US Agricultural US Agricultural Development Assistance to Development Assistance to

Sub-Saharan AfricaSub-Saharan AfricaJulie HowardJulie Howard

Executive Director & CEOExecutive Director & CEOPartnership to Cut Hunger and Poverty in AfricaPartnership to Cut Hunger and Poverty in Africa

Presentation to the Presentation to the Brussels Rural Development Briefings Brussels Rural Development Briefings

Briefing n° 20 Briefing n° 20 Beyond Aid: Financing Agriculture in ACP countries Beyond Aid: Financing Agriculture in ACP countries Wednesday 15th September 2010 – 8h30 – 13h00 Wednesday 15th September 2010 – 8h30 – 13h00

European Commission, Building Borschette, European Commission, Building Borschette, - - Rue Froissart, 36- BrusselsRue Froissart, 36- Brussels

Partnership to Cut Hunger and Poverty in Africa Research-Based Advocacy for African Agricultural Development  

About the PartnershipAbout the Partnership

Reports on US Agricultural Development AssistanceReports on US Agricultural Development Assistance

Scope & MethodsScope & Methods

Findings: Trends in US Assistance Findings: Trends in US Assistance

Key Issues in Monitoring Agricultural Development Assistance Key Issues in Monitoring Agricultural Development Assistance

Evolution of US Assistance Toward a Demand-Driven ApproachEvolution of US Assistance Toward a Demand-Driven Approach

Challenges in Implementing Demand-Driven Programs and Challenges in Implementing Demand-Driven Programs and Priorities for ActionPriorities for Action

ConclusionsConclusions

OutlineOutline

About the PartnershipAbout the Partnership

Independent US-African coalition founded in 2001 by Independent US-African coalition founded in 2001 by African Presidents, US statesmen, university and NGO African Presidents, US statesmen, university and NGO leaders leaders

Research-based advocacy to increase US investment Research-based advocacy to increase US investment in African ag & rural development and improve in African ag & rural development and improve effectiveness of US policies and programs effectiveness of US policies and programs

Focus: food security and ag development policy; Focus: food security and ag development policy; agricultural markets and trade; infrastructure; capacity agricultural markets and trade; infrastructure; capacity building; food aid reformbuilding; food aid reform Conducts focused research, synthesizes existing studies to inform policy, e.g., Conducts focused research, synthesizes existing studies to inform policy, e.g.,

annual report on levels of US Assistance to African Agricultureannual report on levels of US Assistance to African Agriculture

Convenes US and African experts to identify practical ways to address Convenes US and African experts to identify practical ways to address problems and opportunities in rural Africa problems and opportunities in rural Africa

Advocates for these ideas to be implemented by US and global decision-Advocates for these ideas to be implemented by US and global decision-makers, works to align donor and African national and regional policies makers, works to align donor and African national and regional policies and practicesand practices

Reports on US Agricultural Reports on US Agricultural Development AssistanceDevelopment Assistance

The Partnership has released two reports that examine levels The Partnership has released two reports that examine levels and trends of U.S. agricultural development assistance to and trends of U.S. agricultural development assistance to Sub-Saharan Africa. Sub-Saharan Africa.

First Report with funding from the Rockefeller Foundation -- First Report with funding from the Rockefeller Foundation -- “Investing in Africa’s Future: US Agricultural Development “Investing in Africa’s Future: US Agricultural Development Assistance for Sub-Saharan Africa” Assistance for Sub-Saharan Africa” reported on U.S. agricultural reported on U.S. agricultural development assistance from 2000 to 2004 and was released in development assistance from 2000 to 2004 and was released in September 2005.September 2005.

Second Report with funding from the Gates Foundation -- Second Report with funding from the Gates Foundation -- “Supporting Africa’s Strategy for Reducing Rural Poverty” “Supporting Africa’s Strategy for Reducing Rural Poverty” reported reported on US agricultural development assistance from 2005 to 2008 and on US agricultural development assistance from 2005 to 2008 and was released in October 2009.was released in October 2009.

Follow-up Report on US agricultural development assistance in Follow-up Report on US agricultural development assistance in 2009 will be released in October 2010.2009 will be released in October 2010.

