Thematic global evaluation of the EC support to agricultural commodities in "Fiche Contradictoire"

Transcription

1 Ref. Ares(2013) /09/2013 (one year later) Specific to agricultural commodities 1.Based on analyses of competitiveness and livelihood possibilities, decide whether to support competitiveness or to exit from a sector and provide means to do so Partly agreed - The decision to support one or several agricultural commodities depends partly on the competitiveness prospects but also poverty reduction/income generation and employment considerations. - Support to agricultural commodities should be seen in the wider context of a well-designed long-term agricultural policy. - If this doesn't exist donors, including the EU, should assist countries/regions in designing it. - Moreover, it must also be noted that the EU support may be seen as a safety net for poor farmers for whom it is very hard to be competitive and difficult to switch to alternatives products. - Agricultural commodities strategies need to be embedded in long-term agricultural policies. The country partners which have chosen SAN - ARD 1 as focal sector in the programming process , need to address competitiveness analyse, within the Country Strategy papers. - The Commission support aims to improve competitiveness by increasing agricultural productivity or crop quality through support to research, access to inputs, reestablishment of productive assets, support to targeted key crops, improving access for producers to market information and stimulating investments in commodity chains, beyond others interventions. - The way we will support smallholders through the consolidation of cash crops value chains can be seen somehow as the promotion of a Safety net, but solely through a support aiming at including these within competitive processes. 1 Agriculture and Rural Development Sécurité Alimentaire et Nutritionnelle 1

2 (one year later) Specific to agricultural commodities 1.Based on analyses of competitiveness and livelihood possibilities, decide whether to support competitiveness or to exit from a sector and provide means to do so - In the banana and sugar sector the Commission is supporting a long term vision considering the country potential competitiveness. - The Accompanying Measures for Sugar Protocol Countries (AMSP) Programme has been set up to support the adaptation process of 18 Sugar Protocol countries traditionally exporting sugar to the EU following the reform in 2006 of the EU's sugar regime. - In 2010 the Commission adopted the Bananas Accompanying Measures (BAM), a support package for 10 banana exporters from African, Caribbean and Pacific (ACP) states. In the framework of the New Commodities Programme, (II Phase to be launched in 2013) the Commission will support sectors showing long term viability prospects and where social benefits are commensurate with the support (Cocoa, coco, roots and tubercles are the main sectors of support). This programme looks for coherence between the regional and national development policies and strategies. 2

3 (one year later) 2. Place the value chain approach in a comprehensive framework in line with an overall agricultural support policy Agreed - The value chain approach is already being applied in EU projects and has received particular attention in the Agenda for Change vision on agricultural development and improving food security. - In addition, the EU has developed methodological tools 2 to promote sector approach in agriculture and rural development. In most cases, this approach is applied by the EU when designing and implementing agriculture programmes. - The development of value chain for agriculture products, creating value added on agricultural commodities through micro, small and medium-sized enterprises are part of our support to ARD projects and programmes. Methodological tools are being applied when designing and implementing projects. - AAACP 3 (phase I) provides a rich source of information and lessons learnt between 2007 until AAACP implemented a participatory approach to support the development of commodity strategies in order to engage all the key stakeholders. - Cos 4 cotton has been supported since 2008 in the framework of the EU- Africa Partnership on cotton, as a joint EU-ACP Steering group to follow the implementation of the EU-Africa Cotton Action Plan. COS Cotton involves ACP states, EU, Regional integration Organisations, EU-ACP organisations and regional African cotton associations j27j26j7j les%3B c.1.KWHl3bXts8I&psj=1&bav=on.2,or.r_gc.r_pw.r_qf.&fp=e676f443cef6f0cd&biw=1024&bih= All ACP Agricultural Commodities Programme 4 Comité d orientation et de suivi 3

