IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v40y2012i1p96-109.html
   My bibliography  Save this article

Can Public–Private Partnerships Leverage Private Investment in Agricultural Value Chains in Africa? A Preliminary Review

Author

Listed:
  • Poulton, Colin
  • Macartney, Jon

Abstract

Public–private partnerships (PPPs) may be one way of increasing the level of private sector investment into poorly performing agricultural value chains. This paper considers a range of PPP mechanisms that respond to different market failures affecting such chains and draws on principal–agent theory to illustrate the challenges. It reviews emerging experience with a number of these mechanisms along with experience from other sectors that may shed light on “generic” problems of implementing PPPs in Africa. While finding some positive impacts on investment, it notes that state failures can also undermine PPP effectiveness. As the evidence base is still limited, it calls on organizations promoting innovative PPPs to disclose available information for critical examination.

Suggested Citation

  • Poulton, Colin & Macartney, Jon, 2012. "Can Public–Private Partnerships Leverage Private Investment in Agricultural Value Chains in Africa? A Preliminary Review," World Development, Elsevier, vol. 40(1), pages 96-109.
    • Handle: RePEc:eee:wdevel:v:40:y:2012:i:1:p:96-109
    DOI: 10.1016/j.worlddev.2011.05.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X11001471
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2011.05.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James C. Hanson & Richard E. Just, 2001. "The Potential for Transition to Paid Extension: Some Guiding Economic Principles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 777-784.
    2. Pingali, P. L. & Traxler, G., 2002. "Changing locus of agricultural research: will the poor benefit from biotechnology and privatization trends?," Food Policy, Elsevier, vol. 27(3), pages 223-238, June.
    3. World Bank, 2009. "Awakening Africa's Sleeping Giant : Prospects for Commercial Agriculture in the Guinea Savannah Zone and Beyond [Le réveil du géant assoupi : Perspectives de l’agriculture commerciale dans les sava," World Bank Publications - Books, The World Bank Group, number 2640.
    4. Graeme A. Hodge & Carsten Greve, 2009. "PPPs: THE PASSAGE OF TIME PERMITS A SOBER REFLECTION," Economic Affairs, Wiley Blackwell, vol. 29(1), pages 33-39, March.
    5. Spielman,David J. & Hartwich,Frank & von Grebmer, Klaus, 2007. "Sharing science, building bridges, and enhancing impact: Public-Private Partnerships in the CGIAR," IFPRI discussion papers 708, International Food Policy Research Institute (IFPRI).
    6. Raynolds, Laura T., 2004. "The Globalization of Organic Agro-Food Networks," World Development, Elsevier, vol. 32(5), pages 725-743, May.
    7. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October.
    8. Jayne, T. S. & Govereh, J. & Wanzala, M. & Demeke, M., 2003. "Fertilizer market development: a comparative analysis of Ethiopia, Kenya, and Zambia," Food Policy, Elsevier, vol. 28(4), pages 293-316, August.
    9. Henson, Spencer & Reardon, Thomas, 2005. "Private agri-food standards: Implications for food policy and the agri-food system," Food Policy, Elsevier, vol. 30(3), pages 241-253, June.
    10. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, December.
    11. repec:bla:devpol:v:24:y:2006:i:3:p:243-277 is not listed on IDEAS
    12. Buse, Kent & Harmer, Andrew M., 2007. "Seven habits of highly effective global public-private health partnerships: Practice and potential," Social Science & Medicine, Elsevier, vol. 64(2), pages 259-271, January.
    13. Langyintuo, Augustine S. & Mwangi, Wilfred & Diallo, Alpha O. & MacRobert, John & Dixon, John & Bänziger, Marianne, 2010. "Challenges of the maize seed industry in eastern and southern Africa: A compelling case for private-public intervention to promote growth," Food Policy, Elsevier, vol. 35(4), pages 323-331, August.
    14. Palmer, Natasha & Mills, Anne, 2005. "Contracts in the real world: Case studies from Southern Africa," Social Science & Medicine, Elsevier, vol. 60(11), pages 2505-2514, June.
    15. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
    16. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 44, pages 2343-2378, Elsevier.
    17. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    18. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    19. Narrod, Clare & Roy, Devesh & Okello, Julius & Avendaño, Belem & Rich, Karl & Thorat, Amit, 2009. "Public-private partnerships and collective action in high value fruit and vegetable supply chains," Food Policy, Elsevier, vol. 34(1), pages 8-15, February.
    20. Anthony Bebbington & Octavio Sotomayor, 1998. "Demand-led and poverty-oriented … Or just subcontracted and efficient? Learning from (semi-) privatized technology transfer programmes in Chile," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(1), pages 17-34.
    21. Coulter, J. & Onumah, G., 2002. "The role of warehouse receipt systems in enhanced commodity marketing and rural livelihoods in Africa," Food Policy, Elsevier, vol. 27(4), pages 319-337, August.
