Evans School Policy Analysis & Research Group (EPAR)

In this dataset, we compile current project data from three major international financial institutions (or IFIs) - the World Bank, African Development Bank, and the International Fund for Agricultural Development - to understand

1. how much countries are borrowing from each institution. and
2. how much of that funding is devoted to small scale producer agriculture.

We begin by gathering publicly accessible data through downloads and webscraping Python and R scripts. These data are then imported into the statistical software program, Stata, for cleaning and export to Excel for analysis. This dataset contains rich information about current projects (active, in implementation, or recently approved), such as project title, project description, borrowing ministry, commitment amount, and sector. We then code relevant projects into two categories: On Farm (projects pertaining directly to small scale producer agriculture) and Rural/Agricultural Economies (inclusive of On Farm, but broader to include projects that impact community livelihoods and wellbeing). Finally, we annualize and aggregate these coded projects by IFI and then by country for analysis. Bilateral funding, government expenditures on agriculture, and development indicators are also included as supporting data to add context to a country's progress towards agricultural transformation.

The primary utility of this dataset is having all projects collected in a single spreadsheet where it is possible to search by key terms (e.g. commodity, market, financial, value chain) for lending by IFI and country, and to get some level of project detail.  We have categorized projects by lending category (e.g. irrigation, livestock, agricultural development, research/extention/training) to aggregate across IFI so that the total funding for any country is easier to find. For example, Ethiopia and Nigeria receive the most total lending from these IFIs (though not on a per capita basis), with each country receiving more than $3 billion per year on average. Ethiopia receives the most lending devoted to On Farm projects, roughly $585 million per year.  Overall, these data provide a snapshot of the magnitude and direction of these IFI's lending over the past several years to sub-Saharan Africa. 

Suggested Citation: 

Figone, K., Porton, A., Kiel, S., Hariri, B., Kaminsky, M., Alia, D., Anderson, C.L., and Trindade, F. (2021). Summary of Three International Financial Institution (IFI) Investments in Sub-Saharan Africa. EPAR Technical Report #411. Evans School of Public Policy & Governance, University of Washington. Retrieved <Day Month Year> from https://epar.evans.uw.edu/research/tracking-investment-landscape-summary-three-international-financial-institutions-ifis

In this report, we analyze the evidence that improved and expanded access to financial services can be a pathway out of poverty in Bangladesh and Tanzania. A brief background review of finance and poverty reduction evidence at the country, household, and individual level emphasizes the importance of a functioning financial system and the need to remove individual and household barriers to capital accumulation. We follow with an in-depth literature review on studies that link poverty reduction in Bangladesh or Tanzania with one or more of five financial intervention categories: remittances; government subsidies; conditional and unconditional cash transfers; credit; and combination programs. The resulting empirical evidence from these sources reveal a high share (61%) of positive reported associations between a financial intervention and outcome measure related to our five chosen financial interventions. The remaining studies found insignificant or mixed associations, but very few (3 out of 56) indicate that access to a financial mechanism was associated with worsened poverty. The heterogeneity of study types and interventions makes it difficult to draw conclusions about the efficacy of one intervention over another, and more research is needed on whether such approaches constitute a durable, long-term exit from poverty.

Household survey data are a key source of information for policy-makers at all levels. In developing countries, household data are commonly used to target interventions and evaluate progress towards development goals. The World Bank’s Living Standards Measurement Study - Integrated Surveys on Agriculture (LSMS-ISA) are a particularly rich source of nationally-representative panel data for six Sub-Saharan African countries: Ethiopia, Malawi, Niger, Nigeria, Tanzania, and Uganda. To help understand how these data are used, EPAR reviewed the existing literature referencing the LSMS-ISA and identified 415 publications, working papers, reports, and presentations with primary research based on LSMS-ISA data. We find that use of the LSMS-ISA has been increasing each year since the first survey waves were made available in 2009, with several universities, multilateral organizations, government offices, and research groups across the globe using the data to answer questions on agricultural productivity, farm management, poverty and welfare, nutrition, and several other topics.