women farmers likely suffer from unequal access to information. The presence of asymmetric information is therefore indicated to be a limiting factor in women’s ability to receive a fair unit price.

× Key messages
 The pandemic increased poverty in Africa by less than expected, approximately 1.5-1.7 percentage points in 2020.
 Countries affected by Fragility, Conflict, and Violence (FCV) experienced the greatest increases in poverty.
 An emerging literature establishes that social protection programs in Africa during the pandemic had positive impacts and was generally pro-poor, suggesting a key cushion-ing role played by the expansion of social protection on trends in poverty.
 However, delivering shock-responsive social protection in Africa continues to face im-portant challenges related to targeting, coverage, timeliness, and financing.
 Early targeting analyses for some countries during the pandemic show that targeting was broadly progressive in some countries and regressive in some other countries.

× The Forsa program, launched in 2021 by the Egyptian Ministry of Social Solidarity has been designed as a graduation program targeted to current beneficiaries of the Takaful cash transfer program. To understand how well Forsa supports household income generation and to better understand the beneficiary household characteristics which may relate to program success, the International Food Policy Research Institute in collaboration with the Ministry of Social Solidarity is running a randomized control trial of the pilot Forsa program (see IFPRI MENA Regional Program Policy Note 21 for more details on the program and evaluation design).
A baseline household survey collected in January-February 2022 provides a detailed picture of the eligible households in the targeted communities, including the employment situation and work-related skills of the household members intending to participate in Forsa. The household survey data was collected in the eight governorates of the pilot: Beni-Suef, Sharqia, Qalyoubia, Luxor, Fayoum, Menia, Souhag, and Assuit. 24 households Forsa-eligible households were surveyed in each of 323 communities: 16 households from the pool of current Takaful beneficiaries and 8 from the pool of Takaful rejected applicants. The final sample size was 7,752 households. Each household was asked whether they were willing to enroll in Forsa and, if so, which household member would participate in the trainings. 83% of sampled eligible households indicated willingness to enroll in Forsa. The large majority of these (77%) indicated a preference for the self-employment track.

× Forsa, which means “Opportunity” in Arabic, is a new economic inclusion program of the government of the Arab Republic of Egypt. Implemented by the Ministry of Social Solidarity, the program aims to graduate beneficiaries of the national cash transfer program, the Takaful & Karama Program (TKP), to economic self-reliance by enabling them to engage in wage employment or sustainable economic enterprises. The 2021 World Bank Economic Inclusion report (Andrews et al. 2021) highlights a recent increase globally in such graduation or economic inclusion programs, which now reaches around 92 million beneficiaries from 20 million households across more than 75 countries. This rapid growth has necessitated an increasing demand for evidence on best practices in graduation program implementation. The newly designed Forsa program is based on the graduation approach, but with innovations drawing from theories of behavioral economics as well as creating a network of active youth volunteers for economic empowerment to reduce costs compared to the standard BRAC-inspired model. Forsa also expands the graduation model to include the option of wage-employment, rather than only focusing on self-employment. Evidence on the impact of job training programs linked to wage employment on both job retention and future earnings is mixed (McKenzie 2017), although most such programs do not include cash assistance.
This impact evaluation of the Forsa program in Egypt is intended to contribute to the global evidence on effective graduation program design as well as provide immediate policy-relevant guidance for the Ministry of Social Solidarity. The impact evaluation will measure the degree to which Forsa is successful at increasing household consumption and will investigate which participant groups and program features demonstrate the greatest improvements in household welfare and economic activity.

× The Forsa program, launched in 2021 by the Egyptian Ministry of Social Solidarity has been designed as a graduation program targeted to current beneficiaries of the Takaful cash transfer program. To understand how well Forsa supports household income generation and to better understand the beneficiary household characteristics which may relate to program success, the International Food Policy Research Institute in collaboration with the Ministry of Social Solidarity is running a randomized control trial of the pilot Forsa program (see IFPRI MENA Regional Program Policy Note 21 for more details on the program and evaluation design).
A baseline household survey collected in January-February 2022 provides a detailed picture of the eligible households in the targeted communities, including the employment situation and workrelated skills of the household members intending to participate in Forsa. The household survey data was collected in the eight governorates of the pilot: Beni-Suef, Sharqia, Qalyoubia, Luxor, Fayoum, Menia, Souhag, and Assuit. 24 households Forsa-eligible households were surveyed in each of 323 communities: 16 households from the pool of current Takaful beneficiaries and 8 from the pool of Takaful rejected applicants. The final sample size was 7,752 households. Each household was asked whether they were willing to enroll in Forsa and, if so, which household member would participate in the trainings. 83% of sampled eligible households indicated willingness to enroll in Forsa. The large majority of these (77%) indicated a preference for the self-employment track.

× To improve the quality of data and reporting for the fourth cycle of the Comprehensive Africa Agriculture Development Programme (CAADP) Biennial Review (BR),1 the African Union (AU) conducted a critical analysis of the process, data, and reporting associated with the third BR. Improving the quality of the BR data will increase the reliability of policy implications derived from rigorous analysis of the data, which may in turn encourage policymakers to implement the resulting recommendations to accelerate agricultural transformation and achieve the goals and targets of the Malabo Declaration.
This note summarizes the critical analysis conducted by the technical working group for Theme 2 (TWG2) on enhancing investment finance in agriculture.2 The analysis is based on review of the BR technical documents, evaluation of the processes for data collection and management, and a check of data consistency, including analysis of outliers, illogical or implausible values, and discrepancies with other publicly available datasets. Preliminary findings of the analysis were discussed at several meetings with stakeholders interested in the theme. The results and recommendations were presented at a general meeting organized by the AU with all the TWGs and stakeholders on August 1–5, 2022, in Yaoundé, Cameroon. This note will be useful for the AU and its technical partners for developing standards and guidelines for conducting uniform critical analyses across the various BR technical working groups.

× In this paper, we derive estimates for willingness to pay for rainfall-index based insurance contracts. Surveys were undertaken in four regions in Morocco, representing different mean and variability of rainfall conditions. Results indicate that respondents in the high variability regions preferred contracts that paid out more often (had higher rainfall trigger levels), and which were more costly. In fact, a strong majority of respondents indicated they would purchase these contracts at the fair-value price; the estimated median willingness to pay for such contracts was between 12-20 percent above the fair value contract. However, in the lower rainfall variability regions, the cheaper contracts with lower trigger values were the only contracts for which the estimated median willingness to pay was greater than the fair-value of the contract. Finally, estimated coefficients for explanatory variables such as human and physical assets, debt levels, etc. did not have consistent impacts, either across or within regions.

× Drought is a recurrent and often devastating threat to the welfare of countries in the Middle East and North Africa (MENA) where three-quarters of the arable land has less than 400 mm of annual rainfall, and the natural grazings, which support a majority of the 290 million ruminant livestock, have less than 200 mm. Its impact has been exacerbated in the last half century by the human population increasing yearly at over 3%, while livestock numbers have risen by 50% over the quinquennium. Virtually no scope exists for further expansion of rainfed farming and very little for irrigation, hence there is competition between mechanized cereal production and grazing in the low rainfall areas, and traditional nomadic systems of drought management through mobility are becoming difficult to maintain. Moreover droughts seem to be increasing in frequency, and their high social, economic, and environmental costs have led governments to intervene with various forms of assistance to farmers and herders, including distribution of subsidized animal feed, rescheduling of loans, investments in water development, and in animal health. In this paper we examine the nature and significance of these measures, both with respect to their immediate benefits and costs to the recipients and to governments, and to their longer term impact on poverty and the environment. We conclude that while they have been valuable in reducing catastrophic losses of livestock and thus alleviating poverty, especially in the low rainfall areas where they are the predominant source of income, continued dependence on these programs has sent inappropriate signals to farmers and herders, leading to moral hazards, unsustainable farming practices, and environmental degradation, while generally benefiting the affluent recipients most.

× Addressing longer-term issues of economic development in Egypt, the paper employs a dynamically recursive computable general equilibrium (CGE) model to assess the outcomes associated with two types of development approaches over the period 1998-2012. One is a targeted sector development approach, and the second is a more broad-based development approach. The results indicate that, when agricultural exports remain relatively low, promoting the Egyptian textile sector is a win-win scenario in terms of rapid growth and equity. In addition, adopting policies that maintain agricultural prices leads to rapid growth and a general improvement of the distribution of income among households. A crucial policy objectives for achieving rapid and egalitarian growth for the Egyptian economy is the ability to secure improved access to international textile markets and the successful expansion of agricultural exports.

× China’s and India’s rapid rise in the global arena has not only captured the attention of the world but has also set into motion a rethinking of the very paradigm of economic development....Today, China and India together account for 40 percent of the world’s population. Both have implemented a series of economic reforms in the past two and half decades: China initiated this process at the end of the 1970s, while India began in the early 1990s. These reforms have led to rapid economic growth, with a growth rate of 8–9 percent per annum in China and 6–7 percent per annum in India. Despite similar trends in the reforms, the two countries have taken different reform paths; China started off with reforms in the agriculture sector and in rural areas, while India started by liberalizing and reforming the manufacturing sector. These differences have led to different growth rates and, more importantly, different rates of poverty reduction. They also have fundamentally different implications for growth and poverty reduction in the future. What can we learn from the process of economic reform in these two countries?... A number of studies looking into key aspects of reform and their relationship to outcomes, presented at two international workshops held in New Delhi and Beijing, try to offer some answers to these questions. These papers are currently being prepared by IFPRI for publication, and this discussion paper is a synopsis presented as a forerunner to the book." -- from Authors' Abstract

× In this paper, the impact of alternative development strategies on growth and poverty is assessed in an economywide framework, using Egypt as a case study. The analysis is guided by the following question: By pursuing a development strategy different from the one actually pursued since the late 1970s, could Egypt’s government significantly have improved the status of its poor? To address this question, a dynamic, recursive, Computable General Equilibrium (CGE) model is used to simulate Egypt’s economy for the period 1979-1997. The model is built around a Social Accounting Matrix (SAM) for 1979. The results indicate that pro-poor redistribution of land and human capital assets could have been a particularly effective tool had Egypt prioritized more strongly to improve the welfare of the poor and reduce inequalities. Such policies could have been implemented without any noticeable negative impact on growth or aggregate welfare. The results also suggest that, for Egypt, there was no contradiction between more rapid growth, largely a function of more rapid productivity growth, and improved welfare for the poor. The present analysis confirms the finding of earlier analyses that, compared to pro-manufacturing policies, pro-agricultural policies have a more positive impact on household welfare in general and the poor in particular. There is a significant synergy between a pro-agricultural shift in productivity growth, improved market access for agricultural exports, and reduced transactions costs in foreign trade.

× This paper analyzes the economy-wide gains obtainable from the allocation of surface irrigation water to its most productive use, and evaluates a decentralized mechanism for achieving this result in a spatially heterogeneous environment. The focus country for the analysis is Morocco. The analysis is based on a general equilibrium model that, in addition to the rest of the economy, captures 82 agricultural production activities, 66 of which are in seven separately identified water districts that span the entire country. The results suggest that a decentralized water trading mechanism could increase agricultural output by 8.3 percent, affect the rental rates of other agricultural inputs at the national level, including labor, and have economy-wide effects that entail modest declines in the cost of living, an increase in aggregate consumption, and expansion of international trade.

× Quantifying the impact of the COVID-19 pandemic on poverty in Africa has been as difficult as predicting the path of the pandemic, mainly due to data limitations. The advent of new data sources, including national accounts and phone survey data, provides an opportunity for a thorough reassessment of the impact of the pandemic and the subsequent expansion of social protection systems on the evolution of poverty in Africa. In this paper, we combine per capita GDP growth from national accounts with data from High-Frequency Phone Surveys for several countries to estimate the net impact of the pandemic on poverty. We find that the pandemic has increased poverty in Africa by 1.5-1.7 percentage points in 2020, relatively smaller than early estimates and projections. We also find that countries affected by Fragility, Conflict, and Violence (FCV) experienced the greatest increases in poverty, about 2.1 percentage points in 2020. Furthermore, we assess and synthesize empirical evidence on the role that social protection systems played in mitigating the adverse impact of the COVID-19 crisis in Africa. We review social protection responses in various African countries, mainly focusing on the impact of these programs and effectiveness of targeting systems. Although the evidence base on the protective role of social protection programs during the pandemic remains scarce, we highlight important findings on the impacts of these programs while also uncovering some vulnerabilities in social protection programming in Africa. We finally draw important lessons related to the delivery, targeting and impact of various social protection programs launched in Africa in response to the pandemic.

