peter pichler tajikistan donor principle presentation jan10

Prepared by: Peter Pichler, CPM Prepared by: Peter Pichler, CPM TajikistanTajikistan

Oxfam GB Director

Barbara Stockington

Visiting a cotton field in Khatlon

Tajikistan


Livelihood Livelihood protection and promotion in protection and promotion in

agriculture: agriculture: ‘Complementing Cotton’‘Complementing Cotton’

Peter PichlerPeter Pichler

OXFAM GB OXFAM GB

Tajikistan Country ProgrammeTajikistan Country Programme

DushanbeDushanbe


Impacts of agricultural growthImpacts of agricultural growthon poverty – in theoryon poverty – in theory

Through:Through:

• profitability gains for farmersprofitability gains for farmers

• labour market gains for labourerslabour market gains for labourers

• product prices for consumersproduct prices for consumers

• “ “knock-on” effects on demand (inputs, processing, knock-on” effects on demand (inputs, processing, marketing), leading to “second round” investmentsmarketing), leading to “second round” investments

• increase in tax yields and formal transfersincrease in tax yields and formal transfers

• Increased informal transfers to those chronically Increased informal transfers to those chronically unable to engage in the productive economyunable to engage in the productive economy


Impacts - evidenceImpacts - evidence

Large body of evidence on impacts of agricultural Large body of evidence on impacts of agricultural productivity growth:productivity growth:

Irz et al, 2003: “each 1% growth in agricultural Irz et al, 2003: “each 1% growth in agricultural productivity generates a decrease of between productivity generates a decrease of between 0.6% and 1.2% in those living on less than 0.6% and 1.2% in those living on less than $1/day” $1/day”

Hazell and Haddad, 2001: including discussion Hazell and Haddad, 2001: including discussion of pro-poor agricultural research prioritisationof pro-poor agricultural research prioritisation

Dorosh and Haggblade, 2003: “investments in Dorosh and Haggblade, 2003: “investments in agriculture generate the highest impacts on the agriculture generate the highest impacts on the poor” poor”


The The Activity(ies)Activity(ies) that Households that Households EngageEngage in to in to Earn/Make a Living.Earn/Make a Living.

Livelihoods can Livelihoods can consist of a range consist of a range of of on- and off-on- and off-farm activities farm activities or or procurement procurement strategiesstrategies that that together provide together provide food and/or cash.food and/or cash.

What is a Livelihood System?What is a Livelihood System?


The The assets & other assets & other resourcesresources that households that households possesspossess

andand The The human and social human and social

capitalcapital that households that households possess or can call on in possess or can call on in times of need.times of need.

Social Networks & Safety Nets



Livelihood systems Livelihood systems of the poor are of the poor are often quite often quite diversediverse

Households often Households often use their use their capabilities, skills, capabilities, skills, and know-how to and know-how to diversify income diversify income sources and off-set sources and off-set risksrisks



The Process of ChangeThe Process of Change

How will we respond?Why are we feeling this way?Who will be staying/leaving?How will we function differently?What should we start doing now?

Transition

Future State

What is the new vision?Who is leading the change?What changes will occur?Who will be affected?When will changes take affect?

Present State

Who are we?

What resources do we have?

What process have we been using?

Why have we been doing it this way?

Transition


Transmission mechanisms through growth Transmission mechanisms through growth and markets - questions and issuesand markets - questions and issues

• How well do markets work? For whom? “market How well do markets work? For whom? “market failure is the norm, not the exception, in many parts failure is the norm, not the exception, in many parts of the World” (Omamo, 2003)of the World” (Omamo, 2003)

• conventional features of market failure – conventional features of market failure – transaction costs raised through lack of transport transaction costs raised through lack of transport and communications infrastructure, weak contract and communications infrastructure, weak contract enforcement, moral hazard, inadequate insurance enforcement, moral hazard, inadequate insurance markets, high risks which cannot be insured markets, high risks which cannot be insured against, externalities, increasing economies of against, externalities, increasing economies of scale, highly imperfect competition…..scale, highly imperfect competition…..

