Heavy rain dependence, small holdings and weak rural infrastructure seem to be preventing any break-through surges in productivity in the way that massive increases in cereal production was achieved. Slide 7 shows just how volatile the supply situation in Pulses is. As regards production and yield, there is a reassuring trend towards stable growth during the past couple of years at the aggregate level.
The Collective Action Clause (CAC) cannot solve the collective action problem for multiple sovereign debts, which is one of the major reasons for the emergence of the statutory approach, i.e., the SDRM. In addition, the CAC impact on the bond issuance cost in emerging market economies is still pending more empirical analysis and study.