PROGRAMMING GUIDELINES FOR. RURAL DEVELOPMENT (Part A) AND. FOOD SECURITY (Part B)

Transcription

1 EUROPEAN COMMISSION DG DEVELOPMENT Development Policy and Sectoral Issues Environment, Rural Development PROGRAMMING GUIDELINES FOR RURAL DEVELOPMENT (Part A) AND FOOD SECURITY (Part B) Final 8 November 2001

2 INTRODUCTION This document should guide Delegations in the programming and the review of EC interventions in the domains of Rural Development and Food Security. It assumes that country analysis and the overall EC response strategy have identified RD and/or FS as areas of concentration for EC support. Within these two domains, these guidelines provide a step by step approach to identify a limited number (one or two) of sectors or cross cutting themes (e.g. decentralisation, capacity building) for EC focus. In summary, they provide a sequenced approach to: Part A Rural Development. Provide key aspects and data for rural areas and assess Government s Rural Development strategy or the rural component of an overall national development strategy (e.g. PRSP) Part B Food Security. Provide key aspects and data for country s food security situation and assess Government s strategy This can be synthesised as follows: After having analysed the country situation and having extracted Rural Development and/or Food Security as domains of concentration ANALYSIS OF GOV T. STRATEGY No RD/FS strategy exists but Government has developed a PRSP or overall dev. t strategy Government has formulated a Rural Development policy and strategy Government has formulated a Food Security policy and strategy Guidelines Part 1: 1. Provide key aspects and data for rural areas 2. Assess Rural Component of PRSP 3. Analyse contribution of other donors 4. Extract focal sector/cross-cutting themes and EC response strategy for EC support to RD Guidelines Part 1 1 Provide key aspects and data for rural areas 2. Assess Gov t. RD Strategy 3. Analyse contribution of other donors 4. Extract focal sector/cross-cutting themes and EC response strategy for EC support to RD EC RESPONSE STRATEGY AND AREA OF CONCENTRATION (SECTOR/CROSS-CUTTING THEME) Guidelines Part 2 1. Provide key aspects and data for national and household food security 2. Assess Gov t. FS strategy 3. Analyse contribution of other donors 4. Extract focal sector/cross-cutting themes and EC response strategy for EC support to FS Sectoral guidelines for each sector of concentration within RD/FS (agriculture, health, education, ) Based on the analysis of rural areas (Parts 1 or 2): 1. Present in greater detail the sector 2. Assess Government sectoral policy, strategy and investment/expenditure programmes 3. Analyse the contribution of other donors 4. Extract priority interventions for sectoral support identifying the relevant financial instruments Guidelines for cross-cutting theme (decentralisation, capacity building, etc ) Based on the analysis of rural areas (Parts 1 or 2) it may be appropriate to focus EC cooperation on a particular theme: 1. Present in greater detail the theme 2. Assess Government policy, strategy and approach 3. Analyse the contribution of other donors 4. Extract priority interventions for support identifying the relevant financial instruments

3 EUROPEAN COMMISSION DG DEVELOPMENT Development Policy and Sectoral Issues Environment, Rural Development Part A: PROGRAMMING GUIDELINES FOR SUPPORT TO RURAL DEVERLOPMENT

4 PART A - PROGRAMMING GUIDELINES FOR RURAL DEVELOPMENT 1. RURAL DEVELOPMENT Introduction Essential Steps for Sustainable Rural Development FORMAT FOR ANALYSING NATIONAL RURAL DEVELOPMENT POLICY AND STRATEGY Key aspects of rural areas Key problems affecting the rural poor What is the rural development policy and strategy of the partner country? How does the overarching rural development policy and strategy respond to development objectives? Responding to poverty reduction Responding to sustainable economic and social development Integrating environment, gender and HIV/AIDS FORMAT FOR ANALYSING ISSUES IN DESIGNING/IMPLEMENTING AN RD STRATEGY Participatory design and Stakeholder involvement Operational strategies Institutional framework FORMULATING THE EC RURAL DEVELOPMENT RESPONSE STRATEGY PROPOSED SET OF RURAL DEVELOPMENT INDICATORS FURTHER INFORMATION...7

