INTERNATIONAL. Proposed countries:

Transcription

1 Location(s): Country(es): INTERNATIONAL. Proposed countries: Africa - Indicative Country List: Burkina Faso, Ethiopia, Liberia, Ghana, Mauritania, Mozambique, Niger, Rwanda, Senegal, Sierra Leone, Tanzania, and Uganda. Asia - Indicative Country List: Bangladesh, Nepal, Pakistan, and Philippines; Central/Latin America and Caribean - Indicative Country List: Bolivia, Ecuador, Haiti, Honduras and Peru. Project Title: Initiative on Soaring Food Prices (ISFP) - Support to the formulation of a Strategic Framework, including Agricultural Policy Assistance, Interventions and Investment plans to address the negative effects of soaring food prices in Low Income Food Deficit Countries (LIFDC). Project Number: GCP/216/GLO/SPA Starting Date: February 2008 Completion Date: September 2009 Government Ministry responsible for Project execution: Ministries of Agriculture Investment Center, FAO Donor Contribution: US$ Signed: (on behalf of Government) Signed: Jacques Diouf Director-General (on behalf of FAO) Date of Signature: Date of Signature: i

2 Executive Summary Since 2005 a number of agricultural commodity prices have shown a robust upward trend. The FAO Food Price Index averaged 23% higher in 2007 compared with 2006 as international commodity prices (in US$ terms) increased sharply throughout the past year. Many analyses suggest that these increases are, amongst others, the result of increased demand for some agricultural commodities to produce biofuels following significant increases in the price of crude oil. Additionally, global food reserves are at their lowest in 25 years due to the deregulation of markets and extreme weather condition has negatively affected crops in some exporting countries. Income and population growth in China, India and other large developing economies are contributing factors on the demand side. It is recognized that the current trend of rising food prices could have negative effects on the food security of the most vulnerable groups as it will reduce food access for the poorest population strata and increase the food import bill of Low Income Food Deficit Countries (LIFDC). On the other hand, higher agricultural prices may boost domestic production and may be an incentive for farmers to invest in production structures. FAO intends to assist governments to deal with the new food market situation with the Initiative on Soaring Food Prices (ISFP). Recommended options for action fall within two broad categories corresponding to measures that aim to promote the supply response of farmers to higher prices and policies and programmes to protect the most vulnerable groups in the society from drastic reduction in food intake as a result of reduced purchasing power following higher food prices. The main purpose of the project is that to support FAO s capacity to provide assistance to governments in selected countries of Africa, Asia, Latin America and the Caribbean (upon country request) identify and formulate specific food security interventions to cope with higher and more volatile food prices following a twin-track approach and boost food production, availability and access for the most vulnerable. The main result of the initiative is operationally defined Country-tailored Action Plans of specific food security interventions and its investment framework, which will be integrated into existing regional / national policies, programmes and partnership aimed at facilitating the achievement of the Millennium Development Goals (MDGs). These action plans will likely take the form of (i) policy and technical support; (ii) interventions to increase access by smallholder farmers to key inputs (seeds and fertilizer, etc.) and improve agricultural practices (water and soil management, etc.), markets and other interventions that address key supply constraints; (iii) measures addressing access to food and nutrition by vulnerable groups: and (iv) a strategic response to cushion the effects of rising food prices in the short and medium term. The project will be conducted over the period of a year and a half (although funding available will cover only 6 months needs) in three phases that will identify a sequence of activities associated with analysis, intervention formulation and dissemination respectively.: Phase I - Launching the Process in the Regions and countries; Phase II - Country-Level Consultation & Assessment Phase and Phase III: Formulation and Country Level Investment Framework. It is important to stress that collaboration with national experts and government officials during all phases will establish an ownership process with wide participation, assisting to embed the ii

3 project in broader national and regional development strategies and enhancing the ability of policy-makers. To ensure the country ownership and leadership within a programmatic approach, it is desirable that the international partners integrate the ISFP into wider national policies, programmes and existing partnerships. In each country, the management structure of the ISFP will be located within the Ministries of Agriculture that will work closely with FAO Representatives and Headquarters to operasionalise the Country-tailored Action Plan. The financing and execution of the concrete projects of each Country-tailored Action Plan will be under the responsibility of participant governments, International Financing Institutions (IFIs), other development agencies, associated partners (i.e. Non Governmental Organizations, NGOs, farmers associations, etc.). Supervision and Monitoring will fall under the responsibility of Ministries of Agriculture and FAO who will also provide technical assistance when needed. In Africa, the project is being developed under the framework of the Thematic Group on Agriculture and Rural Development of the MDGs Initiative for Africa, coordinated by the Africa Union (AU) and FAO, and the Comprehensive Africa Development Programme (CAADP) particularly within its Pillar 3. In Asia and Latin America, the regional coordination platforms will be identified and FAO will coordinate its actions with other development partners. FAO Departments, Services, Regional, Sub-regional and FAO Country offices in member countries will work together in the formulation and implementation of this project. FAO will play a catalytic role in providing policy and technical assistance to Governments and Regional Bodies of LIFDCs and help streamlining interventions into existing programmes and policies. The budget allocated for the project is US$ 3,495,599 This project consists of FAO s response under the Initiative on Soaring Food Prices (ISFP) launched by the Director-General, to address the impact of sustained increases in food commodity prices on developing countries food security and agriculture. The proposal presents the rationale for the project, the methodological process and the specific outcomes and outputs. Issues related to the monitoring and the management of the project is also covered, while a logical framework and a work plan provides a succinct presentation of the project proposal. iii

