Agriculture

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Agriculture Rural Development

• African Challenges
• ---
• African Strategies

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One in four Africans are hungry
The hungry are mostly rural
Hunger increasing in Africa, decreasing in Asia
North Africa Middle East
Landless Rural Poor
Latin America
40
60
22
230
South Asia
50
200
Urban Poor
Farmers Marginal Land
20
SSA
115
8
155
East Asia
Pastorists/Fishers
Rest of Asia
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Four of five Africans depends on Agriculture
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Irrigation underdeveloped in Africa

• Africa has the potential to irrigate 20 of its
  arable land - only 4 irrigated now!
• Small-scale irrigation systems cost- effective
• High potential areas include Ethiopia, Sudan,
  the Sahel, South Africa, Malawi, Botswana,
  Zimbabwe, Mozambique

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Per capita water availability is a problem, tand
likely to get worse w/ climate change
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Africa
14
12
10
Thousand m3
World
8
Asia
6
4
2
MEast NAfrica
0
1960
1990
2025
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Risk of recurrent drought
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Rural Africa Isolation and high transport
costs
Kilometers of paved roads per million people in
selected countries
Km KmUSA 20,987 Guinea 637France
12,673 Ghana 494Japan 9,102 Nigeria 230Zimbabwe
1,586 Mozambique 141South Africa 1,402 Tanzania 1
14Brazil 1,064 Uganda 94India 1,004 Ethiopia 66
China 803 Congo, DR 59 Source
Encyclopedia Britannica, 2002
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Real Intl. Food Prices (1900 2005)
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Applied tariffs (simple average, )
Agriculture and food
Non-agriculture
Note Tariffs shown are simple averages across
countries and goods. Source UNCTAD Trains
database.
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Africas Agricultural Exports Flat
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Overall Trade Restrictiveness Index, 2001-04
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NetherlandsVietnamJapanUnited Kingdom
ChinaFranceBrazilUnited Status
IndiaMéxicoSouth AfricaCubaBeninMalawiEthio
piaMalíBurkina FasoNigeriaTanzania
Mozambique GuineaGhanaUganda
Consumption of fertilizer nutrients per hectare
of arable land very low in Africa (2002)
Kg/ha
600
100
200
300
400
500
0
Source FAOSTAT, July 2005
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Low productivity in African agriculture

• Severe
• Persistent
• Underlies rural poverty

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African Agriculture sources of growth
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Evolution of Ag Productivity Africa lags other
Developing Countries
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Ag Productivity across Africa
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AgGDP/cap in Africa growing but not enough
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AU/NEPAD Vision for Africa

• New Partnership for Africas Development (NEPAD)
• Poverty reduction
• Economic growth
• Integration of Africa into the global economy
  and
• Empowerment of women.

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NEPAD sees agriculture as engine of growth

• The Comprehensive African Agricultural
  Development Program (CAADP) is
• NEPADs strategy for agriculture

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NEPADs goal 6.2 growth rate in ag GDP this
depends on raising productivity
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CAADPs Four Pillars

• Land and Water Management
• Infrastructure and Market Access
• Increase Food Supply, Reduce Hunger, Improve
  Response to Food Crises
• Agriculture Research and Technology Dissemination
  and Adoption

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CAADP as a framework

• Represents strategies and approaches prepared and
  endorsed by African and global experts and
  African Heads of State
• African Ownership w/ technical credibility
• Development Community has pledged support
• Practical action occurs through existing
  institutions and programs at
• sub-regional level under the leadership of the
  Regional Economic Communities
• national level and below under the leadership of
  national and local governments
• Peer review and TA to be made available per
  request

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Pillar 4 and FAAP as an example

• Framework document (FAAP) to articulate shared
  vision and approaches
• Political, Technical, and Financial Commitment
• Local and National level
• Agricultural Research Programs
• Agricultural Advisory Service Programs
• Agricultural Educ/Training Programs
• Institutional / Policy Reform (as needed)
• Increased attention to linking farmers to markets
• Sub-regional level
• Agricultural Research Programs
• Development of African Capacity for TA on the
  above

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The WBs African Action Plan

• WBs Strategy for support to Africa (adopted in
  mid-2005)
• A commitment to increase support to Africa to
  assist as many countries as possible to meet the
  MDG targets by 2015

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Under AAP - WB pledges to

• increase support for national programs
• support sub-regional programs
• harmonize with development partners
• provide TA for development and reform
• invest in development of African capacity

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For food and agriculture, the WBs AAP calls for
policies and investments to

• Support the CAADP Pillars and Processes
• More than double WB investment in African
  agriculture to US1 Billion per year
• Harmonize this support with development partners

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Stewardship of Land Water

• Focussed TA (e.g. research and extension) and
  targetted subsidies to assist farmers in adoption
  of conservation tillage, agro-forestry,
  sustainable cropping and livestock patterns, etc.
• CDD programs to support collective action at the
  local level (including capacity building for
  local technicians)
• Support national initiatives, ongoing programs,
  and improved regulatory structures (forestry,
  etc.)
• Regional programs where necessary (Nile Basin
  Initiative, etc.)