× Agriculture is strongly affected by environmental factors, including variability in temperature and precipitation, which in turn shape the livelihoods farmers derive. In this context, the intensity of engagement in agriculture is directly influenced by temperature and rainfall patterns (ILO 2018). Both extreme weather shocks (that is, heat waves, droughts, and floods) and weather variability (that is, changes in temperature and rainfall patterns) can significantly disrupt participation in agriculture and related sectors, particularly when farmers’ capacity to cope with and adapt to these shocks is low. This policy note summarizes the results of a study designed to quantify the impact of climate variability and extreme weather shocks on the intensity of individuals’ participation in the agricultural sector in Africa, where intra-annual weather variability is high, and dependence on rainfed agriculture is significant. The study specifically focused on changes in the number of weekly hours worked in response to weather variability and climate extremes, and explored both the impact on women’s participation and their potential to mitigate the negative effects of these shocks.

× Egypt introduced the Takaful and Karama Program (TKP), a pair of targeted cash transfer schemes in 2015. In 2018, the International Food Policy Research Institute (IFPRI) completed the first round of impact evaluation of TKP, based on household survey data collected after the first 15 months of the program. In the period between the first-round evaluation and the data collection for this report in January 2022, Egypt faced an enormous economic shock in the COVID-19 pandemic with a complete loss of tourism, which before the crisis was responsible for 12% of GDP and 10% of employment (IMF, 2021). A follow-up evaluation was designed to assess whether impacts estimated from the first round have been sustained and whether longer duration of treatment has led to impacts on additional outcome variables. This follow-up impact evaluation was conducted using a regression discontinuity (RD) design similar to the first round but using a different sample of households much more tightly concentrated around the 4500 thresholds to address concerns about the smaller discontinuity. We find that households invested in assets, particularly productive assets and Takaful households reduced their debt burdens. There were no measurable impacts of the Takaful program on household consumption or poverty, which may be partially explained by changes in household demographics. We also find that Takaful improved school enrollment and attendance and contributed to household’s ability to cope with shocks.

× Development of agricultural value chains is necessary to help smallholder farmers in Africa. Domestic agricultural policies and trade policies impact all economic agents along the value chain, from farmers to
traders to consumers. Thus, it is critical to understand the impact of policy distortions to agricultural incentives along the complete value chain. This AGRODEP Technical Note provides a description of the Nominal Rate of Protection methodology that can be utilized to analyze agricultural policies in a value chain context. It also provides a description of the Incentives along Value Chains (IVC) Toolbox in Excel, developed to aid AGRODEP researchers in conducting this type of analysis with a focus on agriculture.

× Robust indicators are essential for tracking the progress made in regional trade integration. Although the bias of traditional indexes such as the share of intra-regional trade in total trade have been known for a long time, they continue to be used by various analysts and international organizations. In this technical note, based on the recent literature, we present new robust trade integration indicators that allow analysts to make dynamic and cross region comparisons without ambiguity. These new indicators shed new light in regional integration, particularly in Africa where the level of integration is not as low as one might think.

× MIRAGRODEP with endogenous tariffs is a recursive dynamic multi-region, multi-sector Computable General Equilibrium (CGE) model based on MIRAGRODEP which in turn is based on MIRAGE (Modelling International Relations Under Applied General Equilibrium). It constitutes an extension of the MIRAGRODEP model that allows the user to perform analysis involving endogenous tariffs such as designing optimal common external tariffs (CET) in customs unions. The model is particularly suitable for trade policy analysis that require designing optimal levels of tariffs for regional trade agreements.

× Since the transition to democracy, South African public works programs are to involve community participation, and be targeted to the poor and women. This paper examines the targeting performance of seven programs in Western Cape Province, and analyzes the role of government, community-based organizations, trade unions, and the private sector in explaining targeting outcomes. These programs were not well-targeted geographically in terms of poverty, unemployment, or infrastructure. Within localities, jobs went to the poor and unemployed, though not always the poorest. They did well in reaching women, despite local gender bias. Targeting guidelines of the state are mediated by diverse priorities that emerge in programs with multiple objectives, local perceptions of need and entitlement, and competing voices within civil society.

× Household food security is an important measure of well-being. Although it may not encapsulate all dimensions of poverty, the inability of households to obtain access to enough food for an active, healthy life is surely an important component of their poverty. Accordingly, devising an appropriate measure of food security outcomes is useful in order to identify the food insecure, assess the severity of their food shortfall, characterize the nature of their insecurity (for example, seasonal versus chronic), predict who is most at risk of future hunger, monitor changes in circumstances, and assess the impact of interventions. However, obtaining detailed data on food security status—such as 24- hour recall data on caloric intakes—can be time consuming and expensive and require a high level of technical skill both in data collection and analysis. This paper examines whether an alternative indicator, dietary diversity, defined as the number of unique foods consumed over a given period of time, provides information on household food security. It draws on data from 10 countries (India, the Philippines, Mozambique, Mexico, Bangladesh, Egypt, Mali, Malawi, Ghana, and Kenya) that encompass both poor and middle-income countries, rural and urban sectors, data collected in different seasons, and data on calories acquisition obtained using two different methods. ....[D]ietary diversity would appear to show promise as a means of measuring food security and monitoring changes and impact, particularly when resources available for such measurement are scarce.

× Despite achieving a significant cost reduction over the past two decades, the absolute cost of food subsidies in Egypt is still high relative to the benefits received by the poor. There is scope for better targeting food subsidies, in particular those for rationed cooking oil and sugar, both because reforms in this area are perceived to be far less politically sensitive than adjusting subsidy policies for bread and wheat flour and because higher income groups presently receive a significant percentage of the benefits. Targeting the high-subsidy green ration cards to the poor and the low-subsidy red ration cards to the nonpoor will require identification of both poor and nonpoor households. An International Food Policy Research Institute (IFPRI) research team in Egypt, in collaboration with the Egyptian Ministry of Trade and Supply, developed a proxy means test for targeting ration cards. This paper describes the process of moving from the optimal income-predicting model to the final model that was both administratively and politically feasible. An ex-ante evaluation of the levels of accuracy of the proxy means testing model indicates that the model performs quite well in predicting the needy and nonneedy households. An effective and full implementation of this targeting method would increase the equity in the ration card food subsidy system and, at the same time, lower the total budgetary costs of rationed food subsidies. Moreover, the experience gained under this reform would facilitate targeting future social interventions to reduce and prevent poverty in Egypt.

× This paper uses a panel data of 347 households in Egypt to measure changes in household consumption between 1997 and 1999 and to identify causes behind the changes. Per capita consumption decreased for the households during this time and, while not dramatic, it occurred at all points along the distribution. Over the two-year period, the number of households that fell into poverty was over twice as large as the number of households that climbed out of poverty. About two-thirds of overall poverty was chronic (average consumption over time was below the poverty line), and almost half of all poor were always poor. We use quantile regression methods to identify the factors that explain total, chronic, and transitory poverty. While our analysis ably documents the extent of transitory poverty, it does not explain well the determinants of this type of poverty. The predominantly chronic nature of poverty in the sample, and our ability to identify associated characteristics, strengthens the case for targeting antipoverty interventions such as food subsidies.

× The midstream of agricultural value chains are rapidly changing in response to shifting domestic and international demand. While the performance of this segment may have important implications for the entire sector, evidence on midstream actors and their financial needs remain thin. We use data from both the Living Standards Measurement Study – Integrated Surveys on Agriculture and the World Bank Enterprise Survey from seven African countries to identify these agricultural midstream firms and assess their access to formal credit, comparing them to other, non-agricultural midstream firms. We find that the identified agricultural midstream firms are larger and more productive than their non-agricultural midstream counterparts and are less likely to report barriers to accessing credit, though overall access levels remain low. Among agricultural midstream firms, those owned or managed by women are more likely to report barriers to accessing credit. Taken together, these findings help build our understanding about the financial needs of micro-, small-, and medium-size enterprises in the agricultural midstream.

× This paper analyzes the implications of the Russian-Ukraine crisis on global and regional food security. We start with a global vulnerability analysis to identify most vulnerable regions and countries. The Middle East and North Africa (MENA) region is particularly vulnerable to trade shocks because of its high food import dependence. Thus, we provide descriptive evidence characterizing how food systems and policies impact vulnerability to the price shock in selected MENA countries: Egypt, Sudan, and Yemen. Within these countries, we show that the crisis will differentially impact poor and non-poor households as well as rural and urban households. Although the absolute level of food insecurity may still be higher in rural areas where larger numbers of poor households are located, urban poor are likely to suffer most because of the Russia-Ukraine crisis and associated hikes in food prices, especially in those countries where social protection and food subsidies are missing. On the policy side, we review lessons from previous food crises and identify actions needed to take (and to avoid) to protect most vulnerable countries and households in the short-term while also highlighting long-term policy options to diversify food, fertilizer and energy production and trade.

× COVID-19 risks rolling back many of the efforts and global successes recorded in reducing poverty and food insecurity. We undertake a systematic review of the growing microeconomic literature on the association between COVID-19 and food (in)security in Africa, discussing its implications for food policy and research. In doing so, we highlight some of the methodological weaknesses in answering policy-relevant questions on the causal link between COVID-19 and food insecurity. We also review the various coping strategies households are using to build resilience to COVID-19 and explore the role of social protection and other tools in mitigating some of the negative effects of COVID-19.
This review provides evidence that COVID-19 is associated with food insecurity both ex-ante and ex-durante. There are many attempts to suggest this relationship may be causal with some robust methods in some contexts, but data limitations prevail which constrains causal learning. We also find evidence that income losses, loss of employment, and heightened food prices may be mediating the relationship between COVID-19 and food insecurity. Going further, we additionally review the mitigating role of social protection and remittances in reducing the negative effects of COVID-19 on food insecurity. Relatedly, we also show evidence that households are using various coping strategies such as food rationing and dietary change to cushion themselves against the COVID-19 shock but most of these measures remain adversely correlated with food insecurity. We end with a discussion on some potential interesting areas where future efforts can be geared to improve learning on the relationship between COVID-19, food insecurity, and building resilience to shocks.

× Forsa, which means “Opportunity” in Arabic, is a new economic inclusion program of the government of the Arab Republic of Egypt. Implemented by the Ministry of Social Solidarity, the program aims to graduate beneficiaries of the national cash transfer program, the Takaful & Karama Program (TKP), from being dependent on transfers from TKP to economic self-reliance by enabling them to engage in wage employment or sustainable economic enterprises. The most recent World Bank Economic Inclusion report (Andrews et al. 2021) highlights a recent increase globally in such graduation or economic inclusion programs, which now reach around 92 million beneficiaries from 20 million households across more than 75 countries. This rapid growth is raising demand for evidence on best practices in graduation program implementation. Egypt’s experience with Forsa can contribute to such guidance.

× Forsa, which means “Opportunity” in Arabic, is a new economic inclusion program of the government of the Arab Republic of Egypt. Implemented by the Ministry of Social Solidarity, the program aims to graduate beneficiaries of the national cash transfer program, the Takaful & Karama Program (TKP), from being dependent on transfers from TKP to economic self-reliance by enabling them to engage in wage employment or sustainable economic enterprises. The most recent World Bank Economic Inclusion report (Andrews et al. 2021) highlights a recent increase globally in such graduation or economic inclusion programs, which now reach around 92 million beneficiaries from 20 million households across more than 75 countries. This rapid growth is raising demand for evidence on best practices in graduation program implementation. Egypt’s experience with Forsa can contribute to such guidance.

× Agriculture in Africa has been traditionally seen as an important employment provider, supporting agriculture-based livelihoods of the vast majority of the African population, (James, 2014; World Bank, 2011) and absorbing the largest share of the employed population. Data suggest that almost 224 million people aged 15 and above are directly engaged in agriculture in Africa (ILO, 2021), corresponding to nearly half of the total employed population in the continent and absorbing ¼ of global agricultural employment.

× This policy note synthesizes the key messages and lessons from existing evidence and trends in the development, deployment and scale up of ICT-enabled marketing tools. It is based on the recently published discussion paper titled “Digital tools and agricultural market transformation in Africa: Why are they not at scale yet, and what will it take to get there”.
Key messages
• Many digital innovations have been developed and deployed in recent years in Africa, many of which have only been implemented at pilot stages, with limited evidence of successful scaling.
• There remains significant marketing and institutional constraints hindering the development of some of these digital innovations, which may further explain disparate progress in countries.
• Differential access to digital innovations across genders and different typologies of households may trigger alternative variants of digital divide.
• Although the landscape of digital innovations in Africa offers several reasons to remain optimistic, the prevailing disconnect between pilots and scale-ups merits further evaluation.

