Jointness of the Evaluation Evaluation process Evaluation objectives Context for ARD in Africa

1. AfDB/IFADJoint Evaluation of Agriculture & Rural Development in AfricaInterim findings and emerging issues

2. Contents • Jointness of the Evaluation • Evaluation process • Evaluation objectives • Context for ARD in Africa • Selected findings (Performance, Partnership, Business Processes, Portfolio Analysis, and Country Visits) • Preliminary conclusions • Issues for the Final Report

3. “Jointness” of the Joint Evaluation • Joint Evaluations are promoted by OECD/DAC in line with the 2005 Paris Declaration on Aid-Effectiveness • IFAD/AfDB evaluation is characterized by a very high degree of “jointness”: represents a “partnership evaluation” • Agreed-upon evaluation methodology, including processes, deliverables & timeframes • A single evaluation team, selected jointly by AfDB and IFAD • One joint final report to be issued by both evaluation outfits • A single budget, financed on a 50:50 basis • Co-ordinated communication throughout

4. Possible Risks and Mitigating Measures of the Joint Evaluation Possible Risks: • Different institutional cultures, methodologies, processes and procedures • Different views and interests among the Managements and Boards • Unclear roles and responsibilities between key partners • Danger of a “lowest common denominator” approach • Timeline – actual time devoted to the exercise longer than planned • Heavy administration and high costs Mitigating Measures: • Formal MOU signed between IFAD and AfDB on the evaluation, including specific governance and management arrangements • Two-tier structure to manage and govern the Joint Evaluation: An Oversight Committee and a Joint Secretariat • Three Senior Independent Advisers of international standing from day one to provide strategic and technical guidance

5. Process • Establishment of an MOU (July 2007) and Approach Paper • Inception Report (January 2008) • Interim Report (April 2009): • Past performance of AfDB/IFAD (meta evaluation) • Emerging challenges and prospects for ARD in Africa • Role of partnerships for development effectiveness • Business processes • Portfolio review (quality at entry) • Country Synthesis Report • Field work in eight countries • Final report (December 2009)

6. Evaluation objectives • Determine relevance of IFAD/AfDB policies and operations • Assess performance and impact of AfDB/IFAD policies and operations • Evaluate strategic partnerships of IFAD/AfDB • Develop recommendations to enhance effectiveness * Forward looking - how can IFAD/AfDB more effectively respond to Africa’s changing environment (food price volatility, climate change, Accra Agenda for Action, economic downturn etc) in partnership with others?

7. Context: Africa on the move • Economic and agricultural growth accelerating • Stronger civil society & improved democratic processes; reduced number of armed conflicts • More regional integration • More space for private sector activities • Rising government commitment to agriculture and rural development • Emerging donors playing increasing role

8. Context: Challenges Remain • Adapting to and mitigating climate change • Volatile prices for commodities and underdeveloped and inefficient input/output markets • New trade regime required; barriers to integration remain • Getting turnaround in fragile states • Weak government capacity & poor quality sector institutions & limited decentralization • Inadequate fiscal commitments from national governments • Slow pace of regional integration: CAADP still nascent • Stagnant volume and quality of aid from traditional donors

9. Emerging Issues for ARD in Africa • Agricultural growth as a key to reducing rural poverty • Need to focus on widely shared growth (“the four Is”): • Improve investment through incentives for farmers & private sector • Close the infrastructuregap • Focus on innovation as the primary motor for productivity • Institutional and human capacity development to overcome weak institutions including for Ag S&T

10. Emerging Issues for ARD in Africa • Improved targeting • Small holder farmers • Majority of poor people in Africa are engaged in agriculture • Producing for subsistence and the market • Smallholder development is a key to reducing poverty • Bottom Billion • Fall into four traps: Conflict, Natural Resources, Landlocked with poor Neighbors, and Poor Governance and Policy • Require different instruments and implementation modalities

11. Emerging Issues for ARD in Africa • Enhanced engagement with the Private Sector • AfDB and IFAD traditionally work through governments • Agriculture is largely a private sector activity • Shift in focus is required (value chain and markets) • Rural Finance • Important input for agricultural and non-farm activities • It is a challenging area requiring innovation

12. Emerging Issues for ARD in Africa • New aid architecture • Exploding numbers of players • Development assistance shifting to new donors: emerging countries and private sector • 2005 Paris Declaration on Aid Effectiveness bringing more harmonization, alignment, managing for results • Growing importance of regional African organizations, e.g. NEPAD, CAADP

