They had little impact on remote areas where subsistence mixed crop-livestock production is still the norm. Some common elements are necessary for success anywhere, including peace and security, macroeconomic stability, and a competitive market environment. But beyond such necessary conditions is the need for sufficient investment in physical, human, natural, and social capital. Much of what distinguishes successful development strategies in different locations will be differences in the portfolio of such investments. The appropriate portfolio of investments will depend upon what development pathways have potential comparative advantage in a particular location.
Many factors combine to determine comparative advantage of different development pathways.
Access to markets greatly influences which activities have comparative advantage in a particular location, given agricultural potential. In areas close to urban or foreign markets and having high agricultural potentialCsuch as parts of Ethiopia close to Addis Ababa, much of the central and western Kenya highlands, the Lake Victoria crescent, and much of the eastern highlands of UgandaCthere is great potential for profitable production of high-value perishable commodities, such as horticultural crops and dairy products. Realizing this potential requires investments in marketing infrastructure and information, technical assistance oriented toward such commercial opportunities, and development of input and short-term credit markets. For example, dairy development in central Kenya is a major success, stimulated by the large market in Nairobi, development of processing and marketing cooperatives, and introduction of improved breeds of cattle and intensive feeding systems. Commercial production of vegetables is expanding in areas around Nairobi, Addis Ababa, and Kampala, but improved price information and technical assistance focused on commercial opportunities, appropriate use of agrochemicals, integrated pest management, and integrated soil nutrient management are needed.