Framework Key Sectors Key Policies Conclusion
Key Sectors and Key Policiesfor an Effective PPG-Strategy in Ghana, Senegal, and Uganda
Johannes Hedtrich, University of Kiel
ReSAKSS Side Event 12, Maputo, 25-27 October 2017
Hedtrich, University of KielKey Sectors and Key Policies 1
Framework Key Sectors Key Policies Conclusion
Framework
I Understand how policies impact policy goals like povertyreduction and
I How can the situation be improved?I which policies? economic policies → CAADPI very hard to find out the relation between policies and goal
achievement
Hedtrich, University of KielKey Sectors and Key Policies 2
Framework Key Sectors Key Policies Conclusion
Figure: Intervention LogicHedtrich, University of KielKey Sectors and Key Policies 3
Framework Key Sectors Key Policies Conclusion
Key Sectors
I different concepts to identify key sectors1. Growth in a Key Sector implies a high reduction of
povertyI cge multiplier: how much additional goal achievement one
would get if the gdp grows by one percent solely driven by onesector
I cge elasticity: how much additional goal achievement onewould get if the technical progress in one sector is increasedby one percent
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Framework Key Sectors Key Policies Conclusion
Figure: CGE Elasticity
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Framework Key Sectors Key Policies Conclusion
I so service/export sector is key for senegal?I it is not enough to just look at growth-poverty linkagesI tp has to be generated, this is done through policies, some
sectors might be more expensive than othersI cost to generate tp has to be integrated
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Framework Key Sectors Key Policies Conclusion
CGPE-Elasticity
1. Growth in a Key Sector implies a high reduction ofpoverty
2. Budget resources needed to generate growth in thissector are low.
I Marginal Budget Productivity
MBPs = ∂tps∂Bs
= ∂PIFs∂Bs
I
CGPEs = ξCGEs
∂tps∂Bs
= ξCGEs MBPs
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Framework Key Sectors Key Policies Conclusion
Figure: CGPE Elasticity
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Framework Key Sectors Key Policies Conclusion
Definition of Key Policies
I Key Policies are policies which imply the highest future gainsper budget units, e.g. for which the following marginal policygain (MPG) is maximal:
MPGi = ξCGEks
∂tps∂γi
MPGi = ξCGEks
∂PIFs∂γi
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Framework Key Sectors Key Policies Conclusion
Key Policies
Figure: Key PoliciesHedtrich, University of KielKey Sectors and Key Policies 10
Framework Key Sectors Key Policies Conclusion
I agriculture key? not so easy to answer:I given the status quo allocation, budget should be shifted to
different caadp pillarsI but, non-ag remains as an important
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Framework Key Sectors Key Policies Conclusion
Conclusion
I more interesting: optimal policies!I political feasibility
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