Arab Fund for Economic and Social Development and Kuwait Fund for Arab Economic Development
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1 Arab Fund for Economic and Social Development and Kuwait Fund for Arab Economic Development Joint Technical Meeting Arab Coordination Group Institutions and The OECD Development Assistance Committee Vienna, Austria, April 2010
2 The Arab Organization for Agricultural Development defines the concept of food security as follows:
3 To provide the quantity and quality of food required to keep, at all times, all community individuals active and healthy, based, first, on domestic production and the comparative advantage each country has in the production of food commodities; and making it available to people at prices commensurate with their incomes and financial means (Original : Arabic)
4 1. Population indicators for Arab countries 2. Role of agriculture in the economies of Arab countries. 3. Potential for food security in Arab countries Arable land Water resources Other factors 4. Financing agricultural operations in Arab countries 5. Prospects and Requirements for agricultural development.
5 Total population of Arab countries estimated at million in An increase of about 8 million over 2007.
6 Population growth averaged about : 2.55% annually over the period % annually over the period Total population with annual growth of 2.3% 550 million in million in 2050
7 Average GDP per capita estimated at US$ 5,858 in 2008 Total labor force about 128 million, equivalent to about 39.2% of population in 2007 Unemployment rate about 13.7%
8 Average growth of labor force about 3.3% annually over the period , and exceeds the average growth of population About 25.4% of labor force work in agriculture Share of agricultural worker in value added in agricultural sector amounted to $ 3,600 in 2008.
9 Value Of Total Agricultural Production In Arab Countries Increased From $56.4 Billion To $103.4 Billion Over The Period Contribution Of Agriculture Sector To GDP Shrank From 8.3% To 5.4% Over The Period
10 Country Contribution of Agriculture to GDP (%) Sudan 29.3 Syria 20.4 Egypt 12.6 Mauritania 11.1 Morocco 13.1 Yemen 10.4 Tunisia 9.7 Libya, Jordan, Djibouti, Iraq, Algeria, Lebanon GCC Countries: Qatar, Kuwait, Bahrain, Oman, Emirates, Saudi Arabia Source : Unified Arab Economic Report, 2009
11 Annual Average Growth (%) ( ) Annual Average Growth (%) ( ) Agricultural Product ($Billion) Agriculture Contribution To GDP (%) Per Capita Agricultural Product ($) Source : Unified Arab Economic Report, 2009 Remarks About 80% Of Agricultural Product In Arab Countries Is Produced By 6 Countries: Sudan, Syria, Egypt, Morocco, Mauritania, Yemen Agriculture Sector Contribution To GDP Varies Widely From 1% In Qatar To 29.3% In Sudan.
12 (Million Tons) Food Commodities Annual Change (%) ( ) Cereals Wheat Vegetable Oils Sugar Fruits Vegetables Meat Dairy Products Fish Source : Unified Arab Economic Report, 2009
13 (Million Tons) Commodities Cereals And Flour Production Consumption Gap (%)* Production Consumption Gap (%)* Wheat Vegetable Oils Sugar Meat Dairy Products Fish * Net imports as percentage of consumption. Source: Unified Arab Economic Report 2009.
14 (Million Tons)
15 The deficit value of main food commodities increased from about $11.8 billion in 1990 to about $14 billion in A deficit increase of about 1.7% annually. The deficit increased by about $12 billion between 2000 and An increase of about 8% annually.
16 Commodities 1990 (%) 2005 (%) 2008 (%) Cereals Vegetable Oils Sugar Source: Arab Organization For Agricultural Development * Rounded Percentages
17 Arable Land Water Resources Rural Development And Agricultural Labor Force Agricultural Productivity Agricultural Research And Development Investment In Agriculture
18 Total Area Of Arable Land : 197 Million Hectares Cultivable Area : 70 Million Hectares (About 36.5% Of Arable Land) Irrigated Area : 15% Rain-Fed Area : 57% Uncultivated Area : 28%
19 Desertificated Land Area (2007): About 886 Million Hectares, Equivalent To About 63% Of Area Of Arab Countries Land Threatened By Desertification: About 360 Million Hectares, Equivalent To About 25% Of Area Of Arab Countries Average Annual Growth Of Arable Land Over Last Two Decades: About 1.5% Arable Land Per Capita Decreased From 0.3 Hectares In Early Seventies To About 0.2 Hectares In 2007
20 Rain-Fed and Uncultivated (Million Hectares) Irrigated Total Source: Unified Arab Economic Report, 2008 It Is Noted That The Irrigated Area Remained Unchanged Over 17 Years
21 Total Renewable Water Resources: About 338 Billion M 3 (About 1% Of World Renewable Resources) Total Surface Water Resources: 296 Billion M 3 Total Ground Water Resources: 42 Billion M 3, Of Which: 35 Billion M 3 Are Available For Use.
