Do Markets Worsen Economic Inequalities? Kuznets in the Bush

Integration into a market economy or economic development can erode the quality of life of indigenous people by, for example, increasing income inequalities. The Kuznets hypothesis predicts that the link between income inequality and income (a proxy for economic development) resembles an inverted U. We test the hypothesis using a survey of 511 households from 59 villages of Tsimane' Amerindians, a horticultural-foraging society in the tropical rain forest of Bolivia. We measure village inequalities of three economic outcomes: income, imputed annual value of rice production, and wealth. We used three indices of inequality: the coefficient of variation, the standard deviation of the logarithm, and the Gini coefficient. Explanatory variables include either income and income squared, wealth and wealth squared, or imputed annual rice production and production squared. We used village-to-town distance as a control. We find little evidence that integration to the market increases inequalities of economic outcomes, with two exceptions: Wealth bore the predicted inverted U-shaped relation with wealth inequalities, and imputed rice production bore a U-shaped relation to inequality, but only when (a) using adult equivalents to express household size and (b) the Gini coefficient and the coefficient of variation to measure inequality; in no case were results robust to different econometric specifications. We advance several explanations for why economic development might not accentuate economic inequalities among relatively autarkic rural economies.     

<Emphasis Type="Italic">Brief Communication</Emphasis>: Does Integration to the Market Threaten Agricultural Diversity? Panel and Cross-Sectional Data From a Horticultural-Foraging Society in the Bolivian Amazon

Trade theory predicts that the expansion of markets induces households to specialize and intensify production. We use plot-level data (n = 64) from a panel study of 2 village and cross-sectional data from 511 households in 59 villages of Tsimane Amerindians (Bolivia) to test the predictions. Results of bivariate analyses using both data sets suggest that as households integrate into the market economy they: (1) deforest more, (2) expand the area under rice cultivation, the principal cash crop, (3) sell more rice, and (4) intensify production by replanting more and by replanting newly cleared plots with maize, another cash crop. Results mesh with predictions about production specialization and intensification of trade theory. The analysis also produced results running counter to predictions from trade theory. For example, households and villages more integrated into the market planted more cassava and rice varieties, intercropped more, and put more crops in new fields than more autarkic households. Although the expansion of markets induces specialization and intensification in selected cash crops, it does not erase completely agricultural diversity. We hypothesize that despite the expansion of markets, households retain agricultural diversity because the market does not yet provide modern forms of self-insurance or well-functioning labor, credit, and product markets that would allow households to protect food consumption when faced with shocks. Without better insurance mechanisms, some agricultural diversity might still allow households to smooth consumption.     

半干旱草原牧区村庄的农田扩张机制

基于多层线性模型,从田块、单户和村庄3个尺度分析了科尔沁沙地西部半干旱草原牧区村庄的农田扩张机制.结果表明：在选择优质土地用于发展农业上,各住户间没有显著差异;家庭劳动力数量多、户主文化程度高和收入依赖于农牧业的住户更倾向开地种粮,而牲畜数量多的住户开地种粮的愿望较低;玉米的种植主要受限于外部经济因素,而水稻的种植主要受限于当地的自然状况.提高草原牧区的基础教育水平会促进草地向农田的转变,而转移牧区剩余劳动力将会延缓这一过程.     

Nontimber forest product gathering in Ritigala forest (Sri Lanka): Household strategies and community differentiation

Sri Lanka has a long tradition of forest product use. The relationship of people with a dry zone forest was studied using a sample of 48 households in two villages that varied in distance to the forest and access to the market. All households interviewed collected subsistence forest products and a majority of them also collected commercial products. The daily peak-season income from commercial gathering was 4.5 to 7.7 times the daily labor wage. There is a strong gender specialization, with commercial gathering dominated by men whereas subsistence gathering is almost exclusively the task of women. The average forest-derived household income in the village closer to the forest and with better market access was nearly double that of the other village. Family size as a proxy of labor availability was the main discriminating factor between those households who did and those who did not gather commercial products. A small inverse relationship between forest gathering and size of household agricultural land (particularly paddy rice) was observed. No clear relationship was found between total household income and forest derived income, contradicting the view that commercial forest gathering is an exclusive activity of the poorest households.     