5 1. RURAL DEVELOPMENT Given the complexity of rural livelihoods and the numerous factors affecting them, the balanced and sustainable development of rural areas requires concerted action in most sectors. Rural Development Strategies are conceived to translate policy objectives into a coherent set of key priorities and adequately sequence Government and donors interventions. In the absence of an explicit Government strategy however, national poverty reduction strategies can provide a basis to evaluate Government commitment and approach to addressing rural poverty. This document provides a path to assess the situation of rural areas and to examine the relevance and pertinence of national overarching policies and strategies. Their analysis 1, combined with ongoing/planned support by Government and donors, should lead decisionmakers to the rational identification of one or maximum two priority sectors and the appropriate financial instruments for EC support. Wherever applicable the information provided in this chapter will rely heavily on PRSPs Introduction About 70% of the world s poor live in rural areas: they tend to inhabit regions with fragile ecosystems, with poorer access to basic needs (health services, water, social services) and with lower productive potential. Malnutrition and infant mortality rates are generally higher than in urban areas, and life expectancy is low. Although urbanisation is affecting the distribution of poverty in the developing world, the majority of the poor are expected still to be rural in What is Rural Development? We understand rural development as an overarching concept (and therefore not a sector) requiring the integration of the multiple factors which affect livelihoods in rural areas. In fact societies are not dual: there are not distinct rural and urban worlds. There is instead a continuum where a rural economy predominantly based on agriculture evolves towards one which increasingly provides income to the population from non-agricultural activities (rural nonfarm and non-rural). This evolution is characterised by the development of secondary centres and a progressive integration which is not only economic but also social. Communities previously by-passed by development (and in the most extreme cases, relying on isolated self-sufficiency) progressively become integrated in up- and down-stream linkages with markets. However this transition is never complete (and is not unidirectional), and all societies retain a rural dimension. The EC policy and approach for RD focuses on those societies where the transition is only beginning and where the livelihood of a large majority of the population still depends greatly on agriculture and non-farm (but agriculturerelated) activities. Strengthening rural development therefore implies support to this transition to optimise its speed while minimising its potentially disruptive effects. Rural development policy extends beyond agriculture and covers all sectors, which have a bearing on rural areas. To address rural issues six complementary results need to be sought, these are the six pillars of the EC RD Policy: More peaceful, equitable, open and democratic societies More accountable and reliable rural institutions Economic policies enhancing rural growth Enhanced individual assets of rural dwellers More sustainable management of natural resources Greater coherence between EC policies impacting on developing countries. 1 For more details on rural poverty analysis and strategy formulation you may refer to the Guidelines for Rural Profiles and Strategic Frameworks available at 1

6 Since the late 1980s, the priority accorded to agricultural and rural development has declined, reflected in a reduced share of ODA going to rural development activities. This arose, to a large extent, from the perception that investments in agriculture have had limited impact mainly due to poor policy and institutional environment. For the EC, it is also a reaction to an over-emphasis on rural development during the 80 s (roughly 75% of most of the ACP indicative programme). As a result, investment has favoured infrastructure, social sectors and macroeconomic management. The question is now to which extent this investment contributes to poverty reduction and food security as the overarching goal of EC Development Policy, and this knowing that the majority of the poor live in rural areas. Experience with economic reforms has shown that: Growth in the rural economy, particularly in agriculture, contributes more to poverty reduction than growth in urban areas. The rural non-farm sector (RNFS) is growing rapidly, and supporting income diversification out of agriculture offers the greatest opportunities for the rural poor, even the landless. Agriculture is still the engine of growth for the rural economy, generating the surplus production needed for investments in other sectors Essential Steps for Sustainable Rural Development Political commitment is necessary to promote policy and institutional reform and good governance, both at a national level and more locally, in rural areas. Partnerships with public and private sector, NGOs and community-based organisations are important, particularly those which give more voice to the disadvantaged in rural areas, including women and ethnic minorities. Supporting the view that rural development is wider than simply agriculture is important for developing the variety of institutions that are needed to support broad-based development. Ensure that programmes take a sector-wide approach and that Rural Development objectives are translated at sectoral level and that sectoral programmes take a sector-wide approach rather than focusing on individual projects. Strengthen the capacity of institutions in rural areas, particularly those with service delivery functions; and ensure that vertical integration does not lead to inefficiencies. Ensure a balanced strategy combining growth and social objectives, that contributes to the overall goals of poverty reduction, food security, sustainable social and economic development and the promotion of regional integration and trade. The new views of rural development and food security emphasise intersectoral links: adopting a focus on livelihoods will help ensure that these links are considered when analysing the constraints of rural dwellers and that comprehensive strategies are developed to prioritise action aimed at addressing them. Improve stakeholder participation in the process of designing/implementing strategies. Conduct participatory assessments, support decentralisation activities and promote subsidiarity in implementation (i.e. ensure that responsibility for implementation rests with the lowest possible level). Encourage collective management of common resources, where appropriate. Improve markets in rural areas. Optimise functioning of markets for inputs and outputs, taking into account access in both physical terms (transport network) and social barriers to participation in markets (gender, other disadvantaged groups). Government involvement in markets may be temporarily justified if there is no private sector profit, if negative impacts cannot be internalised, and if high levels of risk are not well enough covered by insurance systems. Ensure suitable conditions for private sector development and involvement in areas traditionally covered by the public sector (e.g. seed supply) and the informal sector. Address the 2

