ANALYSIS OF GOVERNANCE IN
AGRICULTURE – A CONCEPTUAL
FRAMEWORK AND APPLICATIONS
Suresh Babu
International Food Policy Research Institute, Washington DC
Devi Prasad Juvvadi
Center for Good Governance, Hyderabad
International Conference on International Conference on
and Service Delivery in Agriculture and Allied Sectors"
"Governance"Governance
and Service
Delivery
in Agriculture and
Hyderabad, December 18, 2014
Allied Sectors"
This presentation will cover
1.
Emerging Issues in Agricultural Development and Why
Governance in Agriculture is important
2.
Definitions of Governance applied to agriculture
3.
A conceptual framework for Analysis Governance in
Agriculture
4.
Applications to Agricultural Development Challenges
5.
Specific Priorities and Constraints
6.
Concluding Remarks
EMERGING ISSUES
•Recent Food Crisis and Food price volatility
•Sustainable Production Systems
•Climate Smart Agriculture
•Agricultural – Nutrition- Health Linkages
•Improving Markets and Trade in Agriculture
•Building Resilience in Food and Agriculture
Systems
•Strengthening Institutions and Governance
•Resolving these require Good Governance
WHY STUDY GOVERNANCE IN
AGRICULTURE?
• Poor governance in various subsectors stifle progress in
agriculture development
• Large wastage of resources prevention spending on
productive investments
• Low morality of the public servants
• Low quality of inputs – seeds and fertilizers to the farmers
• Low standards and marketing regulations increase
transaction costs and reduces income of the farmers
• Poor regulation of food safety laws affect consumers
• Unorganized regulatory system for biotechnology affects
adoption of new technologies
• More examples could be said that are context specific.
DEFINITIONS OF GOVERNANCE
Several Definitions Exist:
•Governance as the manner in which
power is exercised in the management
of a country’s economic and social
resources for development. (Asian
Development Bank)
OVERSEAS DEVELOPMENT INSTITUTE
DEFINITION
•Formation and stewardship of the
formal and informal rules that
regulate the environment in which
state and other players interact to
make decisions (ODI).
UNDP DEFINITION
•Governance is the exercise of political,
economic, and administrative authority
in the management of a country’s
affairs including mechanisms,
processes, and institutions through
which citizens and groups articulate
their interests, exercise their legal
rights, meet their obligations, and
mediate their (UNDP)
WORLD BANK DEFINITION
•Traditions and institutions by which
authority in a country is exercised
such as selection of governments,
capacity to formulate and
implement policies and the respect
for institutions that govern the
interactions of the state and its
citizens (World Bank).
AGRICULTURAL GOVERNANCE INVOLVES
•Agricultural development process which
improves:
•Organization and management of
Institutions
•Effective functioning of the institutions
•Design and implementation of policies
•Development of rules and regulations to
support policies and laws
•Ensuring active participation of all
stakeholders at all levels
MAJOR PRINCIPLES OF GOOD
GOVERNANCE (UNDP)
•Participation
•Consensus-orientation
•Accountability
•Transparency
•Responsiveness
•Equity and inclusiveness
•Effectiveness and efficiency
•Consistency with the rule of law.
INDICATORS OF GOOD GOVERNANCE
•Voice and accountability
•Political stability and absence of violence
•Government effectiveness
•Regulatory quality
•Rule of law
•Control of corruption
Source: Kraufmann, D. & Kraay, A. 2002. Growth without governance.
World Bank Policy Research Working Paper No. 2928.
GOVERNANCE IN AGRICULTURE
• Agricultural Governance depends on the governance of
various sub sectors
• Land sector
• Input supply systems – eg: seed, fertilizer, mechanization
• Output marketing systems
• Market institutions
– Food processing sector
– Food safety systems
• Agricultural education institutions
• Agricultural research institutions
• Agricultural extension institutions
ANALYSIS OF AGRICULTURAL
GOVERNANCE
A Conceptual Framework for Analyzing Agricultural Governance
Agricultural
Subsectors
Land Sector
Input supply and
Delivery
Output Supply
systems
Marketing and
Trade
Agricultural
Educaiton
Agricultural
Extension
Agricultural
Research
Governance
Indicators
**********
Voice and
accountability
Political stability
and absence of
violence
Government
effectiveness
Regulatory quality
Rule of law
Control of
corruption
Agricultural
Governance
AN HYPOTHETICAL EXAMPLE FOR
DEVELOPING AN AGRICULTURAL
GOVERNANCE INDEX
• Enlist different sub sectors of the agriculture
• Apply a set of indicators of governance to each of
them – a range from 0-1
• Conduct a key informants interviews to find out
the values of the indicators
• Combine them to form an index at the sub sector
level
• Combine the sub sector indexes into aggregate
level Agricultural Governance Index
• An example is given next – could be done for
comparing – districts, states, countries.
