MASTER IN INTERNATIONAL COOPERATION Module: Development Session: Rural Development 1-2 March Lecture 3

Transcription

1 MASTER IN INTERNATIONAL COOPERATION Module: Session: 1-2 March 2017 Key issues in building rural development projects Giacomo Branca

2 Objective Using concrete examples of RD projects, highlight key issues, goals and possible approaches of RD interventions Outline 1. Agriculture productivity and market access A. Crop (rainfed and irrigated), livestock & integrated crop/livestock B. Risk 2. Sustainable use of natural resources A. SLM, SWC, CSA, crop diversification, agrobiodiversity B. Reduced deforestation and land degradation, Payments for environmental services C. Watershed management 3. The rural non-farm sector

3 1. Agricultural production and markets A. Crop and livestock Increase land and labour productivity, overall food production and farm incomes Modern markets and value chains: new profitable opportunities for smallholders Participation to food markets uncertain, risky and not profitable high entry costs, risks of marginalization role of global corporations (value-chain approach, globalization of food demand)

4 1. Agric. production and markets (cont.) Elements for project design: invest in developing new market opportunities for smallholders (infrastructures, transportation, communication and technology) strengthen farmers capacity to organize collectively to participate in markets more efficiently and reduce the transaction costs (contractual arrangements, access to financial services, particularly with input credit) Protect local crop varieties (local agroecological conditions) and promote domestic seed markets (adaptation & increased productivity)

5 Example 1: Supporting agribusiness in the Maputo and Limpopo corridors in Mozambique Goal: Improved livelihoods of small farmers in selected districts of the Maputo and Limpopo corridors Focus on value chain development Improved production (quantity&quality) Address key market constraints promoting key interventions to develop a more favorable business environment in the value chain (i) Horticulture; (ii) Cassava; (iii) Red Meat Reduce risk for smallholders: ensuring smallholder sustainable access to the services they need to boost production develop business ventures that are designed to secure smallholders continued access to markets and services Private sector driven approach Ifad financing: 30 million US$ (loan & grant) 5

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7 Example 2: Agricultural Growth Project (AGP) in Ethiopia Goal: increase agricultural productivity and market access for key crop and livestock products in 83 woredas (Amhara, Oromiya, SNNPR, Tigray) Focus on high potential areas better market access favorable soil and climate conditions institutional capacity Focus on smallholders: help scaling up best practices and new technologies in ag. production/post-harvest investments: small-scale/micro irrigation, rural roads, market infrastructure emphasis on natural resource conservation and rehabilitation Loan:118.6 millionus$ + Grant:31.8 million US$ (WB) 7

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9 Table A5.1: Costs of Agricultural Growth Project Component /Sub-component 1. Agricultural Production and Commercialization 1.1 Institutional Strengthening and 1.2 Scaling up Best Practices 1.3 Market and Agri-business 2 2. Small Scale Infrastructure and Management 2.1 Agricultural Water and Management 2.2 Market Infrastructure and Management 3. AGP Management and Monitoring and Evaluation Total US$ million Program Management Monitoring and Evaluation Total Baseline Cost Physical Contingencies 3.7 Price Contingencies 10.3 Unallocated Total Costs

10 See pictures ethiopia

11 Example 3: Smallholder Livestock Investment Program (SLIP) in Zambia Goal: improve the production and productivity of key livestock systems of targeted female and male smallholder producers in selected provinces and districts of Zambia Target smallholders (target 250,000): 1. Animal Disease Control component, (i) Towards CBPP eradication (ii) Control of ECF (iii) Livestock production and health monitoring 2. Livestock Production and Productivity Improvement (i) Improved forage production (ii) Pro-poor re-stocking Focus on risk reduction and productivity improvement Total costs (Ifad): 56.7 million US$ 11

12 See pictures Zambia

13 B. Risk Managing risk key for rural HH - move out of poverty (decisions on allocating cash/land/labor to minimize risk of shocks - throw it into poverty) Shocks: primary factor for poor rural (depends on livelihoods, areas, assets, capabilities, institutions, infrastructures, service network). Risk of shocks increases with environment: natural resource, climate change, land access, crisis of common property and related institutions, food price volatility, ill health, poor governance Main response to shocks: incurring debt or selling assets (more vulnerable to future shocks)