4 Table of contents 1. BACKGROUND General context Sectoral context Sectoral policy and legislation 2 2. RATIONALE Problems/issues to be addressed Stakeholders and target beneficiaries Project justification Past and related work FAO s comparative advantage 5 3. PROJECT FRAMEWORK Impact Outcome and outputs Sustainability Risks and assumptions 9 4. IMPLEMENTATION AND MANAGEMENT ARRANGEMENTS Institutional framework and coordination Strategy/methodology Government inputs Donor inputs Technical support and linkages Management and operational support arrangements OVERSIGHT, MONITORING, MANAGEMENT INFORMATION, AND REPORTING Oversight and reviews Monitoring and management information Communication and visibility Reporting schedule 17 ANNEXES Annex 1 Budget 18 Annex 2 Logical Framework 19 Annex 3 Work Plan 22 Annex 4 Terms of Reference 23 ToR for Task Force ToR for Secretariat and its members ToR for International and National staff and consultant iv

5 Acronyms AU: African Union. AG: Agriculture and Consumer Protection Department FAO DFID: United Kingdom s Department for International Development. ES: Economic and Social Development Department FAO EST: Trade and Markets Division of FAO. ESTT Trade Policy Service, FAO FAO: Food and Agriculture Organization of the United Nations. IFAD: International Fund for Agricultural Development FAO ISFP: FAO Initiative on Soaring Food Prices. IMF: International Monetary Fund KC: Knowledge and communication Department LIFDCs Low-income Food-deficit Countries. MDG: Millennium Development Goal. NEPAD: New Partnership for Africa s Development. NGOs: Non-governmental Organizations. NIPs: National Indicative Programmes. OECD: Organization of Economic Cooperation and Development. PRSPs : Poverty Reduction Strategy Papers. SADC: Southern Africa Development Community. SOCO: State of World Commodity Markets. TC: Technical Cooperation Department FAO TCI: Investment Center FAO UN: United Nations UNICEF: United Nations Children s Fund USDA: United States Department of Agriculture. UNDAF: United National Development Assistance Framework. WB: World Bank WFP: World Food Programme WTO: World Trade Organization. v

6 1. BACKGROUND 1.1 General context Since 2005 a number of agricultural commodity prices have exhibited a robust upward trend. The FAO Food Price Index averaged 23% higher in 2007 compared with 2006, as international commodity prices (in US $ terms) increased sharply throughout the past year. Many analysts suggest that these increases are the results of production being now diverted into biofuels, global food reserves are at their lowest in 25 years due to the deregulation of markets and extreme weather conditions have negatively affected crops in some exporting countries. Income and population growth in China, India and other large developing economies are contributing factors on the demand side. The countries that are most likely to be adversely affected by the higher food prices are Low Income Food Deficit Countries (LIFDC), especially those where the exchange rate has remained relatively steady or depreciated against the US dollar. LIFDCs are particularly vulnerable as they tend to be net staple food importers (and also net importers of petroleum products), thus recent price increases on world food markets have increased their overall vulnerability. The people most likely to be negatively affected by the higher food prices on international markets are net food buyers, among the most vulnerable are small scale farmers, landless rural poor and urban poor households who rely on markets for their food, especially when international price movements are transmitted to domestic markets. The current trend of rising food prices will have negative effects on the food security of the most vulnerable groups as it will reduce food access for the poorest population strata and increase the food import bill of LIFDCs. Combined with higher energy bills and compensating measures that some governments are contemplating, this situation will also impact on government budgets and reduce the capacity of governments to finance and implement development activities. Specific interventions that will assist LIFDCs to adjust to high food prices have to be developed and made accessible. Analytical work, reviews and participatory identification and development of such interventions focusing and strengthening of stakeholder capacities and linkages are key vehicles in approaching all these issues. 1.2 Sectoral Context Development priorities, World Food Summit objectives and MDGs Assistance for developing and putting in place specific food security interventions in LIFDCs to address the current impact of high food prices through strong, concerted and adequate partnerships among all parties committed (governments, international financing institutions, donors and others associate partners) will contribute to the achievement of the 1996 World Food Summit s objective, a pledge that is echoed in the Millennium Development Goal Eradicate extreme poverty and hunger (Reduce by half the proportion of people who suffer from hunger); i