× This policy note showcases two examples on how remote sensing data can be used for monitoring agricultural production and economic activities. The first case aims to generate granular data on agricultural production, which remain scarce in Egypt and the MENA region. The second case demonstrates the potential of remote sensing data to monitor economic activities during the COVID19 pandemic. Based on these data and together with other recent findings, we provide the following recommendations to facilitate post-COVID-19 recovery in Egypt:
► Targeting of stimulus and recovery packages based on the economic repercussions experienced across geographies and sectors
► Identifying and supporting promising value chains which experienced a significant slowdown in economic activities
► Diversifying economic activities and markets to improve the resilience of agri-food systems.
► Investment in data infrastructure to monitor and respond to future shocks. This may be supported by scale up of digital solutions, which proved to be effective in sustaining business activities even during the pandemic.

× This policy note summarizes an evaluation of public investment options for Egypt’s agri-food system conducted by the International Food Policy Research Institute in collaboration with the Ministry of Agriculture and Land Reclamation of the Government of Egypt and Cairo University. We quantitatively assess the expected economy-wide impacts of investing in four promising agricultural value-chains: dates, poultry, olives, and medicinal and aromatic plants (MAP). As part of the analysis, a range of agriculture-related public investments along the value-chains are considered, including spending to expand farm production and promotion of downstream agri-processing and marketing. We use two IFPRI structural models. The Rural Investment and Policy Analysis (RIAPA) economywide model is used to capture linkages between economic sectors, households, and rural-urban economies and to measure changes in economic growth, household welfare, and employment within and beyond the agri-food system. RIAPA is linked to the Agricultural Investment and Data Analysis (AIDA), the second model, which tracks investment impacts and costs over time. Inter alia, we find that: Investments into each of the four agricultural value chains enhance growth, create additional employment opportunities, improve household welfare, and reduce poverty. The MAP and poultry value chains are the most promising value chains with regard to all four evaluation criteria. However growth generation is largest if investment is concentrated in the MAP value chain, while investment into the poultry value chain has the strongest impacts on job creation and poverty reduction. Investments into primary production and processing, besides having a strong direct impact on the value chain growth, generate significant indirect effects inside and outside the agrifood system. These indirect effects are largest for the MAP value chain.

× The Egyptian government has prioritized the idea of cluster-based development-that is, the geographic concentration of specialized firms, such as in this case, those producing similar or related products. The establishment of such clusters, however, presents significant challenges, bottlenecks, and obstacles. Based on primary field work, this paper focuses on two case studies of the impacts of shocks on business clusters. The first study involved the relocation of an established leather cluster from Cairo to a newly created industrial park, Robbiki Leather City, which was promoted by Egypt’s Ministry of Trade and Industry. Although the relocation partly solved the existing issues of water contamination, new challenges emerged relating to increased production and transportation costs, and unforeseen impacts on the community. The second study assessed the short-term impact of the COVID-19 pandemic on a business cluster producing medicinal and aromatic plants. Overall the MAPs sector was resilient to the outbreak and there are opportunities to offset any negative impacts of the pandemic by taking advantage of new markets for Egyptian MAPs stemming from supply disruptions in other countries; increased global demand for MAPs due to their pharmacological and health properties; and increased international demand for organically grown MAPs.

Findings indicate that it is essential for governments to develop policy responses to the challenges-and especially barriers-to the development of business clusters, while simultaneously supporting and creating incentives for the cooperation, entrepreneurship, and collective action needed for business clusters to thrive and grow. As anticipated, challenges and obstacles-whether overarching or in response to shocks-are unique to specific sectors, contexts, and times, and hence need to be dealt with as an ongoing facilitation process.

× Based on field visits, structured interviews, and reviews of the literature and secondary data, we examine major challenges facing the leather and date clusters in Tunisia. The challenges vary greatly between the clusters. The leather and footwear industry faces a decline in external demand. After the global economic crisis in the late 2000s and the Arab Spring in the early 2010s, the sector lost international competitiveness. To revitalize the sector, policies should be designed to expand markets for leather and footwear. Exploring trade agreement with the US, leveling the tariff rate for intermediate goods and shoes, attracting foreign direct investment, and improving leather quality are among potential policy options. Implementing these policies will require coordination among different government agencies and private sector stakeholders. Besides demand challenges, lack of water treatment also is a major challenge facing tanneries across Tunisia. The international demand for Tunisian dates has been very strong. Most of the major challenges are on the supply side, such as value chain coordination, inadequate water supply, labor shortages, diseases, lack of new varieties, and limited value addition. The supply-side policy options include diversifying varieties and expanding into date derivative and palm waste products, promoting labor-saving mechanization and water-saving irrigation technologies, and improving coordination along the value chain.

× Since the seminal paper by Granger and Newbold (1974) on spurious regressions, applied econometricians have become aware of the consequences of unit roots in empirical analysis with time series data. Yet one can still find many published papers with unit root tests implemented in an inappropriate way. The objective of this Technical Note is to highlight the common pitfalls and best practices when testing for unit roots. In addition to the theoretical discussion, we provide examples using price data from Kenya, Mali, Togo, and South Africa to illustrate the procedures we think are worth following.

× This paper assesses the nature of agricultural transformation taking place in different parts of Africa and analyzes policy drivers of the transformation using data from the CAADP Biennial Review (BR) on 46 indicators from 2014 to 2018. First, a typology of agriculture transformation in different groups of countries is developed by analyzing the initial values and trends in three indicators—share of agriculture in total employment, share of agriculture in gross domestic product, and agriculture labor productivity. The typology, in addition to a conceptual framework that is developed for measuring the relative effect of a policy on an outcome, provides the basis for analyzing the policy drivers of agriculture transformation. The 46 BR indicators are classified into policies (13 indicators), intermediate results (23 indicators), and outcomes (10 indicators), and then econometric methods are used to measure the association between the policy indicators and the intermediate results and outcomes, which include agriculture intensification (e.g., access to finance and extension, fertilizer use, and irrigation development), agriculture growth, agriculture trade, food security, nutrition, and poverty. Different fixed-effects regression methods and model specifications of the explanatory variables are used to assess sensitivity of the results to different assumptions of the data and the relationship between the policies and intermediate and outcome indicators.
The trends in the indicators are different. For example, access to finance and extension have risen over time; fertilizer use, irrigation development, agriculture growth, and adult undernourishment have fallen over time; and child nutrition and poverty have remained stagnant over time. Different policy indicators are significantly associated with different indicators of agriculture intensification, agriculture growth, and outcomes. Also, there are differences in the results across the agriculture transformation groups. Major policy drivers of agriculture transformation in the different groups are identified. Implications of the results and suggestions for future research are discussed.

× Millions of female migrants experience various forms of exploitative and unsafe conditions when migrating for employment and income generation, both in countries of origin and in destination countries. Vulnerabilities increased further due to the Covid-19 pandemic, causing income and job losses, entrapment in countries of destination without financial or social support and stigmatization upon return. One of the key migration routes travelled by millions of migrants is from South Asia to the Middle East. We examine this migration route for low-skilled female migrant workers highlighting the impacts of interventions along the migration pathway to determine the effectiveness of alternative mechanisms for reducing forced labour and trafficking. We draw lessons from the literature as well as from interviews with key informants in the field, including academics, development partners, NGO workers, and policymakers, to identify promising interventions that successfully reduce the vulnerability of women migrants. We find that, while Covid-19 has increased migrant vulnerability, it has also exposed the current system’s violations in facilitating trafficking and exacerbating poor working conditions.

× MIRAGRODEP Dual-Dual is a recursive-dynamic multi-region, multi-sector computable general equilibrium model, devoted to trade and agricultural policy analysis. It is developed for AGRODEP and draws upon the MIRAGE model built by CEPII. It incorporates specific features of African economies. In addition to the usual dichotomy between rural and urban activities, it also features the distinction between formal and informal activities (double dualism a la Stifel-Thorbecke). The model includes other features such as foreign direct investment and runs with a tariff aggregation module that allows the user to capture the exclusion effects at a detailed level and the variance of tariffs. The model also includes a submodule allowing to test different closures for the public sector as well as the inefficiency of the tax collection system. Social Accounting Matrix (SAM) and trade data in MIRAGRODEP are based on the GTAP database. Additional sources such as MacMap are used for protection data.

× The Central Agency for Public Mobilization and Statistics (CAPMAS) is pleased to present an updated social accounting matrix (SAM) for Egypt. This SAM combines information from national datasets from many institutions, including the Central Bank, the Ministries of Finance and Agriculture, and various statistical bureaus. It also makes extensive use of data from the Economic Survey and Household Income and Expenditure Survey (HIECS), which is produced by CAPMAS. With this data it becomes possible to provide a detailed update of the socioeconomic status of Egypt. The SAM also allows for more timely analysis of developmental issues and a better understanding the potential economic impacts of policy changes. The SAM is the main dataset used for economywide modelling of policy scenarios and simulations. Such modeling has proven to be a powerful evidence-based analytical tool for informing policy making and for assessing the impact of different policy interventions, especially during the COVID-19 crisis.

× Most Egyptians receive food subsidies, which are the cornerstone of the country’s social protection system. The government recently attempted to reduce subsidies, with limited success, and introduced a cash transfer program targeting the poor. We use a dynamic general equilibrium model of the Egyptian economy to evaluate the growth and distributional impacts of subsidy reforms and cash transfers. We find that the welfare of poor households would be enhanced by a smaller, but better targeted food subsidy program, and that, if the cost savings from reforms are channeled into investment, faster economic growth would eventually outweigh any short-term welfare losses. However, most of the gains from subsidy reforms accrue to nonpoor households. Combining subsidy reforms with cash transfers leads to the largest welfare gains for the poor, while leaving the welfare of nonpoor households largely intact. The latter is crucial to maintaining support for ongoing subsidy reform efforts.

× The COVID-19 crisis is having strong impacts on the Egyptian economy, but these impacts differ strongly across sectors.1 Based on scenarios run using a Social Accounting Matrix (SAM) multiplier model of Egypt’s economy, COVID-19 is estimated to have resulted in an 8.6 percent decline in Egypt’s GDP during the 4th quarter of FY 2019/20 (April to June). The services sector was hit hardest, falling by 10.9 percent, followed by industry, which contracted by 8.3 percent. Agriculture was the most resilient sector, although there are large differences in the relative impact of COVID across agricultural subsectors.

× Climate change negatively affects Egypt’s agriculture sector. This brief summarizes the results of a modeling exercise to examine a range of climate change adaptation approaches to counteract agricultural productivity declines. Rather than simulating a single technology, a ‘suite of technologies’ approach was used. For several food crops, none of the technology suites, individually or in combination, are shown to counteract the adverse impacts of climate change. For these crops, which include maize, oilseeds, pulses, and sugar, even stacking of technologies will not return productivity to pre-climate change levels. However, for fruits and vegetables, potatoes, rice, and wheat, crops less adversely affected by climate change, increased investments in climate changeresponsive crop traits, soil fertility improvement, water management, crop protection, or a combination of these technologies can counteract the adverse impacts of climate change on agricultural productivity. From a policy perspective, strong cooperation with the rest of the world on climate change adaptation will ultimately benefit Egyptian consumers. Doing so will reduce disruption of global food markets, which is of particular importance for countries, like Egypt, that are well integrated into those markets. In particular, Egypt’s economy and all Egyptian consumers benefit from the importation of lower-value, high water-consuming cereals under the hotter and drier conditions that can be expected in Egypt in the future due to climate change.

× Increasing population pressure and population density in many African countries are inducing land scarcity and land constraints. These are expected to trigger various responses and adaptation strategies, including agricultural intensification induced by land scarcity, as postulated by the Boserup hypothesis. However, most empirical evaluations of the hypothesis come from rainfed agriculture and mostly from sub-Saharan Africa, where application of agricultural inputs remains historically low. Agricultural intensification practices and the relevance of the Boserup hypothesis in irrigated agriculture (and where application of improved inputs is high) remains unexplored. We investigate the implication of land scarcity on agricultural intensification and the relevance of the Boserup hypothesis in the context of Egypt, where agriculture is dominated by irrigation and input application rates are much higher than elsewhere in Africa. We find that land scarcity increases overapplication of nitrogen fertilizer relative to crop-specific agronomic recommendations. This implies that land constraints remain as important challenges for sustainable agricultural intensification. Finally, we find suggestive evidence that such overapplication of nitrogen fertilizers is not yield-enhancing, but, rather, yield-reducing. We also document that land scarcity impedes mechanization of agriculture.

