Why is the BBA important?

11 October 2013

Alan RennisonProgram Officer, Bill & Melinda Gates Foundation

© 2013 Bill & Melinda Gates Foundation |

Overview of the Foundation and our work in the Ag Policies space

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Foundation belief: Every person deserves the chance to live a healthy, productive life

Ag Development goal: Sustainable smallholder productivity growth

Ag Policies goal: Address policy and institutional constraints that limit sustainable productivity growth in staple and livestock value chains

BMGF’s Ag Policies investment areas

BMGF’s Ag Policies granteesGranting by BMGF business unit

Payout in 2012

Awarded since 1995

Foundation-wide

$3.2bn (100%)

$34.2bn(100%)

Global Development

$1.5bn(47%)

$13.6bn(40%)

Agricultural Development

$378m(12%)

$2.6bn(8%)

Agricultural Policies

$56m(1.8%)

$348m(1.0%)

5. Monitoring & priority setting 1. Data &

statistics

2. Policy research &

analysis3. Deliberation & policy selection

4. Cost-effective policy implementation

© 2013 Bill & Melinda Gates Foundation |

Why does BMGF invest in policy?: Good policy and regulatory environments facilitate sustained smallholder productivity growthWell designed policies facilitate smallholder access to: (i) improved inputs and knowledge; and (ii) output market opportunities

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Inputs market Outputs market

Supply-side Demand-side Supply-side Demand-side

Smallholderfarmers

Urban and rural consumers

Local processors and other

agribusinessesNGOs

Government

Neighboring farmers

Seed companies, agro-dealers

NGOs

Government

Smallholder access to safe, efficacious inputs and improved

farm practicesInvestment in local agribusinesses

that supply inputs and knowledge to farmers

Investment in local agribusinesses that buy raw produce from farmers

Improved targeting and efficiency of ag expenditure allocations

Stable and more predictable food prices

Smallholder incentives to participate in efficient markets and trade

Ag policies and regulations should facilitate:

© 2013 Bill & Melinda Gates Foundation |

Why is BBA important? It informs policy decision making, in particular around commercial ag involving smallholdersBBA draws upon and complements indicators from a number of other important data sets

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BBA enables: Assessments of the extent to

which national policies and regulations adhere to CAADP

Benchmarking and cross-country comparison of key ag indicators

Focused and detailed policy dialogue and analysis

A basis for national-level policy and regulatory reform

A basis for improved donor investment targeting

A private sector ‘voice’ in the ag policy debate

BBA complements:

© 2013 Bill & Melinda Gates Foundation |

Why is BBA important? It helps to identify policies and regulations that facilitate or deter private sector investment in smallholder agWe focus on local SMEs because of their crucial role in the inputs and outputs markets that smallholders participate in

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MARKETSBasic

researchInput

productionInput

deliveryOn-farm

productionTrading

ProcessingDomesticMarkets

InternationalMarkets

Post-harvest

Seed companie

s

Fertilizer blenders

Input wholesaler

s

‘Outgrower’ farms

Agri-processors

Traders / retailers Importers

/ exporters

Commercial seed farms

DISCOVERY

Variety registration and release: Excessive

requirements

Industry structures: Government monopolies, Government producer/regulator conflict

Certification, grades and standards: Excessive requirements, weak enforcement, lack of regional harmonization

Import / export procedures: Excessive requirements and non-tariff barriers

Ad hoc implementation: Uncertain timing and duration of active policies and regulations, inconsistent economic rationale

AdaptiveResearch

Aggregation

businesses

Agri-vets

Local

SM

E

ag

rib

usin

esses

Exam

ple

s of p

olicie

s a

nd

re

gu

lati

on

s li

mit

ing

pri

vate

in

vest

men

t in

ag

SM

Es