Thursday, March 10, 2016 OPTIMIZING THE IMPACT OF SOCIAL SERVICES EXPENDITURES ON AGRICULTURAL GROWTH AND POVERTY REDUCTION OUSMANE BADIANE Africa Coordinator International Food Policy Research Institute

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 2 AGRICULTURAL AND ECONOMIC GROWTH RECOVERY

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 3 PROGRESS AGAINST 6% CAADP GROWTH TARGET (2005)

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 4 DECLINING PUBLIC EXPENDITURE IN AGRICULTUREH

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 5 DECLINING OVERSEAS INVESTMENT IN AGRICULTURE

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 6 FINANCING GROWTH AND SOCIAL NEEDS

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 7 FINANCING GROWTH AND SOCIAL NEEDS

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 8 GOVERNMENTS BUDGET TRADE-OFF FAVORS SOCIAL SECTORS MOST EFFECTIVE WAY TO REDUCE POVERTY RAISE PRODUCTIVITY OF POORS’ RESOURCES (LAND, LABOR) LOW ACCESS TO SOCIAL SERVICES IS OUTCOME OF LOW HOUSEHOLD PRODUCTIVITY, DEFICIENT FISCAL RESOURCES POOR DELIVERY, OBSTACLES TOACCESS SOCIAL SERVICES ARE COMPOSITES NOT HOMOGENEOUS SERVICES COMPOSITION IS NOT GROWTH NEUTRAL ADJUST SERVICES MIX TO RAISE GROWTH IMPACT FROM TRADE-OFFS TO CONVERGENCE

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 9 SOCIAL SERVICES, LABOR SUPPLY, & PRODUCTIVITY QlQl LsLs E i, E j, Si jSi j HijHij Education Composite Average agricultural labor Productivity Agricultural Labor Supply Safety net and Health Composites S / H Education budget line

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 10 EDUCATION SERVICES MIX AND LABOR PRODUCTIVITY QlQl LsLs E i, E j, Si jSi j Hi jHi j AeAe BeBe CeCe E E’ Agricultural average labor Productivity Education Composite Education budget line

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 11 HEALTH SERVICES MIX AND LABOR PRODUCTIVITY QlQl LsLs E i, E j, Si jSi j Hi jHi j H, H’ ChCh DhDh EhEh FhFh Agricultural average labor Productivity Agricultural Labor Supply L L’

SOURCE: INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 12 BASIC STRATEGIC QUESTIONS HOW MAXIMIZE LONG TERM GROWTH WHILE MEETING SHORT TERM SOCIAL NEEDS HOW TO MAXIMIZE SYNERGY BETWEEN SOCIAL SERVICES AND PRODUCTIVITY ENHANCING INVESTMENTS UNDERSTAND SYNERGIES AND TRADE OFFS CONVERGENCE BETWEEN SOCIAL SERVICES PROVISION AND PRODUCTIVITY ENHANCING INVESTMENTS EXPLOIT GROWTH EXTERNALITIES OF SOCIAL SERVICE FOCUS ON SOCIAL SERVICES EXPENDITURE COMPOSITION TO ALLEVIATE IMPACT OF BUDGET TRADE OFF