7 need for a variety of financial institutions (i.e. savings as well as credit facilities), while strengthening local government for public service delivery. Mainstream environment and social concerns focus on measures that bring benefits as well as mitigating adverse impacts. Ensure compliance with international environmental agreements and consider needs of disadvantaged groups. Ensure that rural development targets are pro-poor and gender sensitive RD strategies must address the needs of the poor and in particular the diversification of their income (particularly for women). Ensure that stakeholder consultations do not exclude the poorest. Ensure coherence between sector strategy and sector expenditure plans and programmes and between sector strategies within the rural space. Promote regular policy dialogue with other donors, and co-ordinate expenditure plans through sector programmes. 2. FORMAT FOR ANALYSING NATIONAL RURAL DEVELOPMENT POLICY AND STRATEGY Decision-makers need advice on whether the rural development strategy of the country effectively contributes to rural poverty alleviation and food security Key aspects of rural areas 2 This section should briefly outline (2 pages) the main features of rural areas. Wherever possible this information will highlight gender disparities. It provides typical data (eventually in tables) such as: Demographic data: Rural/urban population split, nature and location of disadvantaged groups, size of household, rural-urban migration, poverty distribution in rural areas and undernourishment, existence of food crisis areas, social indicators. Social assets: Organisation of civil society, NGOs, formal/informal private sector, formal/informal safety nets mechanisms. Institutional environment: Local political/administrative structures, devolution of powers, taxation, gender discrimination, competitiveness of input/output markets (links to urban centres and ports, marketing networks for inputs and output (and role of public sector therein). Financial assets: Savings and credit (institutions and systems), agricultural sources of income, non-agricultural sources of income (tourism, remittances, labour) wage labour, trends in income, Physical assets: Availability of economic infrastructure (roads, electricity, water supply for human consumption and irrigation), mechanisation and industrialisation trends. Natural assets: Available resources (crop land, fish stocks, pastures, forests), land holding and distribution, tenure system, soil fertility and erosion, sustainability of current trends of NR utilisation, crops and yields. Patterns of vulnerability/risk: Climatic instability, length of the hungry season, incidence of HIV/AIDS and endemic diseases, other natural causes of vulnerability (drought, floods) 2 For further details on the description of livelihoods refer to Step 1 and 2 of the Guidelines for Rural Profiles and Strategic Frameworks (and in particular Annex 2) at 3

8 2.2. Key problems affecting the rural poor Based on the information provided above, this section should allow pointing out and extracting the main problems and constraints affecting the rural population What is the rural development policy and strategy of the partner country? Decision-makers need an outline of the policy objectives for rural poverty reduction and the strategies designed/implemented to achieve them. This section should include reference to existing national policy/strategy documents (e.g. PRSP, RD and/or FS policies), their revision and, where applicable, their evaluation. It will also examine how RD objectives and priorities are reflected in sectoral strategies. In the absence of a formal overall national rural development strategy, the Delegations may appreciate to what degree rural areas are a priority in sectoral policies/strategies and expenditure plans How does the overarching rural development policy and strategy respond to development objectives? This will examine how policies and strategies respond to poverty reduction, sustainable economic and social development and how well do they integrate cross-cutting issues (e.g. environment, HIV/AIDS, gender) Responding to poverty reduction If poverty is primarily a rural phenomenon, this section analyses how well this is reflected in the PRSP/iPRSP and in the allocation of resources to rural areas. Does the PRSP (and/or the RD strategy) reflect the needs and priorities of the rural poor Is the strategy balanced between growth and redistribution objectives? Does it provide new opportunities for income generation and diversification? How well does the RD strategy address non income issues such as: Strengthening rural institutions (local govt, private sector, civil society) Inclusion of disadvantaged groups in society gender, ethnic minorities, landless Translation of the strategy into sectoral objectives and budgetary allocations Does the strategy provide clear objectives that are reflected into sectoral policies and strategies? Are these translated as priority investments in sectoral budgets? Responding to sustainable economic and social development The sustainability of Government strategies and investment is crucial to maximise the effectiveness of donor support. This section will indicate whether such strategies have been designed to be sustainable socially, economically, environmentally and financially Integrating environment, gender and HIV/AIDS Crosscutting issues must be reflected in sectoral analysis, policies and strategies as well as in the set of indicators to be monitored for impact assessment. By examining strategies and priorities, the Delegation should determine whether Government has been effective in translating these concerns into practice. 4

