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New CGIAR and the Fund

New CGIAR and the Fund. Jonathan Wadsworth Executive Secretary, CGIAR Fund Council and Head of the CGIAR Fund Office ISPC Meeting 14-16 Sept 2011 Mexico. CHALLENGE, REFORM AND CHANGE. Mega-Trends Driving the New Food Price Equation. Mega-Trends Driving the New Food Price Equation (CONT’D).

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New CGIAR and the Fund

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  1. New CGIAR and the Fund Jonathan Wadsworth Executive Secretary, CGIAR Fund Council and Head of the CGIAR Fund Office ISPC Meeting 14-16 Sept 2011 Mexico

  2. CHALLENGE, REFORM AND CHANGE

  3. Mega-Trends Driving the New Food Price Equation

  4. Mega-Trends Driving the New Food Price Equation (CONT’D)

  5. Food Price Inflation and Volatility: • A Wake-up Call for Leaders and Institutions Price Index, July 2008 = 100 (Prices through to end January 2011) Source: World Bank

  6. The Need to Change: • Why We Started the Reform in 2008 External Challenges Internal Challenges • Increasing food prices, energy crisis, emerging climate change issues • Declining yield growth • Slow increase in world food production

  7. Rising to New Challenges:Elements of CGIAR Reforms Components of New Structure

  8. Focusing on Results that Matter to People and the Planet Stronger Food Security Reduced Rural Poverty Better Nutrition & Health Sustainable NRM

  9. Global Research Programs Underway

  10. CRP processing update • 4 CRP Proposals to be decided at the Nov FC meeting - CRP5 (Water), CRP1.2 (Humidtropics), CRP3.5 (Grain Legumes), and CRP3.6 (Dryland Cereals) • by the end of Nov FC meeting all 15 CRPs that are included in the current research portfolio of the Consortium and as described in the SRF would have be discussed. • All 5 CRP proposals that received conditional approvals (Category II) at FC4 and FC5 are expected to be submitted to FC for approval on a “no-objection” basis during the last quarter of 2011 • Disbursements have been made to two CRPs that started their implementation in Jan 2011: CCAFS- $12.6m from W2; GRiSP – $4.7m from W2 (in addition, $10m disbursement from W1 to GRiSP is in process) • CPA for CRP3.2 (Maize) is currently being processed • CPAs for CRP6 (Forests), CRP1.3 (Aquatic Systems) and CRP3.7 (Meat, Milk and Fish) are expected to be processed shortly • awaiting Performance Indicators Matrix

  11. THE CGIAR FUND

  12. What is the Fund A new multi-donor, multi-year trust fund that supports CGIAR’s Strategy and Results Framework (SRF) - defines shared research goals, objectives and target results. The Fund will improve the quality and quantity of funding by harmonizing donor contributions for a common agenda Gives donors a new low-cost vehicle for results-based investments in international research on big issues – (increases investment “critical mass”) Incentive to reduce plethora of restricted projects and focus resources on agreed priorities

  13. CGIAR (2007 data)2760 restricted projects with total value $320m(in 2010: 2724 projects worth $445m) % cumulative Project size in thousands of dollars/year

  14. Three Funding Windows Fund Donors may designate their contribution to one or more of three funding “Windows”: WINDOW 1 ‑ The least restricted type of funding. The Fund Council sets priorities and makes specific decisions about the use of W1 Funds; WINDOW 2 – Contributions designated by Fund Donors to one or more specific CRP. Once W2 funds are allocated to a given CRP, they flow to the Lead Center implementing the CRP; WINDOW 3 – Funds that Fund Donors wish to allocate to specific Centers. Neither the Consortium nor the Fund Council makes decisions on use of W3 funds – but expected to contribute to SRF.

