Dynamics of institutional arrangements for small-scale vegetable farmers in Namibia: An analysis of the market, state and community institutions
| dc.contributor.advisor | Vink, N. | en_ZA |
| dc.contributor.advisor | Kirsten, Johann | en_ZA |
| dc.contributor.author | Thomas, Benisiu | en_ZA |
| dc.contributor.other | Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics. | en_ZA |
| dc.date.accessioned | 2020-11-25T07:34:12Z | |
| dc.date.accessioned | 2021-01-31T19:40:57Z | |
| dc.date.available | 2020-11-25T07:34:12Z | |
| dc.date.available | 2021-01-31T19:40:57Z | |
| dc.date.issued | 2020-12 | |
| dc.description | Thesis (PhD)--Stellenbosch University, 2020. | en_ZA |
| dc.description.abstract | ENGLISH SUMMARY : In developing countries, especially in Africa, the commercialisation of agriculture has proven to be a means of increasing the income of farm households and productivity, resulting in poverty reduction at the household level. The principal research question addressed by this study was why it would make sense for the government to invest in services for small-scale fruit or vegetable farmers if these farmers could not increase production because of a lack of market access unless they could make a profit, which would probably imply heavy subsidisation of marketing infrastructures by taxpayers. A vegetable industry development case study was conducted in north-central Namibia. A Probit model was used to determine the factors that influence farmers to supply to the formal markets. The model results indicated that ownership of a vehicle and distance from farm to water source were statistically significant determinants of a farmer’s decision to participate in the commercialisation of high-value crops at p=0.009 and p=0.073 respectively. In addition, the results indicate that water rights are not clearly defined, and there is no land market and limited access to credit for the farmers. Moreover, a transaction cost analysis demonstrated that small-scale high-value crop production in the study area is experiencing high transaction costs that make the vegetable industry to be globally less competitive. The principal reason for high transaction costs is that the commercialisation of vegetables is constrained by information asymmetries or principal-agent problems among actors in the value chain, resulting in the failure of the market, state, and community institutional arrangements. The study introduced a new approach incorporating insights from transaction cost economics in exploring the interrelationship of the market, state, and community institutions in agricultural development in developing countries to understand the influence of transaction costs on economic performance. The model introduces a public-private partnership as a policy instrument linking small-scale farmers to input and output markets through contract production. The model identifies and minimises transaction costs among value chain actors, to overcome the challenges of the market, state, and community institutions. The study concluded that poor implementation of agricultural development initiatives as introduced by the state or the private sector (the market) and cultural embeddedness may limit agricultural development as community values, norms or beliefs take long to adjust to external ideas or technologies due to inadequate information in developing countries. The study recommends that there is a need for policy intervention that addresses water rights and improved access to credit as well as encouraging production and marketing cooperative to reduce costs of accessing input and output markets. An amendment of the Communal Land Reform Act No. 5 of 2002 would enable the introduction of land markets and rentals in communal areas of Namibia enable farmers to use their land as collateral to obtain credit from financial institutions. Amendments to the Communal Land Reform Act should also specify how to protect vulnerable and poor people such as women and the youth in communities and to ensure that land rights are available as a social safety net. | en_ZA |