7 The approach proposed in this project responds to the partnership commitments agreed in the Paris Declaration of 2 nd March 2005 on Aid Effectiveness Ownership (Partner countries exercise effective leadership over their development policies and strategies and co-ordinate development actions), Harmonization (Donors actions are more harmonized, transparent and collectively effective), Alignment (Donors base their overall support on partner countries national development strategies, institutions and procedures), Results (Managing resources and improving decision-making for results) and Mutual Accountability (Donors and partners are accountable for development results). As stated in the Agricultural and Development Section of the Maputo Declaration of 24 June 2004 (4 th Summit of ACP Heads of State and Governments), the ISFP proposed by FAO responds to the request of increasing agricultural productivity and ensuring a more stable agricultural output, provide and / or increased technical and other kind of assistance National Medium-Term Priority Framework (NMTPF) and United Nations Development Assistance (UNDAF) The ISFP is an FAO initiative accessible to all participant countries and regional organizations. During the consultation and assessment mission to participant countries, efforts will be made to ensure that the project activities are consistent with the NMTPF and UNDAF for each country and that the recipient country is fully committed to the activities to be undertaken under the ISFP. 1.3 Sectoral Policy and Legislation At regional level, the project will be integrated in regional policies, programmes and existing partnership. In Africa, the project is being developed under the framework of the Thematic Group on Agriculture and Rural Development of the MDGs Initiative for Africa, coordinated by the Africa Union (AU) and FAO 2, and the Comprehensive Africa Development Programme (CAADP) 3 particularly within its Pillar 3. In Asia and Latin America, other regional coordination platforms exist and FAO will need to coordinate its actions with other development partners. At national level, ISFP activities will provide capacity building and assistance to governments in identifying policies, projects and investment to be reflected in sectoral actions, national Poverty Reduction Strategy Papers (PRSPs) and National Indicative Programmes (NIPs). Then, national governments will play a central role in the formulation of the food security interventions and approaches, integrating them into existing institutions and mechanisms in line with national development targets. This will have the form of Country-tailored action plans. 2 Other than AU and FAO, the principal partners of the MDG Africa Initiative include the New Partnership for Africa s Development (NEPAD), World Bank, World Food Programme, International Fund for Agriculture Development (IFAD) Africa Development Bank (AfDB), and various bilateral donors. 3 The Comprehensive Africa Agriculture Development Programme (CAADP) was prepared through the facilitation of FAO in close collaboration with the NEPAD Secretariat to promote intervention that best respond to the widely recognise crisis situation of Africa agriculture. ii

8 2. RATIONALE 2.1. Problems to be addressed The world is experiencing a dramatic increase in food prices, nominal as well as real. International prices of major food commodities reached, in the first three months of 2008, their highest level in nearly 30 years. Projections suggest that food prices are likely to remain high in the next few years. Rising food prices are provoking social unrest across the developing world, resulting in a number of short term policy responses from governments in both exporting and importing countries, which risk exacerbating instability in world markets. In the short run, net food buyers in urban and rural areas would be pushed deeper into poverty. The countries hardest hit by the sharp increase in food prices are Low-Income Food- Deficit Countries (LIFDCs). These countries are particularly vulnerable as they tend to be net staple food importers (and also net importers of petroleum products), and thus recent price spikes in world food markets should have increased their vulnerability. Actions undertaken by the UN System should distinguish between an immediate crisis response and medium and long term interventions aimed at achieving sustainable agricultural growth. Actions should be coherent and mutually reinforcing. They should focus on the specific situation in individual countries and on the needs of different stakeholders by protecting the most vulnerable households in both rural and urban areas, and by stimulating local production. Investments in rural infrastructure, research and development, extension services and market access must be boosted. It is important to ensure that market signals reach food producers to quickly stimulate appropriate supply response and thus increase food production and availability. We must seize this important opportunity for re-launching agriculture, especially in LIFDCs. Also, governments should revisit their policies to eliminate market distortions and provide an enabling and supportive environment. Through its Initiative on Soaring Food Prices (ISFP), launched by the Director-General on 17 December 2007, FAO is offering technical and policy assistance to the most affected countries in an effort to increase local food supplies in the upcoming agricultural seasons and prevent crises. FAO has already allocated US$17 million from its own resources, and is currently providing technical assistance (US$3.5 million) and supporting short term agriculture and productive safety nets interventions (US$ 13.5 million). In countries affected by disasters and conflicts, soaring food prices are increasing the number of vulnerable people and the severity of food insecurity. In a number of those countries, FAO is adjusting its ongoing emergency and rehabilitation operations. Through its Country Offices, The long-term food security impact of commodity price trends is difficult to anticipate and will depend on the capacity to tackle long term development challenges. It is however expected that targeted supply response intervention may have a catalytic effect in the local production systems and domestic markets, including technology adoption, and supporting economic policies addressing key constraints to production, in particular investment. Success, on the long term, however, depends on increased investment in appropriate technologies for smallholder sector consistent with the iii