14 B. Risk (cont.) Elements for project design: promoting the expansion of systems for delivering financial services to poor rural people supporting and scaling up strategies/tools for risk management (e.g. insurance programs) strengthening community-level organizations and assisting them to identify mechanisms social solidarity providing social protection to the most vulnerable (social safety nets) = support systems designed to alleviate food and financial insecurity

15 Social safety nets Community support systems: networks support people facing difficult times: charities, NGOs, church groups, associations. Where public funding is limited Direct transfers: government transfers, provide food/cash directly to needy populations. E.g., emergency food relief, supplementary feeding programs, food-for-work programs. Indirect transfers: help people without giving them direct aid. E.g., minimum wage laws, price controls, financial and labor market, training, public sector work, credit schemes, job creation and placement, publicly backed insurance, programs and pension funds. Microcredit: small loans to entrepreneurs too poor to qualify for traditional bank loans. Enables poor to obtain funds needed to start/expand small businesses, effective against poverty, encourage investment in the local economy

16 Example 1: Delivering financial services to poor rural people E.g. Sanduq in Siria (Ifad) Sanduq is an improved version of a savings and credit association; Four operational pillars: self-reliance; autonomy; sustainability; outreach to the poor.

17 Example 2: Delivering financial services to poor rural people E.g. Refinancing Facilities in Armenia, Moldova, Macedonia, Bosnia MT and LT refinancing capital to a range of selected financial institutions for lending to farmers and small agribusinesses; provision of capacity building services to financial institutions and their clients; refinancing facilities financially sustainable for all stakeholders.

18 2. Sustainable use of natural resources Agriculture: rising food demand (growing population), in the context of a weakened natural resource base and climate change Sustainable agriculture: improve soil fertility, structure and water-retaining capacity using a combination of organic, biological and mineral resources; using water more efficiently Environmental services (ES): water, carbon, biodiversity

19 1. Overview Economia dell ambiente e delle risorse naturali - Giacomo Branca,

20 2. Sustainable use of NR (cont.) Elements for project design: Investments in: infrastructures, sustainable land management (SLM) Agric. Research: scientific research to address context-specific problems, support farmers capitalize on their local knowledge and social capital More secure land tenure to encourage long-term investments, incentives agricultural inputs use, regulations natural resources access/use, Payments for ES (PES), conservation/resource protection

21 Example 1: Land husbandry, Water harvesting, Hillside irrigation (LWH) Project in Rwanda Goal: to increase the productivity and commercialization of hillside agriculture in target areas Watershed approach to introduce sustainable land husbandry measures for hillside agriculture on selected sites, as well as developing hillside irrigation for sub-sections of each site Loan: 34 million US$ 21

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23 LWH components and activities Component A Component B Component C Capacity and Institutional Strengthening for Hillside Intensification Infrastructure for Hillside Intensification Sub component A1 Strengthening Farmer Organizations; A2 Extension; A3 Marketing and Finance; A4 Capacity and Institutional Strengthening: MINAGRI and its Agencies B1 Land husbandry infrastructure; B2 Water harvesting infrastructure; B3 Hillside irrigation infrastructure 23 Implementation through the Ministerial Structure

24 See pics Rwanda

25 Example 2: and implementation of Climate-smart agriculture (CSA) in Vietnam Goal: to identify potential CSA practices suitable for investments at smallholders level a) Agroforestry (crops with forest trees) b) Conservation farming/agriculture i.e. minimum tillage, mulching, crop rotation/intercropping c) Sustainable rice intensification d) Forage production (fodder grass production for intensive cattle raising & manure management) e) Mini-terracing f) Rice FDP (Fertilizer Deep Placement - on paddy) Area: Northern Mountain Region of Vietnam (3 provinces) Still in the identification phase: funds & financiers tbi 25

