Development of commodity exchanges, assembly and wholesale markets, and warehouse receipts are some instruments considered. Output from this research will assist in identifying key elements for the development of private markets and instruments for marketing and financing commodities. Another issue, often related to market liberalization, is dealing with risks in agricultural markets. Research in this area focuses on assessing the potential for market instrument to mitigate risks encountered by farmers, traders and the government. With regard to the latter, a research project is under preparation to examine institutional arrangements for providing this insurance, assessing the price for such insurance and the interest of insurance companies, and identifying potential demand from farmers.
Several countries are under consideration for case studies and potential pilot projects.
This area of research concerns the determinants of growth in agriculture. The research, which focuses on several specific case studies, is expected to explain differences in growth and productivity among countries, as well as the effects of policy, and policy reform, across time. In this regard, the research is expected to assist the Bank operations related to policy reform and also to guide expectations concerning the timing of policy-related results. The research examines directly the determinants of agricultural productivity, a key element in reducing rural poverty, and quantifies the returns to various inputs to agricultural production. Consequently, reports resulting from this research in the next two years will be also relevant to Bank operations concerning applied agricultural research, rural finance, and rural education.