9 structure of agricultural sectors of low-income countries. Most low-income countries have imperfect markets, insufficient infrastructure and poorly developed rural financial systems. Investment capacity in low-income countries is limited and further weakened by high food and energy prices. Higher food prices affect consumers, particularly in poor urban and rural areas, who spend a large proportion of their income on food and who, when under income pressure, often shift from more nutritious foods to more energy-dense cereals. High food prices may lead to social unrest and increase the number of food insecure /malnourished people and contribute to economic instability and reduced investment. At the same time, high food prices are an opportunity for agricultural producers, including for small farmers. The Twin Track Approach will be used to identify specific policies that link immediate short-term actions and interventions with a long-term strategy for sustainable growth. Short term options on food availability will include apart from emergency food aid (which is WFP/NGOs mandate), the provision of boosts to agricultural production through productive safety nets including seed/input supply and access, animal feed and restocking livestock, trade measures, whereas longer term approaches might include enhancing food supply to the most vulnerable, improving rural food production, markets and investments in rural infrastructure. Given experiences with voucher programmes, several quick responses could be operationalized in the immediate term in support of the most vulnerable. For example, voucher programmes for seeds and fertilizer could be launched after completing rapid feasibility assessment in a number of countries interested in this project. When the decision is to use vouchers to improve farmers access to inputs, it will be critical to make sure that the inputs are available in sufficient quantities, or otherwise vouchers will simply create inflation in local input prices. Consultation with the private sector in the design and implementation of any project, both for short-term effectiveness and medium-term prospects, is essential. For access in the short term changes in taxation and trade policy, social relief/rehabilitation programmes or nutrition intervention programmes can play a part, while in the longer term options include re-establishing rural institutions, including rural financial systems, ensuring access to land and strengthening the labour market. Regarding stability, the short term needs centre around rapid increase of agricultural productivity and the re-establishment of productive safety nets; in the longer term, issues cover diversification of agriculture and rural employment, monitoring food security and vulnerability, dealing with structural causes of food insecurity Stakeholders and target beneficiaries The main stakeholders are governments, policy-makers, ministries of agriculture, national institutions and universities, farmers organizations, associations and individuals, consumer of agricultural commodities, vulnerable groups and poor household. From the financing side, stakeholder consists of International Financing Institutions (IFIs) and donors and development agencies. iv

10 The identification of countries participating in this project was based on specific country request and interest and where food security situation is more critical. The choice of the countries to participate in the Project will take into consideration the capacity of the countries to translate plans into concrete actions to increase agricultural production, the possibility of achieving quick wins as well as conducive environment (in particular political stability) for immediate implementation. Activities conducted will benefit all countries by developing general knowledge, experience and instruments that will be disseminated widely. The different target groups and final beneficiaries for each specific intervention detailed in the Country-tailored action plan for each participant country will be identified and quantified during the phase of formulation of the Country-tailored action plans Project justification The five principles of ISFP are: 1) apply the twin track approach; 2) the interventions have to be country specific; 3) play a catalytic role; 4) build a strong partnership with Rome-Based agencies and IFIS for facing the high food price crisis; and 5) integrate this short term measures to address the high food prices crisis into a longer term national policies and strategies for food security. Tailoring FAO policy assistance to the current food price crisis over the short-term will need to remain focused on the specific situation in individual countries and to the needs of different stakeholders. FAO will contribute through policy and technical assistance to develop Country-tailored action plans recommending options for action by National Governments. FAO will work together with Governments. FAO follow the twin track approach production oriented measures should promote the supply response of smallholders farmers to higher prices within a short period of time. If this happens at a large scale, it will alleviate some of the pressure on prices especially in rural areas and more distant markets. The second track consists of policies and programmes to protect the most vulnerable groups in the society from drastic reductions in food intake as a result of reduced purchasing power following higher food prices where FAO has an important contribution in food security policies and vulnerability monitoring. Streamlining this project within existing effective partnerships is the cornerstone for the success of the IFSP Past and related work The proposed ISFP objectives can be harmonized with already developed frameworks within the National Programmes for Food Security, National Poverty Reduction Papers and others initiatives (i.e. The Comprehensive Africa Agriculture Development Programme and Alliance for the Green Revolution in Africa in Africa). It is of utmost importance to ensure that this project falls within, is consistent with and supportive to other long term major policy endeavors to maximize its efficiency and policy impact. FAO intends to play a catalytic role and assist government to deal with the new v