Scope & MethodsScope & Methods Aims to capture in a simple, concise, and repeatable manner the agricultural Aims to capture in a simple, concise, and repeatable manner the agricultural

development assistance conveyed by the US government and categorize development assistance conveyed by the US government and categorize each institution’s assistance according to the following categories:each institution’s assistance according to the following categories:

On-Farm Productivity Enhancements, On-Farm Productivity Enhancements, Agriculture-related Physical Infrastructure, and Agriculture-related Physical Infrastructure, and Agriculture-related Policy and Market Infrastructure Agriculture-related Policy and Market Infrastructure

Emphasis is on institutions that contribute more than an incidental level of Emphasis is on institutions that contribute more than an incidental level of concessional or grant financing for agricultural development in Sub-Saharan concessional or grant financing for agricultural development in Sub-Saharan Africa. Africa.

Bilateral Institutions Multilateral Institutions United States’ Agency for International Development (USAID)

World Bank’s International Development Association (IDA)

Millennium Challenge Corporation (MCC) African Development Bank’s African Development Fund (ADF)

United States’ Department of Agriculture (USDA) International Fund for Agricultural Development (IFAD)

United States African Development Foundation (USADF)

Food and Agriculture Organization (FAO)

World Food Programme (WFP)

Scope & MethodsScope & Methods1.1. Reviewing each institution’s publicly available documents, Reviewing each institution’s publicly available documents,

interviewing personnelinterviewing personnel

2.2. Estimating each institution’s contribution to U.S. agricultural Estimating each institution’s contribution to U.S. agricultural development assistance for sub-Saharan Africa. development assistance for sub-Saharan Africa.

» Straightforward for bilaterals but for multilaterals requires 2 steps:Straightforward for bilaterals but for multilaterals requires 2 steps: Deriving proportion of Institution’s contribution to agricultural Deriving proportion of Institution’s contribution to agricultural

development in Sub-Saharan Africadevelopment in Sub-Saharan Africa Utilizing that proportion to determine the share of US Utilizing that proportion to determine the share of US

contributions to the institution going to agricultural development contributions to the institution going to agricultural development in Sub-Saharan Africain Sub-Saharan Africa

3.3. Categorizing agricultural development assistanceCategorizing agricultural development assistance » Two approaches used depending on data availability:Two approaches used depending on data availability:

An examination of individual or a representative sample of projects and An examination of individual or a representative sample of projects and compacts – MCC, USADF, and USDA’s Food for Progress.compacts – MCC, USADF, and USDA’s Food for Progress.

A correlation of the institution’s reporting at the element level with our A correlation of the institution’s reporting at the element level with our individual categories – USAID, FAO and the World Bank’s IDA.individual categories – USAID, FAO and the World Bank’s IDA.

4.4. Soliciting feedback from each institution on estimatesSoliciting feedback from each institution on estimates

Key Issues in MonitoringKey Issues in Monitoring

1.1. Lack of a robust, consistently utilized operational definition of Lack of a robust, consistently utilized operational definition of agricultural development assistance across the boardagricultural development assistance across the board

2.2. Ongoing revisions of reporting methods by the different Ongoing revisions of reporting methods by the different agencies studiedagencies studied

3.3. Heavy reliance on numbers provided by each agency (i.e. Heavy reliance on numbers provided by each agency (i.e. data collection systems) data collection systems)

4.4. Complicated and time-consuming US budget processComplicated and time-consuming US budget process

5.5. Mixed reporting cycles: Some agencies report by fiscal year, Mixed reporting cycles: Some agencies report by fiscal year, others by calendar yearothers by calendar year

6.6. Meshing of pooled funding and targeted bilateral funding in Meshing of pooled funding and targeted bilateral funding in multilateral organizations; and accounting for increase in inter-multilateral organizations; and accounting for increase in inter-funding of programs among multilateral agencies.funding of programs among multilateral agencies.

Key Findings: Key Findings: Trends in US Assistance to Trends in US Assistance to African AgricultureAfrican Agriculture

2000-2004: US assistance for African agriculture flat ($460-2000-2004: US assistance for African agriculture flat ($460-$514 million) $514 million)

2005-2007: significant increase due to Millennium Challenge 2005-2007: significant increase due to Millennium Challenge Corporation and African requests for agricultural Corporation and African requests for agricultural infrastructure ($677-$840 million)infrastructure ($677-$840 million)

2008: Global Food Price Crisis motivates increase to $1.1 2008: Global Food Price Crisis motivates increase to $1.1 billion billion

2009: At L’Aquila G8 Summit, historic global commitments2009: At L’Aquila G8 Summit, historic global commitments of $22b over three years, including $3.5b from USGof $22b over three years, including $3.5b from USG

Evolution of US Assistance: Evolution of US Assistance: Moving Toward a “Demand-Moving Toward a “Demand-Driven” Approach…Driven” Approach…

