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Aid Effectiveness to Agriculture and Food Security

Aid Effectiveness to Agriculture and Food Security. Tim Waites DFID Livelihoods Adviser, Policy and Research Division Prague Seminar, 18 th February 2009. 1 Palace Street, London SW1E 5HE Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA. Overview:.

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Aid Effectiveness to Agriculture and Food Security

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  1. Aid Effectiveness to Agriculture and Food Security Tim Waites DFID Livelihoods Adviser, Policy and Research Division Prague Seminar, 18th February 2009 1 Palace Street, London SW1E 5HE Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

  2. Overview: • Introduction: DFID overview and policy in agriculture • Agriculture context and DFID policy • Effective aid modalities – some case studies • Food price volatility • Conclusions

  3. DFID – facts and figures: • UK Ministry devoted to poverty eradication • Headed by 4 ministers • Annual budget ’08 £5.2 billion (€5.9 billion) or 0.51% of GNI – 0.7% by 2013 • Bi-lateral aid (£3 b): • PRBS; Sector PRBS; NGO & CSO (£.317 b); Humanitarian aid and debt relief • India, Ethiopia and Sudan top 3 recipients • Multi-lateral aid (£2 b): • EC (£1 b); WB (£0.5 b); UN (0.25 b); International Research (£0.2 b) • UK Debt Relief (non-DFID) £1.9 b

  4. 22 Public Service Agreement (PSA) countries67 Offices overseas2,500 staff – half are overseas.

  5. DFID’s 4 Institutional Priorities • Growth and Trade is the way out of poverty • Reform of the International Institutions • Climate change is a development issue • Conflict and fragile states are holding back development

  6. Context:International Support for Agriculture • Decline in ODA to agriculture: 18%-3.5% between 1985-2004 • But recent increasing focus: • World Bank increasing lending • $1 billion 2000-01 • $2 billion 2006-07 (8% of lending IDA) • EC increasing lending on Agriculture and rural development in new EDF by 15% • New World Development Report shows the way • But need to • Strengthen quality of policy and • level and effectiveness of investment

  7. DFID Agriculture Policy, December 2005 • Title: Growth and poverty reduction: the role of agriculture • Policy areas: • Supportive policy frameworks for agriculture • Improved growth and poverty impact of public spending on agriculture • Making input and output markets work better for the poor • Improved access to land and secure property rights • A role for poor people in changing supply chains: exports, standards, supermarkets • Addressing hunger, risk and vulnerability • Trade

  8. DFID Bilateral Spending on Agriculture 2006/7 Rural services RNR Research 12% 11% Budget support Agriculture production Livestock policy 9% Agriculture policy 3% Land policy Animal health Livestock policy 0% Landpolicy Other Rural servcies 28% 8% Food security Annimal health 5% Food security RNR Research Agriculture production Budget support 15% Agriculture policy 17%

  9. Bi-lateral - from 9.8% in ’90/1 to 4.8% ‘06/7 (£121 million per annum) Multi-lateral spending £76 million (‘05/6) But research spend will be £400 million over 5 years DFID and Agriculture:

  10. Mechanisms for effective aid to agriculture – Bi-lateral aid • Bi-lateral aid - engagement at country level but context matters: • PRBS in Uganda with support to GoU’s plan for modernisation of agriculture • PRBS in Rwanda - DFID has supported development of national land policy

  11. Bi-lateral aid – cont. Sector PRBS in Ethiopia – the role of rural safety nets: • Transitional programme - from food aid to long term development • Donor funded (7), government and NGO implemented • 7.3 million – 85% are food insecure farmers • Productive public works programmes paying cash and food to build assets • Annual cost $300 million • DFID contribution £82 million

  12. Bi-lateral aid – cont. Bangladesh Chars Livelihood Programme -£50 million: • Fully funded by DFID, private sector managed, NGO implemented – no govt! • Provision of productive assets – livestock and land – + weekly stipends + training • 50,000 poorest households targeted • Example how agriculture plays an important part in reducing vulnerability by building assets

  13. Bi-lateral aid – cont. Zimbabwe Protracted Relief Programme - £36 million: • Low cost drought resistant conservation farming techniques • 1.5 million poorest farmers and destitute households • Fully funded by DFID and implemented by an NGO consortium – no govt! • Demonstrable and measurable impacts on agricultural productivity, incomes and food security

  14. Mechanisms for effective aid to agriculture – Multilateralism Maximise DFID leverage to improve effectiveness of intl. response to agriculture • Engage and influence EC policy processes • Engage and influence UN reform + strategic planning • WB – DFID funded and fed into WDR • Advancing a Green Revolution in Africa (AGRA) – opportunity to support and influence a new approach to multilateralism • Comprehensive African Agriculture Development Programme (CAADP) – African led (AU) regional framework to spend more and better in agriculture –country commitment to spend 10% budget on agriculture

  15. Mechanisms for effective aid to agriculture – Research Agriculture research remains a DFID priority: • Delivers high returns and a key building block for effective agricultural development. • DFID has been using its influence internationally and regionally to increase effectiveness e.g. through reform of the CGIAR. Options to address this: • DFID Research Strategy - increased commitment to agricultural research to £400 million over 5 years. • New research strategy offers an opportunity to scale up and address food price rises.

  16. Current context: Food Price volatility Politically, agriculture and food security are back on the agenda – FAO estimate there are now nearly 1 billion hungry: • DFID response of £1 billion to address short, medium and long term responses • International response is $10 billion • DFID supports the UN HLTF - Comprehensive Framework for Action • DFID is calling for a Global Partnership for Agriculture and Food Security (GPAFS) as a long term coordinated international response

  17. Conclusions: • Context matters – design your instruments to governance capacity • Where appropriate, national led and owned approaches are best • Political buy-in = sustainability • But using UN and NGOs good work can still be done in fragile states • Don’t forget the broader linkages – rural roads, access to water, health and nutrition, education, markets and trade

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