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8.4 Dysfunction of Framing in Poverty Alleviation
8.4.1 Market Failure and Shadow Prices
The market failure was a consequence of dysfunction in the market economy framing for poverty alleviation, and caused by several factors including externalities,
public goods, scale economy, asymmetric information, and uncertainties. As
explained in the previous section, the Green Revolution unearthed various unexpected environmental degradation issues. The dissociation of actual prices and
shadow prices is one reason for this. Shadow price refers to the true social value or
cost of a resource. Neo-classical economic theory assumes that people decide their
behavior based on a sense of value, which is reflected on the price in the market
through subjectivity to maximize utility.
Prices must reflect the real value of goods including the impacts on the environment. If a price does not reflect the real value, the resource may not be used properly
and environmental degradation will occur. People should be aware of the mechanism of shadow price so that they can behave and use resources properly. The difficulty of estimating the shadow price of natural resources is often highlighted, but
one reason for unexpected environmental degradation is that people behave without
understanding the proper shadow price of the resource. Furthermore, shadow price
can change dynamically by transforming the resources’ sense of value in the society. In the implementation process of development strategies to alleviate poverty,
food consumption or nutrition intake was detached from agricultural production
after the Green Revolution. The pursuit of increasing agricultural productivity led to
monocrop agriculture, which means transition from subsistence farming to industrialized food production. Under such a situation, malnutrition still coexists with overnutrition at household, local, regional, national and global levels. Overnutrition
results from improper dietary choice or behavior based on the value reflected by
shadow prices. The value of a resource in a society is often formulated by insufficient knowledge or information, and people cannot behave properly with improper
knowledge. In the next section, potential interventions are discussed.
8.4.2 Social and Behavior Change
Behavioral theories and models aim to extract psychological structures common to
many behaviors, and to describe them as usually focusing on some specific core
factors. However, human behaviors are often decided through many steps and various influential factors: intention, attitude, locust of control, self-efficacy, knowledge, opportunity, cultural habitats, social supports, among others. In addition,
social determinants including knowledge, attitudes, social norms, and cultural practices from the individual level to the society level should affect the behaviors. Social
and behavioral change communication (SBCC) programs have been well known as
H. Matsuda et al.
8.4 Dysfunction of Framing in Poverty Alleviation
8.4.1 Market Failure and Shadow Prices
The market failure was a consequence of dysfunction in the market economy framing for poverty alleviation, and caused by several factors including externalities,
public goods, scale economy, asymmetric information, and uncertainties. As
explained in the previous section, the Green Revolution unearthed various unexpected environmental degradation issues. The dissociation of actual prices and
shadow prices is one reason for this. Shadow price refers to the true social value or
cost of a resource. Neo-classical economic theory assumes that people decide their
behavior based on a sense of value, which is reflected on the price in the market
through subjectivity to maximize utility.
Prices must reflect the real value of goods including the impacts on the environment. If a price does not reflect the real value, the resource may not be used properly
and environmental degradation will occur. People should be aware of the mechanism of shadow price so that they can behave and use resources properly. The difficulty of estimating the shadow price of natural resources is often highlighted, but
one reason for unexpected environmental degradation is that people behave without
understanding the proper shadow price of the resource. Furthermore, shadow price
can change dynamically by transforming the resources’ sense of value in the society. In the implementation process of development strategies to alleviate poverty,
food consumption or nutrition intake was detached from agricultural production
after the Green Revolution. The pursuit of increasing agricultural productivity led to
monocrop agriculture, which means transition from subsistence farming to industrialized food production. Under such a situation, malnutrition still coexists with overnutrition at household, local, regional, national and global levels. Overnutrition
results from improper dietary choice or behavior based on the value reflected by
shadow prices. The value of a resource in a society is often formulated by insufficient knowledge or information, and people cannot behave properly with improper
knowledge. In the next section, potential interventions are discussed.
8.4.2 Social and Behavior Change
Behavioral theories and models aim to extract psychological structures common to
many behaviors, and to describe them as usually focusing on some specific core
factors. However, human behaviors are often decided through many steps and various influential factors: intention, attitude, locust of control, self-efficacy, knowledge, opportunity, cultural habitats, social supports, among others. In addition,
social determinants including knowledge, attitudes, social norms, and cultural practices from the individual level to the society level should affect the behaviors. Social
and behavioral change communication (SBCC) programs have been well known as
H. Matsuda et al.