Adoption of Rome Principles (World Food Adoption of Rome Principles (World Food Summit 2009)Summit 2009)(1) invest in country-owned plans(1) invest in country-owned plans(2) foster strategic coordination at national, regional, (2) foster strategic coordination at national, regional,

and global levelsand global levels(3) strive for a twin-track, comprehensive approach to (3) strive for a twin-track, comprehensive approach to

meet immediate needs as well as foster long-term meet immediate needs as well as foster long-term developmentdevelopment

(4) ensure a strong role for the multilateral system(4) ensure a strong role for the multilateral system(5) ensure sustained and substantial commitment by (5) ensure sustained and substantial commitment by

all partners to investments in agriculture, food all partners to investments in agriculture, food security and nutrition security and nutrition

Feed the FutureFeed the Future

Guided by Rome PrinciplesGuided by Rome Principles address root causes of hunger and under-nutrition address root causes of hunger and under-nutrition encourage lasting food security through country-owned encourage lasting food security through country-owned

processes and multi-stakeholder partnershipsprocesses and multi-stakeholder partnerships make sustained and accountable commitmentsmake sustained and accountable commitments

Address needs of small farmers and agribusiness byAddress needs of small farmers and agribusiness by harnessing the power of womenharnessing the power of women building on US comparative advantage in research, innovation building on US comparative advantage in research, innovation

and private sector-led growth and private sector-led growth increasing investment in nutrition, ag development while increasing investment in nutrition, ag development while

maintaining support for humanitarian food assistancemaintaining support for humanitarian food assistance

We will elevate coordination within the U.S government to align our diverse resources and effectively partner with other stakeholders to leverage and harmonize our investments for the greatest collective impact. We see our role and that of other donors as catalyzing pro-poor economic growth through providing diplomatic, economic, and development assistance. We envision a world where private investment drives sustainable growth, and where country and market-led development supplants foreign assistance. www.feedthefuture.gov

Feed the Future ProgressFeed the Future Progress Feed the Future Guide (strategic plan) Feed the Future Guide (strategic plan)

released May 2010released May 2010 Phase I investmentsPhase I investments: foundational : foundational

investments/capacity buildinginvestments/capacity building Phase II investmentsPhase II investments: country investment plan : country investment plan

implementationimplementation Multi-year implementation plans will Multi-year implementation plans will

strategically target investments in focus strategically target investments in focus countries countries

20 initial plans for US investment issued 20 initial plans for US investment issued FY2010:FY2010: Africa: Africa:

3 regions: East, West and Southern Africa3 regions: East, West and Southern Africa 13 countries: Ethiopia, Ghana, Liberia, Kenya, 13 countries: Ethiopia, Ghana, Liberia, Kenya,

Malawi, Mali, Mozambique, Nigeria, Rwanda, Malawi, Mali, Mozambique, Nigeria, Rwanda, Senegal, Tanzania Uganda, Zambia Senegal, Tanzania Uganda, Zambia

Asia: 2 countriesAsia: 2 countries Latin America: 2 countriesLatin America: 2 countries

Joint USDA/USAID Norman Borlaug Joint USDA/USAID Norman Borlaug Commemorative Research InitiativeCommemorative Research Initiative launched launched

Global Agriculture and Food Global Agriculture and Food Security Program (GAFSP)Security Program (GAFSP)

Multi-donor trust fund hosted at the World Bank Multi-donor trust fund hosted at the World Bank Intended to assist in implementation of G-8 Intended to assist in implementation of G-8

commitments through “the immediate targeting and commitments through “the immediate targeting and delivery of additional funding to public and private delivery of additional funding to public and private entities to entities to support national and regional strategic plans support national and regional strategic plans for agriculture and food security in poor countriesfor agriculture and food security in poor countries”” Provides near-immediate funding to meet demand, in contrast Provides near-immediate funding to meet demand, in contrast

to slow bilateral and multilateral mechanismsto slow bilateral and multilateral mechanisms Reduces transaction costs and better aligns donor responsesReduces transaction costs and better aligns donor responses

Investments may target: agricultural productivity, Investments may target: agricultural productivity, market linkages for farmers, risk mitigation, non-farm market linkages for farmers, risk mitigation, non-farm rural livelihoods, institution/capacity buildingrural livelihoods, institution/capacity building

GAFSP ProgressGAFSP Progress

Donor contributions to date total $900m over three years Donor contributions to date total $900m over three years (US, Canada, Spain, South Korea, Bill & Melinda Gates (US, Canada, Spain, South Korea, Bill & Melinda Gates Foundation)Foundation)

