rural development priorities and reaching the rural poor
TRANSCRIPT
RURAL DEVELOPMENT PRIORITIES AND REACHING THE RURAL POOR
Some Countries have had successful rural development
Successful broad based rural development in China, Thailand, Central Europe, parts of Latin America was initial stimulus to their rapid economic growth
Some Global Success in Food Production, 1959-1997
Broader Successwith Agriculture
Broader Successwith Agriculture
International price of food
decreasing
Caloric intake rising
Percent of undernourished
fallen
Rates of return to research projects high
Success rate of World Bank agricultural projects about 70% (OED)
Agriculture contributed to the success in rural development in China, Thailand, Central Europe, parts of Latin America
The MDGs: 8 goals and 18 targets – all interrelated
The goals are:
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria and other diseases
7. Ensure environmental sustainability
8. Develop a Global Partnership for Development
Prognosis for Poverty, Education and Child Mortality MDGs
Poverty headcount (%
living on less than $1 per day
Primary completion rate
(%)
Under-five child mortality (per
1,000 live births)
RegionMDG target
2015 growth alone
MDG target
2015 growth alone
MDG target
2015 growth alone
East Asia 14 4 100 100 19 26
Europe & Central Asia 1 1 100 100 15 26
Latin America and the Caribbean 8 8 100 97 17 30
Middle East & North Africa 1 1 100 96 25 41
South Asia 22 15 100 100 43 69
Sub-Saharan Africa 24 35 100 60 59 151
Source: Global Economic Prospects, World Bank, 2003; Devarajan, S.,”Growth is not Enough,” World Bank, 2001
AGRICULTURAL DEVELOPMENT IS AT THE CONFLUENCE OF THE MDGs, HUNGER, AND SOCIAL PROTECTION
Agriculture is key to: Growth in most low income countries
Household poverty reduction of the rural poor
Food security through farm income growth and in some cases food availability
Safety net for the rural poor (who are often subsistence farmers)
Agriculture Must
Grow Faster in
Most Low
Income
Countries to
Achieve
Millennium
Development
Goals
Agriculture Must
Grow Faster in
Most Low
Income
Countries to
Achieve
Millennium
Development
Goals
Rural poverty and low agricultural growth
persists in most low income countries
3.6 % p.a per capita GDP growth is
needed in low income countries to cut
poverty in half by 2015
24% of low income country GDP is
agricultural; agriculture must grow at
about 3.5% p.a to achieve the overall
growth and poverty reduction objective
Can Agriculture Grow Faster in Low Income Countries?
Water Supply is Less Assured in Rural Areas
Rural Education is Weaker Than Urban
A Major Challenge: Declining Interest by the Bank and by Other Donors
A Major Challenge: Declining Interest by the Bank and by Other Donors
Champions of rural development are weak
Other priorities have been added by governments and donors; developing countries allocate half the public budget to rural areas as they do to urban
Rural development projects often performed poorly in the past
Irrigation, water, forest, fisheries projects are often
controversial
Private returns to investment in agriculture in low income countries is often very low
Consequently, the impact of the Bank’s previous rural development strategy was negligible.
APPROACH TO THE NEW STRATEGY
APPROACH TO THE NEW STRATEGY
Regional rural development strategies
Review of project experience and analysis
Consultations in client countries, in the Bank, with donors and
NGOs
Analysis published in technical documents
Corporate strategy developed through ‘bottom-up’ approach
Detailed implementation plan
A SHIFT IN EMPHASIS
Giving voice to the rural poor
Addressing the entire rural space
Forging alliances of all stakeholders – donors and recipients
Addressing impact of global developments on client countries (trade, subsidies, climate change)
NEW STRATEGIC PRIORITIES
Fostering an enabling policy and institutional environment for broad-based and sustainable economic growth;
Enhancing agricultural productivity and competitiveness;
Encouraging non-farm economic growth; Improving social well-being, gender equity, managing risk,
and reducing vulnerability;
Enhancing sustainable management of natural resources.
RESPONSIBILITIES OF DEVELOPED COUNTRIES
Agricultural trade liberalization, to the levels of tariffs and non-tariff barriers which are established for non-agricultural products.
Reduction of agricultural subsidies, which currently depress world prices and expand world agricultural market share held by developed countries.
Expansion of agricultural and rural development assistance to developing countries to the levels characteristic of the early 1990s.
RESPONSIBILITIES OF DEVELOPED COUNTRIES (CONTINUED)
A focus on Sub-Saharan Africa is required in international assistance for rural development given the particularly difficult food and agricultural situation which exists there.