11 food market situation with the ISFP. FAO advocates adoption of a Twin Track Approach to enhance food security resilience during protracted crises with specific policies that link immediate hunger relief interventions with a long-term strategy for sustainable growth. While food aid is essential for availability (when production and import capacity is insufficient) and access (with respect to those with non-existent or diminished entitlements to food), timing of distribution and proper targeting is essential. Cash distribution as opposed to food aid has tended to be undervalued, but there are reports of successful schemes in Somalia and Democratic Republic of Congo. Overall the Twin Track Approach has been used in recent years in Somalia, Sudan and Eritrea and Ethiopia as well as the Democratic Republic of Congo. Work is ongoing in a number of East African and Central Asian countries addressing policy issues associated with long term agricultural development in the context of this Twin Track Approach. Trade Policy Service (ESTT) of the Trade and Markets Division of FAO (EST) has prepared a project proposal on Policies for good economic management of sustained price increases in Africa Countries (GCP/GLO/217/UK); US$ 798,407. This project is a response to the request by DFID for an Africa-focused project proposal on the impact of sustained increases in commodity prices on developing countries. The main goal of the proposed project is to provide feasible approaches and design policy options for the economic management of price booms in commodity dependent and food importing countries in Africa (Kenya, Malawi, Uganda and Zambia) and to strengthen the capacity of stakeholders to implement these so that price increases result in sustainable growth, the improvement of rural livelihoods and a reduction in their vulnerability. As part of ISPF actions a Monitoring Unit on Food Prices and Market Intelligence is being created built upon the existing food security early warning systems currently in ESA and market information and analysis systems currently in EST. This Unit will improve the knowledge on food insecurity and food market situation at global, regional, national and local level, including the analysis of the price transmission mechanisms both spatially and along the food chain. This Unit will be established in close collaboration and partnership with WB, IFAD, WFP and IFPRI. The EC has indicated strong interest in participate and contribute to this Unit. Assistance request have been received, in the framework of IFSP, from Burkina Faso and Mauritania. In Burkina Faso, TCI and the FAO offices will be carrying out a Consultation and assessment missions in various countries, project proposals will be prepared in close consultation with all stakeholders. In Emergency contexts TCE will play a key operational role. Economic and Social Department (ES) of FAO has worked on the Anti-hunger programme: A twin-track approach to hunger reduction: priorities for national and international action. Overall the Twin Track Approach has been used in recent years in Somalia, Sudan and Eritrea and Ethiopia as well as the Democratic Republic of Congo. Work is ongoing in a number of East African and Central Asian countries addressing policy issues associated with long term agricultural development in the context of this approach. The Trade and Markets and Agricultural Development Economics Divisions of FAO has prepared a Paper on Growing demand on agriculture and rising prices commodities An opportunity for smallholders in low-income, agricultural-based countries. The Special Programme for Food Security (SPFS) helps governments replicate vi

12 successful food security practices on a national scale. The SPFS also encourages investment in rural infrastructure, off-farm income generation, urban agriculture and safety nets. Since 1995, US$770 million from donors and national governments have been invested in FAO-designed food security programmes. The scale up and funding of these programmes are important contributions to long term food security 2.5. FAO s comparative advantage working with countries on agricultural and rural sector strategy formulation, policy advice, and incorporation into national plans; working with countries on Food Security Programme and incorporation into national plans; extensive experience in adoption of a Twin Track Approach to enhance food security resilience during protracted crises with specific policies that link immediate hunger relief interventions with a long-term strategy for sustainable growth. substantial experience in time-sensitive humanitarian operations involving reestablishment of livelihoods and restoration of assets as well as collaboration with Un and NGO partners; the interactions and synergies generated with FAO s extensive Regular Programme of work; capacity to provide a holistic approach covering productivity, policy, institutions and services at local through regional levels; wide range of guidelines and training materials already available on topics covered so as to provide cost effective training and advisory support; identification of specific commodity problems and formulation of international action to mitigate them; provision of advice to individual developing countries on formulating and implementing their national commodity and trade policies; analysis of commodity markets and relevant national and international marketing systems and institutions along the value chain, including cross-regional comparative analysis for drawing lessons and identification of good practices; presence through its Regional and Subregional offices and Representations in African. Asia and Caribbean and Latin America countries; dedicated teams that assist governments to develop policies, programmes and projects and help them to develop their agricultural sectors and to use their environmental and natural resources in a sustainable way; extensive working experience with International Financing Institutions (IFIs) and others development partners; coordinating role with the other UN agencies based in Rome (IFAD and WFP); FAO is well positioned to guide and reinforce a participatory process that aims at identifying and formulating specific food security interventions to respond to the impact of high food prices. vii

