african investments in science, technology and agricultural development melissa brown, world bank...
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AFRICAN INVESTMENTS IN SCIENCE, TECHNOLOGY AND AGRICULTURAL DEVELOPMENT
MELISSA BROWN, WORLD BANKAIARD Annual Conference, June 6, 2011
Presentation Outline
CAADP – A Framework for Country Led Initiatives and Investments
Overview of World Bank Support to Investments in Agriculture in Africa
Investments in Science, Technology and Agricultural Development in Africa
CAADP - A FRAMEWORK FOR COUNTRY LED INITIATIVES AND INVESTMENTS
What is CAADP?
The Comprehensive Africa Agricultural Development Program
Not a program – a Framework An African framework - NEPAD/AU vision and strategy for
agriculture
CAADP calls for:
Renewed focus on the importance of agriculture
Need for improved strategies, plans, programs, and policies
More investment in agriculture
African Ownership
CAADP Targets and Principles
Targets: 6% growth in agriculture and allocation of 10% of
government budget to agriculture
Guiding Principles:
Country-led
Comprehensive - cross-sector/ cross-government
Multi-stakeholder engagement - CSOs, Private sector, Govt,
Farmers
Evidence-based planning
Peer review, mutual accountability and M&E
Regional complementarity
Pillars and Frameworks
Pillar 1 – Land and Water Management
Pillar 2 – Markets and Infrastructure
Pillar 3 – Food Security
Pillar 4 – Agricultural Productivity
CAADP Encourages:
Countries to launch ….
….. “Planning Processes” …..
….. Informed by CAADP Principles and Tools …..
….. leading to …..
More Effective Scaled-Up Programs
Better Policies
Growth
Poverty Reduction
CAADP is :
a way to harness continental resources to support national and regional planning and investments
(capacity building!)
WORLD BANK SUPPORT FOR AFRICAN AGRICULTURE
Context - African Agriculture since 2009
Global food (and fertilizer) prices spikes in 2008 & 2010 threaten the poor, and social stability, offer potential
gains to farmers Refocused SSA Governments
investing in agriculture, but politicized with over-reliance on subsidies, and weak investment programs
CAADP platform has energized definition of country-owned programs, raised expectations for
external financing, investment plans of variable quality, process transactions-intensive
Donor flows Commitments high (Aquila), delivery lags (GAFSP finance, other)?
Private sector interest and finance positive FDI trends (but data are poor), and second-generation policy
frameworks (sector taxation->regulation, investment climate) still constrain Outcomes
Fragile gains in SSA on sector GDP, land and labor productivity, and yield trends, but still below targets and insufficiently widespread across countries
Progress: Sector Performance
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
1000
1050
1100
1150
1200
1250Cereal Yields (kg/ha)5 yr moving average
2000-04 2001-05 2002-06 2003-07 2004-20080.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Real Agricultural GDP (28 countries value
weighted)
4
85
3
4
# of countries > 5%/yr
Sources: ReSAKSS Comprehensive Monitoring and Evaluation Report, April 2010
2009 Scale-Up Strategy
Goal Higher SSA agriculture sectors’ growth and improved food
security Current Strategy Focus
Double lending over 2009-2010 Four pillars – land and water management, agricultural
markets and infrastructure, food security and vulnerability, agriculture technology
Horizontal beams – sector-wide policies, gender, climate change
Strengthen the CAADP process How
Instrument innovation Country-owned sector programs Donor coordination Regional programs
WB Scale-Up in Financing SSA Agriculture (million USD)
FY08 FY09 FY10 FY11 FY12
TOTAL 464 1,684 847 1,450 797
IDA Commitment 434 1,494 754 1,273 783
Grant 30 190 93 177 14
GFRP Funding 10 501 85 20 -
Building pipeline from FY12 a priority with IDA16 increase.