• overall: overhasty liberalisation – neoliberal overall: overhasty liberalisation – neoliberal “facilitating and regulating” not enough“facilitating and regulating” not enough

• not enough attention given to segmentation and not enough attention given to segmentation and interlockinginterlocking


Impeded transmission via markets: Impeded transmission via markets: segmentationsegmentation

““any form of non-economic discrimination” – does any form of non-economic discrimination” – does not include discrimination by skills, productivity, not include discrimination by skills, productivity, actuarial risk (in finance and insurance markets), actuarial risk (in finance and insurance markets), but does include:but does include:

Gender discrimination – paying less to women Gender discrimination – paying less to women than can be justified on productivity grounds; than can be justified on productivity grounds; intra-household constraints on women’s choiceintra-household constraints on women’s choice

Discrimination on basis of religion or ethnicity Discrimination on basis of religion or ethnicity Discrimination on basis of social status Discrimination on basis of social status


Improving transmission by reducing Improving transmission by reducing entrepreneurial risk: “trampolines”entrepreneurial risk: “trampolines”

Risks are shocks and stresses either external or Risks are shocks and stresses either external or internal to the HH; vulnerability is the HH’s capacity internal to the HH; vulnerability is the HH’s capacity to withstand or cope with theseto withstand or cope with these

A Social Risk Management Framework as a means A Social Risk Management Framework as a means of reducing risk and vulnerability, covers covariate of reducing risk and vulnerability, covers covariate and idiosyncratic risk; covers prevention, mitigation and idiosyncratic risk; covers prevention, mitigation and coping.and coping.

Covers different policy levels, stressing that even Covers different policy levels, stressing that even the highest level policies (fiscal, investment….), the highest level policies (fiscal, investment….), and sector-based policies (e.g. agriculture) can and sector-based policies (e.g. agriculture) can combine growth and protectioncombine growth and protection


The PROBLEM TREE: ‘The issue of cotton and overcoming poverty’

CAUSESplots too small

water losses in

irrigatio

n

low

quality

of

seeds

Dekhan farm depth status

no adequate technical skills

EFFECTS

MAIN PROBLEM low income

emigratio

n

Maln

utr

itio

nFood s

ecu

rity

low a

ccess

to e

ducatio

n

difficult social situation of “widows”

poor healthpoverty


Challenges of diversifying Challenges of diversifying the rural economy, felt threats and the rural economy, felt threats and

evolving opportunities: evolving opportunities:

Threat Threat 1: Cotton is not 1: Cotton is not providing a sufficient providing a sufficient income for farmersincome for farmers

OpportunitiesOpportunities: : crop crop rotation / crop sharing / crop rotation / crop sharing / crop diversification opening new diversification opening new opportunities for farmers opportunities for farmers increasing the individual increasing the individual household food security household food security including enhanced nutritional including enhanced nutritional support; marketable agriculture support; marketable agriculture surplus crops like vegetables surplus crops like vegetables creating income opportunities creating income opportunities




Threat 2Threat 2: Cotton farmers : Cotton farmers lacking technical lacking technical equipment and agric equipment and agric inputsinputs

OpportunitiesOpportunities: : reconverting to appropriate reconverting to appropriate technologies, adopting technologies, adopting alternative farming techniques, alternative farming techniques, new conceptions and new conceptions and cultivation approachescultivation approaches




ThreatThreat 3 3: Cotton is vulnerable : Cotton is vulnerable to climate change; high water to climate change; high water use and increased (at least 15 use and increased (at least 15 new agriculture insects since new agriculture insects since independence!) invasion of independence!) invasion of (ex.: noctuid) pests will (ex.: noctuid) pests will threaten future crops threaten future crops

OpportunitiesOpportunities:: through through introduction of new farming introduction of new farming techniques like conservation techniques like conservation agriculture reduced need of agriculture reduced need of agriculture water, crop rotation agriculture water, crop rotation reduces vulnerability to pest reduces vulnerability to pest occurrenceoccurrence




ThreatThreat 4 4: ‘Cotton land’ : ‘Cotton land’ absorbing the debt burden absorbing the debt burden

OpportunitiesOpportunities :: Organic production and farmer Organic production and farmer

organization as a means to organization as a means to reverse debt cycle of farmersreverse debt cycle of farmers

joined lobby work for joined lobby work for addressing the farm debt relief addressing the farm debt relief question, acquittal of Dekhan’s question, acquittal of Dekhan’s

through increased diversified through increased diversified

production on existing land production on existing land marketable surplus production marketable surplus production achieving increased stable achieving increased stable income income