13 3. PROJECT FRAMEWORK 3.1. Impact The ISFP s purpose is to assist governments of selected LIFDCs to prepare and formulate food security interventions aim at increasing agriculture productivity and production and enhancing safety measures following the twin-track approach to cope with the effects of high food prices and advocate governments, IFIs and development partners to implement these interventions. The ISFP approach is about increasing food supplies in domestic markets during the next seasons, through measures to boost local production on the one hand, and to improve access to food for poor vulnerable households on the other hand. FAO has joined forces with governments, the World Bank, IFAD, WFP, Regional Development Banks and private foundations and propose to integrate these new projects and programme interventions to include facing soaring food prices in regional institutions and programmes, such as NEPAD and CAADP in Africa and other similar entities in Latin America and Asia. The Project will therefore play a part upon the achievement of the National Poverty Reductions Strategies (PRSPs) objectives and the UN Development Millennium Development Goal Objective The overall objective of IFSP is to support countries to formulate strategies, policies and interventions addressing the negative effects of high food prices on the most vulnerable population and to boost opportunities arising from increased commodity prices to smallholder farmers. Through its technical expertise FAO will play a catalytic role in Policy Assistance to Governments and Regional Bodies and will help coordinating and streamlining interventions addressing soaring food prices into existing initiatives and programmes Outcome and Outputs Outcome Country-tailored action plans to respond to soaring food prices prepared and operationalized (including related policies, programmes and projects proposals) that enhance food security resilience to alleviate the effects of high food prices in participants countries of African, Asia, Caribbean and Latin America, and integrate them into national policies, programmes and existing partnership. The Country-tailored action plans will spell out concrete project proposals, presenting a synthesized coherent strategy and immediate and long-term interventions for addressing high food prices, including its implications with respect to existing safety nets, priority policy actions and investment needs. These country-tailored action plans will be presented to donors and governments for financing. viii

14 Outputs Output 1: ISFP countries and its governments technical and agricultural policy capacity supported in partnership with IFIs (World Bank, Inter-American Development Bank, Asian Development Bank, African Development Bank) and other development partners as the Commission of the European Union and bilateral cooperation donors (UK Department for International Development, Spanish International Cooperation Agency,...). (For ease reference, see Annex 4.4: Standard ToR for Consultation and Assessment Missions): Launching the process (March April 2008) by the management and coordination structure of the project and the relevant regional framework identified in Africa, Asia and Caribbean and Latin America (develop a joint action plan and an advocacy and communication strategy). It is important that activities under this output are conducted in a participatory manner with the Rome-based agencies and its representations in the participant countries. ISFP will be advocated during its first stages among governments to identify their interest and seek its support to the ISFP. Counterpart at governmental level will be informed on FAO s partnership and ability to provide technical and policy assistance in designing projects, programmes and policies in respond to high food prices. The ISFP will involve close partnership with Rome based agencies (IFAD and WFP), International Financing Institutions (World Bank, African Development Bank, Inter-American Development Bank, Asia Development Bank...) and others development partners. Clear working plans, information and guidelines will be developed to encourage support and sponsorship from the partnership. Meeting of senior management from FAO, IFAD and WFP to prepare a joint response against high food prices and organize joint consultation and formulation missions to selected countries, the agencies have nominated focal points and agreed to meet regularly. Meeting FAO, IFAD, WFP and AGRA to discuss the nature and scope of an agreement between AGRA and Rome-based agencies. Regular contacts with the World Bank to coordinate the initiative and agreement to jointly support the African Union and NEPAD Secretariat to launch the initiative in Africa in the framework of the operationalization of Pillar III, (food security and emergency responses to food crises) of the CAADP round table process. Develop an analytical framework and guidelines to guide the analysis and formulation of country actions plans. Through its Country Offices, FAO is promoting the creation of National Committees on Soaring Food Prices, primarily in the countries most affected by the food crisis. These Committees would include relevant government departments, development partners, and private sector and civil society organizations, and they would provide a forum to help governments formulate and implement programmes and policy adjustments. To support the work and discussions in these Committees, FAO is preparing an ISFP Guide for country level action which reviews various instruments that could be used, their likely effects and the conditions under which they are likely to be successful. Staff members from the FAO Sub-regional and Regional Offices and from headquarters will be made available as needed to facilitate and contribute to the National Committees and identify follow-up support by FAO or other development partners Country-level consultation and assessment (April - July 2008). FAO will conduct in-country and inter-agency consultation missions to participant countries ix

