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Is African Agriculture Sustainable Enough to Support an Agro-Allied Industrial Development Strategy? Steve Onyeiwu, Eric Pallant, Meredith Hanlon Departments of Economics, Environmental Science, and Biology Allegheny College, Meadville, PA 16335 USA RATIONALE AND MOTIVATION FOR PAPER The last 50 years in West Africa: Environmental Degradation + Economic Decisions + Climate Change = Unsustainable Farming Systems CONCEPTUALIZING SUSTAINABILITY • Economists overlook the environment and environmentalists, the economy Environment Sustainability Equity Economy Environmental Transformation • Precipitation changes • Longer dry seasons, more intense rainfalls Deforestation Ghana Mexico 10 5 0 -5 -10 -15 -20 -25 -30 20 00 -2 00 5 19 90 -2 00 0 Percent Change in Total Forest Area Nigeria Costa Rica India Brazil Declining Soil Quality • Low Fertilizer use Fertilizer Use 140 Ghana Nigeria India Mexico Brazil 120 80 60 40 20 0 1962 1966 1970 1974 1978 1982 Year 1986 1990 1994 1998 2002 Kg/Hectare 100 Untreated Human Waste = Nitrogen Loss, Nitrogen Cycle • Facilitates the spread of disease • Contaminates potable water • Nitrogen-rich sewage could be used to replenish soils Short Crop Rotations Shorter fallow periods lead to nutrient depletion and the need to burn and clear more land Arable Land As a Percent of Land Area 40 35 Percent 30 Ghana Nigeria Mexico Costa Rica Brazil 25 20 15 10 5 19 61 19 64 19 67 19 70 19 73 19 76 19 79 19 82 19 85 19 88 19 91 19 94 19 97 20 00 20 03 0 Time Regardless of this increase, agricultural value added has been decreasing rapidly in Nigeria and steadily in Ghana 7000 Ghana Nigeria 6000 Brazil Mexico 5000 Costa Rica India 4000 3000 2000 1000 20 05 20 02 19 99 19 96 19 93 19 90 19 87 19 84 19 81 19 78 19 75 19 72 19 69 19 66 19 63 0 19 60 GDP per Capita GDP Per Capita Time • Lack of growth in Ghana and Nigeria as compared to other developing countries DEVELOPMENT STRATEGY, 1960s – 1970s • Urban investment and industrialization • Fewer people needed to farm – Rural to urban migration and overcrowding • Government lowers prices of goods to be competitive on international market – Decrease in farmer’s profit Structural Adjustment Programs • SAP implemented to fix pricing problems – Trade & Product Markets liberalization – Removal of subsidies – Devaluation – Privatization – Reduction or elimination of budget deficits – Firms: reduce X-inefficiency, eliminate wastes, and raise productivity – All had a negative impact on rural development • CASE STUDY OF UNSUSTAINABILITY: THE VILLAGE OF UMULUWE IN SOUTHEASTERN NIGERIA • Population: 6500 • Average Income: $150 • Main Occupations: Subsistence Farming, Petty Trading, Palm-Wine Tapping & Palm-Oil Processing POVERTY PROFILE OF UMULUWE 2007 2001 Women, <$2 per day Women, <$1 per day <$2 per day <$1 per day 0 10 20 30 40 50 60 Percent of Sample 70 80 90 100 Non-Income Measures of Poverty 0 Consumes Milk Weekly Consumes Meat Weekly Food As Most Important Expense Firewood as Main Fuel Owes Money Has Savings Owns Land Owns Goats Owns Chickens 20 Percent of Sample 40 60 80 100 Men Women Similar rural poverty in Ghana • Massive charcoal production to supply urban areas is leading to deforestation and land degradation THE EBENEZER FARM: AN ILLUSTRATION OF THE “AGROENTREPRENEURIAL” MODEL Ebenezer Farms Non-Traditional Animal Production River Management and Fish Production Food Production and Nutrient Recycling “AGRO-ENTREPRENEURIAL” MODEL Investors Government Donors Venture Capitalists Agro-Entrepreneurial Financial Institutions Sustainable Farmers and Villages Sustainable Extension Officers income The Market •Organic Market •Restaurants •Eco-Tourism Green Entrepreneurial Volunteers or Experts CONCLUSION • Agricultural Unsustainability Has Environmental, Economic & Equity Dimensions • Paper Proposes an “Agro-Entrepreneurial Model” of Sustainability that Combines Sustainable Farming Practices with Entrepreneurship.