| dc.description.abstract | AFRIKAANSE OPSOMMING : In ontwikkelende lande, veral dié in Afrika, is daar bewys dat die kommersialisering van landbou ’n manier is om die inkomste van plaashuishoudings te verhoog en produktiwiteit te verhoog as gevolg van die vermindering van armoede op die huishoudelike vlak. Die oorhoofse navorsingsvraag wat hier aangespreek word, is hoekom die staat sou belê in ondersteuning aan kleinskaalse vrugte- of groenteprodusente in die geval waar hulle nie produksie kon verhoog as gevolg van ontoeganklike markte of die onvermoë om wins te maak nie, aangesien die staat in sulke gevalle waarskynlik boonop grootskaals sal moet investeer in bemarkingsinfrastruktuur. Hierdie studie stel ’n nuwe benadering voor wat insigte van ’n transaksiekoste-ekonomie inkorporeer in die verkenning van die verhoudings tussen mark-, staats- en gemeenskapsinstellings in landbou-ontwikkeling in ontwikkelende lande om die invloed van transaksiekostes op ekonomiese prestasie te verstaan. ’n Gevallestudie wat die ontwikkeling van ’n groentebedryf in noord-sentraal Namibië behels, is onderneem. Die resultate stel voor dat die kommersialisasie van landbou beperk word deur faktore soos ’n gebrek aan grondbesit, beperkte toegang tot infrastruktuur en markte (inset, uitset en krediet), ongereelde besoeke deur voorligtingsbeamptes, kulturele verandering, gebrekkige tegnologieë en onvolledige inligting onder akteurs in die waardeketting. Die resultate demonstreer ook dat kleinskaalse hoë-waarde gewasproduksie in die studiegebied hoë transaksiekostes ervaar, wat die groentebedryf globaal minder mededingend maak. Die vernaamste rede vir die hoë transaksiekostes is dat die kommersialisasie van groente beperk word deur inligtingsassimetrieë of hoof-agent probleme onder die akteurs in die waardeketting, wat ’n mislukking van institusionele reëlings in die mark-, staat en gemeenskap veroorsaak. Gegewe die mislukking van die kommersialisasie van landbou in die studiegebied, is ’n model ontwikkel wat vir die verdere ontwikkeling van die groentebedryf gebruik kan word. Hierdie model stel ’n openbare-private vennootskap voor as ’n beleidsinstrument wat kleinskaalse produsente deur kontrakproduksie aan inset- en uitsetmarkte verbind. ’n Vername kenmerk van die model is die identifisering en minimalisering van transaksiekostes onder akteurs in die waardeketting as gevolg van die oorkoming van die mislukking van mark-, staats- en gemeenskapsinstellings. Die studie stel ook ’n strategiese beleidsopsie voor om die Gemeenskaplike Grondhervormingswet (Communal Land Reform Act) Nr. 5 van 2002 te wysig om dit moontlik te maak om grondmarkte en grondverhuring in die gemeenskaplike gebiede van Namibië in te voer. Dít sal verseker dat boere grondregte in die gebruiklike grondbesitstelsel kan bekom, wat hulle die vermoë sal bied om hulle grond as aanvullende sekuriteit te gebruik om krediet vanaf finansiële instellings te bekom. Wysigings tot bogenoemde wet moet ook spesifiseer hoe om kwesbare en arm mense, soos vrouens en die jeug in gemeenskappe, te beskerm, en om te verseker dat grondregte as ’n maatskaplike veiligheidsnet beskikbaar is vir hierdie mense in die gemeenskaplike gebiede. Die studie kom tot die slotsom dat swak implementering van landbou-ontwikkelingsinisiatiewe soos deur die staat of die privaatsektor (die mark) ingevoer word, asook kulturele inbedding, die ekonomiese aktiwiteit vir landbou-ontwikkeling kan beperk omdat gemeenskapswaardes, norme en gemeenskapsoortuigings lank neem om in ontwikkelende lande by eksterne ideës of tegnologieë aan te pas as gevolg van onvoldoende inligting. Hierdie faktore moet in toekomstige landboubesigheidstudies in ag geneem word. | af_ZA |
| dc.description.version | Doctoral | en_ZA |
| dc.format.extent | xiii, 202 pages ; illustrations, includes annexure | |
| dc.identifier.uri | http://hdl.handle.net/10019.1/109243 | |
| dc.language.iso | en_ZA | en_ZA |
| dc.publisher | Stellenbosch : Stellenbosch University | en_ZA |
| dc.rights.holder | Stellenbosch University | en_ZA |
| dc.subject | Vegetable trade -- Markets -- Omusati (Namibia) | en_ZA |
| dc.subject | Commons -- Omusati (Namibia) | en_ZA |
| dc.subject | Land reform -- Omusati (Namibia) | en_ZA |
| dc.subject | Public-private sector cooperation -- Omusati (Namibia) | en_ZA |
| dc.subject | Collectivization of agriculture -- Costs -- Omusati (Namibia) | en_ZA |
| dc.subject | Subsistance farming -- Omusati (Namibia) | en_ZA |
| dc.subject | UCTD | |
| dc.title | Dynamics of institutional arrangements for small-scale vegetable farmers in Namibia: An analysis of the market, state and community institutions | en_ZA |
| dc.type | Thesis | en_ZA |