13. Emerging Issues for ARD in Africa • Imperative for Regional Integration • Small countries depend on regional integration • Regional infrastructure critical for access to markets • Natural resources and environmental management require trans-boundary collective action • Defence against plant and animal epidemics requires collective regional action

14. Past Performance: AfDB & IFAD Projects (Evaluations 2003-07)

15. Project Performance cont.

16. Project Performance cont. • Overall 55% of projects have a satisfactory or moderately satisfactory poverty impact • Impact was good in agricultural production and physical assets • Impact was less positive in promoting access to markets, strengthening gov’t institutions, and natural resource management • Sustainability is the area of greatest concern • Weak agency performance for both IFAD and AfDB as well for the borrowers

17. Country Performance • Relevance of country programmes lower than for projects • Policy dialogue found to be inadequate • Partnerships with governments have been good while partnerships with other development agencies could benefit from a more systematic approach

18. Performance: Emerging Issues • Micro-Macro paradox • Rethinking project relevance • Not enough attention paid to Gender • Rural Finance requires innovative products • Strengthening sustainability • Enhancing analytic work • Strengthening country presence • Focusing on sub-sectors

19. Partnerships • So far, the IFAD-AfDB partnership has been modest • Other partnerships have been variable and ad hoc • There are opportunities to enhance the partnership: • Joint engagement: complementary strategic areas Joint leverage: funding for ARD in Africa • Joint analysis for better performance • Pooled ARD knowledge & experience in Africa • Shared learning: organisational change processes • Shared resources: programme managers, joint supervision and country presence

20. Partnerships cont. • Overall there is a proliferation of partnerships and competing demands • Move beyond opportunistic partnerships • Require partnership strategies and organizational reform

21. Business Processes • Many important changes to business process have taken place • Long term strategic focus needed by both agencies • Knowledge inadequately captured and shared: much is generated by consultants and must be passed on. • Country presence vital withgrowing emphasis on country ownership, donor coordination and mutual accountability • HR: the introduction of new policies and operating models require changes in HR • Reforms are at an early stage; thus, it is important to stay the course

22. Ongoing Portfolio Analysis Review • Objective: To assess the extent to which lessons from past operations and recent reform initiatives have been reflected in a recent country strategies and operations • Signs of recent improvements: • Improvement in design of strategies and projects • Stronger policy dialogue • Increasing focus on alignment and harmonisation • IFAD progressing on knowledge management

23. Ongoing Portfolio Analysis Review • But attention still needed on critical issues: • Risk analysis / risk management • Sustainability and exit • Rigorous analysis of policy context • Strategic direction and comparative advantage • Effective field presence • Gender Analysis is still often lacking • Little attention to comparative advantage (selectivity) how to generate partnerships • Emphasis on lending agency. Borrower performance has received little attention

24. Country Visits • The country visits were intended to verify findings and test hypothesises from the Interim phase. Findings include: • Country context matters! – and is challenging • Improvements in policies and business processes are evident • Limited engagement on policy / policy dialogue • Lack of selectivity and hard-to-implement multi-component projects

25. Country Visits cont • Weak risk analysis / management • Perceived comparative advantage not reflected in (diverse) sector portfolios at country level • Weak knowledge generation and use – lost opportunity for greater relevance and better performance • Flexibility and responsiveness important, especially in fragile states and MICs

26. Preliminary Conclusions • ARD work in Africa is complex- responding to risk and vulnerability requires flexibility and multiple, context-specific project components • IFAD-AfDB response to context has not been adequate • Increased Gov’t commitment to ARD (Maputo) • Recognition of the contribution and importance of AfDB and IFAD to the sector • Non-lending activitiesare as important as lending activities • Opportunities to improve performance, impact and sustainability as shortcomings can be addressed • Strong partnerships are key - with each other and with other donors and national governments. • Complementarity between the organizations could be the basis for future partnerships

27. Issues for the Final Report • Africa: positive trends, but continuing volatility and challenges • Country context matters! Address diversity • Doing things right: business process reforms helping to improve performance...but are we doing the right things? Relevance and selectivity also key to better results • Better knowledge generation and use in policy and operations, including for risk management, is a missed opportunity • ‘Partnership proliferation’ or partnering for results? Identify and develop comparative advantage (within evolving aid architecture), especially at country level • Manage the change: coordinate not only between organisations but also within them by adopting appropriate business processes