ODI Briefing Paper
The EU Common Agricultural Policy (CAP) aims to promote agriculture throughout the EU by increasing farmers’ incomes and supporting the provision of public goods such as the environment. It is funded from the European Commission (EC) budget and accounts for roughly 40% of total EC expenditure. It is divided into two pillars. Pillar 1 includes both direct payments to farmers and market management measures. Pillar 2 focuses on improving the structural and environmental performance of agriculture and on promoting local/rural development. Pillar 2 requires Member State co-financing.
The EU has recognised that making development policy in isolation is not sufficient. Its commitment to Policy Coherence for Development seeks to ensure that all policies, not only development assistance, promote growth in developing countries. Any decision on CAP reform options must, therefore, be analysed against development goals.
by Kate Bird discusses the challenges to making growth policies pro-poor. Source:ODI. Pro-poor growth — growth that benefits the poor — relies on the state providing an enabling policy environment. Evidence from East Asia, where pro-poor growth has occurred, suggests that the government’s role in enabling such growth has resulted from the provision of public goods and social protection mechanisms, and the creation of institutional conditions for more inclusive and equitable development. Achieving this requires that policies be adopted and implemented effectively, which in turn means that there must be institutional and governance structures that are capable and willing to devise, operationalise and implement such policies. To access the full text please click on the link below
The 2012 Human Development Report for Africa explores why dehumanizing hunger remains pervasive in the region, despite abundant agricultural resources, a favorable growing climate, and rapid economic growth rates. It also emphasizes that food security – the ability to consistently acquire enough calories and nutrients for a healthy and productive life - is essential for human development.
To boost food security, it argues for action in four interrelated areas: agricultural productivity, nutrition, access to food, and empowerment of the rural poor. It asserts that increasing agricultural productivity in sustainable ways can bolster food production and economic opportunities, thereby improving food availability and increasing purchasing power. Effective nutrition policies can create conditions for the proper use and absorption of calories and nutrients. Finally, empowering the rural poor - especially women - and harnessing the power of information, innovation, and markets can promote equitable allocation of food and resources within families and across communities.
Market information is essential for agricultural development and to improve food security, particularly for small‐scale producers and traders, who typically have limited access to, and understanding of market information and analysis.
Good market information helps ensure transparency, competitiveness and the more equitable sharing of benefits between market participants. Effective market information systems reduce information asymmetries, increase competitiveness, and improve marketing system efficiencies. For small farmers, this can help strengthen their bargaining position and improve their understanding of marketing opportunities and options. For traders, market information can help identify producers and others traders, expand their business and bargain more efficiently. Good market information is also an essential ingredient for governments to take appropriate policy decisions in support of agricultural growth and enhanced food security.