Agribusiness in the World Bank Group

Transcription

1 Agribusiness in the World Bank Group First EAP Conference on Trade &Agribusiness Agro-Enterprise without Borders, Singapore, July Patrick Labaste

2 Outline Roles of WBG Institutions What is the WB doing in Agribusiness? Global Challenges and Looking Forward Reference Document: WDR 2008 Agriculture Action Plan FY09-12 An Agenda for Agribusiness in EAP

3 Roles of WBG Institutions Direct financing of public investment in agriculture Studies, analytical work, research Technical assistance, knowledge sharing (WBI) Direct financing of public investment in agriculture Studies, analytical work, research Technical assistance, knowledge sharing (WBI) Direct financing of agribusiness firms (equity, loans) Technical Assistance on FDI (FIAS) Guarantees Mediation services TA on FDI

4 WB Interventions and Instruments WB lends to governments, for public investment through programs, projects (SIL, APL, SWAP) or through budget support (SAC, DPO, DPL), on IDA or IBRD terms Provides advice on economic and sector policies (with IMF), eg rice, cotton WB provides expertise and channels knowledge for development Other: global issues, advocacy, grants, TF

5 WB Areas of Intervention Policy Policy-based lending: structural and institutional reforms (eg cotton) Enabling environment: DB, ICA, RICA, DBA Investment Infrastructure, research, capacity building, TA Focus on public goods and market failures Analytical Work and Knowledge Sharing AAA, studies, research TA programs Advisory Services

6 WB Approaches in Agribusiness 1970s s Commodity-based parastatals: tree-crops Irrigation, research (GR, post-harvest) Integrated Rural Development 1990s s Local development and CDD Rural Finance Research and Extension, incl. PO More recently Agro-enterprise, Value Chain, PPPs, Competitiveness Capacity-building, Facilitation, TA Infrastructure (incl. irrigation) and Logistics

7 Areas of Focus in Agribusiness Food Safety and Standards Technical assistance, capacity-building Infrastructure: laboratories STDF, FSPN Linking Small Farmers to Markets Market Linkages Infrastructure (roads, post-harvest/storage) Capacity-building (standards, GAP) Promotion of Agro-enterprise Design/implementation of value chain approaches Environment: Doing Business, RICA Good practice design, cross regional learning

8 More Recent Areas of Engagement Response to the Food Crisis Global Food Crisis Response Program Land-extensive Agroenterprise Key Principles for Primary Actors Toolkit for Decision-makers and Practitioners Governance Framework and Industry Codes Risk Management Risk Mitigation Instruments Weather-based Insurance

9 Global Challenges : WDR 2008 Poverty reduction Feeding the world Climate change Economic transformation Political economy Commodity price volatility Financial crisis

10 Key messages of WDR 2008: - 75% of the world s poor are rural and most are involved in farming - In the 21 st century agriculture remains fundamental for poverty reduction, economic growth and environmental sustainability

11 The Worlds of Agriculture: WDR 2008 Agriculture s share in growth % 20% 0 Urbanized countries Mainly Latin America 255 million rural people Rural poor/total poor, 2002 Agriculture based countries Mainly SS-Africa 417 million rural people Transforming countries Mainly Asia, MENA 2.2 billion rural people 0 50% 100%

12 The World Bank Group Agriculture Action Plan FY ) Reduce risk and vulnerability 2) Raise agricultural productivity 3) Link farmers to markets and strengthen value chains 4) Facilitate rural non-farm income and exit 5) Enhance environmental services and sustainability

13 Program Size: FY10-12 Targets Achieving targets dependent on: 1. Continued strong client demand 2. Limited impact of the financial crisis 3. IDA 16 replenishment

14 An Agenda for EAP Agriculture Acknowledging that EAP is undergoing a tremendous transformation Rapid urbanization to over 60% by 2030 Shift in GDP - 25% agriculture in 1990, 13% in 2005 Poverty focus moving to lagging regions/countries Natural resource use priorities shifting Transformation is driving the transfer of resources from rural to urban areas which requires increased agricultural intensification and diversification

15 An Agenda for EAP Agribusiness An opportunity to reposition the sectoral agenda to respond to new challenges to sustain and broaden past success Need to rapidly modernize production to support intensification of staple foods and diversification into integrated supply chains Integration of the poor and lagging regions and countries into EAP s rapid development process Increasing focus on environmental sustainability: more production with less water and land, and increased provision of environmental services

16 Areas of Focus for WB Support to EAP Agriculture EAP Agriculture-related Lending Volume by Business Line Ag Productivity Lagging Regions Supply Chains Climate/Enviro nment

17 Key Take-away Points WBG has a role Particularly in EAP Challenge of Transformation Regional Dimension More engagement More visibility for partners

18 Thank you!