9 3. FORMAT FOR ANALYSING ISSUES IN DESIGNING/IMPLEMENTING AN RD STRATEGY If a national RD strategy exists and is being implemented, decision-makers need a brief assessment of the quality of the process having led to its formulation and its achievements in addressing the problems identified above. If an RD strategy does not exist as such, a similar assessment can be carried out on the rural components of the PRSP Participatory design and Stakeholder involvement Key Issues How has the RD strategy been formulated? Where stakeholder and minority/marginal groups involved in the analysis of the situation and in the identification of priorities? How has Government communicated its objectives? How are stakeholders involved in the review of the strategy? What is the monitoring and evaluation system? Is there a Government-led coordination to mobilise and monitor donor support to the implementation of the strategy? Actions to take Insist that strategy design includes participatory needs assessment and that results (and failures) are regularly discussed with beneficiaries and stakeholders. Appoint a donor organisation to lead coordination on behalf of donors; provide support to participatory strategy formulation and monitoring Operational strategies RD strategies need to be more than just policy statements, they require clear identification of objectives. In fact they are tools to identify priorities (and quantify the cost of implementing them) so that national authorities can better allocate scarce financial resources among sectors. Key Issues: To what extent does the RD strategy quantify the sector objectives and hence the resources required to achieve them? Are objectives realistic and resources appropriate? What mechanisms have been devised to allocate budgetary resources among sectors? To what extent is Government s strategy affordable (i.e. will sufficient resources be available when needed)? How much does it rely on donors for its implementation? Are there plans for a gradual increase in government share of financing? Have trade-offs between objectives and priorities been considered and how have they been dealt with? How has Government dealt with contingencies? Have fall-back positions been envisaged to cope with unexpected shortfalls of resources? Actions to take Insist in negotiations with Governments on the necessity to set realistic, monitorable and quantified objectives to the RD strategy. These objectives should then be reflected in sectoral strategies. Check that in the preparation of the strategy financial authorities (Ministries of Finance/Budget) are fully involved and that the flow of resources is in line with budgetary and expenditure targets. 5

10 Discuss and agree with donors a common approach to gradually increasing the share of Government contribution to the implementation of the strategy. Advocate for the need to include a clear listing of priorities and sequencing of activities as these will allow, if necessary, to scale down the implementation in case of a shortfall of resources Institutional framework Multisectoral development strategies need to be designed and implemented under the coordination of an institution capable of exerting authority over the whole range of line ministries. Furthermore, such strategies need to rely on local institutions and reinforce their role while ensuring beneficiaries participation in resource allocation. Key Issues: What central government body has been in charge of co-ordinating the design/review of the strategy? How does this institution exercise its role? Is it effective? To what extent has the strategy distinguished between the role of central and local institutions? How has the role of local institutions been taken into account and translated in practice? Does implementation rely on the initiative of local administrations? What latitude do they retain in planning and spending resources? What mechanisms are being set-up for the rural population to interact with local administrations? Is there an effort by Government to foster dialogue? Is local financial management of an acceptable quality ensuring that resources will flow regularly from central to local level? Is Government dealing effectively with mismanagement? Is there a degree of financial autonomy (tax collection and retention) for local administrations? Actions to take Support a trend of increasing decentralisation of responsibility to local authorities. Advocate for community participation in local priority setting and support capacity building through NGOs and associations for community and local administration. Support the modernisation of financial management systems, training of staff, auditing and impact monitoring. Advocate for progressively increasing local financial autonomy, contribute to local development funds and funding of local initiatives. 4. FORMULATING THE EC RURAL DEVELOPMENT RESPONSE STRATEGY The response strategy must clearly demonstrate to decision-makers the rationale behind the choice of sector(s) (maximum two) within the domain of rural development. Instead of a sector the context analysis may indicate the necessity of concentrating support on crosscutting theme such as decentralised institutional development, capacity building etc or a combination of sectoral/thematic support. In any case such choice must be based on the situation analysis and the problems identified in chapter 3, the ensuing priorities and other donors support on the one hand and on the EC comparative advantage and experience on the other. The response strategy will appropriately mix the available EC financial instruments so as to maximise impact of aid and address the problems and issues identified above. It will be 6

11 complementary to other donor actions and Government funding and must cover key financial and institutional reforms. 5. PROPOSED SET OF RURAL DEVELOPMENT INDICATORS There are a large number of indicators that can be used to monitor development trends in rural areas. However, the Government needs to establish a set of indicators which can be regularly and efficiently monitored at a reasonable cost. Such indicators should be identified in the PRSP document and be common to Government and donors. Below there is an indicative list of such indicators 3 Rural well being % of population below the poverty line, child mortality rates, school enrolment (by gender), illiteracy rate (young, adult), malnutrition prevalence, Access to safe water and sanitation Trends in the rural economy Growth of agricultural GDP, share of agricultural GDP over total GDP, Rural farm and nonfarm employment (male, female), non-agricultural GDP, other sources of income (remittances), cereal yields, food and livestock production. Market development Agricultural exports, access to financial systems, labour force (male and female), food prices, Accessibility and communication Road indexes, telephone lines, radios, electric power consumption, newspapers Natural resources management Arable land (under cultivation and potentially arable) and pastures, water use for irrigation, rate of deforestation, soil conservation technology, fish landings (artisanal and commercial fisheries) Institutional framework Fiscal decentralisation, local government spending, local tax revenues, number of community based organisations, farmer organisations, NGOs 6. FURTHER INFORMATION Rural Development Policy Orientation paper. DG DEV. February 2000 (available at: EC Policy and Approach to Rural Development. DG DEV. June 2000 (available at: Guidelines for the design of RD strategies. DG DEV. October 2000 (available at: 3 A larger set of RD indicators (from which many of those contained in this list are extracted) has been developed by the World Bank in the Rural Score Card and can be obtained at 7

