A prospective vision of food needs
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Agricultural development
and food security concerns
Strategy of AFD
Bruno VINDEL
February 2009
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A prospective vision of food needs
• In 2008, a food crisis resulting from several causes, structural and circumstancial
• International prices easing since october 2008, but not a signal for relief.
• Structural causes of the crisis are still there (demand especially in Africa / demography).
• Strong uncertainties about the conditions of agricultural production : climate change and volatility of markets.
• Necessity of a rapid and massive evolution of agricultural economies in the South, and especially in Africa.
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Major challenges for the rural economies of developing
countries• New models of agricultural production to be developed
(North and South)
– use of non renewable ressources
– soil fertility degraded and equilibrium with forests
– availability of water
– contribution of agriculture to climate change mitigation
• Challenges even bigger in developing countries, especially in Africa
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Evolution of cereals yields
(Source : WDR 2008)
•
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1962
1968
1974
1980 19
86
1992 19
98
2004
Mt/
Ha
Pays développés
Asie
Amérique latine Caraïbes
Afrique sub saharienne
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Income per agri-worker (Rural Struct)
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utia
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iss
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ua
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MADAGASCAR KENYA MALI SENEGAL MOROCCO NICARAGUA MEXICO
Inco
me
(P
PP
) in
US
$
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Major challenges for the rural economies of developing
countries• Important margins of improvment and new prices opportunities = necessary conditions but not sufficient for a inclusive rural growth
• Promissing technical innovations (agro-ecology) but still evolving
• Organisations and institutions to be build for a better management of markets / transmissions of market signals / reducing volatility (tradable-non tradable)
• Modernizing agriculture but still labour-intensive : dynamic demography with « low regime » of employement creation in the cities.
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Population rurale 1950=indice 100
20
70
120
170
220
270
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370
420
1950 1960 1970 1980 1990 2000 2010 2020 2030
Afrique Asie Amérique
LatineMonde
•
Projections de la population rurale
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Yearly increase of labour forceYearly Increase of the Labor Force
-15
-10
-5
0
5
10
15
20
25
30
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Year
EA
P Y
earl
y C
oh
ort
s (m
illio
ns)
Eastern Asia EuropeLatin America and the Caribbean South-Central AsiaSub-Saharan Africa
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A global partnership
• Food security = food production + nutrition + access to food (incomes)
• High profile commitment needed
• Reversing the long trend decline in attention to agriculture and food security in developing countries
• Ensuring better coherence between international institutions and actors, and better coordination between donors based on the Paris/Accra principles
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A global partnership
• An international « High profile Policy Group » on food security and agriculture
• An international panel of experts addressing controversial issues and helping to strengthen evidence-based policy analysis
• A re-mobilisation of the international financial community (countries budgets, ODA, FDI, new actors) for agricultural development and safety nets in developing countries.
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AFD Strategy for agriculture and rural development: principles
• Actions to be conceived and carried out in the long term, in ordre to achieve a sound redefinition of production and growth patterns. Agriculture : a key lever for poverty reduction (WDR
2008).But agriculture abandoned for many years by States
and donors
• Sustainable management of natural ressources as a cross cutting principle of action.
• Inclusion of the actors and taking into account their diverse trajectories :smallholders / family agriculture at the heart of the strategy.
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0
1
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Poorest 30% Middle 40% Richest 30%
Expe
nditu
re G
ains
(%
)
Agriculture Non-agriculture
Efficiency of agricultural growth for poverty reduction (MDG)
Income increase for 1% growth of GDP (agri. and non-agri)
La croissance du PNB provenant de l’agriculture profite principalement aux 30% les plus pauvres de la
population
La croissance du PNB provenant de l’agriculture profite principalement aux 30% les plus pauvres de la
population
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AFD strategy for agriculture and rural development: Three axes
• Axis 1 : support policies meant to accompany the necessary transitions, taking into account demography, risks on natural ressources and economic international environment.