ThreatThreat 5 5: New Dekhan : New Dekhan farmers are insecure about farmers are insecure about their legal situation and rights their legal situation and rights

OpportunitiesOpportunities : : Promoting changes in Promoting changes in

production to increase food production to increase food security whilst aspiring to security whilst aspiring to address women and children address women and children cotton workers labour situationcotton workers labour situation

legal resource center legal resource center establishment and establishment and management ‘Land Rights management ‘Land Rights Information Centers’ or ‘Land Information Centers’ or ‘Land Ombudsmen’ similar or as a Ombudsmen’ similar or as a part / addition of the SITAF part / addition of the SITAF Agriculture Advisory and Agriculture Advisory and Information CentersInformation Centers


Transmission via transfers to the Transmission via transfers to the chronically poor, how to address?chronically poor, how to address?

Many examples: but what is ‘best practise’?Many examples: but what is ‘best practise’?

transfers / support in agriculture inputs or in transfers / support in agriculture inputs or in cash ‘Kashina model’? cash ‘Kashina model’?

cash transfers have advantage of enhancing cash transfers have advantage of enhancing demand in local markets; food transfers may demand in local markets; food transfers may diminish it – even the chronically poor engage diminish it – even the chronically poor engage as consumersas consumers

evidence that some transfers (e.g. evidence that some transfers (e.g. remittance payments from emigrant workers) remittance payments from emigrant workers) are used in part for productive purposes are used in part for productive purposes (investment in agric; investment in (investment in agric; investment in grandchildren’s education….) AND release grandchildren’s education….) AND release informal transfers for productive investmentinformal transfers for productive investment


Question: What are profitable crops Question: What are profitable crops

for farmers to grow?for farmers to grow?


Question: What are possible trade Question: What are possible trade

and marketing options?and marketing options? Local Market:Local Market:

Export Market:Export Market:


Question: What are major import crops; Question: What are major import crops; can they be replaced by local production?can they be replaced by local production?


Organic grown cottonOrganic grown cottonethical sourcing a realistic option - marketable?ethical sourcing a realistic option - marketable?

European and US product market developmentsEuropean and US product market developments Fairtrade labelling (FLO) standards for cotton have recently been created, and Fairtrade labelling (FLO) standards for cotton have recently been created, and

many small cotton farmers throughout India, West and Central Africa have many small cotton farmers throughout India, West and Central Africa have become fair trade certified producers. Through the fair trade system, these become fair trade certified producers. Through the fair trade system, these farmers receive a significantly higher price than they would for conventional farmers receive a significantly higher price than they would for conventional cotton, as illustrated in the chart below. cotton, as illustrated in the chart below.

Fair trade and fair trade/organic price for seed cotton lint per kg, for Mali. In Fair trade and fair trade/organic price for seed cotton lint per kg, for Mali. In

CFA (1 FCFA = 545 USD on 13/6/05)CFA (1 FCFA = 545 USD on 13/6/05)

The demand for Fairtrade and organic cotton remains niche, but experiencing The demand for Fairtrade and organic cotton remains niche, but experiencing rapid growth. The current supply of fair trade organic cotton is small, but rapid growth. The current supply of fair trade organic cotton is small, but growing, and with the participation of a broad set of actors, fair trade organic growing, and with the participation of a broad set of actors, fair trade organic cotton will become a new, more sustainable clothing alternative. Brands such cotton will become a new, more sustainable clothing alternative. Brands such as Marks & Spencer, Otto, Patagonia, and Timberland have already as Marks & Spencer, Otto, Patagonia, and Timberland have already incorporated organic and/or Fairtrade cotton in their rangesincorporated organic and/or Fairtrade cotton in their ranges ..

Source: D. Bright, Cotton-the truth behind the image


Organic grown cottonOrganic grown cotton a realistic option - exchange of CA experience a realistic option - exchange of CA experience

The Kyrgyzstan The Kyrgyzstan modelmodel


EC TACIS SITAFEC TACIS SITAFModel Development Model Development

Establishing an Agriculture Extension System in TajikistanEstablishing an Agriculture Extension System in Tajikistan


ConclusionsConclusions Agricultural growth through diversity is Agricultural growth through diversity is

important for poverty reduction, BUT important for poverty reduction, BUT “facilitating and regulating” not enough, “facilitating and regulating” not enough, AND….AND….