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13 EUROPEAN COMMISSION DG DEVELOPMENT Development Policy and Sectoral Issues Environment, Rural Development Part B: PROGRAMMING GUIDELINES FOR SUPPORT TO FOOD SECURITY STRATEGIES

14 Part B: PROGRAMMING GUIDELINES FOR SUPPORT TO FOOD SECURITY STRATEGIES 1. FOOD SECURITY Introduction The nature of food insecurity Essential Steps to achieve sustainable Food Security FORMAT FOR ANALYSING NATIONAL FOOD SECURITY POLICIES AND STRATEGIES Key aspects of food insecurity Key food security issues What is the food security policy and strategy of the partner country? How does the overarching Food Security policy and strategy respond to development objectives? Responding to poverty reduction Responding to sustainable economic and social development Integrating environment, gender and HIV/AIDS FORMAT FOR ANALYSING ISSUES IN DESIGNING/IMPLEMENTING A FS STRATEGY Participatory design and Stakeholder involvement Operational strategies Institutional framework FORMULATING THE EC FOOD SECURITY RESPONSE STRATEGY PROPOSED SET OF FOOD SECURITY INDICATORS FURTHER INFORMATION ANNEX: COMPONENTS OF A NATIONAL FOOD SECURITY STRATEGY

15 1. FOOD SECURITY This section provides the basis to examine the situation of rural areas and national Food Security policies and strategies. Their analysis, combined with ongoing/planned support by Government and donors should lead decision-makers to the rational identification of EC support to sectors/interventions. Wherever applicable this chapter should rely heavily on PRSPs Introduction About 70% of the world s poor live in rural areas: they tend to inhabit regions with fragile ecosystems, with poorer access to basic needs (health services, water, social services) and with lower productive potential. Malnutrition and infant mortality rates are generally higher than in urban areas, and life expectancy is low. Although urbanisation is affecting the distribution of poverty in the developing world, the majority of the poor are expected still to be rural in Food insecurity and poor nutritional status are highly correlated with poverty and social inequity The nature of food insecurity Food security is a multi-layered concept covering problems of food availability, access to food, vulnerability to food shortages, and individual nutrition that exist at different levels: global, regional, national, household and individual. Different problems affect each of these levels (see box below). There is a close relationship between the food security agenda and strategies for poverty reduction and national development. It is essential to tackle poverty in order to provide households with the means to access food. It is also important, in predominantly agrarian societies, to foster economic growth and a strong external trade position in order to ensure the availability of food in the country. However, two sets of issues are often overlooked by poverty reduction and national development strategies: they relate to i) crisis management and preparedness strategies, and ii) specific nutrition issues, (related to shortcomings in diets and food preparation methods, household food allocation, mother and child feeding habits and health related problems with food absorption and biological utilisation). The main implication for policy is that food insecurity should be addressed as part of a broader framework for sustainable development and poverty reduction. There is also a need to consider the role of food aid and safety net programmes in relation to longer-term poverty reduction strategies. Food aid is essential to preserving lives and assets during emergencies, but is no substitute for longer-term poverty reduction and development programmes aiming to tackle the root causes of food insecurity. Global food availability Food security problems at different levels At the global level there are presently no signs of food scarcity. Global food supply is in fact more than keeping up with growing demand, and there has been a continuing downward trend in real prices for major cereals over the past 140 years. Continuing progresses in raising agricultural productivity provide grounds for optimism for the future. However, there is no room for complacency. Governments and the international community must continue to pursue sensible policies backed up by institutional reforms, and continued investment in research and technology to boost productivity with particular focus on crops and technology that directly benefits the poor. There is also a pressing need to address the ever increasing environmental challenges affecting agriculture, such as land degradation, competition for water resources, pollution from agricultural chemicals and climate change linked to global warming. 3

