Transcript Document 7139648

Agriculture and
Rural
Development,
Forests, and Water
Strategy Implementation,
Recent Trends, and new
concepts
KCleaver
June 9, 2006
 Most of the poor are rural (70% on
Sr i L a n k a
Nepal
Ye me n
N ic a r a g u
Hondur as
G e o r g ia
Ky g y z
Mo n g o lia
Vie t n a m
C a mb o d ia
Ma la w i
G hana
Et h io p ia
G a mb ia
Z a mb ia
N ig e r
Mo z a mb iq
average)
T a n z a n ia
Ma u r it a n i
Uganda
Bu r k in a
MDG1: Reducing
Poverty is still
mostly a rural
development
issue
Pov erty Rates
Rural
51 46 68 50 71 66 80 61 47 34 67 40 57 33 70 10 51 69 45 44 27
Urban
17 16 25 24 62 52 56 48 37 27 55 21 26 39 49 12 57 31 31 23 15
Difference 34 30 43 26 9 14 24 13 10 7 12 19 31 -6 21 -2 -6 38 14 21 12
Partly because agriculture is the
Leading Sector in Low Income
Countries
70
Low income countries
Agric as %GDP
60
50
40
30
20
10
0
0
WDI, 2002
1000
2000
3000
GDP per Capita ($)
4000
5000
Number of
Persons Removed
from Poverty for a
Given Public
Investment in
Agriculture versus
other Sectors
IFPRI studies by Fan et al
M Rupees or 100,000 Yuan
High Payoffs
to agriculture
R&D; but also
to other
interventions:
investment
works.
150
India
120
China
90
60
30
0
Ag R&D
Roads
Education Irrigation Rural Dev
Poverty is reduced in India
as crop yields increase (investment in R&D
works)
2.75
Yield**
P overt y*
5
2.25
1.75
4.5
1.25
0.75
4
1959
1963
*Lo g o f s q . p o v.g ap ind ex
**Lo g o f ave. o ut p ut / acre
Datt and Ravallion, 1998
1967
1978
1986
1991
140
120
Percent increase
Changes in
Household
Incomes in
Southern India,
1973-84 (the
poorest benefit
from farm income
expansion)
100
80
60
40
20
0
Landless
laborers
Hazell and Ramasamy, 1991
Small rice farms Nonagricultural Large rice farms Non-rice farns
households
0.7
0.5
0.4
0.3
0.2
0.1
Services
0
-0.1
-0.2
Thirtle, et. al., 2002
Agriculture
0.6
Elasticity (-ve) of poverty to
labor productivity
Another way of
looking at this:
the poverty effect
of a 1 % productivity Gain in
Agriculture,
Industry, and
Services in India
Industry
% Change in Malnourished Children
Depends on Public Investment in
Agriculture, 2020 (IFPRI)
L o w in ve stm e n t
H ig h in ve stm e n t
B a se lin e p r o je c tio n
S /E A sia
S o u th A isa
A fr ic a
-6 0
-4 0
-2 0
0
20
40
60
A problem however: agricultural area expansion has displaced
forest and woodland; Need agricultural growth without area
expansion
5.2
Agricult ural area
Billion ha
4.8
4.4
4.0
Forest /woodland
3.6
1961
FAOSTAT, 2002
1968
1975
1982
1989
1996
80
Agribusiness
Agriculture
70
Share of GDP (%)
An opportunity
being missed?
Agribusiness
Sector is also
Large in
Developing
Economies and
can pull
agriculture
60
50
40
30
20
10
0
Philippines
Holt and Pryor, 1999
India
Chile
Brazil
United States
Taking an Integrated Approach to Value Chain Management;
And the growing importance of private sector investment and
innovation
Agricultural production
Food industry
Consumption
Input
industry
Producers
Research
Ext.
service
Food
process
industry
Food
retail
industry
Consumers
Decline in Commodity Prices; 1979-1999 ……
120
100
Cotton
80
60
40
Coffee
Rice
20
Cocoa
0
1979
FAOSTAT, 2002
FAOSTAT2002 / GEM2005
1984
1989
1994
1999
…… But recent increases may spell change; 2000-2005
120
Cotton
100
Cocoa
Rice
80
60
40
20
Coffee
0
1999