Pillar Africa CA EA SA WA Total
Pillar 1 10.12 9.30 283.12 55.39 143.82 501.74
Pillar 2 10.70 58.55 80.29 94.50 356.94 600.98
Pillar 3 6.50 401.96 27.77 50.14 486.36
Pillar 4 Aggregate 76.95 48.62 365.81 90.32 328.82 910.52
Cross-cutting 41.81 11.74 95.69 12.80 30.56 192.60
TOTAL 139.59 156.90 1,478.81 333.75 1,259.42 3,368.46
WB Portfolio – SSA Agriculture(US$ Millions)
LOOKING FORWARD: ALIGNMENT WITH NEW AFRICA STRATEGY Pillars and Foundation
Competitiveness and Employment, Vulnerability and Resilience, and Governance and Public Sector Capacity provide a good framework for addressing the sector challenges
Partnerships With governments, private sector, development actors Scale and scope of the problem demands and use our catalytic power and
expertise to leverage other partners Learn from and build on existing partnerships (CAADP, AfdB, AUC,
Bilateral, civil society, etc) Mobilize partners to deepen and accelerate support to Africa Agriculture
(crowding in private and other public resources)
Knowledge Connector of knowledge in Agriculture and Agri –business development
Strengthened impact of AAA South-South partnerships (e.g. Brazil)
Political economy analysis of incentives facing actors in reform process
Finance Leverage WB , specially IDA resources, Development Partners, Private sector
and PPP, Domestic resource mobilizationPage 15
Looking Forward:Strengthening the CAADP Pillars
Continued Strategic Focus Four main pillars: land and water management,
agricultural markets and infrastructure, food security and vulnerability, agriculture technology
Horizontal beams – policies, gender, climate change Main Adjustments
Land and water operations implementation – updating the irrigation business plan
Agribusiness platform – for better leveraging of private investment and increased participation
Public expenditure policy engagement – cross-pillar program strengthening through CAADP MDTF and BMGF trust fund for analytical work (9 countries underway in 2011)
Pillar I Support in the Bank
Land Sustainable land management – rainfed land and pasture
management; TerrAfrica Investing in land administration
Titling, registration and cadastral capacity for small and large farm enterprises
Innovating in community mapping and land taxation Engaging on policies for responsible FDI in land for agriculture,
linked to land administration capacity Water
Irrigation business plan – mid-term review just completed Scope exists for further scale-up, better if projects avoid small
irrigation components Climate change impact on priorities
Water management Soil carbon
Good practice projects Ghana Land Administration Zambia Irrigation Development and Support Ethiopia Irrigation and Drainage
Pillar II Support in the Bank
Diversification, value chain deepening extensive analytical foundations and piloting, now moving into
operational work Private investment flows – mobilizing and harnessing; PPP Program integration
Agribusiness Platform (AR, FP, IFC, with infrastructure) Piloting integrated project designs – four pipeline projects (Ghana,
Burkina Faso, Senegal, Malawi) Increasing attention to safeguards: palm oil, GMOs, monoculture
pressure on biodiversity Africa Union initiative
Focusing on scale-up Still developing technical tools
Good practice projects Ethiopia Agricultural Growth Program Nigeria Commercial Agriculture Mali Agricultural Competitiveness and Diversification
Pillar III Support in the Bank
GFRP – resources mostly allocated; shifting to longer-term impacts on food production productivity and marketing efficiency
Community-Driven Development Projects Food security for the very vulnerable Communities with declining resource bases Maritania, Chad, Niger, Madagascar (PSDR), Nigeria (FADAMA) Evolution: away from too-open menu for broad livelihoods, sharper
focus on agriculture and more access to better techniques Disaster Dimension
Early warning systems for drought (Kenya, Ethiopia, Malawi, Madagascar)
Climate-related vulnerabilities and adaptive responses Productive Safety Nets
Opportunities for complementarity with HD, but better role focus (who does what) possible on food security
Good practice projects Mauritania Community-Based Rural Development FADAMA Development Project III Madagascar Rural Development Support
Looking Forward: Emerging Issues
Private investment flows Tracking - household, domestic commercial, FDI Facilitating – “crowding in” with public investment, and with
business environment Link to employment generation
Capturing climate change finance for agriculture Main opportunity is soil carbon, following on the REDD path
M/E and statistics agenda Investment in sector capacity within national statistical strategies;
key external partners are FAO and BMGF Mechanization
High political profile but still seeking workable strategies. Donor tractor aid poorly used, and private leasing services not taking off.