15 involving governments, UN country teams, IFI s and other development partners to gather consensus on the scope and outcome of the IFSP and confirm the interest of the Government in requesting FAO s expertise and support. Consideration will be given to the several seasonal patterns, including the counter-cycle, as well as planting calendars for rest of 2008 and The Government engagement and willingness to commit its own resources should be a pre-condition to move to the following phases of country level formulation and implementation. The ISFP National Focal Point will be appointed. The country-level consultation and assessment missions will also focus in identifying the most vulnerable groups and those affected by the food price increases (by region, type of production, etc.) and response options, policy measures and operational consideration. The Mission will define the target groups and final beneficiaries and its level of involvement and participation, agree with the Government, IFIs and development partners on its level of contribution in the potential implementation of the project proposals. The Missions will also identify the concrete sub-areas in which there is need for technical information in areas of agriculture, technologies, food security programmes, economic analysis reviews, safety nets and social support networks and review of documentation and past initiatives, etc. They will then prepare the Term of Reference (ToR) for the Formulation Phase and country-level Investment Framework. Under this output, regional and national participatory workshops 4 are conducted to formulate approaches, policies options and country concept notes that will be used to guide the Country-tailored action plan of interventions. Related training materials will be provided to participants to assist them in drafting the country concept note. The workshops will be characterized by a wider participation from the national governments. civil society, NGOs, regional frameworks (African Union, South African Development Cooperation, The New Partnership for Africa s Development, South Asian Association for Regional Cooperation, Association of Southeast Asian Nations, Organization of American States, Southern Common Market (MERCOSUR), Corporación Andina de Fomento, Caribbean Community and Common Market...) Output 2: Country-tailored action plans (country specific food security interventions and investment framework) are prepared with the assistance of FAO and nationally integrated into policies, programmes and existing partnership Carry out the Formulation Missions to the participant countries by a Team of experts aims at drafting the Country-tailored action plans that will detail the specific interventions and the investment framework for each country. Based on the analysis conducted under the Formulation Missions and Output 1 (results of the workshop), the national officials of the MoA with the assistance of FAO staff will complete the formulation of Country-tailored action plan (including Investment Framework). The country-tailored actions plans will be then submitted to Governments, IFIs and donors for financing. Development partners and technical agencies will support the country-led formulation. 4 In Africa, the Programming Workshop will be tentatively held in May 2008 (date and venue to be confirmed) for several African countries that are part of this initiative. Based on lessons learnt from the First Group Consultation Mission and the Workshop, a similar process of consultation will be carried out (Up-scaling phase) with the second batch of countries. x

16 The Country-tailored action plans will contain specific project proposals to respond to country demands and based on existing interventions and platforms whenever possible. The project proposals will focus on food security of the most vulnerable groups and/or aiming at promoting an enabling policy environment to create new opportunities so that small farmers can access investments and technology and take advantage of high market prices: demand-driven short-term supply rapid responses for the main staple food demand-driven long-term supply side projects to increased productivity and production: Access to key inputs (seeds, fertilizer,...) and Improve agricultural practices (water and soil management, demand side projects addressing access to food and nutrition and linked to existing safety nets, social protection measures, market access and purchasing parity demand-driven technical and policy support: Impact of current agricultural and trade policies on food supply and demand, farm input supply and demand, tariffs, taxes, price controls, competition and market policies. It is important that activities under this output be aligned and harmonized with other donor-funded and government ongoing and planned operations (in accordance with Paris Declaration). FAO will make available its expertise and play a catalytic role in developing the process and building synergies with partners. Output 3: Country-tailored action plans are prepared with the assistance of National Committees on Soaring Food Prices, primarily in the countries most affected by the food crisis For those countries where missions are not send out, the alternative will be to use the decentralized offices to check the governments political will and willingness to allocate resources to implement some measures to face high food prices crisis. Video conferences with FAOR in priority countries grouped by regions (Africa, Asia and Latin-America) will be held in April to give clear guidelines on how to present the ISFP to the governments and check their political will and willingness to allocate resources to ISFP projects or programmes. Once verified the government political will and willingness to dedicate financial resources to implement measures to face the high food prices crisis the FAOR would propose to establish a ISFP National Committee with government, IFIS, UN agencies and donors to discuss the kind of short term measures to be implemented by government with the technical support and policy assistance of international agencies and how to articulate these short term measures in the framework of longer term national policies for food security. The guidelines, country action plans and projects prepared by the Sub-Group of the ISFP Task Force will be used for FAOR as a support tool to prepare country specific action plans and country interventions for ISFP Committee and to initiate the formulation of projects and programmes for countries facing high food prices crisis. The ISFP projects and programmes will be approved and owned by the country governments and will be presented to the donors for co-funding. The contribution of FAO will be to provide seed capital, technical and policy assistance. Output 4: A harmonized cereal prices data base is setting up and market analysis xi