22 Rainfall: About 2,300 Billion M 3 Per Year, Equivalent To About 0.5% Of World Rainfall. Desalinated Water : 2.5 Billion M 3 Treated Wastewater : 8.1 Billion M 3 Renewable Water Resources Per Capita: 2010 : 965 M : 610 M : 390 M 3 World Average Per Capita (2007): Over 8,000 M 3
23 Sector Share of Renewable Resources (%) Agriculture : 89% Municipal : 6% Industry : 5% Total Uses : 100%
24 Indicator 2007 Efficiency Of Water Transport 60% Efficiency Of Traditional Field Irrigation 50% Percentage Of Land Under Traditional Irrigation Systems 85% Estimated Annual Water Losses In Irrigation (Billion M 3 ) 90 Source: Arab Organization For Agricultural Development
25 Total Renewable Water Resources : 338 Billion M 3 Surface Water : 296 Billion M 3 Agriculture Use : 263 Billion M 3 Agriculture Demand : 354 Billion M 3 Deficit In Agriculture : 91 Billion M 3 Traditional Surface Irrigation : 75% Of Irrigated Area
26 Modern Irrigation Techniques : 25% Of Irrigated Area 15% Sprinkler Irrigation 10% Localized Irrigation Irrigation Efficiency : 40-50% This low efficiency is due to use of earth and open irrigation canals, as well as traditional irrigation techniques. Loss of irrigation water amounts nearly to half of water amount used in irrigation Improving Irrigation Efficiency to 70% would save as much as 50 Billion M 3
27 Year Agriculture Municipal and Industry Total Source: Unified Arab Economic Report, 2009
28
29 Country Per Capita (M 3 )/Year Country World Average Per Capita (M 3 )/Year Mauritania Oman Iraq Djibouti Sudan Palestinian Territories Somalia Yemen Comoros Bahrain Syria Jordan Lebanon Libya 98.6 Morocco Saudi Arabia 93 Egypt Qatar 61.8 Tunisia U.A.E Algeria Kuwait 7 Source: World Resources Institute (earthtrends.wri.org)
30
31 About 50% Of Arab Population Live In Rural Areas About 25% Of Arab Population Suffer From Poverty, With About 70% Of Them Living In Rural Areas.
32 About 25% Of The Labor Force Work In Agriculture Average Per Capita Income Of Workers In Sectors Other Than Agriculture Ranges Between 3 To 6 Times That Of An Agricultural Worker.
33 Increase In Production Of Cereals In The World Is Attributed Primarily To Modern Irrigation Techniques And Systems. Scientific Knowledge And Technology Play An Essential Role In Raising Efficiency Of Agriculture And Livestock Sector In Producing Main Food Commodities, And Contributing To Reducing The Food Gap.
34 The Main Engine For What Has Been Termed "Green Revolution" Which Took Off In The Late 1960s Depended On Vertical Expansion In The Production Of Wheat And Rice, Through Irrigation, Agricultural Intensification, And Productivity Increase. It Is Estimated That Less Than 10% Of The Increase In Cereal Production Is Attributed To Horizontal Expansion, While Over 90% Is Attributed To Vertical Expansion.
35 Irrigated Crops Became A Source Of More Than 60% Of Rice Production, And About 40% Of Wheat Production In Developing Countries. Research In Arab Countries Has Not Been Accorded The Priority It Deserves. The Unified Arab Economic Report (2008) Indicates That Expenditure On Scientific Research And Development Did Not Exceed 0.2% Of GDP In Arab Countries In 2005, Compared To About 3% In The Developed Countries.