Household Determinants of Liquified Petroleum Gas (LPG) as a Cooking Fuel in SW Cameroon

Currently 70% of the population in Cameroon are reliant on solid fuel for cooking (90% in rural communities) and the associated household air pollution contributes to significant mortality and morbidity in the country. To address the problems of energy security, deforestation and pollution the government has developed a strategy (Masterplan) to increase use of liquified petroleum gas (LPG) as a cooking fuel from 12% to 58% by 2030. As a clean fuel scaled adoption of LPG has the potential to make significant positive impacts on population health. The LPG Adoption in Cameroon Evaluation (LACE) studies are assessing in the community (i) barriers and enablers for and (ii) local interventions to support, adoption and sustained use of LPG. A census survey conducted for LACE in rural and peri-urban regions of SW Cameroon provided an opportunity to investigate current fuel use patterns and factors associated with primary and exclusive use of LPG. A cross-sectional survey of 1577 households (1334 peri-urban and 243 rural) was conducted in March 2016 using standardised fuel use and household socio-demographic questions, administered by trained fieldworkers. Wood (40.7%) and LPG (51.1%) were the most frequently reported fuels, although the dominant fuels in rural and peri-urban communities were wood (81%) and LPG (58%) respectively. Fuel stacking was observed for the majority of LPG using households (91% of peri-urban and 99% of rural households). In rural homes, a higher level of education, access to sanitation and piped water and household wealth (income and asset ownership) were all significantly associated with LPG use (p < 0.05). In peri-urban homes, younger age, access to sanitation and piped water and increasing education were significantly associated with both any and exclusive use of LPG (p < 0.05). However, whilst household wealth was related to any LPG use, there was no relationship with exclusive use. Results from this census survey of a relatively well-established LPG market with lower levels of poverty and high levels of education than Cameroon as a whole, find LPG usage well below target levels set by the Cameroon government (58% by 2030). Fuel stacking is an issue for the majority of LPG using households. Whilst, as observed here, education, household wealth and socio-economic status are well recognised predictors of adoption and sustained use of clean modern fuels, it is important to consider factors across the whole LPG eco-system when developing policies to support their scaled expansion. A comprehensive approach is therefore required to ensure implementation of the Cameroon LPG Masterplan achieves its aspirational adoption target within its stated timeframe.     

Garden Money Buys Grain: Food Procurement Patterns in a Malian Village

This study of a rural Malian community in West Africa investigates food procurement patterns that combine subsistence grain production with a variety of income generating activities. It finds dependence on food purchases widespread and revenue from the own-account activities of nonhousehold heads essential to food security. Gender and the wealth of households are found to influence some, but not all, income generating activities and expenditures. Three household food procurement profiles are identified: investment in cattle, market gardens and bush extraction, and remittances. The case study village has agroecological characteristics and market proximity, which set it and other urban hinterland villages apart from the more cotton- and cattle-based zones of southern Mali. Own-account income generating activities may be able to increase revenue for women and junior men through a reallocation of household resources without entirely undermining the basis for a larger subsistence-oriented household.     

The origins of monetary income inequality: Patience,human capital,and division of labor

We present an explanation about the origins of monetary income inequality when an economically self-sufficient society opens to a market economy. The chain of associations runs from patience, to the accumulation of different forms of human capital, to self-selection into different occupations, and to the division of labor, which contributes to monetary income inequality. In a self-sufficient society, patience is exogenously determined and people rely on folk knowledge as the only form of human capital. With the establishment of schools, patient and impatient people sort themselves out by the type of human capital they begin to accumulate. Impatient people do not acquire folk knowledge because return to schooling takes many years to bear fruit. Schooling opens opportunities in occupations outside the village, whereas folk knowledge enhances employment opportunities that draw on farming or foraging. Self-selection into different occupations with different earnings potential spawns monetary income inequality. To test the explanation, we draw on data from a foraging–farming society in the Bolivian Amazon, the Tsimane'. We collected data during four consecutive quarters in 1999–2000 and a follow-up interview (2004). Data came from 151 adults (age, 16 years or more) from all households (n=48) in two villages with different levels of market exposure. During 1999–2000, impatience was associated with (a) greater folk knowledge and fewer years of schooling, (b) lower likelihood of working in wage labor, and (c) greater likelihood of working in rural subsistence occupations. People who had been patient in 1999–2000 had greater wage earnings and more modern physical assets in 2004.     