17 activities strengthened f In the current context of soaring international cereal food prices, there is urgent need to have harmonized and readily available information on cereal prices for different type of analysis both within and outside of FAO. Data is essential to effectively analyze price transmission from international to domestic markets and evaluate its impact on cereal import bills, cereal consumption and food security, as well as on agricultural investment and production. Analysis will help propose appropriate policy measures to limit negative effects/take advantage of higher cereal prices by different groups of population. A significant number of national cereal prices and import datasets have, over time, been developed, maintained and used in the Global Information and Early Warning System (GIEWS) of the ES Division, by professional analysts and statistical clerks. These records are critical to the GIEWS capacity to undertake up-to-date analysis on food security situation for its different reports and publications. Similarly, cereal price datasets are kept in other units of FAO, both in HQs and the field. However, these datasets have been developed by individual analysts in a disconnected manner and not always in the most efficient way. While some of this information is available as files on the shared Divisional computer drives, they are not harmonized in terms of data gathered, management and analytical tools developed, which make difficult the access to the information by other staff, and hamper comparative assessments and regional market analysis. The analysis of national and sub-national cereal market prices will strengthen GIEWS food security monitoring activities and FAO position as a source point for critical and timely market information (Refer Annex X for the specific activities to be carried out under this project component and the proposed budget (Total: US $ ) 1. Develop a shared harmonized data base on national and international cereal prices, including analytical tools to facilitate market assessments - In order to satisfy the dual need of i) having improved price information to immediately undertake market analysis ii) having a sustainable price database that could be maintained on continuous basis by GIEWS and be accessible by other FAO units and by outside users through the Web, a two-phases approach will be followed. In the first phase the cereal price data base will be created in Excel or Access and in the second, it will be migrated to the wider EST Divisional food and non food prices database under design, which would be using the new generation of GIEWS Workstation as the platform for the management, analysis and dissemination of basic price indicators. 2. Undertake a rapid survey on policy instruments adopted by countries to mitigate the transmission of high international cereal prices into domestic food prices. 3. Undertake basic market analysis on price fluctuations at regional, national and sub-national levels. xii

18 ES will prepare an Experts Meeting on the Impact of, and the Effective Policies for Sustained Price Increases. The Trade and Markets Division (EST) will take the lead. Members of the academic community with experience on this subject, international organisations, such as FAO, IFAD, WFP, IMF and the World Bank, as well as policy experts and decision makers of developing countries will be invited to participate. The estimated budget is USD. Output 5: The Initiative in replicated and disseminated to others countries The project is designed to have multiplier effects, including scope for replication and extension of the outcomes and dissemination of the information. A Communication, Information, Visibility and Dissemination Plan will be developed during the first phase of the Project. The development, management and execution of the relevant activities of the communication plan will be conducted by a Communication Officer hired by the Project (Please Refer to Annex X for ToR). He/She will coordinate the allocation of resources to specific activities in line with the relevant budget categories. He/She will be under the ISFP Secretariat and overall supervision of the ISPF Task Force, and the immediate direction of the ISFP Coordinator. He/She will liaise closely with the Communication WG, FAO Communication Division (KCI), FAO Regional and Sub regional offices and National Focal Points of the Ministries of Agriculture in developing countries. Activities under Output 4 will include and ensure the following subjects through one or more of the communication tools set out below: Visibly acknowledge the support of the UN Agencies, IFIs and donors. The communication plan has to be drawn up to ensure that projects that are wholly or partially funded by parteners visibly acknowledge the support of the those (IFIs, UN Agencies FAO: IFAD, WFP and FAO, and other donors as EU. The projects may cover the written and visual identity of the institutions and are to be used in briefings, newsletters, press conferences, presentations, invitations, signs, commemorative plaques and all other items used to highlight the development partner participation. Lessons learnt. Lessons learned are a key component in informing further intervention formulation and implementation. The lessons will be identified during the Phase I in Africa that has taken the lead in this Project and adapted in the process of the formulation of Actions tailored-country Plan and progressive branch of countries where the project will start. Lessons learned will be communicated to a wider audience through a variety of means (i.e. Project web site). Dissemination of the information: Consultation and Formulation Mission Reports, Technical and policy briefs and the outcomes of the regional and national conferences planned during the Project will be disseminated to Member States and policy-makers in countries, other than those selected, and other interested parties (producer organizations). This will contribute to knowledge sharing that will result in better understanding of the impact of high price on food security and how to deal with them. The regional workshops will also contribute to visibility. The interactions between the FAO, IFAD, World Food Programme, International Financial Institutions, the government departments and the collaborating national institution and organization will also provide significant opportunities for communication of the outputs of the project xiii