FAOSTAT,
2002
GEM, 2005
2000
2001
2002
2003
2004
2005
To confront
the
challenges
and address
the
opportunities,
what has the
Bank done
lately?
 The Bank’s 2002/2003
Agriculture and Rural
Development, Forests, and
Water Resources Strategies,
contributed to renewed donor
interest in all three sectors
 Bank advocacy for agricultural
subsidy and trade reform
starting to bite, though failure of
Doha is a setback
World Bank
Lending for
Rural
Development up
 Bank loans and credits with
significant rural components are
up:
 From
$5 billion in FY02 to $7
billion in FY 03 and FY04; $ 8
billion in FY05
 The
number of projects with rural
components: 175 in FY03 to 195
in FY04, 217 in FY05
Composition of
Rural Lending
 One-third of
rural lending is
to the
infrastructure
sector, while
the agriculture
sector
received a
fifth.
Average FY03-04 = $7.5 billion
Law/Justic
e/P ublic
A dministra
tio n
14%
A griculture
23%
Average FY03-04 = $7.5 billion
Law/Justic
e/P ublic
A dministra
tio n
14%
So cial
Secto rs
26%
Eco no mic
Secto rs
8%
A griculture
23%
So cial
Secto rs
26%
Infrastruct
ure
29%
Eco no mic
Secto rs
8%
FY05 = $8.7 billion
Law/Justic
e/P ublic
A dministra
tio n
17%
A griculture
24%
So cial
Secto rs
21%
Eco no mic
Secto rs
8%
Infrastruct
ure
30%
Infrastruct
ure
29%
4
16
14
12
10
8
6
Len di ng ($ )
3
2
1
4
2
0
% o f B an k total
0
1 99 0
199 2
19 94
1 99 6
1 99 8
20 00
2 00 2
% of total Bank lending
Lending to Ag. sector ($bil)
Bank Agriculture Lending declined from
1990-2002
Agricultural Lending Commitments
($million)
But is now
increasing
Avg. FY99-01
FY02
FY03
FY04
FY05
FY06
AFR
190
308
318
287
295
703
EAP
363
151
119
358
253
400
ECA
311
644
342
175
153
188
LCR
229
100
61
387
238
349
MNA
188
5
199
33
229
25
SAR
157
328
251
255
955
462
Total
1,438
1,536
1,289
1,495
2,122
2,127
IBRD/IDA commitments to the agriculture sector by subsector,
FY1999- 2006 (projected), $ million
FY01
FY02
FY03
FY04
FY05
FY06
Agric extension & research 137
70
48
117
247
402
Agric market & trade
107
221
72
85
95
158
Agro-industry
60
68
4
24
94
36
Animal production
53
25
23
61
32
106
Crops
119
487
96
80
64
58
Forestry
89
128
166
29
63
207
Gen agr/fish/for sec
479
202
660
330
458
767
Irrigation & drainage
394
335
220
769
1,069
395
1,438
1,536
1,289
1,495
2,122
2,127
Total
Why the decline
in agriculture
lending from
FY90 to FY03
(increasing only
in FY04 to
FY06)?
 Agriculture relatively less important as new sectors
became priority (social protection, development
policy lending, anti-corruption, public administration)
 Big projects fell out of favor (for example large scale
irrigation, integrated rural development, agriculture
credit, commodity support through parastatal
enterprises).
 New style projects are smaller scale (CDD,
irrigation rehab, micro-credit, agriculture research
and knowledge, soil rehabilitation and land
management, land titling)
 Agriculture not the priority of Ministers of Finance,
nor of Bank country directors
 Quality problems with agriculture projects until
recently
 Urban group argued that rapid expansion of cities in
developing countries, should cause a shift in priority
to urban development
Quality of
Bank’s
Agriculture
Projects
 Early QAG ratings for quality at entry, and quality of
supervision for agriculture projects were poor