× With climate change, Egypt’s already arid climate will face even higher temperatures and lower rainfall over key agricultural areas, requiring further urgent adaptation investments. Data from three general circulation models of climate were used to better understand the likely effects of climate changes on Egypt’s agricultural sector. The findings show largely adverse biophysical effects of climate change by 2050. Compared to a no-climate change scenario, yields for food crops are projected to decline by over 10 percent by 2050 due to higher temperatures and water stress as well as increased salinity of irrigation water. The highest biophysical yield declines are estimated for maize, sugar crops, and fruits and vegetables. Moreover, due to the country’s dependence on food imports, Egypt is not only affected by climate change impacts at home, but also by impacts in other food producing countries. Climate change-induced increases in food prices will reduce Egypt’s food import demand, while also dampening demand for Egypt’s exports. The implications for Egypt are tighter food markets with both reduced domestic production and increased difficulties to import food making it more difficult to augment domestic food supplies. This situation suggests the need for investments in climate change adaptation in the agriculture sector. Global cooperation to mitigate greenhouse gas emissions is also warranted given the high cost to Egypt’s society from adverse climate change impacts worldwide.

× This new Social Accounting Matrix (SAM) for Jordan is a snapshot representation of the Jordanian economy in which productive activities, factors of production, and economic transactions between the main agents, including households, government, and the rest of the world, are illustrated in a circular flow. It has been constructed using IFPRI's Nexus format, which uses common data standards, procedures, and classification systems for constructing and updating national SAMs. This new SAM for Jordan is expected to be an important dataset for the Arab (Agricultural) Investment for Development Analyzer (AIDA), which is tool based on computable general equilibrium (CGE) model analyses. AIDA was developed to inform national and regional development strategies by providing evidence on the impact of agricultural investments on economic development.

× There has been an unprecedented decline in the flow of remittances to Yemen – a vital source of money for millions – as a result of the COVID-19 pandemic. A Social Accounting Matrix (SAM) multiplier model of Yemen’s economy was used to estimate the impact of lower remittances on economic sectors and employment, food systems, and household incomes.

× Increasing population pressure and population density in many African countries are inducing land scarcity and land constraints. These increasing land constraints are expected to trigger various responses and adaptation strategies, including agricultural intensification induced by land scarcity, as postulated by the Boserup hypothesis. However, most empirical evaluations of the Boserup hypothesis come from rainfed agriculture and mostly from Sub-Saharan Africa (SSA), where application of improved agricultural inputs remains historically low. Agricultural intensification practices as well as the relevance of the Boserup hypothesis in irrigated agriculture and in contexts where application of improved inputs is high remains unexplored. Furthermore, while much of the debate on the topic in Africa has focused on how to boost agricultural intensification, there is scant evidence on whether evolving agricultural intensification practices in some parts of Africa are sustainable, yield-enhancing, and optimal.
In this paper we investigate the implication of land scarcity on agricultural intensification and the relevance of the Boserup hypothesis in the context of Egypt, where agriculture is dominated by irrigation and input application rates are much higher than SSA. We also examine whether evolving agricultural intensification practices induced by land scarcity are agronomically appropriate and yield-enhancing. We find that land scarcity induces higher application of agricultural inputs, mainly nitrogen fertilizers, sometimes beyond the level that is agronomically recommended. More importantly, land scarcity increases overapplication of nitrogen fertilizer relative to crop-specific agronomic recommendations. This implies that land constraints remain as important challenges for sustainable agricultural intensification. Finally, we find suggestive evidence that such overapplication of nitrogen fertilizers is not yield-enhancing, but, rather, yield-reducing. We also document that land scarcity impedes mechanization of agriculture. Our findings have important implications to inform appropriate farm management and sustainable intensification practices. Furthermore, our results can inform long-term policy responses to land scarcity.

× Regional and global trends in body weight show that the Near East and North Africa (NENA) region countries, especially the Gulf Cooperation Council (GCC) member countries, have the highest average body mass index and highest rates of overweight and obesity in the world. There exist several explanations that expound the high rates of overweight and obesity in most NENA countries, including the nutrition transition, urbanization, changes in lifestyle, and consequent reduction of physical activities. This study examines the implication of food policies, mainly trade and government food subsidies, on evolving nutritional transitions and associated body weight outcomes. We examine the evolution of trade (food) policies, food systems, and body weight outcomes across selected countries in the NENA region – Egypt, Jordan, and Iraq. In particular, we investigate the implications of important trade (food) policies in shaping diets and food systems as well as their implications on public health outcomes, mainly the rising levels of overweight and obesity in the NENA region. We provide a simple conceptual framework through which trade policies (tariff rates) and domestic government food policies (subsidies) may affect food systems and nutritional outcomes. An important and innovative feature of this study is that it compiles several macro- and micro-level datasets that allow both macro and micro-level analyses of the evolution of trade (food) policies and associated obesity trends. This approach helps to at least partly overcome the data scarcity that complicates rigorous policy research in the NENA region.

× This policy note is one in a series of four notes that summarize key findings and recommendations from 32 seminars organized by IFPRI between 2016 and 2020 under the Evaluating Impact and Building Capacity Project funded by the United States Agency for International Development (USAID) and from related research done in collaboration with national and international partners in Egypt. The briefs have been prepared on the basis of a joint symposium and are intended to give policymakers and program designers in the areas of social protection, nutrition, agricultural policy, and the digitalization of agriculture a quick overview of research-based recommendations on key policy issues that will better enable Egypt to achieve several of the goals outlined in the Sustainable Development Strategy 2030.
This policy note highlights how digital tools can help improve monitoring, evaluation, and extension services in Egypt’s agriculture sector and how policy analysis can be institutionalized to guide transformation of the food system and rural economies. Four recommendations are discussed:
Building on ongoing efforts, continue to digitize agricultural information systems, build and link agricultural databases, and exploit new sources of data.
Build on ongoing projects that develop mobile telephone applications for farmers and learn from international experiences to revitalize and digitalize agricultural extension in Egypt.
Build the capacity of agricultural policy analysts within the Ministry of Agriculture and Land Reclamation and universities, using both conventional and new digital tools to provide high-quality, research-based policy advice.
Promote further digitalization to improve the resilience of food systems in view of shocks, such as the COVID-19 pandemic.

× Agricultural and food policies will play an important role in making Egypt’s food system fit for future challenges, including resilience to shocks, such as the ongoing COVID-19 pandemic. This brief highlights the importance of enabling farmers so that they can contribute significantly to a broader transformation and to resilience of Egypt’s food system and rural economy. Five areas of action are highlighted:
Invest in a renewed system of agricultural extension services, with an emphasis on new technologies and production systems and on nontraditional crops.
Ease rigidities for farmers and increase the market orientation of the agriculture sector, including markets for fertilizer and staple crops.
Revisit the current irrigation management system to allow for the adoption of new irrigation technologies and increased efficiency of water usage.
Support the development of agro-processing value chains where there are missing markets or market frictions in order to achieve a sustainable and nutrition-sensitive food system.
Coordinate agricultural policy with policies of other government ministries to support rural transformation and employment opportunities off the farm.

× This policy note is one in a series of four notes that summarizes key findings and recommendations from 32 seminars that IFPRI organized between 2016 and 2020 under the Evaluating Impact and Building Capacity Project funded by the United States Agency for International Development (USAID) and from related research done in collaboration with national and international partners in Egypt. The briefs have been prepared on the basis of a joint symposium and are intended to give policy makers and program designers in the areas of social protection, nutrition, agricultural policy, and the digitalization of agriculture a quick overview of research-based recommendations on key policy issues that will better enable Egypt achieve several of the goals outlined in the Sustainable Development Strategy 2030.
Social protection programs are essential for supporting Egyptians who are economically the most vulnerable. This brief makes the argument for moving more decisively toward a cash-based social protection system in Egypt. Four areas of action are highlighted:
Continue the well-functioning Takaful and Karama program and consider increasing its budget to adjust transfers to inflation.
Consider improving the targeting for Tamween food subsidies and integrating Takaful and Karama with Tamween.
Continue the use of transparent and independent impact evaluations to assess social protection programs in order to maximize their benefits for Egypt and its people.
Maintain the ability to respond flexibly to future shocks as an important feature of solidifying the national social protection system.

× This policy note is one in a series of four notes that summarize key findings and recommendations from 32 seminars organized by IFPRI between 2016 and 2020 under the Evaluating Impact and Building Capacity Project funded by the United States Agency for International Development (USAID) and from related research done in collaboration with national and international partners in Egypt. The briefs have been prepared on the basis of a joint symposium and are intended to give policymakers and program designers in the areas of social protection, nutrition, agricultural policy, and the digitalization of agriculture a quick overview of research-based recommendations on key policy issues that will better enable Egypt to achieve several of the goals outlined in the Sustainable Development Strategy 2030.
Addressing all forms of malnutrition – both undernutrition and overnutrition – remains a human and economic development challenge that Egypt must overcome. This brief highlights three areas of action to significantly improve the nutritional status of all Egyptians:
Make domestic food policies more nutrition-sensitive and incentivize food producers and marketers to shift to the production, processing, and marketing of healthier foods.
Expand ongoing awareness and educational campaigns, such as the 100 Million Healthy Lives initiative, to promote improved nutrition and to disseminate nutrition knowledge. The COVID-19 pandemic is an additional reminder and rationale for investing in healthy diets and sustainable food systems.
Promote research to make nutrition policy more effective and efficient, including by increasing collection of nutrition-related data and better sharing of already collected data among ministries, research institutes, and other stakeholders.

× Although the global economy is forecasted to shrink by 4.4 percent in 2020 (IMF 2020), the Egyptian economy is proving resilient to the immense human and financial costs caused by the global COVID-19 pandemic. This resilience is mainly explained by the successful implementation of the economic reform program since 2016 that provided more fiscal space to withstand the adverse impact of the COVID-19 crisis. However, that Egypt’s economy is holding up is also due to the rapid response and proactive measures to limit the impact of the virus that were implemented by the Egyptian Government since March 2020 (MPED 2020). These enabled the country to avoid a full lockdown policy (Figure 1). While Egypt posted negative economic growth rates from April to June 2020 at the height of the crisis, overall economic growth was still positive at 3.6 percent for fiscal year (FY) 2019/20. This estimate is only slightly lower than the initial projection of the impact of the pandemic on Egypt’s economy of an annual economic growth equal to 3.8 percent, as estimated by staff of the International Food Policy Research Institute (IFPRI) and the Ministry of Planning and Economic Development (MPED) (Breisinger et al. 2020). The deviation between the early and final estimate can be mainly explained by the lower than expected growth rates in the manufacturing and health services sectors and the better than expected performance of the trade and transport sectors.

× In line with the Maputo Declaration that established the Comprehensive Africa Agriculture Development Programme (CAADP) in 2003 and with the 2014 Malabo Declaration, African Union (AU) Member States pledged to conduct a continentwide Biennial Review (BR) to monitor and report on progress in achieving seven thematic commitments outlined in the Declaration. The inaugural 2017 BR Report, the first of its kind in Africa, was launched and endorsed by the AU General Assembly in January 2018. The second BR report was adopted at the AU General Assembly in February 2020.

× In line with the Maputo Declaration that established the Comprehensive Africa Agriculture Development Programme (CAADP) in 2003 and with the 2014 Malabo Declaration, African Union (AU) Member States pledged to conduct a continentwide Biennial Review (BR) to monitor and report on progress in achieving seven thematic commitments outlined in the Declaration. The inaugural 2017 BR Report, the first of its kind in Africa, was launched and endorsed by the AU General Assembly in January 2018. The second BR report was adopted at the AU General Assembly in February 2020.

× Economic growth in Jordan potentially will come to a halt this year. This comes as a result of the COVID-19 pandemic outbreak. Government imposed an economic lockdown which restricted non-essential economic activities and people’s movement in order to contain the virus. A SAM multiplier model was used to estimate the economic impact of the lockdown and to explore potential recovery pathways for the Jordanian economy. Some of the key findings from this modeling exercise are:
• National GDP is estimated to have fallen by 23 percent during the lockdown period. The services sector was hardest hit, seeing an estimated drop in output of almost 30 percent.
• Food systems in Jordan are estimated to have experienced a reduction in output by almost 40 percent.
• Employment losses during the lockdown were estimated at over 20 percent, mainly driven by job losses in services, followed by agriculture.
• Household income fell on average by around one-fifth due to the lockdown, mainly driven by contraction in service sector activities, by slowdown in manufacturing activity, and by lower remittances from abroad.
• GDP growth rates for Jordan’s economy will continue to be negative through 2020, ranging from -5.7 to -7.4 percent, depending on the speed of economic recovery. A slow pace of recovery is expected.
This economic recovery offers opportunities for fostering sustainable economic transformation and structural change. Economic policies and incentives should be directed towards more economic diversification, greater resilience to withstand economic shocks, and job creation.