    22. Bahiigwa, Godfrey & Rigby, Dan & Woodhouse, Philip, 2005. "Right Target, Wrong Mechanism? Agricultural Modernization and Poverty Reduction in Uganda," World Development, Elsevier, vol. 33(3), pages 481-496, March.
    23. Benin, Samuel & Nkonya, Ephraim & Okecho, Geresom & Pender, John & Nahdy, Silim & Mugarura, Samuel & Kayobyo, Godfrey, 2007. "Assessing the impact of the National Agricultural Advisory Services (NAADS) in the Uganda rural livelihoods," IFPRI discussion papers 724, International Food Policy Research Institute (IFPRI).
    24. David Boselie & Spencer Henson & Dave Weatherspoon, 2003. "Supermarket Procurement Practices in Developing Countries: Redefining the Roles of the Public and Private Sectors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1155-1161.
    25. Chataway, Joanna & Smith, James, 2006. "The International AIDS Vaccine Initiative (IAVI): Is It Getting New Science and Technology to the World's Neglected Majority?," World Development, Elsevier, vol. 34(1), pages 16-30, January.
    26. Ramiah, Ilavenil & Reich, Michael R., 2006. "Building effective public-private partnerships: Experiences and lessons from the African Comprehensive HIV/AIDS Partnerships (ACHAP)," Social Science & Medicine, Elsevier, vol. 63(2), pages 397-408, July.
    27. Hans Van Ham & Joop Koppenjan, 2001. "BUILDING PUBLIC-PRIVATE PARTNERSHIPS: Assessing and managing risks in port development," Public Management Review, Taylor & Francis Journals, vol. 3(4), pages 593-616, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    2. Islam, Md. Saidul, 2008. "From pond to plate: Towards a twin-driven commodity chain in Bangladesh shrimp aquaculture," Food Policy, Elsevier, vol. 33(3), pages 209-223, June.
    3. Schuster, Monica & Maertens, Miet, 2013. "Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector," Food Policy, Elsevier, vol. 43(C), pages 291-305.
    4. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," GlobalFood Discussion Papers 108551, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    5. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.
    6. Lambrecht, Isabel Brigitte & Ragasa, Catherine, 2018. "Do development projects crowd-out private sector activities? Evidence from contract farming participation in Northern Ghana," Food Policy, Elsevier, vol. 74(C), pages 9-22.
    7. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," Proceedings of the German Development Economics Conference, Berlin 2011 28, Verein für Socialpolitik, Research Committee Development Economics.
    8. Winnie Wangari Wairimu & Ian Christoplos & Dorothea Hilhorst, 2016. "From crisis to development: the policy and practice of agricultural service provision in northern Uganda," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 33(4), pages 799-812, December.
    9. Hazell, Peter & Poulton, Colin & Wiggins, Steve & Dorward, Andrew, 2010. "The Future of Small Farms: Trajectories and Policy Priorities," World Development, Elsevier, vol. 38(10), pages 1349-1361, October.
    10. Jan Falkowski & Pavel Ciaian, 2016. "Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review," JRC Research Reports JRC101617, Joint Research Centre.
    11. Kelly, Valerie A., 2005. "Farmers' Demand for Fertilizer in Sub-Saharan Africa," Staff Paper Series 11612, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    12. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    13. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).
    14. Magnan, Nicholas & Hoffmann, Vivian & Opoku, Nelson & Gajate Garrido, Gissele & Kanyam, Daniel Akwasi, 2021. "Information, technology, and market rewards: Incentivizing aflatoxin control in Ghana," Journal of Development Economics, Elsevier, vol. 151(C).
    15. Muriithi, Beatrice W. & Matz, Julia Anna, 2015. "Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya," Food Policy, Elsevier, vol. 50(C), pages 80-91.
    16. Fekadu Gelaw & Stijn Speelman & Guido Huylenbroeck, 2017. "Impacts of Institutional Intervention on Price Transmissions: The Case of the Ethiopian Commodity Exchange," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 88-106, November.
    17. Kasirye, Ibrahim, 2013. "Constraints to Agricultural Technology Adoption in Uganda: Evidence from the 2005/06-2009/10 Uganda National Panel Survey," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(2), pages 1-18, August.
    18. Davis, K. & Nkonya, E. & Kato, E. & Mekonnen, D.A. & Odendo, M. & Miiro, R. & Nkuba, J., 2012. "Impact of Farmer Field Schools on Agricultural Productivity and Poverty in East Africa," World Development, Elsevier, vol. 40(2), pages 402-413.
    19. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114354, European Association of Agricultural Economists.
    20. Torero, Maximo & Viceisza, Angelino C.G., 2016. "Potential collusion and trust: Evidence from a field experiment in Vietnam," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(1), pages 1-11.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:40:y:2012:i:1:p:96-109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.