In this issue:
Implementing the Agricultural Sector Development Strategy in the United Republic of Tanzania
Développement en zones montagneuses et forestières: une approche participative intégrée en Tunisie
2002 has witnessed a resurgence in interest and attention to the central role of agriculture, and rural development generally, in reducing poverty. This comes after more than a decade of neglect of this sector by large multilateral funding institutions, as well as most bilateral aid agencies. Part of this welcome turnaround may be put down to the efforts of practitioners in the rural arena, pointing out in various fora the negative consequences of ignoring rural issues. A strong agricultural/rural show was offered at the Monterrey Financing for Development Conference in March, while at the World Food Summit: five years later (WFS:fyl), held in June in Rome, there was much discussion, and a number of lively side-events, focusing on the need to get investment in agriculture moving again.
The FAO Investment Centre, working with partner funding institutions, has been an active participant in this debate; during the WFS:fyl, at Monterrey, and in other fora aimed at reversing the negative trend in agricultural/rural investment. In March, the Centre sponsored with EBRD a well-attended forum in Budapest to increase agro-related financing in Eastern and Central Europe, and the CIS. Moreover, throughout the year and in a number of strategic meetings in Washington and Rome, we have worked hard with our main World Bank partner in the design, preparation and launch of the new agriculture and rural development strategy for the Bank, approved by its Board earlier this month.
While I believe that these developments are very positive, garnering support for and sustaining a significant rise in funding for rural development still presents a serious challenge; one which the Investment Centre and its partners are committed to address.
David Forbes Watt
Essential Role of Strategic and Analytical Assessments
Over the last two decades, there has been a dramatic fall in public investment in agriculture and rural development, both in Official Development Assistance and national public investments. In most developing and transition countries, this decrease has not been replaced by higher private investment, and worsened even in some cases, by deteriorating basic infrastructure and institution development and a discouraging climate for private entrepreneurs.
Factors affecting declining rural investments are well known and consensus is growing that united action is required to reverse this trend. Focus on public resources for poverty reduction is intensifying as well as recognition that strong national ownership is an essential ingredient for successful investment. These concerns have come together in the process of preparing Poverty Reduction Strategy Papers (PRSPs) which all countries requesting concessional aid assistance from the World Bank/International Monetary Fund are required to complete. PRSPs, usually prepared by Ministries of Finance or Planning, set out main elements of the Government's poverty reduction strategy and define associated investment programmes. However, as the involvement of sectoral ministries such as Agriculture and/or Rural Development, has often been limited, most PRSPs have given too little attention to agriculture and rural development, particularly when over 70% of poverty is rural. Resulting investment programmes, which also serve as a key guide for national and international assistance, may consequently lack strong components for such development.
The FAO Investment Centre has responded to this evolving situation by adopting a two-pronged approach: in addition to its primary function of assisting member countries with the formulation of agricultural and rural investment programmes and projects, it has increasingly undertaken thematic and subsector studies in support of future investments, assisted with the preparation of rural sector issues papers, and provided ad hoc support to adjustments/reform of policy, legal and institutional frameworks in the rural sector.
This UPDATE looks at selected thematic work undertaken by the Centre. In Africa, Centre support to national agencies in the design of sector and sub-sector investment programmes has evolved into assisting member countries in developing implementation frameworks for their sector development strategies and in launching these strategies. In Tanzania, the Centre helped the Government develop an implementation framework that also forms a basis for future dialogue with development partners. In Viet Nam, one of the key objectives of the Government's Comprehensive Poverty Reduction and Growth Strategy (CPRGS) - the Vietnamese version of the PRSP - is equitable and socially inclusive economic growth. The Centre has been working with the Government to ensure that rural issues are adequately reflected in the CPRGS.
The experiences of decentralized programmes in Europe are also pertinent to other parts of the world. A Centre activity bringing together stakeholders from Latin America, Italy and Spain to learn from each other is presented. The International Year of Mountains is highlighted in the Centre's design of an investment project in the highlands of Tunisia, where the challenge is to create incentive systems that encourage sustainable management of natural resources.