Use and trading of wild edible herbs in the central lowveld savanna region, South Africa

The use, processing, trading, cultivation and nurturing of wild edible herbs was recorded across a rainfall gradient in the Mpumalanga lowveld. Nine villages, in three transects across the prevailing west-east rainfall gradient, were sampled by means of 20 households per village. All households made use of wild edible herbs to some extent, with households in the wettest region using the greatest diversity. The duration of availability of selected species was increased through drying, storing and processing for later consumption. Such activities were more common in the drier regions relative to the wetter villages. Approximately 38% of the respondents cultivated or nurtured wild edible herbs within their homestead or arable fields, whereas more than 77% grew exotic commercial vegetables. One quarter of respondents traded in edible herbs, largely in the winter months. Very few obtained a significant income in this way, but even casual trading provided vital supplementary income for low-income households.     

农户生计与生态系统服务关系的区域差异及驱动机制——以密云水库上游流域为例

深入揭示生态系统与农户福祉之间的关系,对实现农户差异化管理及区域可持续发展具有重要意义。本研究以密云水库上游流域(包括北京市和河北省的部分区域)为研究区域,基于1754份农户调查问卷数据,通过统计计量方法对比分析了流域内北京市、河北省农户福祉水平(以家庭总收入表示)与生态系统服务依赖性(以生态系统依赖性指数表示)的关系。结果表明: 流域内京冀农户生计与生态系统的互作模式均可分为4类,但京冀两地不同模式占比差异较大。北京农户样本中,占比最高的是高福祉-低依赖模式(33.9%),农户人均年收入显著高于河北农户,农户的各项生计资本也较河北省农户高;河北农户中,不提倡的低福祉-高依赖模式仍占比39.1%,对提升农户福祉水平至关重要的人力资本素质、社会资本、金融资本等均显著低于北京农户;河北农户主要依赖农业生产收入(41.2%),对土地的开发利用程度显著较高;相对于北京农户,河北农户的自然资源条件、人力资本素质对农户生计的影响更加显著。保持适当家庭规模、不断提高劳动力教育水平、提高低收入家庭的生态补偿标准是形成农户与生态系统良好互动关系(高福祉-低依赖型)的关键因素。     

Forest-product trade in a lowland Filipino village

Forest-product use among nonforest dwelling cultural groups in Southeast Asia is not well known, particularly in contrast to what is known about indigenous forest-product collectors. A case study in one lowland Filipino village in Leyte, Philippines, revealed that over half of village households depend upon 8 species of commercially valuable rattan and 8 species of timber as a primary source of livelihood, and that all village households collected forest-products for supplementary and emergency income. The future of the rattan and timber trade on Leyte is seriously threatened by agricultural encroachment and intensive collecting pressures in the absence of forest management.     

Impacts of Cash Transfer Programs on Rural Livelihoods: a Case Study in the Brazilian Amazon Estuary

We conducted a large household survey in a region of the Amazon estuary in Brazil to investigate the dependence of small farming households on government cash transfers and to identify the main factors that lead to better livelihood outcomes. The study examined the factors that contribute to heterogeneous household livelihoods and patterns of dependence on cash transfer programs. Multinomial logistic regression was used to evaluate household attributes affecting the level of dependence on cash transfers. Results indicate that households engage in a diversity of livelihood strategies, and vary in dependence on cash transfers. Lower levels of dependency are associated with higher levels of education and income from off-farm activities as well as larger property sizes and holdings in the várzea. Recognition of the causes and potential range of dependence on cash transfer programs adds decision-making capacity for policy makers seeking avenues to reduce dependence and increase program effectiveness.     

Food-Sharing Networks in Lamalera,Indonesia

Exponential random graph modeling (ERGM) is used here to test hypotheses derived from human behavioral ecology about the adaptive nature of human food sharing. Respondents in all (n = 317) households in the fishing and sea-hunting village of Lamalera, Indonesia, were asked to name those households to whom they had more frequently given (and from whom they had more frequently received) food during the preceding sea-hunting season. The responses were used to construct a social network of between-household food-sharing relationships in the village. The results show that kinship, proximity, and reciprocal sharing all strongly increase the probability of giving food to a household. The effects of kinship and distance are relatively independent of each other, although reciprocity is more common among residentially and genealogically close households. The results show support for reciprocal altruism as a motivation for food sharing, while kinship and distance appear to be important partner-choice criteria.     

