Food Insecurity and Public Agricultural Spending in Bolivia : Putting Money Where Your Mouth Is?

This paper explores the reduction of food insecurity in Bolivia, adopting a supply side approach that analyzes the role of agricultural spending on vulnerability. Vulnerability to food insecurity is captured by a municipal level composite -- developed locally within the framework of World Food Program food security analysis -- that combines welfare outcomes, weather conditions and agricultural potential for all 327 municipalities in 2003, 2006 and 2007. Our econometric results indicate that levels of public agricultural spending are positively associated with high or very high vulnerability. The authors interpret this to indicate that agricultural spending allocation decisions are driven by high or very high vulnerability levels. In other words, more agricultural spending appears to be destined to where it is more needed in line with previous findings in other sectors in Bolivia. This is confirmed through a number of specifications, including contemporaneous and lagged relationships between spending and vulnerability. They also find evidence of public spending on infrastructure and research and extension services having a significant (but very small) effect towards reducing high vulnerability. This indicates the importance of the composition of public agricultural spending in shaping its relationship with vulnerability to food insecurity.

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Bibliographic Details
Main Authors: Cuesta, Jose, Edmeades, Svetlana, Madrigal, Lucia
Format: Policy Research Working Paper biblioteca
Language:English
Published: 2011-03-01
Subjects:ACCOUNTING, ADEQUATE DIET, AGRICULTURAL GROWTH, AGRICULTURAL INNOVATION, AGRICULTURAL INSURANCE, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, AGRICULTURE, ALLOCATION OF RESOURCES, BIODIVERSITY, BUDGET EXECUTION, CLIMATE CHANGE, COUNTERFACTUAL, DEBT, DECENTRALIZATION, DEMAND FOR FOOD, DEVELOPING COUNTRIES, DEVELOPMENT PLANNING, DEVELOPMENT POLICY, DISASTERS, ELECTRICITY, EXTENSION, EXTENSION SERVICES, EXTREME POVERTY, FAMILY INCOME, FARMERS, FOOD AVAILABILITY, FOOD ENTERPRISES, FOOD EXPENDITURES, FOOD IMPORTS, FOOD INSECURITY, FOOD PRICE, FOOD PRICE INFLATION, FOOD PRICES, FOOD PRODUCTION, FOOD SECURITY, FOOD SECURITY SITUATIONS, FOREST PRODUCTS, GOVERNMENT PROGRAMS, HOUSEHOLD COMPOSITION, HOUSEHOLD INCOME, HUMAN DEVELOPMENT, HUMAN RIGHT, HUMAN SETTLEMENTS, IMPACT ASSESSMENTS, INCOME, INDIGENOUS PEOPLES, INDUSTRIALIZATION, INSTITUTIONAL CAPACITY, INTEGRATION, IRRIGATION, LAND DISTRIBUTION, LAND REDISTRIBUTION, LAND RESOURCES, LAND TENURE, LAND TITLING, LAND USE, LIFE EXPECTANCY, MALNUTRITION, MANDATES, MARKETING, MUNICIPALITIES, NATIONAL DEVELOPMENT, NATIONAL DEVELOPMENT PLAN, NATIONAL GOVERNMENTS, NATIONAL LEVEL, NATIONAL PLAN, NATURAL RESOURCES, PER CAPITA CONSUMPTION, POLICY ANALYSIS, POLICY DISCUSSIONS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POLITICAL PARTY, POOR, POPULATION DENSITY, POTATO, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, PREGNANT WOMEN, PROGRESS, PROVISIONS, PUBLIC, PUBLIC ECONOMICS, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC FINANCE, PUBLIC GOODS, PUBLIC INVESTMENT, PUBLIC RESOURCES, PUBLIC SPENDING, RESOURCE ALLOCATION, RESOURCE ALLOCATIONS, RESPECT, RISK MANAGEMENT, RURAL, RURAL AREAS, RURAL COMMUNITIES, RURAL DEVELOPMENT, RURAL ELECTRIFICATION, RURAL INFRASTRUCTURE, RURAL POPULATION, RURAL POPULATIONS, RURAL PRODUCERS, RURAL ROADS, SANITATION, SCHOOL CHILDREN, SERVICE DELIVERY, SOCIAL SECTORS, SOCIAL SPENDING, SOCIOECONOMIC STATUS, SOVEREIGNTY, SUSTAINABLE DEVELOPMENT, SUSTAINABLE MANAGEMENT, TECHNICAL ASSISTANCE, TOT, TRANSFER AMOUNTS, URBAN DEVELOPMENT, URBANIZATION, VULNERABILITY, WELFARE INDICATORS, WFP, WORLD FOOD PROGRAM, WORLD FOOD PROGRAMME,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110321164448
http://hdl.handle.net/10986/3370
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Summary:This paper explores the reduction of food insecurity in Bolivia, adopting a supply side approach that analyzes the role of agricultural spending on vulnerability. Vulnerability to food insecurity is captured by a municipal level composite -- developed locally within the framework of World Food Program food security analysis -- that combines welfare outcomes, weather conditions and agricultural potential for all 327 municipalities in 2003, 2006 and 2007. Our econometric results indicate that levels of public agricultural spending are positively associated with high or very high vulnerability. The authors interpret this to indicate that agricultural spending allocation decisions are driven by high or very high vulnerability levels. In other words, more agricultural spending appears to be destined to where it is more needed in line with previous findings in other sectors in Bolivia. This is confirmed through a number of specifications, including contemporaneous and lagged relationships between spending and vulnerability. They also find evidence of public spending on infrastructure and research and extension services having a significant (but very small) effect towards reducing high vulnerability. This indicates the importance of the composition of public agricultural spending in shaping its relationship with vulnerability to food insecurity.