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The range of bio based products is not only as replacement products for those produced in petroleum refineries, but also products not accessible to these refineries. The potential range of products is extremely broad once the essential biomass building blocks are available. Innovative technologies are required to convert the feedstock to useful substances, products and energy. Further research and development are necessary to increase understanding, improve agricultural, processing and efficiency of these systems and to create the policy and markets to support this technology. . | EPTD DISCUSSION PAPER NO. 99 PUBLIC SPENDING IN DEVELOPING COUNTRIES TRENDS DETERMINATION AND IMPACT Shenggen Fan and Neetha Rao Environment and Production Technology Division International Food Policy Research Institute 2033 K Street N.W. Washington D.C. 20006 U.S.A. February 2003 EPTD Discussion Papers contain preliminary material and research results and are circulated prior to a full peer review in order to stimulate discussion and critical comment. It is expected that most Discussion Papers will eventually be published in some other form and that their content may also be revised. ABSTRACT The objective of this paper is to review trends in government expenditures in the developing world to analyze the causes of change and to develop an analytical framework for determining the differential impacts of various government expenditures on economic growth. Contrary to common belief it is found that structural adjustment programs increased the size of government spending but not all sectors received equal treatment. As a share of total government spending expenditures on agriculture education and infrastructure in Africa on agricultural and health in Asia and on education and infrastructure in Latin America all declined as a result of the structural adjustment programs. The impact of various types of government spending on economic growth is mixed. In Africa government spending on agriculture and health was particularly strong in promoting economic growth. Asia s investments in agriculture education and defense had positive growth-promoting effects. However all types of government spending except health were statistically insignificant in Latin America. Structural adjustment programs promoted growth in Asia and Latin America but not in Africa. Growth in agricultural production is most crucial for poverty alleviation in rural areas. Agricultural spending irrigation education and roads all contributed strongly to this growth. Disaggregating total agricultural .
