underlying causes of poverty in agriculture care poverty workshop 16 th june 2010 dr george welton
TRANSCRIPT
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Underlying Causes of Poverty in Agriculture
CARE Poverty Workshop 16th June 2010
Dr George Welton
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The ProblemLow input = Low output
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4 Main Causes
• Structural – irrigation, size of land-plots, credit, government policy and funding
• Education – in production, markets, finance• Social – Collective and social action• Markets – imports, closed or hard to access
export markets
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Structure• Land-plots– Less than 1 hectare of cropped land– Split between 3-4 different plots– Land as a source of security– 2 million hectares of undermanaged land
• Irrigation– WB project repaired physical structures– Needs local management – Amelioration
Associations
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Structure• Credit– High cost– Banks unprepared to use land as guarantee– Fear of debt – for reasons of security
• Government– MoAg about 1% of government spending– Unclear policy on agricultural priorities– Centralisation of decision making– Little local government capacity
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Education• 908 people trained in agricultural in VET
Centers in 2009/2010 across the country– No national system for training small farmers– Little infrastructure for community-based
education of farmers– Few community based associations
• Little information on new markets and prices• Little information on business planning
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Social Capital and Local Communities• Inability to work collectively
– Failing amelioration associations and low payment for irrigation– Little collective management of farm machinery– Higher input prices and lower use of inputs– Lower sales prices
• Few Community Based Organisations– Little knowledge transfer– No input into management of shared resources or protection
against disease• Little interaction with central/local government
– No input on management of shared resources like land– Little information or input on management for disease risk
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Community Organisations can help…Farm Associations….
•Can utilise and manage assets…
•Can buy cheaper inputs•Can collectively sell outputs•Can share knowledge
oOn goods oOn markets and prices
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Other Community Organisations
Amelioration AssociationsNeeded to…•Build trust in the system and local ownership•Collect fees from small farmers for irrigation•Maintain small infrastructure
Agricultural Service CenterNeeded to:•Access to reliable inputs•Source of expertise and advice•Even small machinery
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CLOSED
Growingexports
Similar products
Cheaper products
West:Supply Issues
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Exports doing better slowly…Official Exports 2004-2009
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2009 Exports
$70 million nuts
$15.7 Citrus – mostly manderins
$32 million wine $54 million Spirits (mostly Cognac)
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2009 Exports surprises
Live animal exports2007 - $42,0002009 - $34 million
Cattle Sheep
Azerbaijan 16.5 2.1
Egypt 0.4
Lebanon 3.8
Saudi Arabia 9.3
Armenia 0.8
Jordan 1.1
Total 16.9 17.1
Exports (Million USD)
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Food Imports and Exports(Million USD)
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Imports….still space to substitute
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Meat Imports 2009
$37 million mostly from USA
$12 million mostly from Brazil and Canada
$10 million mostly from India
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Vegetables
$2.6 million
Milk, dairy and honey $24 million.
Most milk is powdered and VERY cheap
$3.5 million $3.7 million
Onions and garlic $3.8 million
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Conclusions• Even infrastructure is social and needs
community ‘buy-in’ if it is to be beneficial to poor communities
• Widening participation and ensuring security is essential for strengthening markets
• Import substitution in food appears to offer the greatest opportunity for pro-poor growth in the medium term
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Thank you