Welfare dynamics of innovations among agricultural households in Ghana: Implication for poverty reduction.

To reduce the high incidence of poverty in rural households, agricultural modernization using innovations has been pursued by governments and actors in the agricultural innovation system (AIS). This study analyzed how agricultural innovations and farmer-actor interactions in the AIS contribute to poverty outcomes among agricultural households in Ghana. Data used was the Ghana socio-economic panel survey data with 891 and 2595 observations for cocoa and maize households, respectively. The multinomial endogenous treatment effect model with instrumental variables was employed for the analysis. Adopting digital technologies in combination with other innovations, and having stronger farmer-actor interactions in the innovation system were associated with non-poor outcome in maize-growing households, who were poorer compared to cocoa-growing households. Innovations that consistently increased food security in both crop systems were associated with non-poor outcomes. The findings of the study highlight the need for governments and stakeholders to prioritize agricultural digitalization, encourage the adoption of multiple innovations and focus on food security-improving interventions as strategies to addressing rural poverty reduction.

Development economics. A multifaceted program causes lasting progress for the very poor: evidence from six countries.

We present results from six randomized control trials of an integrated approach to improve livelihoods among the very poor. The approach combines the transfer of a productive asset with consumption support, training, and coaching plus savings encouragement and health education and/or services. Results from the implementation of the same basic program, adapted to a wide variety of geographic and institutional contexts and with multiple implementing partners, show statistically significant cost-effective impacts on consumption (fueled mostly by increases in self-employment income) and psychosocial status of the targeted households. The impact on the poor households lasted at least a year after all implementation ended. It is possible to make sustainable improvements in the economic status of the poor with a relatively short-term intervention.