However, quality at entry for agriculture and rural projects
(88% satisfactory) is now only slightly less than the Bank
(90%)

And the quality of supervision of agriculture and rural projects
(95% satisfactory) is better than the Bank (90%)
 Projects under implementation

7% of agriculture and rural development projects in problem
status; average for all Bank projects is 10%

10% of agriculture and rural projects at risk compared to 15%
for all Bank projects
Quality
 Closed projects

According to OED ratings of closed projects:

Agriculture and RD (ARSB) 4 points higher
than the Bank for outcome (87% satisfactory
in FY04 compared to 83% for all Bank
projects)

A major improvement over the 64%
satisfactory for rural projects in the FY992001 period and prior.
 Agriculture Water issues and approaches -
Sourcebook
 Agriculture - Directions in development
The
analytical
products
 Rural Finance - Approach Paper
 Agriculture and MDGs
 Macroeconomic links to forestry
 IPM approach paper
 Water for food - Directions in development
 Innovation in managing agriculture production risk in
developing countries
 Innovations in rural finance
 Managing the challenges of the livestock revolution
 Gender issues and best practices in land
administration projects
 Sustainable Land management
Analytical work
at country level
increasing
 Economic and sector work
increasing (23 country Rural
Development strategies and
water CASs), and rural
content of CASs improving
(73% of CASs satisfactory
from rural/agriculture
viewpoint)
CONTROVERSY 1: HOW TO
STIMULATE RURAL DEVELOPMENT IN
AFRICA?
Hunger is increasing in Africa,
decreasing in Asia
What do the hungry do?
North Africa &
Middle East
Latin America
60
Landless Rural
Poor
40
230
South Asia
200
SSA
155
Rest of Asia
115
East Asia
22%
50%
Farmers
Marginal
Land
20%
Urban Poor
8%
Pastorists/
Fishers
Can the Asian Green Revolution be duplicated in
Africa?
Adoption of
Modern varieties
Wheat
Rice
M ha / % area
1961 0 / 0%
0 / 0%
1970 14 / 20% 15 / 20%
1980 39 / 49% 55 / 43%
1990 60 / 70% 85 / 65%
2000 70 / 84%100 / 74%
Irrigation
million ha
87
106
129
158
175
Nutrient
Use
million t
2
10
29
54
70
Tractors
millions
0.2
0.5
2.0
3.4
4.8
Cereal
Production
million t
309
463
618
858
962
Source: FAOSTAT, July 2002 and author’s estimated on modern variety adoption, based on
CIMMYT and IRRI data.
One Answer is to diversify Smallholder
Agriculture and Income in Africa
Improve basic foods
Include cash crops
I
Integrate livestock
Add agro-processing
WATER RESOURCE DEVELOPMENT WILL
BE IMPORTANT IN AFRICA
 Africa has the potential to irrigate 20% of its arable land
 Only 4% is currently irrigated
 Small-scale irrigation systems generally are the most
cost- effective
 Focus on high potential countries for irrigation; Ethiopia,
Sudan, all Sahel, South Africa, Malawi, Botswana,
Zimbabwe,
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
Consumption of
fertilizer nutrients per
hectare of arable land
is very low in Africa
(2002)
0
100
200
300
Source: FAOSTAT, July 2005
400
500
600 Kg/ha
Part of the solution will be to build Smallholder
Input Retailer Systems
Business development
assistance
Multiple products & services
Commercial credit lines
Technical advisory services
Contract service provider
Making Markets Work for Smallholders
Inputs
Processing
Storage
Marketing
Public-Private Partnerships
Example: Smallholder Seed
Sector
Germplasm
Development
IP
Mainly
Public
Sector
R&D
Foundation
Seed
Production
Private
enterprise,
with IP
licensing
Farmer
Seed
Production
Mixed
NGOs,
farmers’
assn.,
private
growers
Distribution
Private
dealers,
NGOs,
farmers’
assn.,
private
growers
Solving Infrastructure Problem
Kilometers of paved roads per million people
in selected countries
USA
France
Japan
Zimbabwe
South Africa
Brazil
India
China
Km
20,987
12,673
9,102
1,586
1,402
1,064
1,004
803
Guinea
Ghana
Nigeria
Mozambique
Tanzania
Uganda
Ethiopia
Congo, DR
Source: Encyclopedia Britannica, 2002
Km
637
494
230
141
114
94
66
59
Beginnings of
success in
Africa?