  15. Funders ForumApril 7, 2011, Montpellier, France

  16. PROJECTED FUND FLOWS

  17. Contributions Already in the Fund(as of Sept, 2011) Sweden $16.79 million Netherlands $5.39 million United Kingdom $40.7 million World Bank $50 million Total Receipts in the Fund: $166 million Ireland $2.59 million Australia $6.94 million Nigeria $0.17 million Portugal $0.29 million Bill & Melinda Gates Foundation $3.77 million Russia $4.5 million New Zealand $2.01 million Norway

  18. Contribution Agreements in Progress(as of Sept, 2011) United Kingdom World Bank Luxembourg Denmark France Italy Turkey Morocco South Africa VALUE $102 million

  19. Plus strong prospects for 2011 ($ millions)data to Sept 2011 Estimated requirement of Consortium from W1 & W2 is $240 million

  20. Expected proportions of Fund flows 2011 Estimated total $357million

  21. Funding news and progress • Efforts to get multiyear pledges from donors are bearing fruit – Russia (new donor with 15 m over five years), Luxembourg (3 yrs), AfDB (5yrs), and Belgium (3yrs) expected. • A donor meeting is planned for 2012 to seek agreement on a more secure way of receiving multiyear donor pledges. • Rate of donor entry into the CGIAR Fund is high with 70% of top twenty donors to the CGIAR already in the CGIAR Fund. • Working with the CO to derive a detailed report on bilateral funding received by the Centers in 2011 and a plan for monitoring current multi-year bilateral contracts to ensure alignment with CRPs and absorption into CRPs.

  22. Resource mobilization issues • FO efforts on resource mobilization (RM) include: • Getting current CGIAR donors to use the Fund for the majority of their contribution to the CGIAR (USAID, CIDA, SDC, ACIAR) • Convincing current donors to use the Fund (Germany, Japan, India, IFAD, EC) • Bringing new donors into the Fund (Israel, Kazakhstan, UAE, Mexico) • Moving window 3 donors over to windows 1 or 2 (Gates Foundation, Turkey, Morocco, Italy) • Increasing the contribution of existing donors to the Fund (Australia, DfiD, Switzerland, Sweden, Gates Foundation, USAID, Canada) • Clarity is being sought on the respective roles of the FO and Consortium, including the Centers with respect to resource mobilization in the CGIAR.

  23. SYSTEM EFFICIENCY

  24. Efficiency and effectiveness in the CGIAR • Measures taken so far: • Greater scrutiny and alignment of System Costs • Standard comparable Financials of all CRP Proposals • One Corporate System (OCS)—a multi‐center, project management, financial accounting and HR system • Measures under development: • Efficient evaluation technologies, including better metrics • Effective audit and rationalization of the 'administrative and management' functions across CRPs and Centers • Specialization and elimination of CG duplication – more partners • Earlier decisions on research viability with greater rigor

  25. INCREASED & SUSTAINED INVESTMENT IN CGIAR

  26. Renewed Investmentto Overcome Past Neglect Reference : SRF (2011); IFPRI (2008). To achieve a food-secure world by 2025 requires that agricultural productivity grow at a rate of 0.5% annually over baseline. To achieve this growth rate, investment in public agricultural research for development needs to expand from $5.1 billion per year now to USD $16.4 billion by 2025. International agricultural research for development carried out by CGIAR currently accounts for 10% of the public investment in developing countries Assuming its proportion is held constant, CGIAR research should have an annual budget of $1.64 billion by 2025. Since it takes time to deliver research results, increased and sustained investment must start now.

  27. Increased and Sustained Investment:Doubling of CGIAR funding in five years (2008-2013) 2 2 2 1 1 Estimate 2 Proposed

  28. A Call to Increased & Sustained Investment Based on IFPRI analysis, to maintain momentum of international agricultural research to support expanding regional and national agricultural productivity, investments in the CGIAR need to increase at least 4.2% annually to reach 1.6 billion by 2025.

  29. THANK YOU! www.cgiarfund.org cgiarfund@worlbank.org cgiarfund@cgiar.org

  30. Receipts in the Fund (as of July 8, 2011) *including Window 3 contribution

  31. CGIAR Expenditure by Region, 2010 (International Public Good Research is fungible) CWANA 8% Asia 29% SSA 50% LAC 13%

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