× An initial cost-benefit analysis (CBA) of the African Risk Capacity (ARC), published in 2013, showed that regional risk pooling for severe droughts could increase benefits to poor households by as much as US$ 1.90 per dollar invested, due to the speed, cost and targeting gains from improved risk financing and contingency planning of a humanitarian response. We revisit the assumptions underpinning this initial CBA to reflect current ARC operations, and we update the CBA using new methods for evaluating the costs and benefits of regional risk pooling to finance disaster risk management. Under the revised methods and assumptions, the increase in benefits to the poor will have exceeded the costs of regional risk pooling, but not by as much as US$ 1.90 per dollar invested. This is because ARC premiums have been higher than assumed in the initial CBA, and insured countries have used ARC payouts mainly to distribute food aid, instead of leveraging state-contingent welfare schemes with potentially larger speed, cost and targeting gains. We discuss potential ways to lower premiums and strengthen the benefits to poor households, highlighting also the potential to realize welfare gains from improved risk management and investments ex ante, even during years without insurance payout.

× Despite impressive progress in the economic performance of many African countries in recent years, youth unemployment remains one of the continent’s main socioeconomic and political problems. This study employs panel data covering 49 African countries for the period 2000–2017 to provide the first attempt to explicitly examine the dynamic relationship between quality foundational skills, measured by basic education quality (teacher-pupil ratio), and youth unemployment, while considering the conditional role of institutional capacity, measured by control of corruption, regulatory quality, and financial development. The empirical estimation in this paper is based on a two-step system generalized method of moments (SGMM), in order to control for unobserved heterogeneity and potential endogeneity of all the explanatory variables. The following are the main findings: First, youth unemployment is persistent in Africa. Second, quality of basic education exerts a negative impact on youth unemployment. Third, greater control of corruption, improved regulatory quality, and better structured financial sectors strengthen the effect of quality basic education in reducing youth unemployment. These findings provide a clear policy pathway for reducting youth unemployment. In particular, we recommend that better quality basic education, a well-structured financial structure, and institutional quality should constitute a fundamental component of the policy mix to reduce youth unemployment in Africa.

× Evolving pieces of evidence show that services are hardest hit by the COVID-19 pandemic, both globally and in Egypt. Employing Google search data, we examine the implications of COVID-19 on demand for various services in Egypt.
• We find that demand for those services that require face-to-face interaction, including hotels and restaurants, air travel and tourism services, significantly dipped after Egypt detected the first COVID-19 case and more so after the Egyptian government introduced major restrictions and curfews. For instance, in the first two months of the outbreak of the pandemic, February and March, demand for hotel and restaurant services contracted by about 70 percent.
• In contrast, demand for services that substitute or reduce personal interactions, such as information and communications technologies (ICT) and delivery services, have enjoyed a significant boost. Demand for ICT services tripled, while demand for delivery services doubled in the four months since the outbreak of the pandemic.
• Intuitively, these results suggest that individuals and enterprises operating in these sectors are expected to experience heterogenous impacts and damages associated with the pandemic. Our results, along with other evolving evidence, reinforce that those services and sectors negatively affected by the outbreak and spread of COVID-19 deserve attention.
• Finally, our analysis highlights the potential of near real-time "big data" to substitute and complement conventional data sources to estimate economic impacts and, hence, inform immediate and medium-term policy responses.

× This note presents the results of an evaluation of public investment options for Egypt’s agri-food system. Nine agriculture-related public investments are considered, including targeting public spending to expand farm production, e.g., irrigation improvements, input subsidies, agricultural research, and extension, and to promote downstream agro-processing and marketing. The outcome indicators considered are economic (GDP) growth, incomes of the poor, job creation, and dietary diversity. IFPRI’s Rural Investment and Policy Analysis (RIAPA) economywide model is used for the evaluation because it captures linkages between sectors, households, and rural-urban economies and measures changes within and beyond the agri-food system. RIAPA is linked to the Agricultural Investment and Data Analysis (AIDA) module that tracks investment impacts and costs over time. The ranked results of the public investment options considered, summarized in the table here, can help prioritize agri-food system investments for post-COVID-19 recovery.

× The COVID-19 crisis may lead to a 1.1 percent decline in Egypt’s GDP during the 4th quarter (April to June) of the 2019/20 fiscal year, compared to the same quarter in 2018/19. Without the Government of Egypt’s COVID-19 emergency response package, GDP in Q4 may have declined by 8.7 percent. Tak-ing the emergency response pack-age into account, we estimate an annual growth rate of 3.8 percent for FY 2019/20. Without the emer-gency response package, annual growth for FY 2019/20 may have been as low as 1.9 percent. The services sector is hit hardest, falling by 10.9 percent, followed by industry at -8.3 percent. Agriculture is the most resilient sector. However, these losses are lower than those expected in comparable countries, especially those that resorted to extended periods of full lockdowns. Impacts on Egypt’s agri-food system are less severe than elsewhere in the economy. Most damage will occur in nonfarm components of the agri-food system due to falling consumer demand. Although higher-income households face the largest income losses, lower-income households also will see their incomes decline significantly. The level of social protection required to fully offset the income losses of poor households is likely to be prohibitive, especially given falling revenues from reduced economic activity. Continuing to gradually open the economy again will be critical for avoiding permanent job losses and increases in poverty for the coming year. The process of re-opening the economy may also provide opportunities for fostering more private sector-driven and sustainable economic transformation.

× Evidence-based planning for post-conflict reconstruction is often constrained by missing data and the shortcomings of conventional analytical methods. To overcome these constraints, we use economy-wide modeling methods to model the impact of war and reconstruction possibilities for the economy of Yemen. We first calibrate the model to pre-conflict data (2014) and validate it by replicating the most recent available dynamic needs assessments for Yemen that were elaborated by the World Bank. We then report model scenario results for unobserved development indicators, such as estimates for sector-level growth, employment, and poverty. For the post-conflict period, we use the assumptions of a recent dynamic needs assessment and assume gradual reconstruction of the war-induced damages by the target year 2024. Then we focus on uncertain institutional factors and investigate their importance for the country’s socio-economic development. Finally, we assess the potential structural characteristics of Yemen’s economy in the year 2024 and analyze potential risks and trade-offs associated with government’s institutional performance and the implications these have for the pace of post-conflict reconstruction.

× The COVID-19 crisis is expected to lead to a 46.4 percent decline in Tunisia’s GDP during the 2nd quarter of 2020 (April to June). The industrial sector will be hit hardest, with output falling by 52.7 percent, followed closely by services (-49.0 percent) and agriculture (-16.2 percent). These high losses are a result of the complete lockdown imposed in the country to contain the pandemic.
Higher-income urban households will see the largest income losses, although lower-income urban households also will experience significant reductions in their income. As a policy response, social transfers towards poorer households will reduce the adverse welfare impact of these drops in household income. Government policies to support struggling businesses will allow economic activities to revive more rapidly when the lockdown loosens. Consequently, comprehensive planning by the Government of Tunisia to re-open the economy will be critical to reduce the pandemic’s adverse impact on the country’s economy in the longer-term, reducing losses of employment and income, especially in manufacturing and retail.

× This note analyzes the trajectory of the benchmark and its implications for the effort required of countries to remain on-track or get on-track toward achieving the goals and targets of the Malabo Declaration by 2025. It also analyzes the change in the overall score obtained by different countries between the 2018 and 2020 BRs by decomposing the contribution of different indictors to the change. This helps to explain why fewer countries were on-track in the 2020 BR compared to the 2018 BR. The note concludes with a look at the potential challenges countries may face, most notably those brought on by the COVID-19 pandemic, and prospects for them to remain or get on-track in future BRs.

× Understanding the public health implication of fiscal policies is crucial to combat recently increasing overweight and obesity rates in many low-and-middle income countries (LMICs). This study examines the implication of food policies, mainly tariff rates on “unhealthy” foods, including sugar and confectionery products as well as fats and oils, and governments’ subsidies on individuals’ body weight outcomes. We compile several macro- and micro-level datasets that provide for several LMICs macro-level information on food policies and micro-level anthropometric data. We exploit temporal dynamics in tariff rates on “unhealthy” foods and governments’ spending on subsidies to estimate fixed effects models characterizing the evolution of body weight outcomes. We find that temporal dynamics in tariff rates on unhealthy and energy-dense foods are significantly and negatively associated with body weight. Conditional on several observable and time-invariant unobservable factors, a decrease in tariff rates on sugar and confectionary foods or fats and oils is associated with an increase in overweight and obesity rates. On the other hand, an increase in subsidy rates, as a share of government expenditure, is significantly associated with higher overweight and obesity rates. Interestingly, we find that the implications of these food policies are more pronounced among poorer individuals. This is intuitive because relatively poorer households are more likely to spend a larger share of their income on food consumption or unhealthy foods, and these types of households are beneficiaries of government subsidies in many LMICs. These findings have important implications for informing public health policies in LMICs, which are experiencing an unprecedented rise in overweight and obesity rates.

× Egypt’s recent economic success will almost certainly be interrupted by the COVID-19 pandemic. We examine the likely impact on the Egyptian economy of a significant reduction in tourism, payments received from the Suez Canal, and remittances from Egyptians working abroad because of the slowdown in the global economy due to the COVID-19 virus.
Our results suggest that COVID-19 could reduce national GDP by between 0.7 and 0.8 percent (EGP 36 to 41 billion) for each month that the global crisis continues.
Similarly, household consumption and expenditure is estimated to decline on average by between EGP 153 and EGP 180 per person per month, which is between 9.0 and 10.6 percent of average household income.
The cumulative loss in GDP from these three external shocks alone could amount to between 2.1 and 4.8 percent of annual GDP in 2020 if the crisis lasts for 3 to 6 months.
While the country’s focus currently is rightly on fighting the health crisis and mitigating its immediate impacts, planning on how to re-open the economy should also start now.

× As part of a national policy to ensure a certain level of food self-sufficiency in strategic crops, the government of Egypt subsidizes nitrogen fertilizer directly by distributing quotas of subsidized fertilizers to farmers and indirectly by subsidizing natural gas used by local fertilizer factories. The implication of this subsidy on farmers’ fertilizer demand and productivity remains unknown. Using a detailed agricultural survey collected from smallholder farmers in Upper Egypt, we show that nitrogen fertilizer application rates are substantially in excess of crop-specific agronomic recommendations. We exploit eligibility criteria and other sources of variation to show that farm plots with easier access to the subsidy tend to use more subsidized nitrogen fertilizer and less phosphate fertilizer. Easier access to the subsidy increases use of total nitrogen fertilizer per unit of land, mainly because of the increase in subsidized nitrogen fertilizer. In particular, the fertilizer subsidy program in Egypt is associated with significant overapplication of nitrogen fertilizer. Such overapplication of fertilizer is expected to adversely affect soil, water, and environmental health. Our findings have important policy implications for Egypt and other African countries known for input subsidy programs. As Egypt is currently moving on from the successful implementation of a comprehensive macroeconomic reform program towards sector-level reforms, our results suggest that eliminating fertilizer subsidies is a good place to start.

× This paper uses trade data from the COMESA statistical database covering 19 countries covering the period 1997 to 2013 to analyze the trade competitiveness of selected agricultural commodities traded among COMESA member states using the revealed comparative advantage (RCA) methodology. The computed RCA indices showed that countries in the COMESA region had fluctuating advantages in trade in different food staples over the years. The highest positive RCA indices include; bovine meat and cassava (Kenya and Uganda), live bovine animals (Kenya), maize grain (Uganda), tomatoes (Ethiopia, Madagascar), fish (Eritrea), cassava (Kenya, Ethiopia, Malawi and Uganda) wheat flour (Zambia), Onions (Madagascar) and dry legumes and pulses (Malawi). The results of the study can inform policy discussions on how integration through specialization and trade envisaged in the COMESA Treaty can be realized. The fluctuating RCA indices from year to year reflect weatherdependent agricultural production systems. This means that individual countries’ competitiveness fluctuates year to year depending on weather. To address the observed fluctuation in RCA indices countries should invest in production systems that are less weather-dependent, such as irrigated agriculture. Countries also need to promote drought-resistant and drought-tolerant crop varieties and early warning systems.

