Agriculture for Development - Rural Development - Lecture Slides, Slides of Human Development

Download Agriculture for Development - Rural Development - Lecture Slides and more Slides Human Development in PDF only on Docsity! Agriculture for Development Toward a new paradigm and guidelines for success Docsity.com Outline of the argument • I. Historical perspective on agriculture in development • II. Current crises and resurgence of demands on agriculture for development • III. Emergence of a new paradigm of agriculture for development • IV. Why the continued under-use of agriculture for development? • V. Conditions for success in using agriculture for development • VI. The way forward 2 Docsity.com I. Historical perspective on agriculture in development 5 Leading to 20 years of neglect of agriculture under the Washington Consensus (1985-2005) •Adjust the macro-fundamentals but no sectoral policy •Industrialize through open economy not through agriculture •Descale the role of the state in agriculture despite pervasive market failures •Reduce rural poverty through transfers instead of rising autonomous incomes •Investment in agriculture discouraged by low international commodity prices (OECD farm policies) and adverse environmental effects Docsity.com I. Historical perspective on agriculture in development Share of agriculture in public expenditure 0 2 4 6 8 10 12 14 1980 1985 1990 1995 2000 2005 Uganda NEPAD Nigeria NEPAD objective 6 Neglect of agriculture: Decline of the shares of agriculture in public expenditures and in overseas development assistance Share of agriculture in ODA (%) 0 2 4 6 8 10 12 14 1980 1985 1990 1995 2000 2005 2010 Docsity.com II. Current crises and resurgence of demands on agriculture for development 7  Following 20 years of neglect, five crises put agriculture back on the development agenda: 1) The global food and financial crises: Rising food insecurity and hunger 2) Stagnation of productivity growth in Sub- Saharan Africa agriculture 3) World poverty still overwhelmingly rural 4) Increasing rural-urban income disparities 5) Rising resource scarcity and unmet demands for environmental services Docsity.com II. Current crises and resurgence of demands on agriculture for development 10 Fertilizer use (kg/ha of arable land) 0 50 100 150 200 250 300 1960 1970 1980 1990 2000 2010 East Asia South Asia LAC ME&N Africa SS-Africa Irrigated area (% of cropland) 0 5 10 15 20 25 30 35 40 1960 1970 1980 1990 2000 ME&N Africa South Asia Latin America SS-Africa Stagnant yields are associated with low fertilizer use and limited irrigated area. Understanding the determinants of yield growth (technology adoption) is a major research challenge Docsity.com II. Current crises and resurgence of demands on agriculture for development 11 Crisis 3: World poverty still overwhelmingly rural % of world poor rural by continent 0 20 40 60 80 100 LAC ECA SSA SAS MNA EAP World Number of rural poor (1993=100) 50 60 70 80 90 100 110 120 1992 1994 1996 1998 2000 2002 2004 East Asia Latin America SS-Africa South Asia 75% of world poor are still rural, and rural poverty is rising in SS- Africa and South Asia: Key to meet MDG#1 Docsity.com II. Current crises and resurgence of demands on agriculture for development 12 Crisis 4: Rural-urban disparities are increasing Rising urban-rural income disparities in India and China as sources of political tensions China: Mean per capita expenditure by sector in constant LCU 0 200 400 600 800 1000 1200 1980 1985 1990 1995 2000 2005 Urban Rural India: Mean per capita expenditure by sector in constant LCU 250 270 290 310 330 350 370 390 410 1980 1985 1990 1995 2000 2005 2010 Urban (1.43/year) Rural (0.92) (Average annual growth rate 1983-05 in parenthesis) Docsity.com III. Emergence of a new paradigm of agriculture for development 15 Hence emergence of a new paradigm of Agriculture for Development to replace the classical paradigm Two features of the emerging paradigm 1) Because development is multidimensional: •Win-wins exist, but trade-offs are expected •Need priority setting at the national level 2) Need use both the process and the outcome of agricultural growth to achieve these multiple dimensions •Role of smallholder farming But two barriers to overcome: Continued under-use of agriculture for development Unclear how to succeed in using agriculture for development Docsity.com IV. Why the continued under-use of agriculture for development? 16 Structural transformation in Asia 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 4.5 5.5 6.5 7.5 8.5 Log of GDP per capita (constant 2000 US$) Cross-section Bangladesh Cambodia Hong Kong, China India Indonesia Korea, Rep. Malaysia Myanmar Pakistan Papua New Guinea Philippines Thailand China Vietnam Taiwan, China China India Malaysia Rep. Korea Normal pattern Pakistan Bangladesh Successful structural transformations in Asia Docsity.com IV. Why the continued under-use of agriculture for development? 17 Structural transformation in Sub-Saharan Africa 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 4.5 5.5 6.5 7.5 8.5 Log of GDP per capita (constant 2000 US$) Cross-section Angola Benin Cameroon Chad Cote d'Ivoire Kenya Madagascar Niger Nigeria Rwanda Senegal South Africa Tanzania Togo Zambia Zimbabwe South Africa Nigeria Cote d'Ivoire Togo Chad Normal pattern But agriculture is still under- and mis-used in Africa and Latin America: Labor is pushed out of agriculture without associated growth in GDP per capita Structural transformation in Latin America and Caribbean 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 4.5 5.5 6.5 7.5 8.5 Log of GDP per capita (constant 2000 US$) Cross-section Argentina Bolivia Brazil Chile Colombia Dominican Republic Ecuador Guatemala Honduras Haiti Mexico Peru Paraguay El Salvador Venezuela, RBx Docsity.com V. Conditions for success in using agriculture for development 20  Proposition: Two conditions for success in using agriculture for development  Condition 1: Need to re-conceptualize the role of agriculture for development in the new paradigm 1) Recognize the complementarities and trade-offs in the multiple functions of agriculture for development  Define country priorities and strategy 2) Design the process of agricultural growth to achieve development beyond market forces  With eventual growth opportunity costs (e.g., debate on farm size) 3) Redefine the role of the state in support of agriculture  State to set social priorities among conflicting functions, overcome market failures, regulate, and engage in private-public partnerships. Docsity.com V. Conditions for success in using agriculture for development 21  Condition 2: Need to re-design approaches for effective implementation in the new paradigm 1) Experiment with new approaches and internalize lessons for scaling up successes in policy and practice  Derive lessons from past mistakes and identify impacts in new options 2) Fix the governance structure for the state to fulfill its new functions for agriculture  Redesign ministries of agriculture to use growth for development with a territorial perspective and a role for producer organizations 3) Develop expertise in using agriculture for development  At the local (decentralization), national, and international levels  Key role of the FAO as source of world expertise in using agriculture for development Docsity.com VI. Conclusion: The way forward 22 Positive developments in support of using agriculture for development: Grounds for optimism Greater public awareness of importance of agriculture for development, including poverty, gender, environment More resources committed by governments, foreign aid, new players, private sector More attention from politicians to food crises, hunger But can we deliver? Do we know how to do it? Do we have the capacity to do it? Docsity.com