Examples of good recent projects include:

Irrigation rehabilitation and Water User Associations in
Mali and Nigeria

Natural disaster mitigation in Southern Africa (maybe)

Bringing the private sector to agriculture services in
Senegal

Rural financial services in Ghana and Tanzania

Community participation in agriculture service
management in Kenya, Ethiopia, and Tanzania

Commodity risk mitigation in Tanzania using insurance
instruments, and in Malawi using hedge instrument

New Fisheries Investments in Guinea Bissau, Senegal

Rockefeller Foundation use of retail outlets to sell inputs

Agriculture policy reform in Uganda and Mali
Controversy 2:
Reforming
Development
Assistance to
Agriculture and
Rural
Development
 Increase coordinated donor support for African
investment in R&D, land reform, irrigation, food
security, soil improvement, infrastructure, non-farm
rural enterprise, high value agriculture.
 Donors to support community driven development,
private sector and other non-government efforts, not
just government programs
 Donors to help countries reduce vulnerability to
shocks; safety nets, including by improving food aid
delivery mechanisms, introduction of market based
approaches
 Help with market reforms, while advocating tariff and
subsidy reform in own (industrial) country
 Donor support to be sustained for longer periods
 More vigorous support for Global Donor platform and
expanded country pilots?

Controversy
regarding
food
insecurity and
food selfsufficiency


Food Aid as solution for malnutrition and hunger

Pro: if food availability is insufficient (e.g. humanitarian
emergencies), donors should send food to save lives;
food is human right

Con: Food aid is a disincentive to invest in agriculture
and reduces farmers’ income in the recipient country; and
food aid disrupts marketing channels (prevents market
development)
School Food Programs

Con: earlier intervention from pregnancy to the 1st two
years of life is more effective in dealing with undernutrition in children. School feeding is too late.

Pro: easiest and fastest way to get food to children
Agricultural biotechnology - GMOs

Pro: (1) food & nutritional benefits, (2) increased
production, (3) reduced post-harvest losses, (4) health
benefits (China Bt cotton) (The Bank generally supports
this position)

Con: (1) environmental risks and expensive, (2)
innovation has most benefited large farmers, (3) lack of
capacity to regulate in many developing countries
 Developing countries’ agricultural exports to rich
Controversy
on Trade and
Subsidy
reform
countries have stagnated, as has agricultural trade
between developing countries

TRADE FLOWS
1980/81 1990/91 2000/01
Agriculture
Total
To Developing
To Industrialized
35.4
9.5
25.8
32.2
8.9
23.3
36.3
13.4
22.9
Manufacturing
Total
To Developing
To Industrialized
19.3
6.6
12.7
22.7
7.5
15.2
33.4
12.3
21.1
Source: COMTRADE
Largely
because
Agricultural
Tariffs Remain
Much Higher
Than
Manufacturing
tariffs in
virtually all
countries
Figure 1: Average tariffs
Percent
40
Agriculture and food
35
30
Manufactures
25
20
15
10
5
0
East Asia Eur. & C. Lat. Amer. Mid-East South Asia Sub-Sah. Industrial
Asia
& N. Afr.
Afr.
Source: GTAP release 6.03
The Trade
solution?
 All research agrees on the need for industrial
countries to remove agricultural trade
protection and agricultural subsidies to
stimulate developing country agri. trade
 But industrial countries have not done it. What
needs to be done to get this industrial country
policy change?
 Should developing countries also reduce
agricultural trade protection and agricultural
subsidies, despite industrial country
resistance?

Pro: this would reduce food prices to consumers and
stimulate agricultural trade between developing
countries thereby stimulating agric. Growth (the Bank’s
position)

Con: this would invite dumping of agricultural products
by industrial countries (many developing countries
hold this view)
Land Tenure
Controversy

Issue: land quality and size are typically highly
unequal in distribution. Are land re-distribution
programs the answer (recent programs in
South Africa, Zimbabwe, Eastern Europe; and
past programs in Latin America)?