× A Social Accounting Matrix (SAM) is an accounting framework that gives a quantitative overview of the structure of the economy over a given time period. It records all transactions between economic agents, while respecting the principles of circularity of flows and balance between revenues and expenditures for each account.
The level of disaggregation of accounts in the matrix varies according to the analyses to be undertaken and data availability. The accounts in a national SAM generally are production activities, commodities, institutions, and factors of production. For economic analyses and planning, a more detailed SAM is constructed. These involve disaggregation of activities, households, and factors of production from the more general national SAM. In such matrices, the national economy often will also be disaggregated into sub-national regions. Such SAMs provide rich datasets to help decision-makers in developing, designing, and evaluating regional economic and investment policies.
As part of the technical cooperation within the (Arab) Agricultural Investment Development Analyzer (AIDA) project, which aims to develop tools for planning and evaluating investment projects in the agricultural sector, the Institut Tunisien de la Compétitivité et des Etudes Quantitatives (ITCEQ – the Tunisian Institute of Competitiveness and Quantitative Studies), in collaboration with the International Food Policy Research Institute (IFPRI), have built a regionalized SAM of the Tunisian economy with detailed disaggregation at the sector, product, household, and regional levels. This SAM has been constructed using IFPRI's Nexus format, which uses common data standards, procedures, and classification systems for constructing and updating national SAMs.
The regionalized SAM for Tunisia was built using national accounts statistics for the country, the Supply and Use Tables for 2015, which are produced by the National Institute of Statistics (NIS). The regionalized matrix is constructed in three steps – national, household, and regional.
• The national 2015 SAM for Tunisia includes 46 sectors and 46 products.
• For the household SAM, factors of production are split into 13 categories. Capital is disaggregated into four subcategories: crops, livestock, mining, and other. Land is a separate factor of production category. Labor is disaggregated into four education-level categories and across rural and urban areas. For the household SAM, household accounts are split into 15 categories by rural farm, rural nonfarm, and urban categories and then by national per capita expenditure quintiles.
• For the regionalized SAM, sectoral production, production factors, and household groups are disaggregated into seven subnational regions: Greater Tunis, North East, North West, Center East, Center West, South East, and South West. The regional 2015 SAM in total has 105 household groups and is composed of 513 rows x 513 columns.

× In addition to the unprecedented humanitarian crisis and the creation of space for militant groups, the conflict in Yemen is also taking a heavy toll on the economy. According to estimates from the International Monetary Fund (IMF 2018) together with information on physical damages from the World Bank-led Yemen Dynamic Damage and Needs Assessment (World Bank et al. 2018), the accumulated impact of the conflict from 2015 to 2018 is estimated to be USD47 billion (in 2014 prices), nearly one and a half times total GDP in 2014. The poverty headcount for Yemen is estimated to have increased from 49 percent in 2014 to 77 percent in 2018. The results of economic recovery scenarios run within a recursive dynamic computable general equilibrium (DCGE) model of the Yemeni economy suggest that unless significant support is provided by the international community for reconstruction, poverty in coming years, even if the conflict ends, will remain high or increase even further. Poverty outcomes of alternative post-conflict transition options range between a national poverty rate of 84 percent in the worst-case scenario of economic stagnation and 50 percent in the best-case scenario that involves the recovery of physical capital, total factor productivity (TFP) growth increases in all sectors, and significant inflows of foreign aid. Under a recovery scenario with lower foreign aid, the poverty headcount is projected to fall, but only modestly. Only under a recovery scenario with high aid inflows are poverty levels projected to be below pre-conflict levels by 2025.

× Women’s control over decision-making within their family, particularly regarding the use of household income, can play an important and long-lasting role in shaping their well-being and that of their children. Cash transfer programs often target women in order to increase their control over household resources. Empirical evidence on the effectiveness of this approach is mixed and suggests the importance of local context. We present evidence on the effect of cash transfers on women’s control over decision-making in the MENA region, where little evidence is available and where cultural norms around women’s roles differ from more-studied regions. Using a regression discontinuity approach, we identify the impact of Egypt’s “Takaful” national cash transfer program on women’s control over decision-making and labor supply. Receiving cash transfers mostly reduced women’s reported ability to influence household decisions, particularly regarding child healthcare. The loss of control over decision-making was greater for women with less than primary education. Other effects of the program include a decline in women’s employment and an increase in men’s involvement in spheres of decision-making usually controlled by women. These results are robust to changes in model specification. We present suggestive evidence from mediation analysis that the negative effects on women’s control over decision-making was directly related to these declines in employment and increase in men’s involvement in female spheres. The negative findings are not wholly supported by complementary qualitative work in which women reported more positive perceptions of the program’s impacts.

× This paper evaluates the impacts on the participants of the Yemen Social Fund for Development’s youth employment and training program called Rural and Urban Advocates Working for Development (RUAWFD). The evaluation used both traditional surveys and an innovative experimental game methodology to show that the employment program, in addition to aiding youth individually, has important benefits for the country as a whole by contributing to stronger social capital. The survey analysis finds for the program participants significant increases between the baseline and follow-up surveys in self-reported trust in local government institutions and officials, political parties, and tribes. In reflecting on the level of cooperativeness in their own communities, participants reported increased awareness of the presence of marginalized groups and increased perception of cooperativeness in surrounding communities. There was also a significant increase in self-reported trust in people generally, especially for trust in other young people and in people from other areas of Yemen. The experimental game methodology uses a common pool game from the experimental economics literature incentivized by cash payments to measure trust levels between pairs of RUAWFD participants from different geographic regions. This approach confirms the findings from the survey analysis while avoiding possible self-reporting bias. The game results show that trust was lowest at baseline for partners in which one of the partners was from one of the Northern governorates and the other was from one of the Southern governorates. After the intervention, however, not only were average trust levels higher, but Northern-Southern pairs of RUAWFD participants had trust levels closer to those for pairs from the same regions.
These findings are consistent with the literature on inter-group contact theory suggesting that community interventions can increase trust in individuals and institutions. This research contributes to a growing literature on trust and social capital as important development indicators, particularly in relation to conflict. The main results suggest that reinforcing social ties across regions in Yemen is an important benefit of the Social Fund for Development’s role as a national development agency and an achievable objective to consider in planning development interventions to contribute to future post-conflict reconstruction.

× This study provides estimated ranges for the magnitude of bias caused by measurement error in stunting rates in young children, a widely used proxy for long-term nutritional status.

× As ICBT appears to be so large and is heavily linked to food security, economic development, and women’s empowerment, it is important to obtain accurate measurements of this type of trade. More accurate data can improve the statistical measurements of balance of payments and external accounts, improving global trade measurement and modeling, and facilitate the development of more accurate domestic food balance sheets. Overall, measurement of ICBT in Africa can provide a more accurate picture of other aspects related to informal trade, including information on informal labor markets and movement patterns of staple foods during periods of crises. Each of these provides the opportunity for better policymaking using reliable and accurate data.

× In addition to the unprecedented humanitarian crisis and the creation of space for militant groups, the conflict in Yemen is also taking a heavy toll on the economy. According to estimates from the International Monetary Fund (IMF 2018), the Yemeni economy may have contracted by about 40 percent between end-2014 and 2018. Sector-specific information on physical damages from the World Bank’s Yemen Dynamic Needs Assessment (World Bank 2018) suggests that damage was worst in the housing sector, where 33 percent of housing units have been either partially damaged or completely destroyed. The education, health, transport, and water, sanitation and hygiene (WASH) sectors have also been severely affected, with overall damage ranging from 27 percent (transport) to 31 percent (WASH). The power and ICT sectors have been somewhat less affected, with estimated damage levels of 13 percent and 11 percent, respectively.

× The Central Agency for Public Mobilization and Statistics (CAPMAS) is pleased to present the first regionalized social accounting matrix (SAM) for Egypt. This SAM marks a major milestone in “localizing” development research and policy in Egypt and is expected to be most valuable for the development, implementation, and assessment of Egypt’s national and local development plans, like Egypt’s Sustainable Development Strategy 2030. In addition to standard SAMs, which combine many national datasets from institutions such as Central Banks, Ministries of Finance and Agriculture, and Statistical Bureaus, this regionalized SAM makes extensive use of sub-national level information such as the Economic Survey and Household Income and Expenditure Survey (HIECS) produced by CAPMAS, regional GDP estimates by the Ministry of Planning, Monitoring and Administrative Reform, and the Agricultural Bulletins with information at the Governorate level produced by the Ministry of Agriculture and Land Reclamation. With this data it becomes possible to provide a detailed, socioeconomic status update for different regions within Egypt. As such, the disaggregated SAM allows for analyzing developmental issues at regional level and to better understand the potential impacts of policy changes at the local level.

× A Social Accounting Matrix (SAM) is a representation of an economy that shows the circular flow of all transfers and real transactions between sectors and institutions. The SAM, which is a square matrix, describes the flows of incomes from activities, taking the form of factor remunerations, that are consequently received by the households for consumption on goods and services. The accounts in the SAM are the production activities, commodities, institutions, and factors of production. According to data availability, the production activities can be further disaggregated to include more detailed information on sub-sectoral or regional production. Similarly, the factors of production could be differentiated by the level of skills or the location of employment. Households can be disaggregated by income quintiles or by rural and urban residence.

× The success of nutrition-sensitive agricultural interventions in countries in the Middle East and North Africa has not been examined in much depth. To narrow this knowledge gap, a smallholder farm household survey was conducted in six governorates in Upper Egypt in April and May 2018 following the winter cropping season. The survey provides comprehensive information on agriculture, nutrition, and health. Specifically, the study sought to identify potential levers and challenges along the agriculture-nutrition impact pathways, with attention to value chain development approaches for promoting horticulture. This policy note presents findings from the survey. It should be useful in the design and implementation of nutrition-sensitive agricultural programs in Upper Egypt.

× This paper characterizes smallholder farm households in Upper Egypt based on data from a comprehensive farm household survey. The results from the descriptive analysis in combination with findings from the global literature provide recommendations on how agricultural projects can be leveraged for improving nutrition. The importance of focusing on nutrition is underlined by relatively high undernutrition and overnutrition rates among the surveyed farm households: almost 18 percent of children under five years of age are stunted and almost 25 percent of them are at risk of being overweight. Agricultural interventions can impact nutrition through six main pathways, which are: 1) providing direct access to food from own production; 2) providing a source of income from which food and other nutrition needs can be met; 3) affecting food prices; 4) affecting women’s social status and empowerment; 5) affecting women’s time use from participation in agricultural work; and 6) affecting women’s health and nutrition from engagement in agricultural activities. The surveyed farm households purchase in the market most of the foods that they consume, cultivating crops primarily for commercial sale. This finding suggests that access to food markets and the level of food prices are key determinants of food and nutrition security among smallholder farm households in Upper Egypt. The survey analysis also identified potential levers for increasing agricultural productivity, including promoting more efficient use of water, fertilizers, and pesticides and improving farming practices to narrow the productivity gap between small-scale farmers and medium and large-scale farmers. As the role of women in agricultural activities in Upper Egypt is limited, the gendered pathways for leveraging agriculture for improved nutrition are less relevant. However, to achieve positive impact on people’s diet or nutritional status that goes beyond income and price channels, programs that reach farm households in Upper Egypt should include education and behavioral change communication activities, including on themes related to breastfeeding, dietary diversity, physical activities, and sugar intake. For such activities to be effective, it is important to consider the low literacy levels in the population.

× This evaluation of Yemen’s Cash for Nutrition intervention, a cash transfer program combined with nutritional trainings implemented by the Yemen Social Fund for Development (YSF), examines the program’s impacts on child nutrition indicators and related intermediate variables during a period of conflict. The decline in several indicators of welfare for the sample population that occurred after the beginning of the civil conflict in Yemen is also traced. Overall, the program decreased the share of children diagnosed with moderate or severe malnutrition and improved anthropometric indicators of nutritional status in children in the poorest third of households. The Cash for Nutrition program was funded by the World Bank through the United Nations Development Programme as part of the Yemen Emergency Crisis Response Project.

× This paper goes beyond the “business” case for agricultural value chain development and presents an economy-wide framework to make the “development” case. We show that there are several key transmission channels that determine the economy-wide impacts of promoting various value chains, including forward and backward economic linkages, price responses, and net employment effects. These impacts all matter for household incomes, poverty, and dietary diversity. Results for Egypt show that agricultural value chain development generates economy-wide growth as well as growth in the agri-food system, but the impacts on employment suggest that agricultural growth can create new (and better) jobs in and beyond the agri-food system, but not necessarily more jobs. The results also show that productivity-driven agricultural growth in all crops is pro-poor and improves nutrition. However, potential adverse effects of livestock-led growth show that growth acceleration in single sectors can be negative, highlighting the importance of a systems analysis or, in our case, an economy-wide analysis. It is clear that no single sub-sector is best at achieving all the development outcomes examined. Moreover, the ranking of value chains by their development outcomes differs across sub-national regions. As such, results from this paper may provide useful decision support for the government and its development partners to select value chains depending on their priority development outcomes.