16 Regional patterns in food production and trade Important changes are occurring in food production and trade patterns between different regions of the world. There is a trend towards greater food imports in many developing regions. Sub-Saharan Africa is a region of particular concern because many countries are experiencing rising food imports that place an increasing strain on their balance of payments. This trend reflects the poor performance of the agricultural sector in Sub-Saharan Africa, which has been left behind in processes of technological change, productivity increases, and has been marginalised in global trade and investment processes. National food availability The main precondition for food security at the national level is a conducive political and economic environment. In this respect, peace, rule of law and good governance are critical. Economic policies and functioning institutions that are supportive of sustainable broad-based growth are also essential. Food availability at the national level is best assured through strong growth and a robust external trade position. Development strategies based on comparative advantages and the efficient use of available resources are likely to provide greater national food security than strategies based on pursuing goals of national food self sufficiency. Open trade and investment policies, macroeconomic stability, a market friendly business environment and effective public institutions are fundamental. Access to food at the household level In most circumstances the lack of access to food at the level of the household is the main cause of food insecurity. This arises from a lack of purchasing power and insufficient household production, and is therefore basically a result of poverty. This aspect of food insecurity can be effectively tackled as part of a broader anti-poverty framework. It is important to address the many dimensions of poverty, including low incomes and low agricultural productivity, as well as vulnerability, lack of assets, low human capability (human and social capital) and political disempowerment. Tackling the causes of poverty is the most important means to reduce food insecurity in the long term. However, it is also essential to relieve hunger in the short term when this threatens lives and assets, or prevents people from participating in normal productive activities. Food aid and safety nets are appropriate in certain situations, such as man-made and natural disasters, and to assist particularly vulnerable groups. Individual nutrition Access to sufficient food at the household level does not guarantee that all individuals receive adequate nutrition. Individual nutrition also depends upon the distribution of food between household members, food preparation methods, dietary preferences and mother-child feeding habits. There may be important differences in nutritional outcomes for women and men that are the result of unequal gender relations. Health factors also affect individual nutrition. For example, parasitic and other diseases resulting from a lack of clean water and adequate sanitation will result in poor food absorption and biological utilisation. There is a need to address these important problems within poverty reduction strategies using targeted programmes, such as nutrition and health education, micronutrient supplementation, income transfers focused on women, and strategies to provide safe water and sanitation Essential Steps to achieve sustainable Food Security Political commitment is needed to push for reform and good governance, both at a national level and more locally, in rural areas. Partnerships with public and private sector, NGOs and community-based organisations are important, particularly those which give more voice to the disadvantaged in rural areas, including women and ethnic minorities. Supporting the view that food security does not imply food self-sufficiency is important for developing comprehensive strategies addressing the range of factors which undermine food security. Ensure a balanced strategy combining growth and social objectives including an analysis and a response to vulnerability. Such strategy must contribute to the overall goals of poverty reduction, and sustainable social and economic development. Such a strategy must be built around the four pillars of food availability, access to food, quality of food and management of crises. The new approaches to food security emphasise intersectoral links: adopting a focus on livelihoods will help ensure that these links are considered when analysing the constraints of rural dwellers and that comprehensive strategies are developed to address them. Improve stakeholder participation in the design and implementation of food security strategies. Conduct participatory assessments, support decentralisation and promote subsidiarity 4

17 in implementation (i.e. ensure that responsibility for implementation rests with the lowest possible level). Encourage collective management of common resources, where appropriate. Pursue a sectoral approach in implementing the strategy. Ensure that support programmes take a sector-wide approach rather than focusing on individual projects. Strengthen the capacity of institutions in rural areas, particularly those with service delivery functions; and ensure that vertical integration does not lead to inefficiencies. Improve markets in rural areas. Optimise the functioning of markets for inputs and outputs, taking into account access in both physical terms (transport network) and social barriers to participation in markets (gender, other disadvantaged groups). Government involvement in markets may be temporarily justified if there is no private sector profit, if negative impacts cannot be internalised, and if high risks are not well enough covered by private insurance. Commercialise and privatise. Ensure an appropriate level of involvement of the private sector in areas traditionally covered by parastatals (e.g. seed supply) and the informal sector. Address the need for a variety of financial institutions (i.e. savings as well as credit facilities), while strengthening local government for service delivery. Mainstream environment and social concerns. Focus on measures that bring benefits as well as mitigating adverse impacts. Ensure compliance with international environmental agreements and consider needs of disadvantaged groups. Ensure food security targets the specific needs of the poor and is gender sensitive. Ensure that programmes and projects address the needs of the poor for diversified income strategies, particularly for women. Ensure that stakeholder consultations do not exclude the poorest. Ensure coherence between sector strategy and sector expenditure plans and programmes and between sector strategies within the rural space. Promote regular policy dialogue with other donors, and co-ordinate expenditure plans through sector programmes. 2. FORMAT FOR ANALYSING NATIONAL FOOD SECURITY POLICIES AND STRATEGIES Decision-makers need advice on whether the Food Security strategy of the country effectively contributes to addressing the root causes of food insecurity Key aspects of food insecurity This section should briefly outline (2 pages) the main features of food security and vulnerability. Wherever possible this information will highlight gender disparities. It provides typical data (eventually in tables) such as: Demographic data: Rural/urban population split, nature and location of disadvantaged groups, size of household, rural-urban migration, poverty distribution in rural areas and undernourishment, existence of food crisis areas, social indicators. Social assets: Organisation of civil society, NGOs, formal/informal private sector, formal/informal safety nets mechanisms, local political/administrative structures, devolution of powers, gender discrimination, eating habits, intra-household food distribution; health status Macroeconomic data and Institutional environment: Local political/administrative structures, devolution of powers, taxation, gender discrimination, competitiveness of input/output markets links to urban centres and ports, marketing networks for inputs and output (and role of public sector therein), import, export and stocks of food. Financial assets: Savings and credit (institutions and systems), agricultural sources of income, non-agricultural sources of income (tourism, remittances, labour) wage labour, trends in income. 5