4 (one year later) 3. Address dependence through diversification at a macroeconomic level Partly agreed - But this goes beyond agricultural commodity support programmes. - Diversification of the economy (at macroeconomic level) is important, but it is not only a private sector development or trade policy issue. - Diversifying away from certain agricultural products requires a sound agricultural policy which is equally supported by appropriate fiscal, social protection, environmental and employment policies. - This also requires investment in infrastructure, human resource development and institutional capacity building and extension services. - Although agricultural commodity production is not the main livelihood activity of smallholder farmers this may nevertheless represent a substantial part of the incomes and a sound analysis of diversification at farm level should also be carried out. - Diversification of agricultural commodity sectors is part of the Commission policy dialogue, especially in ACP s countries which have retained ARD as a focal sector of cooperation and where ARD is part of the partner s Government policy. - The Commission aims diversifying farmer s livelihood through the introduction of new cash crops in the production system, at increasing the production chain added value and at improving the quality to meet the international market requirements, beyond other interventions; - In banana and sugar producing countries, the Commission s support to diversification was the alternative when competitiveness was considered unachievable. Under the banana budget line support helped to build capacity for economic diversification. - More effective contributions to diversification were undertaken in the context of the Commission s support to private sector development and the implementation of Aid for trade. The Commission has actively supported Private Sector Development targeting the institutional and regulatory environments whilst direct support to productive sector actors has been provided by the European Investment Bank through loans to the agrobusiness sector (Cameroun-bananas, Burkina Faso Cotton). 4

5 4. Implement the current Communication by focusing available resources on specific sectors that have long term prospects Agreed - Many of the basic principles stated in the Communication remain valid, including promotion of the value chain approach, but there are two new Communications which provide the basis for the EU's support to agriculture and food security 5. - The EU took a significant step towards cooperating with partner countries to address food and nutrition security challenges by adopting an EU policy framework for Food Security. This policy framework constitutes the basis for a common framework for action for the EU and MS, built around the four pillars of food security. An implementation plan defines the operational response with regard to recent policy commitments on food and nutrition security. - DEVCO/E3 6 commits to implement the policy orientations and strategies as they are defined in the EU communications, whenever relevant to agriculture, food security and rural development sectors. - The focus of the AAACP programme did respond to the needs and objectives expressed through different communications (The Agenda for change, DEVCO/C1 7 communication on nutrition ) - The Commission presented a Communication on Nutrition 8. This Nutrition policy framework, together with the EU approach to resilience 9 further bolsters pillars three and four of food security. 5 COM(2010) 127 An EU policy framework to assist developing countries in addressing food security challenges COM(2011) 637 Increasing the impact of EU Development Policy: an Agenda for Change 6 DEVCO Unit in charge of regional programmes in sub-saharan Africa and for All-ACP programmes 7 DEVCO Unit in charge of Rural Development, Food Security and Nutrition 8 COM (2013) 141, Enhancing maternal and child nutrition in external assistance, 12 th March, COM (2012) 586, The EU approach to resilience : learning from food security crises, 3rd October

6 5. Deepen focus and research on possibilities to prevent the impact of agricultural commodity price volatility on farmers, including the poorest Partly agreed - EU Development cooperation is supporting efforts to improve managing agricultural commodity price volatility and the potentially negative impact on smallholders and low income households. - This includes analysing price stabilisation mechanisms where appropriate but not only those and support is much wider. Efforts indeed include developing new risk management mechanisms (financial, weather, prices...) but also reduction of postharvest losses, improved productivity, and irrigation etc. together with the development of safety net type of instruments. - Preventing negative effects of price dynamics and its impact on poor farmers is at the core of our commodities programmes. - Different instruments are mobilized to achieve consistent impacts on this matter: Household analyses, price/ costs/ margins analyses, market assessments. - The interest expressed by counterparts from the ACP Secretariat and its Member States on specific commodities value chains often demonstrates also that actions on these value chains are most of the time feasible and can prove to be profitable for poor farmers in a midterm period. - Other example, the E3 implements the GIIF 10 (25M ), which aims at spreading the use of index insurance related to natural disasters. This programme is currently underway. - A feasibility study, cost benefit analysis and proposal for a pilot programme for small, targeted emergency humanitarian food reserves in the ECOWAS region was launched in response to a request of G20 Agriculture Ministers. This study sets up recommendations for the operation, financing and management for a five year pilot Pre-Positioning for Predictable Access and Resilience system (PREPARE). PREPARE is a pilot program designed to give poor deficit countries rapid access to sufficient physical food for distribution when crisis due to high and volatile prices occurs. The Commission has been engaged to fund 56M of the pilot programme. 10 Giif/ Global Index Insurance Facility 6

