The investment challenge:Time for a step-change in our actions

Mark Holderness, GFAR

Investing in R & D can:increase agricultural productivityimprove sustainabilitypromote food and nutrition securitysupport ecosystem services, and promote economic growth and rural development.

(G20 scientists, 2014)

GFAR is all of us…

Agriculture = nearly one-third of GDP in low income countries

VISIONThe Global Forum makes agri-food research and innovation systems more effective, responsive and equitable, towards achieving Sustainable Development Goals

MISSIONPartners in the Global Forum, at national, regional and international levels, advocate for, and catalyse Collective Actions that strengthen and transform agri-food research and innovation systems

Partners in GFARFarmers CGIAR & AIRCA

Consumers FAO

NGOs/CSOs IFAD

Private sector networks Finance & investment

Regional Research & Devt Fora Youth

Advisory services Women

Education Advanced research (G20)

GCARD Road Map: “Research is essential but not in itself sufficient for development impact”

Takes forward new GFAR Collective Actions to validate, increase and improve investment in National agri-food research and innovation systems

Frames how international research best aligns with and adds value to national capabilities and aligns with national and regional demands

Why GCARD3 is so important

$31.7 billion Investment needs to

triple by 2025 to meet challenges

BUT way off target – 22% in a decade

Under-investment in national systems

- Incoherent national

systems lack resources to turn innovation into

enterprise

- Fragmented, volatile

aid flows-

Narrow focus on productivity, not

opportunity

Much greater investment is needed NOW

Evidence is variable but clear need for increase CGIAR SRF 2010: Investments in national agricultural research

and innovation systems need to triple by 2025 to meet changing global food needs

UN 2015: Achieving Zero Hunger by 2030. 17% of new rural development investments, i.e. USD 17,628 million p.a., should be in agricultural research, development and extension, investing from innovation into impact

Uruguay (M Allegri 2015) INIA Benefit: Cost ratio = 17:1 USDA – (TM Hurley et al 2014) 13.6% on average, for 4.1 billion p.a.

invested, annual return is $439 million CGIAR - $1 invested in CGIAR = $9 of additional food, ROR = 39-

100%

A step change increase is required, bridging the Missing Middle with better investments

Formal institutional walls & hierarchies are breaking down, actions occurring by networks and soft power

Social media cut quickly through layers of communication and control

Economic growth in Asia, yet big inequalities remain. Subsidiarity and participation are the required reality

From linearity to complex Knowledge and Innovation Webs, grounded in local realities

ODA will not suffice. Addis Ababa Action Agenda (2015): Many new forms of financing are required to fill the gap: private sector investment, national tax collection, remittances and innovative financial instruments

Innovation and enterprise are changing fast

The challenge

How do we :

• Transform national agricultural innovation systems to deliver change at scale?

• Break down silo walls between us to generate, share, transform and use agricultural knowledge?

• Attract sustainable, long term investment to the levels required?

• Ensure agri-food innovation creates viable and attractive opportunities for women and young people?

• Focus on opportunities for women and youth• Turns innovation into enterprise, addressing

key blockages in agri-food value chains• Integrated & leveraged funding, driven by

national systems • Demand-driven processes, technical support

as needed• Farmers and consumers empowered with

knowledge, capacities and resource control• Working across all relevant sectors –

Public/Private/Producer Partnerships (PPPPs) • Links to existing and new innovation

processes

Collective Action is required

The Solution

More & Better Investment

+Collective

actions addressing

national needs +

Capacity support

Agricultural research,

education, extension and enterprise that delivers change and growth for the rural poor,

especially women & youth

Integrated Agricultural Innovation & Enterprise Facility

International technical support

to help overcome key barriers, adding

value & tools & technologies to

address key blockages

National delivery by informed &

empowered local actors & mentors,

working together in value-web based

innovation platforms

How it can work...

Investing in innovation: national commitments and

coherent development funding

with accountablemechanisms

1. Community foresight inclusively defines needs, desired futures and potential solutions

2. Creates equitable PPP partnership and accountability

3. Increases investments in human, institutional and financial resources for AR4D systems

4. Develops human and institutional capacities to generate, access and make use of agricultural knowledge & innovation

5. Effectively links innovation and development programmes and policies; and

6. Demonstrates its value by involving stakeholders in showing and reporting results

Alignment with the GCARD Roadmap

Embed innovation in development investments

• Research and innovation as components of integrated development, not separate projects

• Develop the capacity of multi-stakeholder Innovation Platforms

• Link youth and women’s opportunity & enterprise to loans & resources

• Foster policies for SME development and rights

• Producer accountability of the investment processes

Collective actions catalyzed to improve Capacity in Agricultural Innovation institutions of all kinds e.g. Coherent approach (TAP, GAP, Private

Sector) to strengthen innovation & enterprise capacities

Transforming formal agricultural education and informal learning (GCHERA & YPARD)

Reform & strengthen advisory service & extension sector (GFRAS)

Open access to information & data (GODAN & CIARD), transformed into new agricultural knowledge & innovation

Supporting mechanisms: Partners in GFAR catalyzing capacity development through Collective Actions

Policy makers, scientists, researchers

Entrepreneurs, traders, processors, wholesalers

Rural technicians and artisans

Extension workers, change agents

Small-holders and farmers Information, learning, resources, inputs, support

I. Frempong

Demonstrate value, convince the Financiers

• Develop capacity of agrifood R & I systems in strategy, planning , priority setting, managing change, results-based management and stakeholder involvement

• Establish systems of M & E, impact assessment at national and regional levels

• Foster learning on transformative processes and mutual accountability

• Develop capacity of stakeholders to document success stories and lessons learned

• Provide technical support for effective governance and management

National demand, Nationally owned & led Collective action demanded by Ministers, e.g. Egypt, Palestine, Fiji, Nepal, Senegal, Sierra

Leone, IFAD, GAFSP & TAP focal countries Policy demands: FAO-COAG, G20, CGIAR, IFAD,

GAFSP, EC- AGRIFI Investments & capacities empower change and

overcome key blockages, risks and incentive barriers, turning innovation into impact

Local Innovation platforms at core, processes driven by local & national needs, national systems, national voices

Partners in GFAR involved at multiple levels – national, regional and international

Processes for change – e.g. Egypt

Massive concern at rural out-migration and urban destabilization Government to invest $22 billion in opportunity for

rural youth Focus – women & youth in poor Governorate of Luxor Innovation into enterprise – Innovation platforms,

system funding integrated & cross-leveraged Partners – private sector, women’s groups,

universities, ARC, extension, NGOs, social development funds, with international support

Next steps

• Endorsed by IFAD and FAO, AfDB• Welcomed by the G20 Agricultural Chief Scientists• Working with funding agencies, developing the

right focus and leveraging for each in sustainable funding mechanisms

• Bilateral support - positive responses from a number of countries and Foundations

• Working from the outset of rural loan needs-assessment processes: IFAD, GAFSP, AfDB, EC, Asian financing???

Thank You