One view: re-distribution of land will help poor
farmers. Otherwise marginal farmers will stay
marginal, poor and hungry

Another view: Government’s land distribution
programs are usually political and don’t
succeed. Best is to invest directly in small
farms and encourage investment in rural non
farm enterprise to create employment

The Bank has found that market based
approaches, land registration and tenure
security systems work well. WB has $ 1 billion
portfolio (Salvador, Honduras, ECA, East Asia)
Controversy:
Does
government
intervention
in agriculture
markets
actually make
sense; based
on failure of
private sector
to invest in
mktg and
agrobusiness?
 Pro: Governments are the main instruments of
change in conservative societies. Government’s
investments in agricultural research, extension,
education, credit and infrastructure are vital for
development in rural areas – leading to income
growth and nutrition improvement.
 Private sector does not risk investing
significantly in developing country mktg and
input supply
 Con: Governments botch it. Leave it to the
market, or to public-private partnerships.
Agriculture increasingly demand driven by
consumer through supermarket or other market.
Government supply driven marketing and
processing increasingly un-responsive.
Governments to enable market development,
and invest in complementary infrastructure,
regulation, safety standards, R & D.
World Water and Food to
2025, 2002
Increase in water consumption (%)
Controversy:
Water
Consumption
projected to
Increase during
1995 to 2025.
Will it be
resolved through
investment, or
conservation, or
better
management, or
all three? And
what impact
climate change?
120
100
80
Developed
Developing
60
40
20
0
Irrigation
Livestock
Industrial
Household
Per capita water availability is a
problem, to be exacerbated by climate change
16
Africa
14
12
10
World
8
Asia
6
4
2
MEast & NAfrica
0
1960
1990
2025
Climate/rainfall Variability & Economic Growth
Risk of recurrent
drought
Kenya: variability & shock
10/97 – 2/98 Flood
10/98 –5/00 Drought
10/97 – 05/00
Natural legacy:
extreme climate variability
Infrastructure Damage
Crop loss
Livestock loss
Reduction in hydropower
$2.39 b
$0.24 b
$0.14 b
$0.64 b
Reduced industrial prod.
TOTAL
Cost of Climate Variability
$1.39 b
$2.41 b
Approx (annual) GDP
Impact as % GDP/annum
($9 b/yr)
$2.39 b
$4.8 b
$22 b
22%
Economy-wide impacts
3.0
1.0
5.0
0.0
-1.0
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
0.0
1979
Real GDP growth (%)
2.0
10.0
-2.0
-5.0
-3.0
Real GDP grow th (%)
Variability in Rainfall (Meter)
-10.0
-4.0
Rainfall & GDP growth: Zimbabwe 1978-1993
Years
80
25
20
60
10
20
5
0
2000
-5
-10
-15
-40
rainfall variation around the mean
-60
1999
1997
1998
1996
1995
1993
1994
1992
1991
1990
1989
1988
1987
1986
1985
1984
-20
1983
0
1982
percentage
15
40
GDP growth
-80
-20
-25
-30
year
Rainfall & GDP growth: Ethiopia 1982-2000
Variability in Rainfall (Meter)
15.0
Water storage in m3/cap
7,000
6,000
4,729
5,000
4,000
3,255
2,486
3,000
2,000
North
America
Australia
Brazil
China
Laos
Thailand
0
1,406
43
South
Africa
1,000
1,287
746
Ethiopia
Water storage
and the
poverty trap
6,150
Water availability versus storage
withdrawal/ capita (m3)
1000
Spain
800
Australia
• Stable pop. & GDP, raising
4,000
• Or 5% of GDP for over 100
yrs
Ethiopia’s storage to South
Africa (12% of USA) ~ 6 X
GDP
600
400
S. Africa
200
Ethiopia
0
0
1,000
2,000
3,000
storage/ capita (m3)
5,000
Irrigation can lift rural poor out of poverty
Income per capita
Average income levels & irrigation
intensity in India
Nile Basin Initiative
10 countries: Burundi, D.R. Congo,
Egypt, (Eritrea), Ethiopia, Kenya,
Rwanda, Sudan, Tanzania, Uganda
300 m people (600m 2025)
Extreme:
poverty: 4 of 10 poorest
climate variability and climate
change impact
landscape vulnerability
Very limited infrastructure….
Eastern Nile: 170 million; conflict &
historical tension; nothing flows…
Egypt: water security; hydro/gas
substitution, flood/ drought/ sediment
mitigation
Sudan: major flood/ drought/
sediment mitigation, irrigation,
power, navigation…
Ethiopia: major hydropower
generation, watershed management,
irrigation, storage, FDI…
Eastern Nile: peace, trade, joint
investment,  prosperity …
An
Emerging
Deal on
the Nile…