36 Average Participation Of Technical Staff In Research In Arab Countries Is About One Third Of The World Average, And About 7% Only Of That In The Developed Countries.
37 Average Yield Of Selected Crops In Arab Countries Compared With Other Countries (Kilograms Per Hectare) Countries Cereals Wheat Barley Yellow Maize Cotton Flowers Beet Arab Countries 1,600 1, ,050 2,104 37,220 Developing Countries 2,550 2,320 1,680 2,420 1,357 28,615 Developed Countries 5,100 5,700 2,970 5,600 2,185 37,120 World Average 2,330 2,800 2,300 3,450 1,620 36,650 Source: Arab Organization For Agricultural Development, Food And Agriculture Organization Of UN, Agricultural Production Data, Note: Actual Productivity Of Cultivated Land In Arab Countries Ranges Between 25 50% Of Similar Productivity At The Global Level, Indicating Potential For Increasing Productivity By 2 To 4 Times Of Existing Level.
38 Average Yield Of Selected Crops In Arab Countries Compared With Other Countries (Kilograms Per Hectare)
39 Countries Agricultural Worker Value Added ($) ( ) Cereals Yield (Kg/Hectare) ( ) Egypt 497 7,545 Syria 1,196 1,786 Morocco 719 1,243 Sudan * Saudi Arabia 5,523 4,559 Chile 2,076 5,621 Philippines 429 2,916 Netherlands 23,396 8,308 United States 23,066 6,443 Source : World Bank, World Development Report 2008 * World Bank, World Development Indicators 2007
40
41 Source: Arab Organization for Agricultural Development
42 Source: Arab Organization for Agricultural Development
43 Among Challenges Facing Agricultural Development Is Inadequacy Of Financial Resources Allocated For Investment In Agriculture. One Factor Affecting Low Level Of Investment In Agriculture Is The Rate Of Return On Agricultural Investments Compared To Returns In Other Sectors, Namely, Real Estate And Services.
44 Intra-Arab Private Investments Amounted To About $ 14 Billion In 2007, With A Share Of 6% For Agriculture, Which Is Much Less Than The Relative Share Of The Agricultural Sector In GDP In Most Arab Countries. Other Shortcomings Include Financing Policies And Low Percentage Of Medium And Long-Term Loans. Short-Term Loans Amounted To About 85% Of Total Funding For Agriculture, Thus Limiting Farmers Ability To Develop Their Farms.
45 Sector Percentage Services 44 Real Estate 35 Industry 12 Agriculture 6 Commerce 3 Total 100 Source : Arab Investment Guaranty Corporation, Investment Climate In Arab Countries, 2008
46
47 Total Cumulative Value Of Financing Development Operations By Arab National And Regional Development Institutions Amounted To $ 96 Billion Up To 31/12/2009. Share Of Agriculture And Livestock Sector Amounted To About $ 11.5 Billion, Or 12% Of Total Cumulative Value.
48 Transport & Communications Energy (Electricity, Oil & Gas) Water & Sanitation Agriculture & Livestock Industry & Mining Other Sectors Total Share (%) Total Cumulative Financing (All Recipients; $ Million) 22, , , , , , , Sectoral Share (%) Arab Countries ($ Million) , , , , , , , Share Of Arab Countries (%) * Include health, education, and housing services, and balance of payments support Source: Coordination Secretariat of Arab National and Regional Development Institutions
49 Arab Countries Have A Considerable Potential For Contributing To Their Self- Sufficiency In Food. Arable Land Not Yet Cultivated Amounts To About 126 Million Hectares. About 60 Million Hectares Of Arable Land Are Available In Sudan, In Addition To Available Water Resources.
50 Large Opportunities Exist For Investment In Fisheries, With Coastlines That Extend To About 23,000 Kilometers. Fish Resources Are Estimated At About 8.2 Million Tons, With About 44% Exploited. Livestock In The Arab Countries Is Estimated At About 395 Million Heads.
51 Arab Countries May Save About 100 Billion M 3 Through The Use Of Modern Irrigation Techniques. Wheat Food Gap Which Is Estimated At About 25 Million Tons Require About 50 Billion M 3 Of Water For Irrigation With Traditional Techniques, And Only 25 Billion M 3 If Modern Irrigation Techniques Are Applied.