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Expanding Irrigation

• Less public sector projects more public/private
  partnerships
• Local ownership (farmers, investors, and local
  govt more than federal govt)
• Profitability as benchmark not food security
  or other national priorities
• Watershed management approaches w/ attendant
  collective action institutional structures

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Building Farmers Links w/ Markets

• Public/private partnerships in supply chain
  development (inputs outputs)
• Rural physical infrastructure
• Roads
• Electrification
• Ports and Airports
• Establish/maintain quality and safety standards
• Regional integration and lower trade barriers

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Empowerment of Rural People

• Less parallel channels to support social funds
  more mainstreaming of CDD programs (block grants,
  special purpose grants, etc.)
• Gradual increase in local government
  contributions to CDD programs
• Development of public expenditure tracking
  systems
• Wider use of citizens report cards
• Capacity building at local level

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Managing Risk and Vulnerability

• Recognize distinction between
• farm enterprise vulnerability to risks such as
  weather, market fluctuations, etc. and
• chronic personal vulnerability to debilitating
  and ever-present conditions (illness,
  disabilities, lack of assets, or other handicaps)
• For farm risk
• Better connectivity transportation, information
  infrastructure, financial services, etc.
• Instruments to hedge risk crop insurance,
  forward markets, etc.
• Instruments to help build asset bases land
  reform, financial instruments, etc.
• For chronically poor aid as needed, but in ways
  that avoid undesirable side effects
• Cash-based food programs rather than food aid
  where possible
• Local purchase of food for food aid
• Faciligtate successful voluntary migration out of
  marginal areas
• Productive safety nets

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Improving Agricultural Technology Options

• Increase level of investment in ag research,
  extension and ag education
• All stakeholders share costs
• Less emphasis on messages more on critical
  thinking
• Decentralization of resources and
  responsibilities
• Common Funding Mechanism (funds pooled in
  Government System)
• Competitive Performance Contracts
• Expanded regional and continental programs
  (research, capacity building, and education)

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The International Community has pledged support
for this program

• G8 at Sea Island and Gleneagles

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This agenda will require funding
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WB seeks partners in

• Cost-sharing / working together in identification
  and preparation of investments
• Co-financing investment flows
• Assessment and management of public expenditure
• Improving statistical base and ME
• TA for implementation
• Professional analysis and debate on approaches
  and recommendations (including reforms of
  subsidies in developed countries)

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SUMMARY of WB Corporate Priorities in the three
sectors

• Promote market driven development
• Trade Liberalization and agricultural subsidy
  reduction
• Introduce an enabling agriculture policy and
  regulatory environment (including standards
  setting) for private invest
• Targeted support for private sector and market
  development through entire market chain, up to
  supermarkets build demand side
• Work more effectively with IFC agro-business and
  forest teams as well as the private sector and
  other donors
• Empower rural people, including farmers
• Land security and redistribution (community based
  land reform, land registration and titling)
• Decentralized and accountable public services
  (ICT, regulatory)
• Capacity building for local groups and farmer
  organizations (WUAs, herders associations, trade
  associations)
• Reducing risk and vulnerability for farmers and
  the supply chain broadly
• Nutrition and household food security
• Rural finance
• Invest in activities which create off-farm rural
  work (agro industry, agricultural services, rural
  infrastructure

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Priorities continued

• Develop water resource management strategies at
  country, basin, and project levels. Expand new
  style irrigation and drainage, and rural water
  investments including efficiency of water use,
  env. and social concerns, private investment in
  water
• Invest in infrastructure, education, rural
  energy, and health through public-private
  partnerships
• Support international agriculture research
  through CGIAR and other partners, and in
  partnership with NARs. Pluralism, competition,
  contracting, demand driven
• Sustainable management (and recovery) of land
  resources
• Forestry Continue protected area targets,
  expand forest certification, pursue good logging
  practices, incorporate forest concerns in
  development policy lending, and pursue forest law
  enforcement expand IFC involvement
• Implement the new fisheries strategy
  (conservation of ocean fisheries and coastal
  marines, support small scale local fisheries,
  develop aqua-culture

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World Bank Corporate Challenges in Agriculture
and Rural Development

• Further progress needed in getting agriculture,
  rural development, forests onto the bigger donor
  agenda (PRSPs, CASs, PRSCs, lending program),
  particularly in Africa
• Balancing multi-sector and development policy
  lending which includes RD with sector
  investment
• Use wider variety of instruments (grants, trust
  funds, other donors, NGOs, Global Programs,
  private sector)
• Scale up better (we drop good projects at project
  completion)
• Can we deliver an expanded lending agenda with
  stagnating staff levels in the agriculture and
  rural development family, and in partner
  organizations?
• Agriculture, RD, forests and water could be a
  pilot for improved business planning for global
  programs. Can we operate like a Bank-wide
  product group, or will we continue to be
  fragmented into separate mini regional and anchor
  ARD groups?