Expenditure Impact and Public Goods in Agriculture

Impact

The allocation of scarce public resources across agricultural sub-sectors often raises concerns related to efficiency and equity. This is especially true when public funds are directed to private recipients (as in subsidies) as opposed to non-capturable public goods available to all (such as a public road). As will be seen, the definition of what is a public good can vary across locations, particularly in the presence of other distortions that might require public expenditure directed to specific agents to remedy.  More generally, a better knowledge of sub-sectoral issues in regard to expenditure impact is warranted when drawing recommendations for future sectoral allocations.

Public Goods in Agriculture

This page is organized around the core public goods in agriculture and rural development. The literature stocktaking emphasizes issues pertinent to public expenditure impacts and/or other fiscal modalities specifically related to public goods in agriculture. General conceptual foundations of public goods are provided first, followed by resources for agricultural research and extension, water resources management, rural infrastructure, veterinary services, land administration and management, and general agricultural policy. Spending on credit subsidies, market organizations and cooperatives is often encountered, though these constitute private or community goods.

• Public Goods - Conceptual/Theoretical Foundations

RESOURCES

A short list of suggested core references is provided for each public good, in order to support the analysis of public expenditure in the specific sub-sectors. The references raise important issues pertinent to each sub-sector.

Agricultural Research

• Pardey, P., Alston, J. and R. Piggott. 2006. Agricultural R&D in the Developing World: Too Little, Too Late? IFPRI
• Alston, J., Chan-Kang, C., Marra, M., Pardey, P. and T. Wyatt. 2000. A Meta-Analysis of Rates of Return to Agricultural R&D: Ex Pede Herculem?
• Rajalahti, R, Woelcke, J. and E. Pehu. 2005. Monitoring and Evaluation for World Bank Agricultural Research and Extension Projects: A Good Practice Note. ARD Discussion Paper 20, World Bank.
• Link to additional references

Agricultural Extension

• Feder, G. and J. Anderson. 2003. “Rural extension services”. Policy Research Working Paper 2976. The World Bank.
• Anderson, J. and G. Feder. 2004. “Agricultural Extension: Good intensions and hard Realities”. World Bank Research Observer, Vol.19, No.1. The World Bank 2004.
• Link to additional references

Water Resources Management

• Reengaging in Agricultural Water Management: Challenges and Options (World Bank, 2006)
• Rosegrant, M., Cai, X. and S. Cline. 2002. World Water and Food to 2025: Dealing with Scarcity. IFPRI
• Link to additional references

Rural Infrastructure

• Impact Evaluation for Rural Roads
• Link to additional references

Veterinary Services

• Umali, D., Feder, G. and C. De Haan. 1992. The balance between public and private sector activities in the delivery of livestock services. World Bank Discussion Paper 163
• Rushton, J., Thornton, P. and M. Otte. Methods of economic impact assessment
• Performance, Vision, and Strategy: A tool for Governance of Veterinary Services (OIE, 2006)
• Link to additional references

Land Administration and Management

• Burns, T. et al. 2006. Land Administration Reform: Indicators of Success, Future Challenges.
• Link to additional references 

Agricultural Policy

• Impact of Agricultural Research on Poverty (IFPRI)
• Link to additional references