Implementing the Agricultural Sector Development Strategy in the United Republic of Tanzania
The Tanzanian Poverty Reduction Strategy identifies agriculture as a priority sector. In 2001, the Government approved the Agricultural Sector Development Strategy (ASDS) which was developed through a broad stakeholders' consultation process. The overall objective of ASDS is to create an enabling environment for improving agricultural productivity and profitability, improving farm incomes, reducing rural poverty and ensuring household food security. To achieve its ambitious poverty reduction and food security targets, Tanzania will need a vibrant agriculture with sustained growth rates of about 5% a year.
The ASDS provides an opportunity for the public sector to operate more efficiently. In terms of organizations, the ASDS advocates private/public sector partnerships. It supports the growth of small-scale farmers' associations and professional institutions, and calls for improving the dialogue between the private and public sectors on ways to increase efficiency and to expand the sector. Good leadership, governance, and effective partnership is needed with the private and public sectors, and with development partners, both within the sector and with other sectors.
The Government is about to launch the Agricultural Sector Development Programme (ASDP) to implement the strategy. The ASDP provides a flexible mechanism for overall coordination and prioritization, and a forum for sharing experience and resolving implementation issues. Overall, the primary function of the ASDP is to bring public and private stakeholders together to implement, in a coordinated manner, the ASDS. Under the ASDP, discrete projects continue to exist, and new projects are formulated as needs arise. However, ASDP is not merely an aggregation of projects - current projects and future interventions are to be reviewed and, where needed, revised to be consistent with the ASDS and the ASDP implementation framework.
ASDP is organized around three sub-programmes: (i) Agricultural Sector Support and Implementation at district and field level, through participatory formulation and implementation of District Agricultural Development Plans, with indicative funding allocation of some 75% of ASDP costs; (ii) Agricultural Sector Support at the national level, focusing on the enabling environment for agricultural development (such as policy, regulatory and institutional frameworks, training, research and advisory services, and private sector development, marketing and rural finance); and (iii) cross-cutting and cross-sectoral issues to internalize matters within, or manage links between, ASDP and other sectors (such as gender, HIV/AIDS, environment, land tenure, rural infrastructure, education, energy, etc.). The total cost of the programme over the five first years of implementation is estimated at some US$625 million, corresponding to a significant increase of over 30% compared to the 2002 budget allocation to the sector.
At the request of the Government and development partners, the Investment Centre has assisted a national team in developing an implementation framework for the strategy and in launching the ASDP process, funded by the FAO/World Bank Cooperative Programme. A draft "Framework and Process" document has been reviewed by a panel of stakeholders. In addition to defining the implementation arrangement for ASDP, this document constitutes the basis for future dialogue with development partners to agree on priority interventions to be formulated and financed, so as to complement on-going efforts. The Centre will continue to work with the Government and partners in formulating new ASDP interventions.
Contact: [email protected]
En las últimas dos décadas, los países de la Comunidad Europea han venido desarrollando una rica experiencia en desarrollo rural, que se ha caracterizado por la adopción de un enfoque territorial, multisectorial, descentralizado y participativo, que ha integrado los proyectos y programas de desarrollo rural a la planificación regional y local.
El Banco Mundial y la FAO consideraron que el examen y la diseminación en América Latina de las lecciones de la experiencia europea podían ser útiles para diseñar programas y proyectos de desarrollo rural innovadores en los países de dicha región. Con tal fin, el Centro de Inversiones, dentro del marco del Programa de Cooperación FAO/ Banco Mundial, organizó un programa de visitas de campo para 24 funcionarios latinoamericanos de alto nivel, con responsabilidades en el diseño y ejecución de programas y proyectos de desarrollo rural, pertenecientes a 12 países, que tuvo lugar del 14 al 24 de octubre de 2002.
