Sustainability of Agricultural Crop Policies in Rwanda: An Integrated Cost-Benefit Analysis

Mikhail Miklyaev, Glenn Jenkins () and David Shobowale ()
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David Shobowale: Department of Economics, Eastern Mediterranean University, North Cyprus

No 2021-02, Development Discussion Papers from JDI Executive Programs

Abstract: Rwanda has aimed to achieve food self-sufficiency but faces binding land and budgetary constraints. A set of government policies have been in force for 20 years and have controlled the major cropping decisions of farmers. A cost-benefit analysis methodology is employed to evaluate the financial and resource flow statements of the key stakeholders. The object of the analysis is to determine the sustainability of the prevailing agricultural policies from the perspectives of the farmers, the economy, and the government budget. A total of seven crops were evaluated. In all provinces, one or more of the crops were either not sustainable from the financial perspective of the farmers or are economically inefficient in the use of Rwanda’s scarce resources. The annual fiscal cost to the government of supporting the sector is substantial but overall viewed to be sustainable. A major refocusing is needed of agricultural policies away from a monocropping strategy to one that allows the farmers to adapt to local circumstances. A more market-oriented approach is needed if the government wishes to achieve its economic development goal of having a sustainable agricultural sector that supports the policy goal of achieving food self-sufficiency.

Keywords: Rwanda; agricultural policy sustainability; land scarcity; food self-sufficiency; integrated investment appraisal (search for similar items in EconPapers)
JEL-codes: D61 Q12 Q13 (search for similar items in EconPapers)
Pages: 23 Pages
Date: 2021-01-01
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Sustainability of Agricultural Crop Policies in Rwanda: An Integrated Cost–Benefit Analysis (2020)
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