Rural households’ social capital and welfare: A case study of Msinga, KwaZulu-Natal, South Africa

In a household or nations production system, social capital has been recognized as an input having major implications for project design as well as policy development. Using a structured questionnaire, household level data was obtained from a representative sample of 300 rural households in Msinga, KwaZulu-Natal. This study employed the conventional household economic behaviour model under constrained utility maximisation to examine the effect of social capital on the welfare of household, testing the hypothesis that the possession of social capital improves household welfare. The result shows that social capital endowments have a statistically significant positive effect on household welfare, in addition to the some household’s demographic and socio-economic characteristics. The study concluded that, access to social capital among other factors, is very crucial for improved rural household welfare and poverty reduction. It is therefore important for government to have knowledge of existing social groups and networks as this will improve the effectiveness of the present strategies aimed at reducing poverty.

The role of NGO in informal seed production and dissemination: The case of eastern Ethiopia

Seed is the basic input to crop production. Farmer-based seed production as an alternative agricultural technology transfer is increasingly given especial attention in developing countries where food insecurity is critical. This paper aims to assess the seed production and dissemination strategy among smallholder farmers in eastern Ethiopia that has been introduced by Hararghe Catholic Secretariat (a Non-GovernmentalOrganization). A survey of 160 households in four administrative districts and focus group discussions were used to collect data. While narratives helped understand the process, logistic regressionwas used to identify determinants of land allocation to seed production. Results indicate the crucial role of informal networks and social capital as facilitators of access to production inputs, information and knowledge. The informal seed supply system initiated by the NGO has a huge potential to benefit smallholder farmers by improving their access to higher-yielding varieties of various crops, thereby contributing to an increase in their wellbeing. However, the traditional practice of seed exchange, influenced by social relations, will remain uneconomical to seed producers. Thus, the paper suggests that this potential can be further exploited if some preconditions such as establishment of seed banks, investment in human capital, removal of the underlying constraints and creation of reliable seed markets are given emphasis.

Short-term poverty dynamics of rural households: Evidence from Central Sulawesi, Indonesia

The understanding of poverty dynamics is crucial for the design of appropriate poverty reduction strategies. Taking the case of Central Sulawesi, we investigate the determinants of both chronic and transitory poverty using data from 264 randomly selected households interviewed in 2005 and 2007. Regarding the US 1$/day poverty line, the headcount index declined from 19.3% in 2005 to 18.2% in 2007. However, we observed an increasing number of people living on less than US 2$/day expressed in purchasing power parity (PPP). The results of the estimated multinomial logit model applied in this study indicate that a lack of non-agricultural employment opportunities and low endowment of social capital are major determinants of chronic as well as transitory poverty in this province of Indonesia. These results are used to draw policy conclusions with respect to the alleviation of transitory and chronic poverty in Central Sulawesi.

Non-University Higher Education and the Relationship of Its Graduates and the World of Work: Colombia

The non-university sector has been part of the Colombian higher education system for more than 50-years. Despite its long years of existence, it has never occupied such an important role within the education system as the one it is having today. Therefore, the aim of this work is to analyze the development of the non-university sector in the framework of the country’s social, educational and economic demands. Likewise, its actual situation and certain aspects of the relationship between its graduates and the world of work, i.e., graduates’ employment characteristics, the relationship of higher education studies and their work, as well as their early career success, are examined. In order to generate the required information, a graduate survey was carried out in Atlántico (Colombia). The target population was graduates from higher education institutions registered in Atlántico who were awarded a technical, technological or professional degree in 2008 from any of the following knowledge areas: Fine Arts, Health Science, Economy-Administration-Accountancy and similar, and Engineering-Architecture-Urban planning and similar. Besides, interviews with academic and administrative staff from non-university institutions were carried out, and higher education related documents were analyzed. As a whole, the findings suggest that the non-university sector is expanding and may help to achieve some of the goals, for which it is widely promoted i.e., access expansion for under-represented groups, enhancement of the higher education system, and the provision of programs pertinent to the needs of the market. Nevertheless, some aspects require further consideration, e.g., the sector’s consolidation within the system and its quality. As for the relationship between non-university higher education and the world of work, it was found to be close; particularly in those aspects related to the use of knowledge and skills in the work, and the relationship between graduates’ studies and their work. Additionally, the analysis of the graduates’ in their early career stages exposes the significant role that the socioeconomic stratum plays in their working life, particularly in their wages. This indicates that apart from education, other factors like the graduates’ economic or social capital may have an impact on their future work perspectives

Symptoms and causes of poverty in a rural Vietnamese commune: Does ethnicity matter?

This study uses data from a sample survey of 200 households drawn from a mountainous commune in Vietnam’s North Central Coast region to measure and explain relative poverty. Principal components analysis is used to construct a multidimensional index of poverty outcomes from variables measuring household income and the value of domestic assets. This index of poverty is then regressed on likely causes of poverty including different forms of resource endowment and social exclusion defined by gender and ethnicity. The ordinary least squares estimates indicate that poverty is indeed influenced by ethnicity, partly through its interaction with social capital. However, poverty is most strongly affected by differences in human and social capital. Differences in the amount of livestock and high quality farmland owned also matter. Thai households are poorer than their Kinh counterparts even when endowed with the same levels of human, social, physical and natural capital considered in the study. This empirical result provides a rationale for further research on the causal relationship between ethnicity and poverty outcomes.

Smallholder farmers’ access to credit in the Amathole District Municipality, Eastern Cape Province, South Africa

Provision of credit has being identified as an important instrument for improving the welfare of smallholder farmers directly and for enhancing productive capacity through financing investment by the farmers in their human and physical capital. This study investigated the individual and household characteristics that influence credit market access in Amathole District Municipality, Eastern Cape Province, South Africa, using a cross sectional data from smallholder farmers’ household survey. The aim is to provide a better understanding of the households’ level socio-economic characteristics, not only because they influence household’s demand for credit but also due to the fact that potential lenders are most likely to base their assessment of borrowers’ creditworthiness on such characteristics. The results of the logistic regression suggest that credit market access was significantly influenced by variables such as gender, education, households’ income, value of assets, savings, dependency ratio, repayment capacity and social capital. Implications for rural credit delivery are discussed.