Los participantes se dividieron en dos grupos para visitar regiones que ofrecían particular interés desde el punto de vista del desarrollo rural, en Galicia y Andalucía (España) y Calabria y Emilia-Romagna (Italia) respectivamente. Las visitas fueron acompañadas de talleres de presentación de experiencias e instrumentos europeos de desarrollo rural y de reflexión sobre su pertinencia y adaptabilidad a las condiciones de América Latina. Entre los instrumentos concretos considerados de mayor interés se identificaron el programa LEADER, los Patti Territoriali italianos y el PRODER en España. Los grupos terminaron su gira en Bruselas para discutir con la Comisión Europea los resultados de la visita y tener un taller final de conclusiones y recomendaciones.
El propósito de la gira era no sólo favorecer el enriquecimiento intelectual de los participantes sino principalmente contribuir a renovar los enfoques de desarrollo rural y a rediseñar, con la colaboración de los participantes en la gira, algunos de los proyectos del Banco Mundial actualmente en ejecución o bien a formular nuevos y mejores programas y proyectos que el Banco Mundial, la FAO, la Comisión Europea y otras instituciones podrían apoyar.
En consecuencia, el Centro de Inversiones de la FAO está evaluando la gira y si los resultados de la evaluación son tan positivos como se espera, se propondría la preparación de un programa más ambicioso de difusión, que podría contemplar inter alia: visitas a otras experiencias europeas; seminarios regionales y nacionales en América Latina; asistencia técnica a países latinoamericanos interesados en incorporar a sus programas rurales enfoques multisectoriales y elementos de gobernanza descentralizada y participación de la sociedad civil; y apoyo a la reformulación de proyectos en ejecución o a la formulación de nuevos programas y proyectos de inversión.
Edgardo Floto, FAO IC
"Ruralizing"national poverty reduction strategies in Asia
Poverty reduction strategies are nationally-owned, comprehensive strategies for poverty alleviation which provide the basis of concessional lending and debt relief by the World Bank and IMF. Under the initiative, country authorities prepare Poverty Reduction Strategy Papers (PRSPs) for submission to the Boards of the Bank and IMF. The PRSPs, in turn, provide a framework of investment support by these agencies. In the case of the World Bank, the PRSP is an essential input into the Country Assistance Strategy - the Bank-lending plan for a country. Other donors are also expected to align their assistance to the nationally-owned PRSP. There has been considerable concern that the PRSP process is dominated by Ministries of Finance and Planning and rural aspects have not been well addressed.
The FAO Investment Centre is assisting a number of Governments to ensure that rural poverty is adequately addressed in the PRSP process and these strategies are further developed into concrete investment programmes and projects. In a number of countries in Asia, the Centre has been utilizing resources under the FAO/World Bank Cooperative Programme, as well as FAO's own grant funds, in support of government agencies working on the agriculture and rural development aspects of the PRSP.
The Centre's support reflects the shared concern among governments and development partners that poverty is predominantly rural, and that efforts to alleviate it must address agricultural and rural development. It fully takes advantage of the participatory approach embedded in the process of PRSP formulation, and engages key government agencies, as well as development partners active in agricultural and rural development.
In Viet Nam, the Centre, in collaboration with other development partners, supported the Ministry of Agriculture and Rural Development (MARD) in preparing its inputs to the country's PRSP. The PRSP, officially designated as the Comprehensive Poverty Reduction and Growth Strategy (CPRGS), was approved by the Prime Minister in May 2002 and endorsed by the World Bank's Board of Executive Directors in July 2002. As the country's priority shifts toward successful implementation of CPRGS, the Centre prepared a two-year project with FAO funding to help the MARD implement the strategy, and prepare investment programmes and monitor its progress. Currently under implementation, the project will also provide capacity-building support to the Ministry for identification, coordination and processing of international assistance in the framework of the CPRGS.
The Centre is currently undertaking or planning to start similar activities elsewhere in Asia, including Cambodia, Lao People's Democratic Republic and Nepal.
