aid effectiveness to agriculture and food security

Tim WaitesDFID Livelihoods Adviser,Policy and Research DivisionPrague Seminar, 18th February 2009

Aid Effectiveness to Agriculture and

Food Security

1 Palace Street, London SW1E 5HEAbercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

Overview:

• Introduction: DFID overview and policy in agriculture

• Agriculture context and DFID policy• Effective aid modalities – some case

studies• Food price volatility • Conclusions

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

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

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

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

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

DFID Bilateral Spending on Agriculture2006/7

Budget support15%

Agriculture policy17%

Land policy28%

Livestock policy3%

Rural services12%

Animal health0%

Food security5%

RNR Research11%

Agriculture production9%

Other8%

Budget support

Agriculture policy

Land policy

Livestock policy

Rural servcies

Annimal health

Food security

RNR Research

Agriculture production

DFID and Agriculture:

• 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 BILATERAL SPENDING AND AGRICULTURE

0%

2%

4%

6%

8%

10%

12%

% o

f b

ilate

ral p

rog

ram

me

Africa

Asia

Total

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

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


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


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

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

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.

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

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

aid effectiveness to agriculture and food security

Documents