× Hunger and acute child malnutrition are increasingly concentrated in fragile countries and civil conflict zones. According to the United Nations, Yemen’s civil war has caused the world’s worst humanitarian crisis in recent history. We use high-frequency panel data and district fixed-effects and household fixed-effects models to estimate the impact of civil conflict on child nutrition. Our results indicate that an increase by one standard deviation in civil conflict intensity translates into an increase in the prevalence of acute child malnutrition by at least 0.7 percentage points if measured by weight-for-height z-scores and by at least 1.7 percentage points if measured by mid-upper arm circumference z-scores. In mid-December 2018, Yemen’s main warring parties agreed to a ceasefire for the contested port city of Hodeida and to allow humanitarian aid to be shipped in and distributed through protected corridors. While the recent agreements are an important, first step to tackle the humanitarian crisis, the road to a sustainable peace agreement will certainly be long and bumpy. Relative stability could soon open a window of opportunity for targeted interventions to support recovery in Yemen. Against this background, our analysis suggests that unconditional cash transfers can be an effective tool in situations of complex emergencies. Our estimation results show that cash transfers can mitigate the detrimental impact of lingering civil conflict on child nutritional status in Yemen on a large scale. Our results also reveal that the regularity of transfer payments influence the magnitude of the mitigation effect, as regular assistance allows beneficiary households to smoothen their food consumption and other demands influencing child nutrition outcomes.

× The project titled “The Water-Energy-Food Nexus: Global, Basin and Local Case Studies of Resource Use Efficiency under Growing Natural Resource Scarcity“ (2015-2018), which was supported by the Federal Ministry for Economic Cooperation and Development, Germany, and was undertaken as part of the CGIAR Research Program on Water, Land and Ecosystems. The project set out to develop research methodologies and insights globally as well as for the Eastern Nile Technical Regional Organization (ENTRO) of the Nile Basin Initiative (NBI) and Egypt, Ethiopia and Sudan to support efforts for enhanced water, energy and food security and environmental sustainability. The toolkit describes both qualitative and quantitative methods that have been used in the research project. It is not meant to be an exhaustive list of information and tools related to the analysis of the water, energy and food (WEF) nexus. The overall focus of the tools has been on economic analysis of the linkages across water, energy and food--to complement other studies and method developments that focus on biophysical linkages across the WEF nexus. The toolkit is aimed, primarily, at researchers interested in the analysis of the water, energy and food nexus. However, the studies summarized here also provide insights for practitioners implementing Nexus projects.

× Several environmental changes have occurred in the Sudan in the past; several are ongoing; and others are projected to happen in the future. The Sudan has witnessed increases in temperature, floods, rainfall variability, and concurrent droughts. In a country where agriculture, which is mainly rainfed, is a major contributor to gross domestic product, foreign exchange earnings, and livelihoods, these changes are especially important, requiring measurement and analysis of their impact. This study not only analyzes the economy-wide impacts of climate change, but also consults national policy plans, strategies, and environmental assessments to identify interventions which may mitigate the effects. We feed climate forcing, water demand, and macro-socioeconomic trends into a modelling suite that includes models for global hydrology, river basin management, water stress, and crop growth, all connected to the International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT). The outcomes of this part of the modeling suite are annual crop yields and global food prices under various climate change scenarios until 2050. The effects of such changes on production, consumption, macroeconomic indicators, and income distribution are assessed using a single country dynamic Computable General Equilibrium (CGE) model for the Sudan. Additionally, we introduce yield variability into the CGE model based on stochastic projections of crop yields until 2050. The results of the model simulations reveal that, while the projected mean climate changes bring some good news for the Sudan, extreme negative variability costs the Sudan cumulatively between 2018 and 2050 US$ 109.5 billion in total absorption and US$ 105.5 billion in GDP relative to a historical mean climate scenario without climate change.

× Using governorate-level national data and household survey data, we build a typology of farm households in Egypt that allows us to describe how different farm households behave in response to policy and environmental changes affecting their resources, welfare, and opportunities in output and input markets. One of the major contributions of this study is the building of a unique dataset that combines various data sources at different levels of aggregation, providing the information needed to model the farm typology. We used this dataset as the input of a multi-step procedure that includes the use of principal components and cluster analyses to identify 14 household types. To illustrate possible uses of the typology, we look at the vulnerability of the different types of households to projected changes in temperature, water availability, and water demand from crops due to climate change, and discuss which farmers, production systems, and regions will be most affected by climate shocks. We assumed that increased temperatures by 2050 would result in increased water demand and reduced yields for most crops due to heat stress and harsher growing conditions. We define three climate change scenarios that differ in the expected water flows of the Nile into the Aswan High Dam. Results of simulations using a household model suggest that Egypt is likely to experience a significant reduction in output, agricultural labor demand, and cultivated area because of climate change, although the severity of this outcome will depend on the magnitude of changes in the Nile’s flow. Most affected by these changes will be small and average households producing field crops. Our results suggest that to mitigate the risks and possible future impacts of climate change, the country will need to: Move away from policies supporting production of cereals and water-inefficient crops towards diversification of production into water-efficient high-value crops; facilitate the access of skilled resource-poor producers to capital and markets; and create opportunities for off-farm employment and income for smallholders that are using resources inefficiently.

× The latest population census in Egypt shows that there are more people now living along the narrow strip of land by the Nile than ever before, 95 million (CAPMAS 2017). The country’s rapidly growing population, its limited water resources, and its dependence on food imports all reinforce the importance of an integral agricultural policy. With the recent series of economic reforms that saw the flotation of the Egyptian pound, the imposition of a value-added tax, and decreases in energy subsidies, Egypt has a unique opportunity to focus on sector-level policies, including those within agriculture. This paper reviews agricultural and other related policies and their impact on the overall economic performance of the agricultural sector in Egypt. This stocktaking of policies is to serve as the basis for developing a more comprehensive agricultural strategy and policy framework that aligns sectoral policy objectives with policy measures in an effective and consistent manner. The paper is intended to serve as a reference for policymakers, researchers, and institutions. It highlights agriculture’s place in the Egyptian economy and examines water and irrigation policy and the provision and distribution of agricultural inputs, research, and extension, and reviews the price and procurement policies for key crops. Other public policies and their impact on agriculture are also evaluated via a look at the food subsidy system, land rent and tenure, land reclamation, and trade policies. The concluding section of the paper presents a summary of key messages and proposed questions for further research.

× Clusters – the geographic concentration of specialized firms that are working in similar or related activities and are interdependent – have played an important role in the industrial development of many countries, including in Europe, the Americas, and Asia. A large part of these successes can be explained by the ability of clusters to build on existing strengths of local communities, such as social capital and abundant labor, to overcome common constraints to economic expansion, such as weak financial markets and institutions. Realizing the potential for cluster-based development and the long history of clusters in the country, the Egyptian Government has made cluster-based industrialization a key pillar of Egypt’s sustainable development strategy to 2030. The timing for a cluster-based industrial development model for Egypt seems favorable as macroeconomic reforms in recent years have made Egypt’s economy more competitive and the country’s young labor force provides a comparative advantage for labor-intensive sectors. The objectives of this paper are to take stock of existing clusters in Egypt; to identify a set of promising “organic” clusters; and to make high-level recommendations for the further expansion of agribusiness and handicrafts clusters based on an innovative analysis of economic census data, a review of previous cluster studies in Egypt, and information obtained from expert interviews and a stakeholder workshop. Our findings suggest focusing cluster development efforts on Upper Egypt, which has a comparative advantage in several sectors, especially in labor-intensive sectors. However, the current cluster density in Upper Egypt is low, particularly in rural areas. Expanding the number and density of clusters there will likely require improvements in infrastructure, institutions, and services. The most promising clusters identified through the analysis include medical and aromatic plants, sugarcane, and tomatoes in the agribusiness sector; ready-made garments and carpets in the handicrafts sector, and furniture. These are all promising organic clusters based on their high market demand, export potential, labor intensity, and historical roots. We develop several recommendations for the agribusiness and the handicrafts sectors, especially highlighting the important facilitating role that local governments should play in cluster-based development by providing necessary basic public goods and services. In-depth case studies for specific, promising clusters should follow to help local governments and entrepreneurs to fully harness the unique opportunities that clusters can provide for local industrial development and job creation in Egypt.

× Since March 2015, the Government of Egypt has been providing cash to poor households through the Takaful and Karama program. The program is run by the Ministry of Social Solidarity (MoSS). Takaful supports poor families with children under 18 years of age, while Karama supports the poor elderly and disabled. For Takaful, the amount of cash that households receive depends on the number of children and their school level, while the Karama transfer is a set rate per individual. In 2018, Takaful will also begin requiring households in the program to make sure their children attend school and participate in health screenings. The program was evaluated by IFPRI, an international research organization, using both quantitative statistical methods (simple questions asked to many households during a survey) and qualitative methods (more in-depth questions asked to fewer households in longer interviews). The main goal of this evaluation was to measure and explain how the transfers affected the welfare of households in the program. In addition, the evaluation describes how well the program selection criteria work for identifying poor households.

× This qualitative evaluation of the Takaful cash transfer program was conducted between January and April 2018 by a team of researchers trained in qualitative methods. The evaluation sought to further delve into and explain dimensions of the Takaful transfers’ impact on beneficiaries that were previously under-investigated in the quantitative survey. In so doing, the quantitative components’ findings were also further contextualized and clarified. This qualitative component’s main goals, therefore, were to explore the differences between the transfers’ impact on ultra-poor households and households near the threshold, the differences in how the two household types use the transfer, and the impact of the transfers on intrahousehold decision making with special focus on women.

× This report of the evaluation study provides a greater focus on measuring the impact of the larger Takaful program and also attempts to measure the impact of the much smaller Karama program. In addition, IFPRI will conduct a qualitative assessment of the Takaful and Karama program focused on learning about the experience with the program among the poorest beneficiary households. This qualitative assessment will also draw lessons from the quantitative survey to provide another report on the experience of very poor households. The remainder of this report is organized as follows Chapter 2 provides an overview of the Takaful and Karama Program. Chapter 3 summarizes the impact evaluation design. Chapter 4 describes the evaluation survey and sample. Chapter 5 provides context for the program by using the survey data to summarize the characteristics of beneficiary and non-beneficiary households and describe beneficiaries’ experience with program implementation. Chapter 6 presents the impact estimates for Takaful and Chapter 7 the estimates for Karama. Chapter 8 uses data from a separate representative sample of households collected during the survey to assess the targeting performance of the program. Chapter 9 concludes and discusses implications for social policy in Egypt.

× This paper is part of a series of three country-case studies to investigate the potential role of agro-processing for economic development based on the strong backward and forward linkages agro-processing firms have with the agricultural sector. Previous analyses for Egypt and Jordan (Figueroa, Mahmoud, and Breisinger 2017; El-Enbaby et al. 2016) have shown how developing the agro-processing sub-sector as well as encouraging the production of high-value crops can promote economic and social well-being, especially in rural areas where the majority of the poor are concentrated. In continuation with this line of research, this paper aims at analyzing: • What role agriculture has played for the Tunisian economy in recent years; • What is the role of agricultural productivity and structural change in fostering agricultural growth in Tunisia; and • What is the potential of agro-processing for economic development and rural transformation in the country.

× The 2012 Social Accounting Matrix (SAM) for the Sudan, with a special focus on agriculture, water, and energy, is built using data from domestic sources in the Sudan, including the Central Bureau of Statistics, the Ministry of Agriculture, the Ministry of Finance and Economic Planning, and the Central Bank of Sudan, besides other external sources. Major data sets used include the 2012 National Accounts and Trade Statistics of the CBS, the 53rd Annual Report of the Central Bank of the Sudan, the 2011 Labor Force Survey, the 2009 Household Income and Expenditure Survey, the 2009-2012 Agricultural Production Cost Survey, and the 2005 Industrial Survey. Data from external sources are used to complement national sources. These sources include IMF studies on government finances, FAO reports and data on agriculture, and ILO reports on labor. The SAM distinguishes between agricultural activities based on modes of irrigation, energy based on its major source, and water based on modes of production and types of uses. Land is divided into irrigated and non-irrigated, while natural water resources are added in a separate account. Households are categorized by state, location (rural and urban), and income quintiles. Labor accounts are differentiated based on location (rural and urban), skill level, and gender.

× In order to address long-standing economic challenges, in 2016 the Government of Egypt (GOE) put in place a major economic reform program to restore macroeconomic stability and to promote inclusive growth. As a result, there are early signs that the economy is rebounding and Egypt’s economic outlook is becoming more favorable. However, it is less clear how the ongoing reform program is affecting households, especially the poor. To shed light on this question, this paper uses an economy-wide model to estimate the distributional impacts of the energy subsidy cuts in 2014, 2016, and 2017, the currency devaluation at the end of 2016, and the expected complete phasing out of energy subsidies over the coming years.