26 See pics Vietnam

27 Example 3:Sustainable Agriculture Landscape Project (PADAP) in Madagascar Example 4: Enhancing the resilience of agroecological systems Project (ERASP) Goal: to improve agricultural productivity and management of associated natural resources in selected landscapes

28 Example 3:Sustainable Agriculture Landscape Project (PADAP) in Madagascar TABLE 1. PROJECT COSTS AND FINANCING Project Components Project Cost (US$ million) 1 Information and planning Data collection and decision support tools Preparation of selected Sustainable Landscape Management Plans (SLMPs) Policies for landscape management Investments and capacity building in the selected landscapes Capacity building Productive investments Infrastructure Water Resources Management and Irrigation Hillside stabilization and forest landscape restoration Feeder road maintenance Support to partnerships with the private sector Support to local producers Management of critical ecosystems and protected areas Project management, coordination and M&E Contingency Emergency Response (zero budget) - Total Project Costs

29 Example 4: Enhancing the resilience of agroecological systems Project (ERASP) PRIDE ERASP Programme framework Main activities Complementary activities Comment on complementarity Component 1: Irrigation and Catchment Management Component 1: Multi -stakeholder institutional framework for integrated catchment area management. Component 3: Monitoring and assessment of ecosystem services, resilience and food security. Sub-component 1.1 Land and Water Governance Sub-component 1.2 Irrigation System Sub-component 1.3 Soil and Water Conservation Component 2: Agriculture and Market Linkages Component 2: Scaling up catchment sustainable land management practices. -level, Sub-component 2.1 Improved Agricultural Practices Sub-component 2.2 Market Linkages Sub-component 2.3 Mainstreaming nutrition 29

30 See pics Madagascar

31 3. The rural non-farm sector Large number of rural people involved in the nonfarm economy (source of opportunities for youth) Agriculture remains key driver of non-farm economic development (e.g. agribusiness) For firms, the possibility of acquiring a labor force with appropriate skills is critical Drivers of growth for non-farm economy: urbanization, integration rural/urban economies improved communication (e.g. mobile phone infrastructure) and information systems

32 3. The rural non-farm sector (cont.) Elements for project design: incentives to increase job opportunities & expand labor markets, facilitate organization and access to services, decent work standards Improve infrastructures (e.g. energy and transport) Improve business climate to encourage private investments (e.g. promote better access to enhanced business development services and financial serv) Enhance skills of workers and their capacity to start and run their own businesses (training, education) Promote technical/vocational skills development to ensure a better match between labor demand/supply

33 Example 1: The Economic Opportunity Program (Yemen) Projects: The Fisheries Investment Project (FIP) The Employment Project (YemenInvest) Goals: FIP: improve the economic status of small fisher households & create sustainable economic opportunities for poor fishing communities YemenInvest: improve the economic status of poor rural households & create diversified employment opportunities for unemployed and underemployed people in rural areas. Value-chain approach: Fishery & aquaculture (FIP), Natural stones & textiles production (YInvest) Grant: 12 million US$ Loan: 23 million US$ (FIP) Grant: 20 million US$ Loan: 30 million US$ (YInvest) 33

34 FIP components and activities Sustainable resource management licensing and inspections research and stock assessment Fishery value-chain development & upgrading installation of cold storage facilities on board and training in use of ice financing of mother ships (support at sea to groups of smaller vessels including provisioning with food and fuel, and better storage of fish) financing transport vessels for remote fishers communities on Socotra currently reliant on middlemen to transport fish to mainland markets construction of integrated landing sites (auction facilities, ice plants and cold storage) export promotion and support for certification aquaculture development 34

35 YInvest components and activities Natural stone value chain upgrade, enterprises clustering, infra-structure development. of the textiles sector (mua az). Medium-term and long-term refinancing to qualified financial institutions for lending to micro, small and medium sized enterprises Non-financial services (e.g. business advisory support, managerial development, technology, and marketing advice) Services: policy dialogue with Government on decent work agenda and legislation, rural labor market intermediation, strengthening capacity of key vocational training entities and of professional associations, developing professional apprenticeship arrangements, export promotion 35

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37 See pics yemen text & stones, fishery

38 Thank you for your attention