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Economic and Sector Work Program on
“Structural Implications of Liberalization
for Agriculture and Rural Development”
(RuralStruc)
Phase I
Preliminary Terms of Reference1
28/2/2006
1. Context and Objectives
The RuralStruc Program is an economic and sector work program (ESW)
implemented by the World Bank in collaboration with the French Cooperation over a
period of two years (October 2005-2007).
It is intended to conduct a fresh analysis of the consequences of economic
liberalization and integration on agriculture and the rural sector of developing
countries, on the basis of structural changes (impacts of the new configuration of
world markets and international competition on national production and marketing
structures). The ultimate objective of this ESW is to: (i) improve and strengthen the
available reference frame on liberalization; (ii) contribute to debate (internal in the
World Bank, between the WB and other donors, and between the donors and partner
countries). It should make recommendations for the formulation of policies.
The Concept Note of October 2005 specifies the reference frame, expectations and
content of the program.
2. General Methodology and Organization of Work
The two main methodological options of the program are:
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the adoption of a comparative approach between several countries,
which will lay emphasis on understanding and characterization of the
processes of change. Over and above a comparison of indicators (for
example, the major economic aggregates or sector results), it will lay
emphasis on the processes themselves, identify the major events and
relevant linkages and understand crises management and adaptation to the
new economic and political environment (for example, structural adjustment,
liberalization of domestic markets, and trade-opening measures).
Cross analysis between countries which are at different levels or stages in the
general process of economic liberalization and integration will facilitate the
identification of strategic themes.
The final detailed terms of reference will be provided at the end of collective work during the program’s
launching workshop (see infra).
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The program concerns 7 countries: Mexico, Guatemala, Morocco, Senegal,
Mali, Kenya and Madagascar.
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the adoption of an overall multi-disciplinary approach, focusing on
economic, social and political dimensions of the compared countries, which
will facilitate analysis of the processes of change within a historical
perspective that is indispensable for understanding structural configurations
(for example, agrarian structures or specialization of countries).
The program has two major phases:
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phase 1: general country studies, intended to offer a country brief on
structural change in agriculture and its consequences on the rural economy;
phase 2: more specific case studies, which will be defined in terms of the
results of country studies, so as to fine-tune themes of particular interest
and/or on which available information is inadequate.
It also comprises three workshops intended to allow for exchange of view points
between the various country teams and discussion of the results obtained:
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a launching workshop, which will specify the reference frame as well as the
methodology, and jointly define the detailed terms of reference of phase 1;
a mid-term workshop, during which country results will be presented and
discussed. This workshop will help to prepare an interim wrap-up report and
define the case studies to be conducted in phase 2;
a final workshop, in which the results of the case studies will be presented,
and the preparation of the final report will be discussed, including its
recommendations.
Lastly, the program will have a Steering and Monitoring Committee throughout its
implementation at the national level, so as to provide assistance by organizing
information and discussion on themes and the results obtained. The composition of
the Committee, its chairperson and its operation will be defined on a case-by-case
basis in line with country institutional configurations, taking into account flexibility and
representation of the various stakeholders in the debate on agricultural and rural
policies. The Committee will, in particular, include representatives of the Ministries
concerned, economic operators, farmer organizations, research and universities.
3. Content of General Country Studies (phase 1)
The objective of the general country studies is to provide a situation analysis of the
major structural changes in agricultural and rural economies over the past few
decades.
It will, in particular, highlight:
- the impact of changes in economic policies (State withdrawal, liberalization of
domestic markets, trade-opening measures, and regional integration);
- the impact of the dissemination of technological advance and innovations on
factor productivity;
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the impact of the reconfiguration of world agricultural and agro-food markets,
namely the development of integration processes by global firms (through
marketing chains or food distribution systems), and their consequence which
is the growth of contracts between producers and buyers, and the gradual
specification of these contracts (norms and standards);
the impact of population growth and development of communication networks
on the distribution of activities and people (town-country linkages), the
structure of employment, international migrations, the development of rural
non-farm activities; and
the change of living standards and conditions in rural areas.
The analysis will focus on:
- structural change: demographic and economic structures (general macroeconomic and demographic framework), production structures (farm and
agro-food), market structures (products and factors) ;
- policies and institutional change: types of policies (sectoral, integrated,
regional, etc.); conception of public action; governance (democratization,
decentralization, collective action, etc.).
Since there are many works on these various issues, the overall picture will
obviously not consist in reproducing or compiling what has already been achieved,
but rather in proposing a "problematized synthesis" of the main challenges and
processes of change from the perspective of demographic and economic “transition”
(structure of the economically active population by sector and age group) so as to
identify the structural risks of dead-ends. In particular, the assumption of a growing
segmentation of agricultural economies – marked by simultaneous concentration,
marginalization and exclusion of economic operators – will be tested.
The final report will therefore highlight the main characteristics of country trends and
propose a periodization by identifying: the major processes which have shaped the
evolution of agriculture, the key actors of change, the crucial structural factors, and
the “critical junctures” or “founding events”, which have significantly changed the
country configuration and nature of relations between agriculture, the rural sector
and the economy as a whole.
4. Mandate of the Main Consultant
41. During phase 1 (not more than 6 months), the main consultant selected for the
country study shall:
a. Participate in the launching workshop, during which:
- the program objectives and guidelines will be discussed;
- the methodology, analytical grid and detailed terms of reference of phase
1 will be specified; and
- the structure of the wrap-up report and its table of contents will be defined.
During this workshop, he will submit to the participants his point of view on the
program guidelines and reference frame, as well as his a priori analysis of past
and ongoing structural changes in his own country. This a priori analysis, based
on an outline prepared by the organizers, will be presented by the main
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consultant in a short note to be transmitted to the World Bank before the
workshop.
b. Conduct the country comprehensive study, in line with the detailed terms of
reference prepared during the launching workshop.
The conduct of the study will be based mainly on:
(i)
a literature review and documentary analysis: use of the various
existing sources, as well as quantitative and qualitative results of
research;
(ii)
an analysis of the available statistical data; and
(iii)
discussions with relevant stake-holders of the public and private
sectors, as well as associations, that can suggest ways of
understanding and interpreting changes in the agricultural and rural
economy.
Along with the preparation of the final report, the main consultant will identify
knowledge and data gaps that would justify any specific works in phase 2.
Submission of the wrap-up report will comply with an imperative deadline which
will be specified during the launching workshop.
c. Participate in the mid-term workshop, during which:
- the country wrap-up reports will be presented, discussed and analyzed;
- the main parts of the comprehensive summary report will be drafted; and
- the relevant case studies to be conducted in phase 2 will be defined.
d. Contribute to the operation of the Steering Committee throughout phase 1,
in coordination with the chairperson of the Committee to be defined.
42. In each country, the main consultant will:
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appoint a small team (2 to 3 persons) who will: (i) participate in the launching
workshop and mid-term workshop (2 persons), (ii) ensure overall coordination
and be responsible for the final preparation and editing of the wrap-up report the composition of this central team will be validated by the World Bank; and
endeavor to mobilize the existing local skills on selected themes in line with
modalities to be defined by him in consultation with the project owner.