Yoshiko Ishihara, FAO IC
Développement en zones montagneuses et forestières: une approche participative intégrée en Tunisie
La Banque mondiale vient d'approuver un prêt de 34 millions de dollars pour le Projet de développement des zones montagneuses et forestières du nord-ouest de la Tunisie (PNO). Le PNO fait suite à deux projets intéressant la même zone et qui concrétisent l'effort constant du gouvernement tunisien, depuis au moins vingt ans, pour apporter des solutions aux problèmes de productivité agricole et de détérioration des sols en zones marginales.
L'Office de développement sylvo-pastoral du nord-ouest (ODESYPANO) occupait un rôle de premier plan lors de l'exécution des deux phases initiales. A sa création en 1981, l'Office répondait au besoin de gestion des ressources naturelles de deux grands bassins versants afin d'y réduire l'érosion et l'envasement des barrages. Cette zone souffrait d'un isolement considérable et restait plus pauvre que l'ensemble de la Tunisie. L'Office a contribué à un relèvement des revenus tout en apportant des améliorations à la gestion des ressources naturelles grâce à des investissements d'infrastructures, essentiellement routes et ouvrages anti-érosion. Il a également contribué à l'intensification et à l'amélioration de l'élevage bovin.
Ce premier projet s'appuyait sur des critères techniques pour la gestion de ces bassins versants. La phase suivante, commencée en 1993, était au contraire centrée sur la lutte contre la pauvreté et l'Approche Participative Intégrée (API) mise au service de la gestion des ressources naturelles, en insistant sur l'organisation des communautés locales et leur formation dans le but d'accroître leur capacité de participation. Le projet s'adressait plus spécialement à des groupes cibles, tels que les femmes, jeunes chômeurs, et ruraux sans terre, en raison des difficultés persistantes présentées par ces groupes face à l'illettrisme, le chômage et le manque d'accès aux ressources.
Les activités du PNO, formulé par le Centre d'Investissement de la FAO, comporte de nombreuses innovations destinées à améliorer l'impact du projet. Dans les gouvernorats de Béja, Bizerte, Kef, Jendouba et Siliana, celui-ci va promouvoir et financer le développement de partenariats entre l'ODESYPANO et les organismes de développement impliqués dans le développement rural du nord-ouest, recentrant donc l'Office dans un rôle de supervision plutôt que d'exécution sur le terrain.
Le projet améliorera l'API et la fera évoluer vers une véritable Approche Communautaire à la Demande (ACD) pour s'assurer que les besoins et les contraintes ressentis par les populations soient pleinement pris en compte dans la conception, la mise en oeuvre et le suivi-évaluation des activités du projet sur le terrain. En particulier, l'ACD renforcera la capacité de prise en charge des populations, leur permettant de prendre une part effective à la planification, et non plus seulement (comme dans l'approche API) à la mise en oeuvre des activités de développement rural. Cela suppose la mise en place des conditions nécessaires au développement des capacités internes des communautés locales, dans le but d'accroître l'appropriation du projet par ses bénéficiaires, et par voie de conséquence, la durabilité des investissements réalisés.
A l'issue d'un effort soutenu sur plusieurs décennies et répondant à la nécessité de préserver les ressources naturelles d'une zone montagneuse et forestière, les notions liées à la participation des populations et à leur appropriation effective du processus de protection et de gestion des ressources sont devenues centrales dans le projet actuel. On peut voir là non plus un exemple isolé, mais une illustration particulièrement claire d'un processus appelé à se répéter.
