Can Better Targeting Improve The Effectiveness Of Ghana S Fertilizer Subsidy Program
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Can better targeting improve the effectiveness of Ghana's Fertilizer Subsidy Program?
Author: Houssou, Nazaire
language: en
Publisher: Intl Food Policy Res Inst
Release Date: 2017-02-10
Despite improvements to the implementation regime of Ghana’s fertilizer subsidy program, this paper shows that considerable challenges remain in ensuring that the subsidy is targeted to farmers who need fertilizer the most. Currently, larger-scale and wealthier farmers are the main beneficiaries of subsidized fertilizer even though the stated goal is to target smallholder farmers with fertilizer subsidies. The experience of other African countries suggests that the effectiveness of fertilizer subsidies can improve with effective targeting of resource-poor smallholders. However, targeting smallholder farmers entails significant transaction costs and may even be infeasible in some cases. Faced with such challenges, Ghanaian policy makers must ponder the question of how to improve the targeting of input subsidy programs in the country. Further research is needed to identify more cost-effective approaches for achieving the goal of targeting.
Improving the targeting of fertilizer subsidy programs in Africa south of the Sahara: Perspectives from the Ghanaian experience
Author: Houssou, Nazaire
language: en
Publisher: Intl Food Policy Res Inst
Release Date: 2017-03-17
This paper assesses whether fertilizer subsidy programs can be better targeted to resource-poor farmers using the case of Ghana and proxy means test approaches. Past fertilizer subsidy programs in the country have not been particularly targeted to the poor, even as targeting poor and smallholder farmers has become key in the program implementation guidelines. As a result, many poor farmers have not benefited from past programs. Our results show that targeting approaches based on proxy means tests that use the correlates of poverty to select beneficiary farmers can potentially improve the poverty outreach and costeffectiveness of Ghana’s fertilizer subsidy programs. Therefore, we propose that the proxy means test approach should be considered for implementing Ghana’s fertilizer subsidy programs, first in a pilot project involving a few communities, and later, if found successful, in a full-scale program.
Improving the equity and effectiveness of Nepal’s fertilizer subsidy program
Author: Kyle, Jordan
language: en
Publisher: Intl Food Policy Res Inst
Release Date: 2017-12-06
This paper examines the fertilizer subsidy program in Nepal from two different angles, both important for policy makers in the country. First, it analyzes who is benefiting from the program, and second, it examines how farmers rank the importance of public spending on fertilizer subsidies compared with other potential public investments. Whereas the former question is important for judging whether the program is meeting its objectives, the latter is essential to understanding the scope for reform, in particular the extent to which we could expect citizens to resist reforms to the subsidy program. We draw on these analyses as well as on examples from other countries to make policy recommendations to improve program implementation.