Why bother?
           GR over, and (arguably) failed to reach Africa anyway
            GR over, and (arguably) failed to reach Africa anyway
           Aid to agriculture fell by 2/3 in the 1990s
            Aid to agriculture fell by 2/3 in the 1990s
           Agriculture is main source of income for more than 
            Agriculture is main source of income for more than 
            half of Asia and Africa
            half of Asia and Africa
           Poverty higher in rural than urban areas
            Poverty higher in rural than urban areas
           With few exceptions, non-farm growth is a 
            With few exceptions, non-farm growth is a 
            consequence of growth in agriculture
            consequence of growth in agriculture
           Agricultural growth is a political problem as much as a 
            Agricultural growth is a political problem as much as a 
            technical one
            technical one
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          Why do governments intervene 
          in agricultural markets?
           International volatility and declining prices
             International volatility and declining prices
           Thin and volatile domestic markets
             Thin and volatile domestic markets
           Non-competitive behavior among traders
             Non-competitive behavior among traders
           Risk aversion among farm households
             Risk aversion among farm households
           Maintaining rural incomes
             Maintaining rural incomes
           Taxation
             Taxation
           Subsidizing urban consumers
             Subsidizing urban consumers
           Food security
             Food security
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         How do governments intervene 
         in agricultural markets?
                Restrict prices
                  Restrict prices
                Restrict quantity 
                  Restrict quantity 
                Establish market institutions
                  Establish market institutions
                Directly participate in markets
                  Directly participate in markets
                Everybody does it
                   Everybody does it
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         So why reform agricultural 
         markets?
         International cartels collapsed (eg coffee)
           International cartels collapsed (eg coffee)
         WTO rules
           WTO rules
         Marketing boards often inefficient, corrupt, 
           Marketing boards often inefficient, corrupt, 
           costly, ineffective
           costly, ineffective
         Intervention often distorted incentives
           Intervention often distorted incentives
         But reform is not an end in itself
           But reform is not an end in itself
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        How to do PSIA?
        What to analyze?  
          What to analyze?  
            policy formation, implementation….
             policy formation, implementation….
        At what level? 
          At what level? 
            household, firm, sector, region, economy….
             household, firm, sector, region, economy….
        Method of analysis 
          Method of analysis 
            qualitative, data-driven, simulation
             qualitative, data-driven, simulation
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