Better coordinate aid flows to developing countries.
Support to the transfer of scientific findings of relevance to developing country agriculture.
Expanded investment in rural infrastructure, rural health, education, energy, telecommunications, in conjunction with local communities and the private sector.
Promotion of producer organizations and trade associations, so that rural people have more responsibility and more say in rural based activities.
Improvement of governance, and decentralization of some government functions to local government authorities, local community groups, and the private sector.
Where necessary, improved land administration and land reform.
Equity, especially in terms of gender.
UNDERLYING FACTORS OF SUCCESS FOR DEVELOPING COUNTRIES
WHAT’S NEW IN AGRICULTURE?
From staples to high value crops
From narrow agricultural focus to broader policy context – including global impacts
From focus on crop yields to market demands and incomes
From primary production to entire food chain
From agriculture to rural space
From thinking of farms as homogeneous to heterogeneity
From public to public-private partnerships, including community driven development
From avoidance of issues to head on approach (biotechnology, forestry, water)
RECOGNITION OF THE IMPORTANCE OF RURAL NON-FARM ECONOMY AND THE PRIVATE SECTOR
Improve investment climate for private investment in rural areas, promote labor mobility
Provide agricultural, financial, infrastructural, market and social services in part through the private sector, using market solutions
Promote producer organizations, trade associations, business chambers, and public-private cooperation
DEVELOPING RURAL INFRASTRUCTURE AND SOCIAL ASSETS, AND MANAGING RISKS ARE ESSENTIAL
Improve access to infrastructure and social services
Improve access to nutrition and health
Increase access to and improving the quality of rural education
Address HIV/AIDS in rural programs
Provide assistance in managing household food security
Provide new risk management instruments
Build the capacity of the public and private sectors and civil society to manage their own services
A CONTINUED COMMITMENT TO ENHANCING SUSTAINABLE MANAGEMENT OF NATURAL RESOURCES
Environment, forestry and water strategies in the Bank give overall guidelines in approaching rural natural resource management
Elements will include:
Reducing land degradation
Improving water management
Sustainable production of forest products while protecting the environment
OVERALL IMPLEMENTATION THRUSTS
Raise the profile of rural development in national policy
Scale up innovative and successful investments, while exploring new approaches and innovation
Improve the quality and impact of donor operations
Implement global priorities (e.g. reduce deforestation, water pollution, over-fishing, loss of bio-diversity, soil erosion, adapt to climate change, bring agricultural science to poor countries)
Enhance partnerships between governments, civil society, NGOs, and donor organizations for rural development, including a global forum for rural development
Countries for focus for national rural development strategy preparation – first cohort
AFR EAP ECA MNA LCR SAR
FY03MadagascarNigeriaCameroonEthiopiaAngolaLesothoFY04TanzaniaTogo Burkina Faso D.R. of Congo
FY03Vietnam Philippines Papua New Guinea FY04Indonesia
FY03RussiaTurkeyUzbekistanUkraine
FY03Yemen Djibouti FY04Egypt
FY03NicaraguaBrazilColombiaMexico FY04Honduras PeruPanamaBolivia
FY03-FY04AfghanistanBangladesh Sri LankaPakistanIndia, and: Uttar Pradesh MaharashtraAndhra PradeshKarnataka
Bank Operations in Rural Space – Potential Areas for Scaling-Up and Innovation
Objective Theme
Policy and Institutions
agricultural policy reform (ASL, PRSC, SAC)
development of rural strategies
institutional reform and capacity building
participatory planning
Agricultural Productivity and Competitiveness
land reform and administration
research and extension
information technology – marketing and knowledge
irrigation and drainage
support for producer organizations/user groups
food safety and agribusiness
rural finance – including micro finance
Bank Operations in Rural Space – Potential Areas for Scaling-Up and Innovation (cont.)
Objective Theme
Non Farm Rural Economy
rural non-farm economy including business developmentprivate sector role in service provision
infrastructure, including small towns
Strengthening Social Services and Reducing Risk and Vulnerability
health and education: specific rural issues
community driven development/district programs
social inclusion, including women and girls
commodity, climate, and disaster risk management
emergency reconstruction
Sustainable Natural Resource Management
soil fertility
watershed development
community natural resource management
community forestry
fisheries
Unable to give proper voice to the rural poor at national level
Desired multi-sectoral collaboration does not materialize within donor agencies and governments
Instruments available to donors not conducive to rural focus, learning, and innovation
Industrial country tariffs and subsidies continue to hinder developing country access to markets
RISKS