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This analytical tool illustrates how inequality and poverty analysis may be carried out when the income distribution is defined over households (i.e. household incomes) and not over individuals (i.e. individual incomes). When household incomes are considered, a problem arises with regard to the possibility of comparing monetary incomes of different households with different numbers of inhabitants. In this case, and as described in this module, a correction should be made to meaningfully compare different situations. This correction is called an equivalence scale. An equivalence scale may be a simple per capita measure or a more sophisticated way to take into [...]

This paper examines the main characteristics of agricultural inputs and marketing services, including factors affecting demand and supply for major categories of services, namely fertilizers and chemicals, seeds and planting materials, agricultural machinery and equipment, and crop marketing. The main sources of market failure are outlined. The conceptual framework which underpin the main approaches to decentralization of these services and key factors that need to be considered are next discussed. The importance of the regulatory role and adoption of a regulatory strategy are highlighted. Policy implications, in terms of possible options for decentralization (divestment, deconcentration, devolution and establishing partnerships), and [...]

This paper first examines the characteristics of rural financial services, including demand and supply factors in rural financial markets. It draws attention to past failures of centralized and directed rural credit services, and the emergence of a new broader vision of rural financial services, based on liberal economics and decentralization policies. The conceptual framework for reform of rural financial services is discussed, and important principles of decentralization reiterated. Policy implications, in terms of options for decentralization, and the roles and responsibilities of the government are next examined. Various options which might be considered under deconcentration, devolution, and diversification of ownership of [...]

This issue paper provides an overview of “Decentralization of Agricultural Services”. It first explains the range and importance of agricultural services; the traditional role that governments had assumed in their provision; consequences of public sector interventions; and the perceived need for institutional reform, including a reduced role for central government in service provision. It then examines the conceptual framework for policy decisions. Aspects highlighted are the economic rationale for government intervention; functional responsibilities for service provision; and challenges and risks in diversifying provision. Options for reforming agricultural services and how the reform process would need to be planned and managed [...]

This issue paper provides an overview of “Decentralized development in agriculture”. It explains what decentralization is about, including who is involved and the various forms and dimensions of the process. There are various practical expressions of decentralization in agricultural and rural development, including country efforts at: reform of agricultural services; natural resource and environmental management; and development or refinement of planning and management processes. This paper next examines the potential benefits of decentralization, possible drawbacks and risks associated. Conceptual and practical issues that have an important bearing on policy decisions on decentralization are discussed. This focuses on the changing roles and relationships, posing important questions on whether there is need for [...]

This analytical tool illustrates advanced ways to measure poverty. It belongs to a set of EASYPol modules that discuss how to measure poverty according to different perspectives. In particular, this module will deal with generalised poverty gap measures, i.e. those poverty measures based on the definition of the poverty gap. The Sen index, the Foster-Greer-Thorbecke index, the Kakwani index and the Thon index will be discussed. Many public policies may have an impact on poor people. In policy work it is therefore important to simulate the impact of alternative policies on poverty and to rank policy options according to a wide range of poverty measures. This paper will [...]

This analytical tool illustrates advanced ways to measure poverty. It belongs to a set of modules that discuss how to measure poverty according to different perspectives. In particular, this module will deal with distributional poverty measures, i.e. those poverty measures based on some inequality measures. The Sen-Kakwani index, the Blackorby-Donaldson index and the Takayama index will be discussed. Many public policies may have an impact on poor people. In policy work it is therefore important to simulate the impact of alternative policies on poverty and to rank policy options according to a wide range of poverty measures. This module will provide the framework for such an analysis.  For more [...]

This analytical tool illustrates on what basis a poverty index should be chosen. In particular, it discusses the desirable properties that a poverty index should respect. These desirable properties are called axioms. Four classes of axioms will be discussed: focus axioms  monotonicity axioms transfer axioms symmetry axioms As users will see, there is no single measure of poverty that respects all axioms at the same time. Choosing a poverty measure may therefore imply a trade-off between different aims. This paper is part of a FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development and food security). To find other EASYPol series' resources, go to [...]

This analytical tool describes two of the most commonly used poverty measures in applied policy works, i.e., the headcount ratio (HR) and the poverty gap (PG) ratio. These are basic poverty indicators used to investigate impacts of public policies on poverty. After providing a conceptual background to HR and PG, this module describes step-by-step procedures and provides numerical examples to calculate these measures. In addition, advantages and shortcomings of these measures are discussed, and their explanatory power is investigated. For more information, see also: Impacts of Policies on Poverty. The Definition of Poverty. EASYPol Series 004 Impacts of Policies on Poverty. Absolute Poverty [...]

This analytical tool illustrates how to define “relative” poverty lines, i.e. poverty lines based on approaches that consider the welfare position of each individual or household in relation to the welfare position of other individuals or households belonging to the same community. In particular, the module, after emphasizing the importance of the relative poverty concept in policy work, discusses two methods to define relative poverty lines: a) the “income levels” method; and b) the “income positions” method. It also shows in what these methods differ, and how they can be made operational, by means of step-by-step procedures and examples. In policy work, relativist concepts of poverty are widely [...]