Organisations such as the International Monetary Fund (IMF) and the World Bank have provided financial aid and low-interest loans to boost African farming industry for decades now. After all, rural welfare and economic growth are heavily influenced by agricultural yield. But have these good intentions had an impact on productivity?
This important question is exactly what Assistant Professor Mugera from the University of Western Australia is looking at. Specifically, Mugera is exploring the relationship between macroeconomic policies and agricultural productivity across 33 African countries. Natural resource factors such as infrastructure, effects of globalisation and civil violence were considered in the analysis.
What Mugera and colleagues found was that countries that have adopted the IMF and World Bank’s policy reforms to improve technological uptake have greater agricultural productivity than those which have not. This provides a strong case for policies that improve technological uptake in African agriculture to be developed and implemented.