18 Physical assets: Availability of economic infrastructure (roads, electricity, water supply for human consumption and irrigation), mechanisation and industrialisation trends. Natural assets: Available resources (crop land, fish stocks, pastures, forests), land holding and distribution, tenure system, soil fertility and erosion, sustainability of current trends of NR utilisation, crops and yields. Vulnerability/risks and crisis management: Climatic instability, length of the hungry season, incidence of HIV/AIDS and endemic diseases, other natural causes of vulnerability (droughts, floods). Food crisis management capability (institutions, mechanisms) Key food security issues This section, based on the information provided above, will allow to identify the main causes of food insecurity affecting the rural poor What is the food security policy and strategy of the partner country? Decision-makers need an outline of the FS policy objectives and the strategies designed/ implemented to achieve them. This section should include reference to existing national policy/strategy documents (e.g. PRSP, FS and/or RD policies), their revision and where applicable their evaluation. It will also examine how FS objectives and priorities are reflected in sectoral strategies. How well does the FS strategy address the issue of food AVAILABILITY and in particular how does it address: Improvement of crop production and increase in the productive capacity (investment, land access, inputs, credit ) Import capacity and barriers to trade, intra-regional trade issues Market infrastructure (transport, storage and processing) How well does the FS strategy address the issue of ACCESS TO FOOD and in particular how does it address: Income generation opportunities for food insecure populations Diversification of livelihoods into the rural non-farm sector The purchasing power of the poor Issues of intra-household food distribution Health issues (including water and sanitation) and safety nets for vulnerable groups How well does the FS strategy address the issue of QUALITY OF FOOD and in particular how does it address: Legislative framework and capacity to control the quality of food (crops and livestock products) whether produced or imported Food diversification and balancing of diet Existence and effectiveness of a national system (whether public or private) for targeted supplementary feeding How well does the FS strategy address the issue of PREVENTION AND MANAGEMENT OF FOOD CRISES and in particular: Does it foresee the establishment of an early warning system Does it foresee the creation of food reserves and food stocks What does it envisage the role of food aid to be 6

19 2.4. How does the overarching Food Security policy and strategy respond to development objectives? This will examine how policies and strategies respond to poverty reduction, sustainable economic and social development and how well do they integrate cross-cutting issues (e.g. environment, HIV/AIDS, gender) Responding to poverty reduction Poverty is primarily a rural phenomenon and is closely related to food insecurity. This section analyses to what extent food security issues are reflected in the PRSP.In fact, few PRSPs explicitly address food security issues. The box below provides the elements of PRSPs where food security needs to be given greater attention. Building food security objectives into poverty reduction strategies In order to develop comprehensive poverty reduction strategies which fully incorporate food security aspects, the following elements need to be addressed: The first step in PRSP formulation should be the preparation of a full profile of the poverty and food security situation in the country, analysing all aspects of the problem and differentiating between different regions, livelihoods groups, ethnic groups etc. Ideally, this should be based on a combination of quantitative surveys and Participatory Rural Appraisal. In many countries efforts need to be made to improve the quality and coverage of data and information. The strategy should identify how all policy areas impact on poverty and food insecurity. The most important policy levers are: (i) macroeconomic policies, (ii) the business and regulatory environment, (iii) the incidence of taxation, (iv) the allocation of public expenditure, (v) regional policies (the balance between central areas and remote areas, and between areas of high agricultural potential and areas of low agricultural potential), (vi) sectoral policies (e.g. agriculture, rural infrastructure, health and education service provision), (vii) policies regarding social protection and disaster response, and (viii) policies affecting the management and ownership structure of key assets, such as land, fisheries, forests and water supply. Common themes running through all of these policy areas are how to include the poor more fully in the functioning of markets, and how to make institutions more responsive to the poor and capable of delivering relevant services in a cost effective manner. The strategy should be based on a broad conception of poverty reduction covering not only income generation and productivity, but also the problem of vulnerability, lack of assets, lack of education and health services and social and political exclusion. In addition, specific attention should be given to food security issues that are not normally covered by the poverty agenda, including disaster response and nutritional issues. The strategy should attend to the political dimensions of food insecurity, such as weak governance, conflict and insecurity, weak enforcement of the rule of law, and democratic rights. Efforts need to be directed at making development more decentralised and community led. Recognising the constraints on administrative capacity and public resources, the strategy should present clearly identified and costed priorities linked to the above analysis Responding to sustainable economic and social development The sustainability of Government strategies and investment is crucial to maximise the effectiveness of donor support. This section will indicate whether such strategies have been designed to be sustainable socially, economically, environmentally and financially. This section will in particular discuss the role and impact of food aid Integrating environment, gender and HIV/AIDS Crosscutting issues must be reflected in sectoral analysis, policies and strategies as well as in the set of indicators to be monitored for impact assessment. By examining strategies and priorities, the Delegation should determine whether Government has been effective in translating these concerns into practice. 7