7 Recommendations Answers from the EU Services Non-specific to agricultural commodities Follow-up 5. Deepen focus and research on possibilities to prevent the impact of agricultural commodity price volatility on farmers, including the poorest - Under the Food Security Thematic Programme and European Development Fund the EU has already implemented programmes aimed at developing standardized methodologies for strengthening food security/commodities information systems and enhancing data, research and analyses on price volatility, through an agricultural risk management approach. - In order to reduce crop losses the European commission is supporting Plantwise, a vital plant health information resource. This initiative is a comprehensive global knowledge bank, bringing together the best worldwide knowledge on crops, pests and diseases, building on proven technologies and delivering research findings on plant healthcare, to most vulnerable farmers, through CABi- trained and accredited plant doctors. This initiative is being supported under the Food Security Thematic Programme. Through its participation in the G20 group the Commission supports the Agricultural Market Information System (AMIS) is the, aimed at enhancing food market transparency and encourage coordination of policy action in response to market uncertainty. - The Platform for Agricultural Risk management (PARM), will be a facilitative entity connecting ARM demands in LDC/LMIC 11, from governments, farmers, consumer organisations with ARM service providers, development institutions and other players. PARM will provide assistance at policy level and practitioners in the assessment and identification of risks and the definition, selection and coordination of ARM strategies and services. PARM will be supported by the European Commission (2M ). The GIIF 12 (25M ) supports the enhanced use of index insurance (related to an event which is measurable). Programme launched in 2008 in joint funding and management with the IFC of the WB group. The aim of the GIIF is to reduce vulnerability of ACP farmers to external shocks by using ex ante risk reduction options and therefore encourage investments in production. 11 Low Developed Countries/Low Middle Income Countries 12 GIIf/ Global Index Insurance Facility 7

8 Non-specific to agricultural commodities 6. Allocate resources for the implementation of policy Partly agreed - The evaluators suggest that the policy stated in the Communication was only partly implemented or at least not in a structured, consistent and well supported way except, though in a qualified way, for the sugar and banana programmes. - Partly agreed that policies need to be accompanied by an action plan, appropriate resource allocation at HQs and in Delegations, dialogue with stakeholders, coordination and monitoring of progress, information dissemination and review and adjustment mechanisms. - However, it should be noted that Communications are meant to deliver a political message and provide a framework for any interventions in a sector/domain. It is not meant to allocate or earmark funds for supporting the implementation of the proposed strategy or policy. - Policy making and implementation has been considered to be essential in the past AAACP programme and is also a priority of the new commodities programme, as Result N 1 of the new action. It includes the design of national strategies, the strengthening of regional coordination to allow better integration of existing national strategies and the alignment of national commodities strategies with the priorities set by governments in agriculture. - Concerning past (AAACP) and next programme (new programme on commodities), proper action plans are designed so that the implementation of the above activities is consistent with what has been proposed to be achieved. - The total financial allocation for the BAM, Bananas Accompanying Measures, for the period is 190 M. Whereas the total financial allocation for the AMPS, Accompanying Measures for Sugar Protocol Countries, for the period is M. - In the on-going programming process ( ) we hope at least 50 countries would be choosing Food Security and Nutrition ARD as focal sector. 8

9 7.Build complementarities and synergies within EU support between projects, programmes and non-financial support Agreed - This recommendation actually repeats the basic principles to be followed in development cooperation. These are not specific to commodities and setting up specific mechanisms for improved internal coordination or coordination with MS solely for agricultural commodities is not resource efficient. - Commodities are part and parcel of the agricultural and food security policy, private sector development, trade policy; The same applies for the new commodities programme. Dialogue with EU Delegations on the ground is underway in order to consolidate the design of the new programme on commodities so that we get appropriate feedback on specific actions and the possible needs to focus on some policy points in particular, if these were not considered to be given enough attention. These include agricultural and food security policy, private sector development policy, land tenure policy. land tenure, governance, etc. EU commodity support should hence be in line with EU policy and with the beneficiary country/region's related policies. - The mechanics of designing, implementing and reporting on commodity programmes should be those mentioned in the national programmes, aid effectiveness principles, internal instructions, etc. - Improved coherence between EU programmes in a given country will be sought also through closer interaction with aid instruments such as budget support or join programming. - The Commission continue to encourage joint action by multi-donor cooperation on agricultural commodities, with a view to enhance expertise and development of innovative tools to support national commodities strategies. - The AAACP (phase I) fostered cooperation amongst IOs, using them as a channel for spreading value chain approach and for promoting the sustainability of commodities. - The same applies for the new commodities programme. - Dialogue with EU Delegations on the ground is underway in order to consolidate the design of the new programme on commodities so that we get appropriate feedback on specific actions and the possible needs to focus on some policy points in particular, if these were not considered to be given enough attention. These include agricultural and food security policy, private sector development policy, land tenure policy. 9