The role of local framework conditions for the adoption of rural development policy: An example of diversification,tourism development and village renewal in Brandenburg,Germany

Rural regions with limited levels of diversification of the primary sector, including agri-tourism, integration of processing and distribution activities or quality production, are often characterised by an underdeveloped exploitation of regional potentialities. Within this framework, axis 3 of the EU rural development (RD) policy seeks to valorise regional assets with the aim of enhancing living standards and economic diversification and competitiveness. The policy measures, however, are unevenly taken up across the region, and little is known about the role of territorial factors in terms of how they affect the adoption levels of the measures. To analyse the relationship between the territorial conditions and the implementation pattern, an econometric analysis was conducted within 410 municipalities inside the German Federal State of Brandenburg. Extensive grassland management, working places, ex-urbanisation, ecologically valuable habitats and other socio-economic factors affecting expenditure levels were identified as relevant factors for policy adoption. Here, a clear political targeting can be assumed when considering the measure of “village renewal”. It is concluded that RD policy exhibits a significant local distinctiveness, which results from complex multi-level strategic decision-making at EU-, regional-, and individual-participant level. This, in turn, is also influenced by the local framework situation.     

Attitudes of local people towards collective action for forest management: the case of participatory forest management in Dodola area in the Bale Mountains, Southern Ethiopia

The theory of planned behaviour was applied to study the attitude and intention of households towards participating in collective forest management (tree planting) activity. Households were randomly selected from 22 forest user groups. The results indicate that the success of planting activities in terms of survival rate of seedlings has a strong effect in motivating households to participate in planting. Although households in general show a positive attitude and intention to participate in tree planting, there were significant differences among households on the basis of socio-economic characteristics. Dependence on crop income, possession of bigger farmlands and better physical assets, and higher education level are positively related to intention to participate in planting activity. On the other hand, dependence on forest income is negatively related to attitude and intention. A continuous exchange of ideas and information between user groups and the government counterparts that provide technical support and advice is recommended.     

Incentives for Hunting: The Role of Bushmeat in the Household Economy in Rural Equatorial Guinea

Bushmeat is an important component of the informal economy throughout West and Central Africa. In order to formulate effective policy to ensure the sustainability of bushmeat hunting for both development and conservation reasons, there is a need to understand its position within the wider rural economy. We conducted interviews with households and hunters over a 15-month period in a village in continental Equatorial Guinea which supplies substantial quantities of bushmeat to the urban market, to evaluate (1) whether hunting is predominately for income or consumption and through choice or necessity, and (2) the factors influencing household production of and consumption and expenditure on bushmeat. Hunting for trade to urban markets is a major component of household incomes, carried out by around 60% of poor-to-middle income households, while richer households have other income-generating activities. The greater a hunter’s bushmeat offtake, the higher the proportion sold. Bushmeat forms a minor component of household expenditure and is less widely consumed than alternative protein sources. It is a necessity good, with consumption and expenditure on bushmeat related less than proportionately to income. While they prefer the security of a regular wage, hunting is an important source of fall-back income for men in the absence of preferable alternative livelihood opportunities.     

An Exploration of the Relationship between Socioeconomic and Well‐Being Variables and Household Greenhouse Gas Emissions

This research reports on a multivariate analysis that examined the relationship between direct greenhouse gas (GHG) emissions and socioeconomic and well‐being variables for 1,920 respondents living in Halifax Regional Municipality, Nova Scotia, Canada, using results from the Halifax Space‐Time Activity Research Project. The unique data set allows us to estimate direct GHG emissions with an unprecedented level of specificity based on household energy use survey data and geographic positioning system–verified personal travel data. Of the variables analyzed, household size, income, community zone, age, and marital status are all statistically significant predictors of direct GHG emissions. Birthplace, ethnicity, educational attainment, perceptions of health, life satisfaction, job satisfaction, happiness, volunteering, or community belonging did not seem to matter. In addition, we examined whether those reporting energy‐efficient behaviors had lower GHG emissions. No significant differences were discovered among the groups analyzed, supporting a growing body of research indicating a disconnect between environmental attitudes and behaviors and environmental impact. Among the predictor variables, those reporting to be married, young, low income, and living in households with more people have correspondingly lower direct GHG emissions than other categories in respective groupings. Our finding that respondents with lifestyles that generate higher GHG emissions did not report to be healthier, happier, or more connected to their communities suggest that individuals can experience similar degrees of well‐being regardless of the amount of GHG emissions associated with his or her respective lifestyle.     

Effect of Health Expenses on Household Capabilities and Resource Allocation in a Rural Commune in Vietnam

Background

Significant health expenses can force households to reduce consumption of items required for daily living and long-term well-being, depriving them of the capability to lead economically stable and healthy lives. Previous studies of out-of-pocket (OOP) and other health expenses have typically characterized them as “catastrophic” in terms of a threshold level or percentage of household income. We aim to re-conceptualize the impact of health expenses on household “flourishing” in terms of “basic capabilities.”