52 Raising Irrigation Efficiency To 70% Would Save About 50 Billion M 3 Of Water. Loss Of Fresh Crops In Arab Countries Is Estimated At About 15 40% Of Total Production, While In Developed Countries Similar Ratio Ranges Between 5 20%. Maximization Of Crop Benefits Would Require More Attention And Care To Post Harvest Operations, Including Transport, Storage, Marketing, And Agricultural Processing.
53 In Their Pursuit To Enhance The Prospects For Attaining Food Security, Arab Countries Need To Focus Their Efforts On The Development Of The Agricultural Sector.
54 Development of Agriculture Is Essential For Contributing To Food Security. Requirements, Among Other Things, Include: Better Management And Uses Of Scarce Renewable Water Resources, And Declining Per Capita Share Over Time. Development Of Arable Land And Expansion Of Irrigated Area Introducing Modern Irrigation Practices And Techniques, And Adopting Measures to Avoid Negative Impact On Soil, Water Quality, And Environment
55 Recognizing The Vital Role Of Water In Human Life And Development, It Is Critically Important To Deal With Water Resources And Their Uses Within A Framework Of Policies Leading To Rationalization Of Water Consumption And Curtailing Loss In Various Uses, And Protecting The Environment, Based On Implementation Of Laws And Legislations.
56 Augmentation Of Water Resources, Including Through Development Of Water Desalination Technology, And Expansion In The Area Of Wastewater Treatment and Reuse. The Latter Is Significantly Important, Because It Can Attain The Twin Objectives Comprising The Uses Of Treated Water For Agriculture, And Avoiding The Pollution Impact of Wastewater.
57 Scientific And Practical Research Is One Of The Principal Pillars For Agricultural Development. With The Exception Of Some Cases That Contributed To A Large Extent In Improving Productivity Through The Use Of Improved Seeds, Research Expenditures In The Arab Countries Remains Very Low.
58 There Is An Immense Need For Concentrating Efforts To Improve Efficiency, To Introduce New Agricultural Inputs, And To Support National, Regional, And International Research Centers In Arab Countries. More Attention Is Needed For Rain-Fed Agriculture, And Vertical Expansion To Increase Productivity Through The Use Of Modern Technology And Irrigation Techniques.
59 Expansion Of Extension Services For Farmers, Upgrading Their Skills, And Providing Them With Knowledge To Enable Them Use Modern Technology And Irrigation Techniques. Creation Of An Enabling Environment For Private Sector Participation And Investment In Agriculture, Including Provision Of Long-Term Financing, And Adopting Laws And Regulations Conducive To Investment In General.
60 According Agriculture Higher Priority In Arab Countries Development Strategies And Investment Plans, Making It Possible For Arab National And Regional Development Institutions To Provide More Support For The Agricultural Sector. Establishing A Balance In Allocation And Distribution Of Public And Private Investments Among Sectors, With Due Consideration To The Importance Of The Agricultural Sector.
61 Undertake Necessary Actions To Increase Benefits Of Agricultural Products, By Increasing Value Added, Decreasing Losses And Wastage Of Crops, Especially During The Post Harvest Period. Provision Of Adequate Infrastructure Such As Roads, Availability Of Suitable Inputs, Adequate Transport And Storage Facilities, In Addition To Use Of Modern Irrigation Techniques.
62 It Is Of Paramount Importance To Ensure The Proper Design Of Agricultural Projects To Take Account Of All Factors And Components Necessary For The Achievement Of The Desired Objectives. Food Security (Self-Sufficiency) Is Unachievable At The Country Level Due To Limited Arable Land And Scarce Water Resources.
63 Enhancing Progress Towards Food Security Requires Integration Of Water With Land In Arab Countries Based On Relative Comparative Advantage.
64 Arab National And Regional Development Institutions Will Continue To Strengthen Their Support To The Agriculture And Water Sectors In Line With The Development Priorities Of Arab Countries. They Welcome Cooperation With Other National, Regional And International Financing Institutions And Country Donors In Assisting Arab Countries In Their Efforts Toward Achieving Food Security.
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