Market imperfections are pervasive and need Market imperfections are pervasive and need to be addressed to enhance the poverty-to be addressed to enhance the poverty-reducing impacts of agriculture. High risk is reducing impacts of agriculture. High risk is paramount among theseparamount among these

New ways of managing risk and vulnerability New ways of managing risk and vulnerability (across domestic and entrepreneurial spheres) (across domestic and entrepreneurial spheres) need to be found.need to be found.

Efforts in this direction need to be differentiated Efforts in this direction need to be differentiated according to type of rural householdaccording to type of rural household


Oxfam GB in TajikistanOxfam GB in Tajikistansynthesizing on successsynthesizing on success

Livelihoods developmentLivelihoods development

1600 Vulnerable Households 1600 Vulnerable Households supported with supported with agriculture inputs and trainingsagriculture inputs and trainings

407 (25%) Woman headed households407 (25%) Woman headed households 10 CBOs established, 10 CBOs established, 35% Women CBO members 35% Women CBO members

6 Registered, 2 are implementing independent 6 Registered, 2 are implementing independent projects (9 warehouses and offices build)projects (9 warehouses and offices build)

6 WSHG established & implementing 6 WSHG established & implementing independently different activitiesindependently different activities

Income raised by 1500 TJSIncome raised by 1500 TJS Khazina – Created through Community Khazina – Created through Community

Contributions : Over 16000 $Contributions : Over 16000 $ 185096 TJS were provided as revolving fund185096 TJS were provided as revolving fund Sustainable Increased food security and income Sustainable Increased food security and income

opportunities for vulnerable households through opportunities for vulnerable households through land rehabilitation (253 ha), irrigation and access land rehabilitation (253 ha), irrigation and access to money.to money.

9100 fruit and none fruit saplings provided 9100 fruit and none fruit saplings provided (germination rate is 80%)(germination rate is 80%)

Local partners (NGOs) capacity build up - 4Local partners (NGOs) capacity build up - 4

Thresher connected to the donated tractor working in the field. Tanobchi village, Temurmalik District


Increased crop diversity and productivityIncreased crop diversity and productivity1000 Ton potatoes – 1200 participants – to fulfill own 1000 Ton potatoes – 1200 participants – to fulfill own consumption and for sale as wellconsumption and for sale as well2310 kg of different vegetables produced by each 2310 kg of different vegetables produced by each participantparticipant370 TJS on average was earned by each participant 370 TJS on average was earned by each participant from sale of different vegetablesfrom sale of different vegetables29 Ton wheat was produced for families consumption29 Ton wheat was produced for families consumption

Increased farmers interest on rain fed cropping (grain, Increased farmers interest on rain fed cropping (grain, melon, vegetables)melon, vegetables)48000 TJS an income for Khazina fund from agriculture 48000 TJS an income for Khazina fund from agriculture activitiesactivitiesSet of agriculture machinery supportSet of agriculture machinery support11 km of drainage canals were cleaned (253ha land)11 km of drainage canals were cleaned (253ha land)Phenotypic evaluation and multiplication of vegetablesPhenotypic evaluation and multiplication of vegetables

Oxfam GB in TajikistanSalient Achievements: Agriculture development

High quality bread cooked in solar cooker


Cotton : Research / round tables with Cotton : Research / round tables with major stakeholdersmajor stakeholdersLand: 2 information advocacy Land: 2 information advocacy centerscentersAction against Poverty : White Action against Poverty : White band day, signature campaign, band day, signature campaign, round table with local NGOsround table with local NGOsLivelihood Workshop at regional level Livelihood Workshop at regional level Jan 06Jan 06

Oxfam GB in TajikistanSalient Achievements : Policy and advocacy


Sustainable access to land and Sustainable access to land and ownershipownershipCotton and food productionCotton and food productionInstitutional capacities : Government & Institutional capacities : Government & NGOsNGOsLack of accountability: local NGOs, Lack of accountability: local NGOs, CBOs CBOs Lack of access to resources : Financial, Lack of access to resources : Financial, technicaltechnicalAdvocacy and policies : NGOsAdvocacy and policies : NGOsInfrastructure : health, rural education, Infrastructure : health, rural education, waterwaterMarket: policies and practicesMarket: policies and practicesWomen empowerment and GenderWomen empowerment and Gender