AGRICULTURE GOVERNANCE INDEX
Combining Governance Indicators for Sub-Sectors of Agriculture
Governance Land
indicator
Governance
Input supply
Market
Agricultural Agricultural Agricultural Agriculture
Extension
research
Governance
Institutions education
Output
systems
Voice and
accountabili
ty
0.8
0.4
0.3
0.6
0.9
0.8
0.5
4.3
Political
stability and
absence of
violence
0.6
0.5
0.6
0.5
0.7
0.4
0.6
3.9
Government
effectivenes
s
0.7
0.5
0.7
0.5
0.7
0.4
0.7
4.2
Regulatory
quality
0.7
0.5
0.6
0.8
0.4
0.4
0.5
3.9
Rule of law
0.8
0.5 .
0.7
0.5
0.6
0.5
3.6
0.5
0.5
0.5
0.7
0.6
0.6
0.4
3.8
0.68333333
0.4833333
0.54
0.6333333
0.6333333
0.5333333
0.5333333
3.95
Control of
corruption
Subsector
Governance
0.577143
LEVELS OF ANALYSIS
• International level
• National level
• Public Sector / Government
• Private sector
• Civil society
• Local level
Thematic Approach to
Measuring Agriculture
Governance – Applications
to Agricultural
Development Challenges
Governance for sustainable food
production
Governance for global
understanding and debate of
issues and agenda setting
Governance of groups working
on specific emerging challenges
– Eg: climate change
Supporting the CAADP
framework
Global and National governance of
technology development Biotechnology and Biosafety
Global and national governance of Natural
resource degradation
18
Governance for Promoting healthy
food systems
Governance of development and
adoption of nutrient enhanced crops
Governance of new nutrition
initiatives: how repetitive they are and
compete for resources
Governance of agriculture –
Nutrition – Health Linkages
Governance of steering smallholder
sector to the Nutrition Objectives –
local, national , global levels
19
Governance for improving
markets and trade
20
Governance of food markets – National
and international market regimes –
eg: WTO
Governance in innovation marketing –
eg: Reducing information asymmetries via
contract farming
Global and National governance for
managing food price spikes and
volatility
Governance of new markets for supporting
smallholder farmers in the event of climate
change – eg: Insurance markets
Governance for agriculture
transformation
Governance for transformation of
small farms: eg: business orientation
of small farms
Governance of Mechanization : eg:
medium-scale farms transformation
Supporting the CAADP
framework
Governance for promoting
transformation at the regional and global
levels eg: CAADP
Governance of development of Value
chains: eg: retail food markets
21
Governance for building resilient food
systems
Governance though decentralization:
can it improve resilience of local food
systems ?
Governance for Emergency
responses – information – early
warning - Targeted transfers for
emergencies
Governance of Transfer
modalities: Cash, food, or
vouchers?
Governance of interventions and
resilience in conflict zones
22
Strengthening institutions for improved
governance
Governance of Knowledge flow –
evidence based policy making and
policy process
Governance to promote gender
mainstreaming in agriculture
Governance for creating and
nurturing new institutions : Eg
farmer cooperatives
Governance for improved rural service
delivery
Specific Challenges
Specific challenges
•
Lack of understanding of the concepts of Governance
and it implications
•
No serious efforts to measure or monitor the
governance indicators to compare progress temporally
and spatially
•
Specific subsectors may pull down overall governance
– need for closer look beyond sectoral level
•
Lack of quality research and outreach to engage policy
makers
26
Concluding remarks
•
Little effort has been made to apply Governance
Concepts in agriculture
•
Need to integrate broader governance goals in
the agriculture sector – problems are diverse
and sub sectors are multiple
•
Apply the concepts to identify the governance
gaps in various indicators and subsectors –
conceptual framework is presented
•
Further emerging thematic areas require
governance research at all levels – global,
national, local.