10 8. Improve and promote coordination with other institutions inside the country Agreed - But similar comment to point 7. Promoting coordination within a country is also an important component when applying a sector approach. - Moreover, the Agenda for Change Communication emphasises the important role of private sector in the agricultural sector. This includes private entrepreneurs but also farmers' associations, traders, financial institutions. These stakeholders should be involved in programme preparation as and where required. - Agreed that ICBs could play a role in the coordination process but it should be noted that it does not depend on the reform process of the organisations but rather on the willingness of their Members. - For instance the cocoa organisation has already carried out studies and methodologies regarding national strategies, global and coordinated programmes and to a certain extent applying a value chain approach. The EU continues to promote holistic approach but there is evidence that the bulk of the discussions within these bodies remain focused on trade issues. - The EU is very supportive of this approach and plans for the new programme on commodities to promote coordination with the widest possible range of institutions. - Member States undertook assessments and make proposals to ensure efficiency of International Commodity Bodies. - Concerning the cocoa sector, ICCO (the International Cocoa Organization) will help producers to participate in the implementation of the National Development Plans (NDP), bringing together all stakeholders. - The EU is very supportive of this approach and advocate to include the NDP in the PNIA 13. Coordination is underway with the ACP Secretariat, EU Delegations, and other IOs of course, but also the ICCO for instance. Links to national and regional investment plans is also a must. 13 PNIA: National Plan of Agricultural Investment. 10

11 9. Adapt implementation mechanisms and financing modalities to capacities and systems in place Partly agreed - The choice of implementing partner is done on the basis of several considerations, not just an institutional diagnostic. More emphasis will be put on the institutional and financial diagnostic of the major actors during the programme preparation phase so as to integrate where needed into the support measures appropriate capacity building measures. - This would include mechanisms to promote improved technical and financial sustainability of project beneficiaries (e.g. government departments, professional and producer associations, smallholders, financial operators, entrepreneurs, etc.). - The Commission is actively addressing institutional strengthening as a main component of support to agricultural commodities and as a result of a broad analysis of the needs of stakeholders. - Aspects such as institutional strengthening, support to Farmer s Organizations and the provision of local funds for enhancing productive and technical capacities of farmers are key elements included in the new programme on commodities. Links with private actors involved in the local finance sector are also foreseen. - The Commission supports Farmer s Organizations (FOs) through the SFOAP 14, a capacity-building programme working with FO to help them to evolve into more stable, performing and accountable organizations, which effectively represents their members. A five-year support with an overall contribution of 26.9 M from the EU. The SFOAP enables FOs at different levels to influence policies addressing their concerns and voicing their needs and supports the efforts of FOs to provide economic services to their members. 14 SFOAP: Support to Farmer Organizations in Africa Programme 11

12 10. Ensure monitoring of results and their evaluation ex-post Agreed - Particular attention needs to be paid to the M&E systems and to defining relevant result oriented indicators rather than input or output measurements. - However, in the agriculture sector this monitoring might meet some burdens due to the difficulty of collecting data and due to the huge number of stakeholders. - Monitoring systems should be designed in the framework of the capacity and the reform of national information and statistics systems. - Adequate monitoring, of outputs and outcomes and the reporting on this monitoring remains essential in any Commission supported intervention. - A Mid Term Review (MTR) of the programme is planned as well as mechanisms to ensure that the capacity of our partners to use consolidated monitoring systems is in place. - Strengthening the capacity of partner countries to upgrade and use performing monitoring and statistics systems is also a key priority of the Commission. In this context, the Commission through its 30 M programme Improved Governance in Food Security implemented by FAO, supports partner countries to develop sound and operational agriculture-related information systems. 12