Tropical forests
disappearing
rapidly despite
donor
investment, NGO
advocacy,
regulatory
reform. How to
stop this?
Huge expansion of World Bank activity in Forests:


Renewed IFC commitment: From $45 million in FY01 to $300
million in FY05
Strong donor partnerships and have been formed

PROFOR financed 22 forest activities in FY04;

WWF-WB alliance 90 forest activities with targets for protected
areas being met

Targets for sustainable logging likely to be met

Bank engagement in Congo Basin, Brazil, Russia, India, China,
Honduras, and forest lending increasing ($ 319 m in FY05 and 06) .
Increasingly using community owned and managed forests, in
partnership with forest service and logging industry

But controversy remains: NGOs find too much logging, illegal
harvesting, agricultural encroachment

Issue: are we on the right track, but need much more funding and
commitment for forest projects and programs to have impact?

Or is there a fundamental flaw in the approach? Are the NGOs
correct that banning logging in much wider areas and banning
agricultural incursion is likely to have bigger impact?

New Concept of Avoided Deforestation (with the Nature
Conservancy – using carbon offset funding)

What to do about
rural finance:

given the failure
of agriculture

credit loans
through state

owned banks

Financial cooperative / credit union system developed.

Specialized rural finance institution founded


Kyrgyzstan, Lithuania, Mauritania
Linking commercial banks to village level financial associations

Moldova
Leasing

Kazakhstan, Uzbekistan, Romania, Pakistan, Uganda, Madagascar
Restructuring of State-Owned Agricultural Banks


Kyrgyzstan, Moldova, Georgia, Azerbaijan, Albania
Mongolia, Tanzania, Latvia
Product Offerings

Develop loan products appropriate for specific purposes (short-term,
group loans, longer-term flexible agricultural loans)

Simple and easily accessible savings products

insurance products
Creating Effective Demand

Matching grants for asset creation

Offer of savings facilities to create equity

Support all along the supply chain
The livestock
Revolution is
underway with
increasing
consumption of
livestock
products, and
consequent
problems


Spatial concentration of livestock around urban areas has led to:

Large areas with Nitrogen and Phosphate overloads, causing
water and air pollution

Closer contact between men and livestock causing emergence
of new diseases (Avian Flu)

Large population of highly vulnerable livestock (Foot and Mouth
Disease)
Exacerbated by weak enforcement of environmental and health
regulations, and non-vaccination
Proposed actions


At global level:

Increase awareness of environmental and public health issues,
stressing global public good element, and interest of developed
countries in protecting their own livestock from diseases
spilling over from developing countries

Strengthen international disease alert systems and explore
alternative disease control systems
At national level

Develop planning, regulatory and incentive systems,
which bring livestock production more in line with
absorptive capacity of surrounding eco-systems

Strengthen veterinary services, emergency preparedness
Land
degradation
continues
despite donor
and government
investment

Land degradation problem is severe and growing with
negative impacts on productive lands and ecosystem
services.

Climate change is likely to severely reduce land and water
productivity in many countries (especially Africa) and result in
further land degradation.

Significant “practice gap” and huge scope to apply existing
“best practice” to address land management problems in all
regions.

Lack of land ownership, poor access to knowledge and lack
of appropriate incentives are major factors constraining best
practice uptake.

Make rehabilitation of degraded lands a poverty reduction
priority and introduce land rehab projects

Develop and implement innovative knowledge (best practice)
dissemination mechanisms for land users and policy makers.

Develop and implement incentives for good land management
such as payments for ecosystem services (e.g. carbon
sequestration, biodiversity conservation) to facilitate uptake
of best practices and to promote synergies with adaptation to
climate change, biodiversity conservation, and watershed
resilience to environmental and economic shocks

Introduce land administration projects more widely

SUMMARY
of
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
 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
Priorities
continued
 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
 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?