Aid Effectiveness to Agriculture
and
Food Security
Tim Waites
DFID Livelihoods Adviser,
Policy and Research Division
Prague Seminar, 18th February 2009
1 Palace Street, London SW1E 5HE
Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA
Overview:
• Introduction: DFID overview and
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policy in agriculture
Agriculture context and DFID policy
Effective aid modalities – some case
studies
Food price volatility
Conclusions
Page 1
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
Page 2
22 Public Service Agreement (PSA) countries
67 Offices overseas
2,500 staff – half are overseas.
Page 3
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
Page 4
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
Page 5
DFID Agriculture Policy,
December 2005
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Title: Growth and poverty reduction: the role
of agriculture
Policy areas:
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•
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•
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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
Page 6
DFID Bilateral Spending on Agriculture
2006/7
Rural services
12%
RNR Research
11%
Agriculture
production
9%
Land policy
28%
Other
8%
Livestock policy
3%
Animal health
0%
Budget support
Agriculture policy
Land policy
Livestock policy
Rural servcies
Food security
5%
Annimal health
Food security
RNR Research
Budget support
15%
Agriculture production
Agriculture policy
17%
Page 7
DFID and Agriculture:
DFID BILATERAL SPENDING AND AGRICULTURE
12%
8%
Africa
Asia
Total
6%
4%
2%
20
06
/0
7
20
05
/0
6
20
04
/0
5
20
03
/0
4
20
02
/0
3
20
01
/0
2
20
00
/0
1
19
99
/0
0
19
98
/9
9
19
97
/9
8
19
96
/9
7
19
95
/9
6
19
94
/9
5
19
93
/9
4
19
92
/9
3
19
91
/9
2
0%
19
90
/9
1
% of bilateral programme
10%
• 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
Page 8
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
Page 9
Bi-lateral aid – cont.
Sector PRBS in Ethiopia – the role of
rural safety nets:
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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
Page 10
Bi-lateral aid – cont.
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
Page 11
Bi-lateral aid – cont.
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
Page 12
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
Page 13
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.
Page 14
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
Page 15
Conclusions:
• Context matters – design your
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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
Page 16