Looking Forward : Partnership and Working with CAADP Commitment to the framework Prudence on the transactions costs, and managing
expectations Build on Country Compact progress Strengthen the technical review process of national
investment plans Expand on public expenditure analysis for fact-based
consensus-building Emphasize the need to “crowd in” responsible private
investment through public goods and services provision Expand investment at regional level Monitoring and evaluation
CAADP PILLAR IV
Evidence Summit - Conclusions from Agricultural Technology Adoption and Productivity Growth in Sub-Saharan Africa Presentation (D Byerlee):
Little evidence of a productivity take off Significant adoption but often small and localized Should not focus just on food staple technologies
Cash crops, horticulture, livestock, fish Not just yields but labor productivity
Labor saving technologies? Diversity of conditions and technologies
No ‘silver bullet’ or transformative technologies Focus should be on:
Investing in generating more and better technologies and
Enabling policies and institutions for adoption
The Productivity Challenge
Capacity Constraints within Science and Technology systems
Africa’s technology generation and dissemination systems often face:
Weak human capital Poor facilities Low levels of overall investment
Leading to High levels of fragmentation /isolation among
practitioners Financing spread over wide range of priorities-
Africa’s 2008 Ag. R&D investment totaled $1.7 billion - equal to Brazil - but spread over more than twice as many scientists (ASTI)
CAADP Pillar IV Advocates:
Renewing the ability of ag. technology systems to efficiently and effectively generate and adapt new knowledge
Technology delivery systems that rapidly bring in innovations to farmers and agribusiness
Enhanced rate of adoption of technologies
Through: Larger investments in agricultural research, extension and
education systems Institutional reforms that increase efficiency and
effectiveness of research and extension spending Harmonization of external support
FAAP – Implementation of Pillar IV
Framework for Africa Agricultural Productivity (FAAP) - Guiding Document
FAAP is a guide but also an “agreement” FAAP provides guiding principles on best
practice to improve performance of agriculture technology systems
The adoption of FAAP has allowed a broad group of development partners to start scaling up support and presents an opportunity for harmonization of that support
FAAP Principles
Empowerment of end-users Planned subsidiarity Pluralism in the delivery of agricultural
research, extension, and training services Integration of agricultural research with
extension services, the private sector, training, capacity building, and education programmes
Introduction of cost sharing with end users Integration of gender considerations at all
levels
FAAP Calls for:
Scaling up investments in national and regional approaches
Pillar IV Support within the Bank
Research projectso Regional projects designed to achieve critical mass and facilitate spillover
take-up of resultso National system support – rebuilding, while forcing the link to
dissemination and extension; no free-standing agricultural research projects
o Spill-in through South-South partnerships (EMBRAPA and innovation grants) Extension
o Designs are tailored to constraints e.g. demand (Uganda, Rwanda), supply (Ethiopia), effective diffusion from research (WAAPP), and input/irrigation related (Nigeria Commercial Agric and FADAMA; and WUA elsewhere)
Leveraging resources - large MDTF Biosafety capacity
o Regulatory underpinnings for new seed technologies;
national and regional capacity being built Climate change - impacting research/extension priorities Good practice projects
o West/East Africa Agriculture Productivity Projectso West Africa Regional Biosafety Project
Breakdown of Pillar 4 Column1
Pillar 4 research 274.52
Pillar 4 extension 625.41
Pillar 4 education 10.89
Pillar 4 Aggregate($millions) 910.52
WB Commitments to Pillar 4(US$ Millions)
Regional Agricultural Productivity Programs: Core Approach Shared efforts leading to greater efficiency
– increased specialization Development of critical mass Taking advantage of existing capacity -
development of existing sub-regional centers of excellence
Opportunities center on shared themes that have sub regional importance identified by the participating countries
CORAFWAAP
P
ASARECA
EAAPP
CCARDESA
SAAPP
Regional Agricultural Productivity Programs: Close Linkages to SROs
New Initiatives in Agricultural Education and Training Working Group - RUFORUM, ANAFE,
FARA, NPCA
IDA Regional Project on Tertiary Agricultural Education
MDTF to support university partnerships – (USAID, France, DANIDA, others?)
Looking Forward
Economic Development Perspective Need to Scale-up Pillar 4 investments – long-
term payoff Need to do this through building African
institutions Invest at both regional and country level CAADP provides foundation
Development Community considerations Need to demonstrate document impact – short
term gains and MDG gains Need to demonstrate efficiency in use of funds
Thank you !