× This paper describes an innovative agricultural and rural economic planning tool that will help governments and analysts in the design of agricultural investment plans: the (Arab) Agricultural Investment for Development Analyzer (AIDA). A policy challenge for all governments, including those in the Middle East and North Africa, is determining the appropriate allocation and quality of public spending to foster agricultural and rural economic growth, employment creation, and poverty reduction. The AIDA economic planning toolkit has been built using an economy-wide and minimalistic investment data approach to assist governments in meeting this planning challenge. Centered on the use of economy-wide Computable General Equilibrium (CGE) models, it allows for a comprehensive planning approach to ensure that the level and allocation of investment in the agriculture and rural sectors is sufficient for achieving desired targeted outcomes. It does this by linking agricultural and rural spending to economic growth, job creation, and household poverty, given resource and market constraints, as well as considering trade-offs and opportunity costs associated with different investment options. Such a holistic system approach enables the ranking of possible interventions and allocations of public funds amid possible changes in public policy to help in designing national agriculture plans and targets.

× This paper aims to support the implementation of the strategic development plans of Jordan by analyzing the role of agriculture and farmers in the Jordanian economy, the role that productivity and structural change can play for fostering agricultural growth, and the role agro-processing may play in Jordan’s economic development. We argue that the development of the agro-processing sector often has stronger backward and forward linkages with the agricultural sector than other sectors and, thus, plays an important role for rural transformation.

× In MENA, household food insecurity, which is closely related to poverty and undernourishment, is most severe in rural areas and concentrated within Iraq, Sudan, and Yemen. 25% of the MENA population may be poor and 7% undernourished. The key to increased national and household-level food security is pro-poor growth, driven by export-oriented, labor-intensive sectors. Agricultural sector policies should be subordinate to the pro-poor growth goal and not to the goal of food self-sufficiency. Such a strategy requires conflict resolution; macroeconomic stability; physical and human capital accumulation; reliance on markets and the private sector, and diffusion of ecologically friendly farming practices.

× This paper explores the relationship between institutions and trade in the Middle East and North Africa (MENA) region. The literature offers a broad consensus that bad institutions hamper trade and that trade liberalization engenders institutional reforms; however, MENA has generally been neglected in this literature, even though most countries in the region suffer from a clear deficit of “good” institutions. Taking into account the inverse relationship between institutions and trade, we use a gravity model that explains bilateral trade for disaggregated goods and service sectors for 21 MENA countries over the period 1995-2014. Our results show that in the presence of excessive zero trade observations, poor institutions can be considered as fixed export costs that help explain the zero probability of trade for some countries. We find that institutions do matter for trade after controlling for the endogeneity problem between institutions and trade.

× This technical note aims to introduce a spatial equilibrium model (SEM) to AGRODEP members. Specifically, by using simplified data, a pedagogic tool is developed to explain the design of a spatial equilibrium model. The potential uses of the model, regarding trade policy analysis as well as transportation costs variation analysis, are exemplified by means of two distinct scenarios. Moreover, this technical note provides a specific focus on the process of calibrating the initial data of the model: supply and demand, prices, trade, and transportation costs. The spatial equilibrium model is a multi-region partial equilibrium model which links producers and consumers from different locations. It allows economists to examine the global economic and trade consequences of diverse trade policies by determining their effects on market, trade and welfare variables. As an example, it evaluates the impact of such policies on supply and demand, producer and consumer prices, volume and direction of trade, consumer and producer surpluses, as well as on world welfare.

× The Nile is the lifeblood of northeastern Africa, and its roles for and interdependency with the national economies it traverses and binds together grow as it moves from source to sea. With rapid economic development—population growth, irrigation development, rural electrification, and overall economic growth—pressures on the Nile’s water resources are growing to unprecedented levels. These drivers of change have already contributed to stark changes in the hydropolitical regime, and new forms of cooperation and cross-sectoral collaboration are needed, particularly in the Eastern Nile Basin countries of Egypt, Ethiopia, Sudan, and South Sudan. As direct sharing of water resources is hampered by unilateral developments, the need has increased for broader, cross-sectoral collaboration around the water, energy, and food sectors. This study is conducted to assess and understand the challenges of and opportunities for cooperation across the water-energy-food nexus nationally in Egypt, Ethiopia, and Sudan, as well as regionally across the Eastern Nile. To gather data, the paper uses an e-survey supplemented with key informant interviews geared toward national-level water, energy, and agriculture stakeholders, chiefly government staff and researchers. Findings from the survey tools suggest that most respondents strongly agree that collaboration across the water, energy, and agriculture sectors is essential to improve resource management in the region. At the same time, there is ample scope for improvement in collaboration across the water, energy, and food sectors nationally. Ministries of water, energy, and food were identified as the key nexus actors at national levels; these would also need to be engaged in regional cross-sectoral collaboration. Respondents also identified a wide range of desirable cross-sectoral actions and investments—both national and regional—chiefly, joint planning and operation of multipurpose infrastructure; investment in enhanced irrigation efficiency; joint rehabilitation of upstream catchments to reduce sedimentation and degradation; and investment in alternative renewable energy projects, such as wind and solar energy.

× We use an innovative methodology to model the socioeconomic linkages between water, energy, and food in the East Nile Basin. Based upon a theoretical nexus framework, the methodology is expanded into a quantifiable modeling suite that under-lies the analysis of each of three country case studies. The advantages are that, despite resource shortages being a challenge, the modeling suite aids in devising policies and strategies that formulate these sectoral interdependencies and provide the evidence-based research results necessary for their design in a way that exploits synergies existing across sectors, countries, and regions (Al-Zubari n.d.). This paper lays out the methodology and gives an example of an application and scenarios by focusing on three countries in the East Nile Basin. This methodology paper will be followed by three individual country case studies that highlight the water, energy, and food nexus for each.

× In order to complement the ongoing macroeconomic and safety net reforms in Egypt, it is important to foster additional sector-specific economic growth, especially in sectors that are good at creating jobs and reducing poverty. One sector that may help foster socioeconomic development in coming years is agriculture and related agro-processing industries. This paper shows that agriculture in Egypt continues to play a relatively important role in the economy compared to other mid-dle income countries. The sector’s stable growth performance has proved to be a reliable contributor to economy-wide output growth over the past decades. The underlying productivity gains have prevented the country’s food import depend-ency ratio from rising in spite of rapidly growing food demand.

× This paper uses the border effect estimate from a gravity model to analyze the level of market trade integration among Algeria, Egypt, Mauritania, Morocco, and Tunisia from 2005-2012. We analyze total trade as well as trade in agricultural and industrial products. The border effect estimates show that crossing a national border within these North African countries induces a trade-reduction effect. The highest effect is for Algeria, with total trade being reduced by a factor of 5 in 2011-2012, while the lowest effect is for Tunisia, with the total trade being reduced by a factor of 2 in 2011-2012. Our results also show that the border effect is stable over time. The mean value masks differences that are quite substantial in market integration when considering agricultural products or industrial products, the borders effects being lower for the latter. For industrial products in 2011-2012, the highest border effect is in Tunisia, with a factor of 3.3, and the lowest border effect is for Morocco with a factor of 1.9. For agricultural products in the same period, the highest border effect is in Algeria, with a factor of 5.9, and the lowest border effect is in Egypt, with a factor of 2.9. Finally, the equivalent tariffs implied by the estimated border effects are not implausible compared to the actual range of direct protection measures. Integration of the North African market should be pursued by improving structural policies to improve trade efficiency and reap the benefits of international trade.

× The objective of this paper is to analyze trade potential versus actual realized trade among North African trading partners. Following the literature on production economics, we built a stochastic frontier gravity model. The underlying assumption is that all deviations from trade potential is not due to white noise but may also be due to inefficiencies. Time-variant country-specific trade efficiency estimates are obtained and analyzed. Our results indicate that Mauritania, as a country both of destination and of origin, is where the region’s trading relationship is the least efficient. Tunisia, followed by Morocco, faces the fewest behind- and beyond-the-border effects. Our analysis of market integration and trade efficiency at the disaggregated level indicates that trade efficiency scores exhibit high variability between categories of products. Moreover, North African market integration is worst when considering the goods from “Textiles; Footwear & Headgear” category. Our estimates indicate that trade efficiency for agricultural products is relatively low, indicating the existence of significant behind- and beyond-the-border inefficiencies. Our estimates also underline the importance of improving domestic policies to encourage entrepreneurial development and business facilities.

× The Central Agency for Public Mobilization and Statistics (CAPMAS) is pleased to present a disaggregated version of the Egypt SAM for 2010/11. This new SAM builds on the previous SAM 2010/11 built and published by CAPMAS with the support of the International Food Policy Research Institute (IFPRI). The value added of this new disaggregated version of the SAM is its focus on the agricultural sector and different types of households. By disaggregating the single agricultural sector into 22 agricultural sub-sectors and the single household of the previous SAM into 20 household groups, defined by expenditure decile and rural or urban residence, the disaggregated SAM now allows for analyzing agricultural issues at the detailed crop level and to better understand the potential im-pacts of policy changes for both better off and more vulnerable households.

× The purpose of this paper is to document the different steps followed to construct the Tunisian Social Accounting Matrix (SAM) for the year 2012. More precisely, it describes the estimation methods and the nature of data used in the development of the SAM, which has a specific focus on the agriculture and food sectors. The SAM also features a regional disaggregation by three agro-ecological zones. The data used in the construction process are based on two main publications of the “Institut National de la Statistique” (INS): the input-output table (I/O) (2012) and the supply-use table (2012). The I/O (2012) disaggregates the Tunisian economy into 24 sectors, including two agri-food sectors: (1) Agriculture and Fishery, and (2) Food Industries. The supply-use table accounts for about 400 commodities, of which 59 are agriculture, forestry, and fishery products and 64 are processed-food products. Other major information sources used include the household survey publication (2010), the annual report of the Central Bank (2013), the “Annuaire des Statistiques Agricoles” (Ministry of Agriculture 2013c), and the “Budget Economique” (2013).

× A rapidly changing world combined with mounting domestic challenges is prompting many Middle East and North African (MENA) countries to rethink their development models and to initiate economic and social reforms. Taking this new momentum as a starting point, this paper uses the concept of Food Security to identify the region’s challenges along four major themes: economic growth and incomes, trade and infrastructure, agriculture and water, and health and education. Results show that many of the region’s longstanding challenges persist; yet taking immediate action is more urgent in light of the recent, global food, fuel, and financial crisis and projected severe impacts of climate change. Fostering development and achieving food security will require economic growth and diversification that generates jobs for the majority of people, breaking the strong vulnerability to international oil and food price volatility, managing depleting water resources and climate change adaptation effectively, transforming social policies to target the poor, and empowering women to play a more active role in the economy and society. Designing policies and investments for achieving progress in this direction are most likely to be successful if based on lessons from the past, successful countries’ experiences and research-based strategic analysis. The paper therefore concludes with a list of priority research areas to identify key actions to be taken on regional, national and sub-national levels to foster development and food security.

× The lack of updated information about food security is of concern to many countries, especially during and after economic crises, natural disasters, and conflicts. In this paper we present an analytical framework for assessing the effects of such crises on food security. This methodology can compensate for the lack of recent data in the aftermath of various crisis situations and thus provide important information to policymakers. We apply this methodology to Yemen, a country where the recent food price crisis and global economic recession have been especially damaging. Little is known about how the recent triple crisis (food, fuel, and financial crisis) has affected food security and what the current state of food security is on the macro- (national) and microlevels (local). The results of our findings suggest an alarming state of food insecurity. Food security at the macrolevel has dramatically deteriorated in recent years, and it is projected that the country will remain highly vulnerable to external shocks in the future if no action is taken. At the household level we found that 32.1 percent of the population in Yemen is food insecure and that 57.9 percent of all children are malnourished. Rural-urban inequalities are high in Yemen. The number of food-insecure people living in rural areas (37.3 percent) is more than five times higher than in urban areas (17.7 percent). Underweight children and children with stunted growth are found more commonly in rural than urban areas. Major challenges for food security are the lack of job-creating growth within the oil-dependent economic structure; a distorted economic incentive system, coupled with an inefficient social transfer system rapidly depleting oil and water resources; and the growing production and consumption of qat.

× Although several institutional and management approaches that address the degradation of the rangelands have been tested in the dry areas of Central and West Asia and North Africa (CWANA), impact has been limited. Nonetheless, the development of National Action Plans to combat desertification highlights the interest of governments to tackle this issue. Payment for Environmental Services (PES) may be a viable policy option, though, to date, most PES programs have focused on the management of different resources (forests, watersheds). The purpose of this paper is to examine whether PES could be a viable option to promote sustainable rangelands management in the dry rangelands of CWANA. Specifically, it focuses on the scientific gaps and knowledge related to the local and global environmental services produced by rangelands and addresses questions related to the beneficiaries of these services. Institutional conditions necessary for the implementation of such schemes are discussed.