Optimal allocation of agriculture's public budget can improve transformation and healthy diets access in Ethiopia.

J Policy Model

Agrifood Economics Division, FAO and Lecturer and Researcher, Universidad Nacional de La Plata, La Plata, Argentina.

Published: January 2023

Agriculture is under transformation in sub-Saharan Africa where millions still do not have access to a healthy diet. Policy makers in this region should find ways to accelerate agricultural transformation while increasing access to healthy diets. Optimizing agriculture's public budget stands out as a handy option. By combining a dynamic computable general equilibrium model and a multi-criteria decision-making technique, and applying them in the context of Ethiopia, this paper points to an important trade-off that policy makers should keep in mind. An optimal allocation of agriculture's public budget aimed at increasing agri-food output, creating off-farm jobs and reducing rural poverty, which are agricultural transformation objectives, will help to reduce the cost of a healthy diet, allowing around 2 million more Ethiopians to afford it. This number could even be higher should policy makers allocate the budget optimally aiming at only lowering the cost of a healthy diet, but at the cost of reducing household income and slowing down transformation.

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http://www.ncbi.nlm.nih.gov/pmc/articles/PMC10697043PMC
http://dx.doi.org/10.1016/j.jpolmod.2023.09.005DOI Listing

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