ard presentation

AGRICULTURE AND RURAL DEVELOPMENT; AND THE FOREST STRATEGY:Status of implementationMay 2004: 

AGRICULTURE AND RURAL DEVELOPMENT; AND THE FOREST STRATEGY: Status of implementation May 2004

STRATEGIC PRIORITIES Rural DevelopmentAgriculture, Forests, Water for agriculture: 

STRATEGIC PRIORITIES Rural Development Agriculture, Forests, Water for agriculture Fostering an enabling policy and institutional environment for broad-based and sustainable agricultural growth; Enhancing agricultural productivity and competitiveness; Enhancing sustainable management of natural resources and rejuvenating sustainable forest management; Investing in rural infrastructure including water;

STRATEGIC PRIORITIESRural DevelopmentCross Cutting: 

STRATEGIC PRIORITIES Rural Development Cross Cutting Encouraging non-farm economic growth; Improving social well-being, gender equity, managing risk, and reducing vulnerability; Addressing global concerns of world trade, industrial country subsidies, climate change, science and technology Giving voice to rural populations, including the poor and women Better donor cooperation and harmonization

OVERALL IMPLEMENTATION THRUSTS: 

OVERALL IMPLEMENTATION THRUSTS Raise the profile of rural, water, and forest development in national policies, PRSPs, CASs, donor assistance Scale up innovative and successful investments, while exploring new approaches and innovation in rural development and forests Improve the quality and impact of Bank & donor operations in rural areas Implement global priorities ( reduce water pollution, over-fishing, loss of biodiversity, soil erosion, adapt to climate change, bring agricultural science to poor countries) In forestry, bring 200 million ha of forests under sustainable management, reduce loss from illegal logging by $ 5 billion a year, and bring 50 million ha of forests under protected areas status within three years, while improving the lives of 500 million forest dwellers Enhance partnerships between governments, civil society, NGOs, and donor organizations for rural development and sustainable forest management, including a global forum for rural development, and forest partnerships (WB/WWF alliance, World Business Council…)

STATUS OF AGRICULTURE AND RURAL DEVELOPMENTAND OF FORESTS: Continuing Challenges : 

STATUS OF AGRICULTURE AND RURAL DEVELOPMENTAND OF FORESTS: Continuing Challenges Persistent rural poverty; 70% of poor still rural. 1 billion extremely poor people depend at least partly on forest resources Agricultural production in most low income countries growing at less than 2% p.a. on aggregate; too slow for poverty reduction in many rural areas Trade distorting policies continue in developed and developing countries Rural infrastructure and social services continue to be relatively neglected. Gap between investment and needs in water storage and conveyance estimated to be large (Camdessus panel) Forest destruction is responsible for 2-5% per decade of global biodiversity losses, contributes between 10 and 30% of all carbon gas emissions Water scarcity, water pollution, deterioration of irrigation and drainage structures, soil depletion in irrigated areas

STATUS OF AGRICULTURE AND RURAL DEVELOPMENT: Positive Signs?: 

STATUS OF AGRICULTURE AND RURAL DEVELOPMENT: Positive Signs? Donor re-awakening to agriculture, forests, water, and rural development World prices for agricultural products continue the general downward trend, good for consumers though not for producers Promising new project approaches common (CDD, community forestry, watershed management, programmatic, decentralized management) Deforestation in temperate forests is declining And agricultural growth in Africa is increasing

Agriculture Value Added Annual Growth Rates (%): 

Agriculture Value Added Annual Growth Rates (%)

World Bank outputs: 

World Bank outputs

Reversal of Decline in Lending to Agriculture is Projected: 

Reversal of Decline in Lending to Agriculture is Projected

Trends in Bank, GEF and IFC Lending for forests: 

Trends in Bank, GEF and IFC Lending for forests

Distribution of Bank FOREST Lending by Region: 

Distribution of Bank FOREST Lending by Region

Quality of the ARSB portfolio: 

Quality of the ARSB portfolio Quality at Entry (QEA5-6) of ARSB projects above Bank average -- 94% for FY02/03 as compared to Bank average of 86% Performance of ARSB projects under supervision better than Bank average. Performance of closed ARSB projects records sharp decline in satisfactory outcome

Rural Economic and sector work: 