Methods and Findings

We conducted a 2008 survey covering 697 households, on consumption patterns and health treatments for the previous 12 months. We compare consumption patterns between households with and without inpatient treatment, and between households with different levels of outpatient treatment, for the entire study sample as well as among different income quartiles. We find that compared to households without inpatient treatment and with lower levels of outpatient treatment, households with inpatient treatment and higher levels of outpatient treatment reduced investments in basic capabilities, as evidenced by decreased consumption of food, education and production means. The lowest income quartile showed the most significant decrease. No quartile with inpatient or high-level outpatient treatment was immune to reductions.

Conclusions

The effects of health expenses on consumption patterns might well create or exacerbate poverty and poor health, particularly for low income households. We define health expenditures as catastrophic by their reductions of basic capabilities. Health policy should reform the OOP system that causes this economic and social burden.     

Arranging the bones: culture,time, and in/equality in Berber labor organization

This paper examines the organization of collective labor for irrigation canal maintenance in a High Atlas village, an organization that compensates for the fluctuation of available labor over the domestic cycle of individual households. Such labor transactions between households are accomplished by employing several different, and seemingly incompatible, cultural logics: a tradition of division by five, an emphasis on the importance of agnatic kin, a belief in the natural authority of elder over younger men, and an ideal equality among all men. Empirically the groups forged by villagers are fair and unfair according to different specific types of equality under consideration and, especially, the temporal framework employed. This integration of different forms of inequality and the importance of timeframes to their operation bears on anthropological and economic theory, and the practical aims of development.     

Community-based natural resource use and management of Bigodi Wetland Sanctuary,Uganda, for livelihood benefits

Conservation and sustainable management of wetlands requires participation of local stakeholders, including communities. The Bigodi Wetland is unusual because it is situated in a common property landscape but the local community has been running a successful community-based natural resource management programme (CBNRM) for the wetland for over a decade. Whilst external visitors to the wetland provide ecotourism revenues we sought to quantify community benefits through the use of wetland goods such as firewood, plant fibres, and the like, and costs associated with wild animals damaging farming activities. We interviewed 68 households living close to the wetland and valued their cash and non-cash incomes from farming and collection of non-timber forest products (NTFPs) and water. The majority of households collected a wide variety of plant and fish resources and water from the wetland for household use and livestock. Overall, 53% of total household cash and non-cash income was from collected products, mostly the wetland, 28% from arable agriculture, 12% from livestock and 7% from employment and cash transfers. Female-headed households had lower incomes than male-headed ones, and with a greater reliance on NTFPs. Annual losses due to wildlife damage were estimated at 4.2% of total gross income. Most respondents felt that the wetland was important for their livelihoods, with more than 80% identifying health, education, craft materials and firewood as key benefits. Ninety-five percent felt that the wetland was in a good condition and that most residents observed the agreed CBNRM rules regarding use of the wetland. This study confirms the success of the locally run CBNRM processes underlying the significant role that the wetland plays in local livelihoods.     

Pastoral dairy marketing and household wealth interactions and their implications for calves and humans in Ethiopia

Surveys of pastoral households in a semi-nomadic Borana community during 1987–1988 were used to test the hypothesis that poorer families living closest to a market town would be most affected by the enhanced opportunity to sell dairy products, which would intensify competition between people and calves for milk and have negative implications for calf management. These poorer families indeed reported the highest rates of milk offtake per cow, and the milk increment was probably sold to purchase more grain for human consumption at the expense of milk intake for the calf. Consequently, this strategy may increase the susceptibility of malnourished calves to disease, especially those from lower-producing dams. Benefits of improved human energy intake from grain and retention of livestock capital must be weighed against risks of calf death and possible malnutrition of people from milk restriction when assessing dairy marketing trade-offs that are most acute for the poor. Opportunity to sell dairy products at favorable terms of trade helps the poorest people survive, and their risks could be mitigated by policies that facilitate grain marketing in the rangelands and interventions that improve calf feeding management, diversify human diets, and create alternative opportunities for women to generate income. The households postulated to be most at risk were identified from a complex, but logical, interaction among factors of distance to market, household wealth, and the quality of milking cows held. This indicates that targeting such needy groups for development assistance may require a more detailed and interdisciplinary analysis of production systems than is commonly practiced.