Oxfam GB in TajikistanSome of our major challenges

Celebration of 8 March in Chorbogh village


What we would ask What we would ask this Forum to assist us:this Forum to assist us:

Continuous and stable Continuous and stable financial support to ensure financial support to ensure implementation of our implementation of our projectsprojects

Back-up in achieving our set Back-up in achieving our set goalsgoals

Providing a platform for Providing a platform for positive dialog between all positive dialog between all stakeholdersstakeholders


What support we are What support we are seeking from Government:seeking from Government: Establishment of focal points both Establishment of focal points both

on central Government and local on central Government and local Oblast / Hukumat level for NGO Oblast / Hukumat level for NGO involved in Livelihoods activities and involved in Livelihoods activities and ‘cotton lands’‘cotton lands’

Round table for all above actors to Round table for all above actors to assist in implementation of ‘best assist in implementation of ‘best practice’ modelspractice’ models

As a first step open up suitable As a first step open up suitable access for Livelihood projects in access for Livelihood projects in each ‘cotton producing area / district’each ‘cotton producing area / district’


References:References:

D. Bright (2006) Cotton: The truth behind the image, Oxford: Oxfam GBD. Bright (2006) Cotton: The truth behind the image, Oxford: Oxfam GB I. Borkenhagen (May06 draft vers. 5) Cotton Work in OGB, Oxford: Oxfam GBI. Borkenhagen (May06 draft vers. 5) Cotton Work in OGB, Oxford: Oxfam GB Duncan, A et al (2003) Drivers of Change: reflections on experience to date. Paper Duncan, A et al (2003) Drivers of Change: reflections on experience to date. Paper

for DFID workshop, Oxford, June 23 2003. DFID: Drivers of Change Teamfor DFID workshop, Oxford, June 23 2003. DFID: Drivers of Change Team Farrington, J (2004) Social protection and livelihood promotion in agriculture: Farrington, J (2004) Social protection and livelihood promotion in agriculture:

towards operational guidelines. Paper for OECD Povnet. DFID NR and Agriculture towards operational guidelines. Paper for OECD Povnet. DFID NR and Agriculture Team, LondonTeam, London

Hazell, P and Haddad, L (2001) Agricultural research and poverty reduction. 2020 Hazell, P and Haddad, L (2001) Agricultural research and poverty reduction. 2020 Brief #70. Washington DC: IFPRI.Brief #70. Washington DC: IFPRI.

Irz, X, Lin Lin, Thirtle, C and S Wiggins (2001) Agricultural productivity growth and Irz, X, Lin Lin, Thirtle, C and S Wiggins (2001) Agricultural productivity growth and poverty alleviation. Development Policy Review 19(4) 449-466.poverty alleviation. Development Policy Review 19(4) 449-466.

P. Pichler, F. Quatratov, B. Rahmatjonov et al. Oxfam Tajikistan Report (2005-P. Pichler, F. Quatratov, B. Rahmatjonov et al. Oxfam Tajikistan Report (2005-2007), Augmenting Livelihoods in Khatlon, Tajikistan, Oxfam TJK Livelihood team2007), Augmenting Livelihoods in Khatlon, Tajikistan, Oxfam TJK Livelihood team

Ken Street Dr. (2005/6) Ancient Seeds of Survival, Partners in Research for Ken Street Dr. (2005/6) Ancient Seeds of Survival, Partners in Research for Development Journal , Plant Genetic Resources Development Journal , Plant Genetic Resources

H. Ungethuem et al.(2006) Establishing an Agriculture Extension System in H. Ungethuem et al.(2006) Establishing an Agriculture Extension System in Tajikistan, Model Development and Vision, EC TACIS-SITAF Final Project Report, Tajikistan, Model Development and Vision, EC TACIS-SITAF Final Project Report, Dushanbe, Project implemented by Scanagri/DLG/HTSPE/MNT with support of Dushanbe, Project implemented by Scanagri/DLG/HTSPE/MNT with support of the European Commissionthe European Commission

peter pichler tajikistan donor principle presentation jan10

Career

cpm tajikistan risks

cpm tajikistan theassets

khatlon tajikistan

impacts of agricultural

income opportunities

farmers opportunities

basis of social status

new opportunities