Rural Economic and sector work Number of ESW outputs ↑ FY01/02 and FY03 Budget allocated by the Bank to rural ESW ↓ FY01/02 and FY03 BB for rural ESW in FY04 projected at $ 7.7 million – almost double FY03 PROFOR (forest assessments) financed 22 activities in FY04, WWF/WB alliance 90 activities Country water resource strategies in all regions - Dutch trust fund

Support to National Processes: 

Support to National Processes

Scaling up Good Practice: 

Scaling up Good Practice Sourcebooks of good practice to scale up agriculture investment, water for food Community driven development Land reform, land titling and land administration Natural resource management and Forest projects

Innovation: 

Innovation Irrigation rehabilitation and Water User Associations Forest Reform, Community ownership of forests, eliminating forest corruption (through local communities, consumer pressure, international conventions, reform government timber allocation processes, independent certification, NGO vigilance Natural disaster mitigation Bringing the private sector to agriculture services Micro-credit Poverty reduction with a participatory process Food safety and supply chain Commodity risk management, weather risk Fisheries

Strategies for Correcting Forest Corruption: 

Strategies for Correcting Forest Corruption ELIMINATING FOREST CORRUPTION NGO’S GLOBAL WITNESS EIA GLOBAL FOREST WATCH AND OTHERS REFORM OF GOVERNMENT TIMBER ALLOCATION PROCESSES INDEPENDENT CERTIFICATION REGIONAL INTERNATIONAL CONVENTIONS AND AGREEMENTS FOREST INDUSTRY PROCESSING AND RETAILING COMPANIES CONSUMER PRESSURE LOCAL COMMUNITIES VILLAGE LEVEL ACTION

Emerging Corporate Priorities: 

Emerging Corporate Priorities Trade Liberalization and agricultural subsidy reduction Commodity Risk management initiative, and helping clients deal with external “shocks” Continued support to CGIAR A new Fisheries strategy Food Safety and food standards An International Assessment of Agricultural Science and Technology Infrastructure Key Partnerships - UN Agencies, Donors, Multi-stakeholder

Impact: 

Impact

Progress in FSC Certification: 

Progress in FSC Certification Slide 15

Plantation Development Trends: 

Plantation Development Trends Plantation Investments mainly in tropical and sub-tropical regions Over next 25 years non-native plantations projected to expand by 50%; 34% of which in Latin America Venezuela 900,000 Public Ownership Argentina 900,000 Industrial Private Uruguay 622,000 Industrial. Private New Zealand 1.8 MM Industrial. Private Australia 1 MM 69% Public South Africa 1.5 MM Industrial. and Farm Forest Ownership Indonesia 9.9 MM Industrial. and Farm Forest Ownership Vietnam 1.7 MM Public and Farm Ownership China 45 MM Public. and Farm Forest Ownership Brazil 5 MM Industrial. and Farm Forest Ownership Chile 2 MM Industrial. Private Slide 16

Challenges:External: 

Challenges: External Industrial country tariffs and subsidies Private investment not forthcoming in agriculture, water, but is in forestry Lack of voice for the rural poor at national level Multi-sector collaboration inadequate in donor agencies, governments (and WB?) Re-engagement of donor community – a passing fad?

Challenges: internal: 

Lending instruments for WB and donors – mismatch to rural focus, learning, and innovation Are we a competitive sector internally – policy based lending, other sectors changing faster (?) Slow mainstreaming of innovations – risk management, food safety, investment climate, fisheries, supply chain Insufficient AAA in the Bank Insufficient staff for expanded lending program Sustainability of new MD credit line? Challenges: internal

WB contribution to resolving the external challenges: 

WB contribution to resolving the external challenges Forceful advocacy on trade and subsidy reform Greater emphasis on national rural and Forest strategy preparation Mainstream new business lines into national strategies Maintain a powerful advocacy voice – donors, international Organize knowledge sharing in the donor community.

Slide25: 

A Possible Global Forest Situation by Year Possible Global Forest Situation by year 2050 2050 A Possible Global Forest Situation by Year 205

Overcoming internal challenges: 

Overcoming internal challenges Explore new instruments; more efficient Mainstream new business lines - food standards and safety, fisheries, water basin management, GEF projects Better knowledge sharing Advocate expanded BB for ESW in the Bank, while mobilizing added trust funds for this purpose Participatory approaches to policy and investments Foster cross network collaboration Recruit staff externally Expanded multi-region training program