Contact: [email protected]
From March 2002 to October 2002, the Investment Centre carried out 440 missions to 93 countries. Recent highlights include:
SUB-SAHARAN AFRICA
Projects were identified in Gabon for SPFS (TCP) and in Kenya
for management of arid lands resources II (WB). The Centre carried out sector
work on livestock in Burkina Faso and Mauritania (WB) and agriculture
rehabilitation in Sierra Leone (AfDB). Preparation work began on Kindia rural
development in Guinea (AfDB), marine fisheries development in Madagascar (AfDB),
a possible GEF credit line for an IFAD rural development project in Mali (IFAD),
capacity-building in Eritrea (WB), a Country Programme in Kenya (WFP), and
continued for a regional plan for irrigated crops in Mali, Mauritania and
Senegal (TCP), environment management in Malawi (WB) and development of the
agricultural sector in Tanzania (WB). The Centre helped appraise a participatory
agricultural development and empowerment project in Tanzania (WB) and three
Country Programme activities in Zambia (WFP). It participated in a review of
rural/agriculture institutions in Nigeria (WB/AfDB) and evaluated projects for
oasis development in Mauritania and Zone Lacustre in Mali (IFAD). It supervised
WB projects in Burkina Faso on small-scale irrigation, DR Congo on rural support
operation, Mali on private export promotion, Mauritania on integrated irrigated
agriculture and Senegal on agricultural services.
ASIA AND THE PACIFIC
Formulation began in Bhutan in support of the agricultural
sector (SPFS) and in Pakistan for on-farm water management in Sindh Province
(WB). WB sector work was carried out on a rural development strategy for
Mongolia, a community programme in Sri Lanka, community-driven development in
Viet Nam and Andhra Pradesh rural poverty in India. Preparation started on tea
development in China and India (CFC), country strategy opportunities in Sri
Lanka (IFAD) and diversified farm income and market development in the
Philippines (WB). The Centre assisted a review of the agriculture sector in
Myanmar and pre-investment in agricultural research systems in Pakistan (FAO).
It supervised WB projects on land management and administration in Cambodia,
agricultural development in Anning Valley and Guanzhong irrigation improvement
in China, Orissa water resources consolidation, Assam rural infrastructure,
integrated watershed development, Kerala and Karnataka rural water supply and
environment sanitation, Karnataka community-based tank management, and Uttar
Pradesh forestry in India, on land titling in Lao PDR and Sri Lanka, and on land
administration in the Philippines. It prepared ICRs for WB on Loess Plateau
rehabilitation and seed commercialization in China, agricultural research and
extension in Nepal, and conservation of protected areas in the Philippines.
LATIN AMERICA AND THE CARIBBEAN
The Centre started identification work on an action plan on
information and communications technology development in Latin America, and an
irrigation development programme in Jamaica (IDB), and on private-community
forestry partnerships in the Peruvian Sierra (WB). It initiated a study for
identifying the drivers of sustainable growth and poverty reduction in Central
America for WB. Preparation began on agricultural competitiveness in Colombia
(WB) and continued for WB in Brazil on a new model for irrigation, sierra rural
development in Peru, and coastal wetlands and ecotourism in Saint Lucia. It
provided technical assistance on GEF/UNEP tropical shrimp trawling in Mexico
(FAO) and continued WB sector work on irrigation modernization in Mexico and
natural resources management in Uruguay. For WB, it appraised GEF regional
integrated sylvo-pastoral approaches to ecosystem management and water resources
management II in Chile. It supported supervision of WB projects for poverty
alleviation and forestry in Argentina, land management in Brazil, agricultural
census in Ecuador, land fund in Guatemala, agricultural technology in Nicaragua,
rural poverty in Panama, natural resources management in Paraguay and Peru, and
irrigation in Peru and Uruguay.
NEAR EAST
Identification was initiated in Iran on integrated land and
water management (WB) and in Tunisia on Madhia rural development III (AfDB). The
Centre provided pre-investment assistance in Afghanistan (FAO). Preparation work
started in Kyrgyzstan on village investment (WB), in Tajikistan on rainfed
agriculture development (WB) and in Morocco on rangeland and livestock
development II (IFAD). Formulation continued in Azerbaijan for irrigation II and
Shah-Dag rural environment (WB), in Iraq on a portfolio of investment projects
(FAO) and in Sudan on pastoral development (WB). For WB, it appraised rural
employment II in Algeria, environment management support in Iran, Northwest II
in Tunisia, Sana'a Basin water management, and groundwater and soil conservation
in Yemen where it also developed a rural development strategy. It supervised WB
projects in Kyrgyzstan on irrigation rehabilitation and the water sector in
Tunisia. In Morocco, it supervised WB irrigation-based community development and
IFAD Tafilalet and Dades Valley development projects.
