Agriculture & Rural Development : Agriculture & Rural Development African Challenges --- African Strategies


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


Four of five Africans depends on Agriculture: Four of five Africans depends on Agriculture


Slide5: 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


Per capita water availability is a problem, tand likely to get worse w/ climate change: Per capita water availability is a problem, tand likely to get worse w/ climate change 0 2 4 6 8 10 12 14 16 1960 1990 2025 Africa Asia MEast & NAfrica Thousand m3 World


Risk of recurrent drought: Risk of recurrent drought


Slide8: Km Km USA 20,987 Guinea 637 France 12,673 Ghana 494 Japan 9,102 Nigeria 230 Zimbabwe 1,586 Mozambique 141 South Africa 1,402 Tanzania 114 Brazil 1,064 Uganda 94 India 1,004 Ethiopia 66 China 803 Congo, DR 59 Source: Encyclopedia Britannica, 2002 Kilometers of paved roads per million people in selected countries Rural Africa – Isolation and high transport costs


Real Intl. Food Prices (1900 – 2005): Real Intl. Food Prices (1900 – 2005)


Applied tariffs (simple average, %): Applied tariffs (simple average, %) Agriculture and food Non-agriculture Note: Tariffs shown are simple averages across countries and goods. Source: UNCTAD Trains database.


Africa’s Agricultural Exports Flat : Africa’s Agricultural Exports Flat


Overall Trade Restrictiveness Index, 2001-04: Overall Trade Restrictiveness Index, 2001-04


Slide13: Netherlands Vietnam Japan United Kingdom China France Brazil United Status India México South Africa Cuba Benin Malawi Ethiopia Malí Burkina Faso Nigeria Tanzania Mozambique Guinea Ghana Uganda Kg/ha Source: FAOSTAT, July 2005 0 100 200 300 400 500 600 Consumption of fertilizer nutrients per hectare of arable land very low in Africa (2002)


Low productivity in African agriculture: Low productivity in African agriculture Severe Persistent Underlies rural poverty


African Agriculture –  sources of growth: African Agriculture – sources of growth


Evolution of Ag Productivity – Africa lags other Developing Countries: Evolution of Ag Productivity – Africa lags other Developing Countries


Ag Productivity across Africa : Ag Productivity across Africa


AgGDP/cap in Africa:  growing – but not enough : AgGDP/cap in Africa: growing – but not enough


AU/NEPAD Vision for Africa: AU/NEPAD Vision for Africa New Partnership for Africa’s Development (NEPAD) Poverty reduction; Economic growth; Integration of Africa into the global economy; and Empowerment of women.


NEPAD sees agriculture as engine of growth: NEPAD sees agriculture as engine of growth The Comprehensive African Agricultural Development Program (CAADP) is … …NEPAD’s strategy for agriculture


NEPAD’s goal: 6.2% growth rate in ag GDP  – this depends on raising productivity: : NEPAD’s goal: 6.2% growth rate in ag GDP – this depends on raising productivity:


CAADP’s Four Pillars: CAADP’s 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


CAADP as a framework: 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


Pillar 4 and FAAP as an example : 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


The WB’s African Action Plan: The WB’s African Action Plan WB’s 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


Under AAP - WB pledges to:: 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


For food and agriculture, the WB’s AAP calls for policies and investments to:: For food and agriculture, the WB’s AAP calls for policies and investments to: Support the CAADP Pillars and Processes More than double WB investment in African agriculture to US$1 Billion per year Harmonize this support with development partners


Stewardship of Land & Water: 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.)


Expanding Irrigation: 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


Building Farmers’ Links w/ Markets: 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


Empowerment of Rural People: 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


Managing Risk and Vulnerability: 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


Improving Agricultural Technology Options: 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)


The International Community has pledged support for this program: The International Community has pledged support for this program G8 at Sea Island and Gleneagles


This agenda will require funding: This agenda will require funding


WB seeks partners in: 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 M&E TA for implementation Professional analysis and debate on approaches and recommendations (including reforms of subsidies in developed countries)


SUMMARY of WB Corporate Priorities in the three sectors: 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


Priorities continued: 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


World Bank Corporate Challenges in Agriculture and Rural Development: 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?