20 3. FORMAT FOR ANALYSING ISSUES IN DESIGNING/IMPLEMENTING A FS STRATEGY If a national Food Security strategy exists and is being implemented, decision-makers need a brief assessment of the quality of the process having led to its formulation and its achievements in addressing the problems identified above. If a FS strategy does not exist as such, a similar assessment can be carried out on the PRSP Participatory design and Stakeholder involvement Key Issues How has the FS strategy been formulated? Where stakeholder and minority/marginal groups involved in the assessment of the situation and in the identification of priorities? How has Government communicated its objectives? How are stakeholders involved in the review of the strategy? What monitoring and evaluation system is foreseen? Is there a Government-led coordination to mobilise and monitor donor support to the implementation of the strategy? Actions to take Insist that strategy design includes participatory needs assessment and that results (and failures) are regularly discussed with beneficiaries and stakeholders. Appoint a donor organisation to lead coordination on behalf of donors; provide support to participatory strategy formulation and monitoring Operational strategies FS strategies need to be more than just policy statements, they require clear identification of objectives. In fact they are tools to identify priorities (and quantify the cost of implementing them) so that national authorities can better allocate scarce financial resources among sectors. Key Issues: To what extent does the FS strategy quantify the sector objectives and hence the resources required to achieve them? Are objectives realistic and resources appropriate? What mechanisms have been devised to allocate budgetary resources among sectors? To what extent is Government s strategy affordable (i.e. will sufficient resources be available when needed)? How much does it rely on donors for its implementation? Are there plans for a gradual increase in government share of financing? Have trade-offs between objectives and priorities been considered and how have they been dealt with? How has Government dealt with contingencies? Have fall-back positions been envisaged to cope with unexpected shortfalls of resources? Actions to take Insist in negotiations with Governments on the necessity to set realistic, monitorable and quantified objectives to the RD strategy. These objectives should then be reflected in sectoral strategies. Check that in the preparation of the strategy financial authorities (Ministries of Finance/Budget) are fully involved and that the flow of resources is in line with budgetary and expenditure targets. Discuss and agree with donors a common approach to gradually increasing the share of Government contribution to the implementation of the strategy. 8

21 Advocate for the need to include a clear listing of priorities and sequencing of activities as these will allow, if necessary, to scale down the implementation in case of a shortfall of resources Institutional framework Multisectoral strategies need to be designed and implemented under the coordination of an institution capable of exerting authority over the whole range of line ministries involved in the implementation. Furthermore, such strategies need to rely on local institutions and reinforce their role while ensuring beneficiaries participation in resource allocation. Key Issues: What central government body has been in charge of co-ordinating the design/review of the strategy? How does this institution exercise its role? Is it effective? To what extent has the strategy distinguished between the role of central and local institutions? How has the role of local institutions been taken into account and translated in practice? Does implementation rely on the initiative of local administrations? What latitude do they retain in planning and spending resources? What mechanisms are being set-up for the rural population to interact with local administrations? Is there an effort by Government to foster dialogue? Is local financial management of an acceptable quality ensuring that resources will flow regularly from central to local level? Is Government dealing effectively with mismanagement? Is there a degree of financial autonomy (tax collection and retention) for local administrations? Actions to take Support a trend of increasing decentralisation of responsibility to local authorities. Advocate for community participation in local priority setting and support capacity building through NGOs and associations for community and local administration. Support the modernisation of financial management systems, training of staff, auditing and impact monitoring. Advocate for progressively increasing local financial autonomy, contribute to local development funds and funding of local initiatives. 4. FORMULATING THE EC FOOD SECURITY RESPONSE STRATEGY The response strategy must clearly demonstrate to decision-makers the rationale behind the choice of sector(s) (maximum two) within the field of food security. Instead of a sector the context analysis may indicate the necessity of concentrating support on cross-cutting theme such as decentralised institutional development, capacity building etc or a combination of sectoral/thematic support. In any case such choice must be based on: i) the situation analysis and the problems identified in chapter 3, ii) the ensuing priorities, iii) other donors support and iv) on the EC comparative advantage and experience. The response strategy will appropriately mix the available EC financial instruments so as to maximise impact of aid and address the problems and issues identified above. It will be complementary to other donor actions and Government funding and must cover key financial and institutional reforms. 9