EUROPE
Preparation work was undertaken for small-scale commercial agriculture development in Bosnia and Herzegovina, for a national forestry policy in Bulgaria, for irrigation rehabilitation and reform in Romania, Anatolia watershed rehabilitation in Turkey (WB) and for a grain warehouse receipts programme in Poland (EBRD). For FAO, the Centre participated in a wholesale markets regulatory framework workshop in Croatia and in a BSEC/BSTD/EBRD seminar in Turkey. It participated in a WB review of agribusiness and marketing projects for East and Central Asia and carried out a review of the sunflower oil sector for EBRD. It supervised a GEF project for wetlands restoration and pollution reduction in Bulgaria, and WB projects in Albania on agricultural services; Georgia on irrigation and drainage; FYR Macedonia on private farm support, Moldova on small-scale on-farm irrigation, Romania on rural development, Turkey on agriculture reform implementation and Central Asia on biodiversity. It prepared an ICR for WB on agriculture in Estonia.
Projects approved for financing . . . . . .
Since UPDATE #20, 22 projects, formulated with substantial inputs from the Investment Centre, were approved by financing institutions and governments for total investments of US$1,532.24 million (the balance between total project cost and loan or grant is provided by the recipient government and beneficiaries) for: Bangladesh: Support to Special Programme for Food Security $3.30m ($3.30m Japan); Brazil: Rio Grande do Norte Rural Poverty Reduction II $30m ($22.50m WB); Santa Catarina Natural Resources Management and Rural Poverty Reduction II $107.50m ($62.80m WB); Cameroon: Community Development Support $18.29m ($11.76m IFAD); DPR Korea: Pyongbuk Irrigation Development $48.36m ($10.20m OFID); Democratic Republic of Congo: Agricultural Component of the Economic Recovery Credit (PMURR) $54m ($54m IDA); Egypt: West Noubaria Rural Development $54.75m ($18.48m IFAD, $30.13m IDS, $0.40 TCP); Eritrea: Gash-Barka Livestock and Agricultural Development $16.14m ($10m IFAD); Georgia: Forests Development $21.34m ($15.67m IDA); India: Andhra Pradesh Community Forest Management $127.12m ($108.21m IDA); Karnataka Community-based Tank Management $124.97m ($98.90m IDA); Orissa Tribal Empowerment and Livelihoods $91.20m ($20m IFAD, $40m DFID, $12.30m WFP); Jordan: Horticultural Export Promotion and Technology Transfer $6.60m ($5m WB); Mali: Northeast Livestock Development Support II $13.19m ($10.37m AfDB); Mauritania: Maghama Improved Flood Recession Farming II $11.50m ($10.10m IFAD); Mexico: Municipal Development in Rural Areas $633.40m ($400m WB); Moldova: Rural Investment and Services $19.69m ($10.50m IDA, Bilaterals $2.5m, GEF $2.2m, EC $0.5m); Mongolia: Sustainable Livelihoods $22.12m ($18.73m IDA); Nicaragua: Land Administration $38.50m ($32.60m IDA); Tunisia: Northwest Mountainous and Forestry Areas Development II $45m ($34m WB); Ukraine: Malt/Barley Sector $43.92m ($28.19m EBRD); Zambia: Sustainable Land Management in Miombo Woodland Ecosystem $1.35m ($0.75m GEF).
UPDATE, published
three times a year, is the newsletter of FAO's Investment Centre. Queries on
subjects covered may be addressed to: The Editor, UPDATE,
Investment Centre Division, Food and Agriculture Organization of the United
Nations (FAO), Viale delle Terme di Caracalla, 00100 Rome, Italy; tel: +39
06-5705-3568; fax: +39 06-5705-4657;
e-mail: [email protected].