• Axis 2 : re-invest in food value chains with technical and organisational innovations
• Axis 3 : support creation of local enabling environments for agricultural and rural development (user based management, decentralisation, local infrastructures…)
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Conception, implementation and evolution of concerted policies
• Several fields of action : land tenure, orientation of agronomical research, statistics and information systems, legal framework (definition of contractual links between farmers and other actors, quality standards…)
• Capacity building : reconstruction of institutionnal capacities in the public administration and within producers’ organisations.
• Concertation : « platforms » of concertation; value-chains interprofessional bodies
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Conception, implementation and evolution of concerted policies
• Cooperation tools : – technical assistance / long term or expertise– seminars and studies– projects mainly based on subventions (example :
Madagascar, Sénégal, « Fond lissage coton »)– donors coordination in the field and at global level
Complementarity between regional and national levels : creation of regional markets of agricultural goods by removing tariff between States / example of ECOWAPS
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Sustainable and equitable growth of agricultural production and better
functionning of markets
• Reminder : small holder / family agriculture and multifunctionnality of agriculture
• Technical innovations :– agri techniques more respectful of the natural ressources
(agro-ecology adapted to several ecologies)– agronomic research : seeds selection and agri techniques /
the « double green revolution » / difficulty : extensions services and ownership by farmers
– irrigated agriculture : investments in rehabilitation , creation of new capacities, with more economical irrigation techniques and users’based management
– transhumant breeding / investments in water ressources for herds
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Production of kcal /day / worker (Source : Agrimonde)
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Locations of the « PAMPA » project
MaghrebTunisieMarocAlgérie
Afrique Sub-saharienne
CamerounBurkina
MaliAutres
Afrique de l’EstEt Australe
MadagascarKénya
MozambiqueAutres
Asie du Sud EstLaos
VietnamCambodgeThaïlande
Chine
BrésilCIRAD
Université de Ponta Grossa
Réseau PAMPAMaîtrise d’ouvrage MAE – FFEM – AFD
Maîtrise d’œuvre principale CIRADAutres maîtrises d’œuvre
Autres bailleursBanque Mondiale
Banque Asiatique de Dév.FIDA
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Sustainable and equitable growth of agricultural production and better
functionning of markets• Technical innovation not enough / need for
enabling policies• Better functioning of agri/food markets :
– primary marketing of agrofood products by farmers’organisations / private storage and development of warehouse receipts systems
– access to credit : financement of production campaigns (purchase of inputs) / copping with under-capitalisation at fram level
– connection to the markets : roads and rural paths with the necessary maintenance systems
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Sustainable and equitable growth of agricultural production and better
functionning of markets
• Cooperation tools :– loans at concessionnal conditions – association of loans (equipments) and subventions for
capacity and institution building– innovative financing : equity or quasi-equity funding for
agrofood industries having a leverage effect on food production (through supply contracts with farmers cooperatives)
– innovative financing to ease access to credit : reducing the risk of banks and micro-finance institutions (credit lines in local currency and /or guarantee funds).
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Improving knowledge for better interventions
« Intellectual production » is part of the strategy of AFD :– better knowledge of geographical contexts and
mechanisms (agronomic and economic)– better measurements of the impacts (direct and
indirect) of our projects / evaluations.Recent examples : - study on « Instruments for the management of
volatility of agricultural prices » - study on « Food production zones in western
Africa »
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Working with NGOsPolicy dialogue :
- consultation of NGOs on our strategic papers- structured dialogue with « Coordination Sud », common platform of French NGOs (trimestrial meeting)- partnership agreements in several fields (water in post-crisis situations, equitable trade…)- seminars on several topics- capitalisation of knowledge (emergency and development, developing countries civil societies…)
Financing :- subventions of NGOs projects and pluri annual programmes- co-financing of NGOs projects presented to specific EU windows- since 2007, « innovative sectorial facility » with tenders (examples : post-crisis interventions, water for agriculture, health micro-insurance, Afghanistan).
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Working with NGOs
Strategic value-added / complementarity between AFD and NGOs
- specific expertise- innovative approaches (even experimental approaches)- linkages with local civil societies- capacity of NGOs to reach the poorest
Linkage with French civil society
International initiatives carried out by non-institutionnal actors
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Thank you for your patient attention !