First allocations, totaling $224m, were made in June to: First allocations, totaling $224m, were made in June to: Bangladesh ($50m), Haiti ($35m), Rwanda ($50m), Sierra Bangladesh ($50m), Haiti ($35m), Rwanda ($50m), Sierra Leone ($50m) and Togo ($39m)Leone ($50m) and Togo ($39m)

For the October 2010 Steering Committee decision meeting, For the October 2010 Steering Committee decision meeting, $120m is available to >25 applicants$120m is available to >25 applicants

New financial commitments are expected through 2013, with New financial commitments are expected through 2013, with implementation through 2019implementation through 2019

Challenges in Implementing a Challenges in Implementing a “Demand-Driven” Approach “Demand-Driven” Approach and Priorities for Actionand Priorities for Action

The Partnership’s February 2010 US-Africa The Partnership’s February 2010 US-Africa Forum gathered > 200 members of the US and Forum gathered > 200 members of the US and African development community to: African development community to: take stock of progress over the past year take stock of progress over the past year discuss the main challenges affecting the ability discuss the main challenges affecting the ability

of the US to respond to country-determined of the US to respond to country-determined food security priorities and the “Rome food security priorities and the “Rome principles” principles”

identify options for addressing these challengesidentify options for addressing these challenges

Fostering New Ways of Fostering New Ways of Working TogetherWorking Together

Fostering Fostering new ways of working togethernew ways of working together on strategic on strategic problems—with private business, civil society and problems—with private business, civil society and academia in the host country and US; across USG academia in the host country and US; across USG agencies; and with the multilateral system agencies; and with the multilateral system

What incentives are in place to motivate improved What incentives are in place to motivate improved coordination among national government agencies? coordination among national government agencies? Among bilateral donors?Among bilateral donors?

WWhat does demand-driven mean? Whose demand? hat does demand-driven mean? Whose demand? How are private sector and civil society, including int’l How are private sector and civil society, including int’l and domestic NGOs, involved in developing and and domestic NGOs, involved in developing and implementing CAADP-like plans? Do non-government implementing CAADP-like plans? Do non-government entities feel ownership and responsibility for these entities feel ownership and responsibility for these priorities and plans?priorities and plans?

Meeting the Challenge of Meeting the Challenge of Capacity BuildingCapacity Building

Meeting the challenge ofMeeting the challenge of capacity building capacity building, i.e., , i.e., focusing external technical assistance in the near term focusing external technical assistance in the near term on the longer term strategic goal of building the on the longer term strategic goal of building the expertise and institutions to plan, manage and drive expertise and institutions to plan, manage and drive agricultural development agendas in-country agricultural development agendas in-country

What capacity-building investments –in individuals and What capacity-building investments –in individuals and institutions -- will be necessary to create the next generation of institutions -- will be necessary to create the next generation of African scientists, civil society leaders, businessmen/women African scientists, civil society leaders, businessmen/women and government managers of the future? What training and government managers of the future? What training institutions will deliver continuously updated information about institutions will deliver continuously updated information about agriculture, nutrition, health and business development agriculture, nutrition, health and business development strategies to communities? strategies to communities?

Increasing Private Sector Increasing Private Sector Investment at National and Investment at National and Regional LevelsRegional Levels

Food security will not be achieved without substantially Food security will not be achieved without substantially increased increased private sector investmentprivate sector investment in production, in production, processing, storage, marketing, and trade of food and processing, storage, marketing, and trade of food and agricultural commodities. agricultural commodities.

What – very specifically – must be done to Improve enabling What – very specifically – must be done to Improve enabling environments for agribusiness, e.g., what are the highest priority environments for agribusiness, e.g., what are the highest priority national and regional infrastructure investments; how are land national and regional infrastructure investments; how are land administration and ownership issues being addressed? administration and ownership issues being addressed?

How to improve the flow of information about opportunities to How to improve the flow of information about opportunities to potential investors within Africa and globally? potential investors within Africa and globally?

Farmer associations and cooperatives are core private sector Farmer associations and cooperatives are core private sector businesses with the potential to attract and manage greatly-businesses with the potential to attract and manage greatly-expanded investments. What specific skills are needed and how expanded investments. What specific skills are needed and how will these be delivered? will these be delivered?

How can African- based business development services (BDS) be How can African- based business development services (BDS) be nurtured to support food and agricultural system development nurtured to support food and agricultural system development (production, processing, marketing, storage, export)? (production, processing, marketing, storage, export)?

Improving Metrics and Improving Metrics and AccountabilityAccountability

A shared commitment to A shared commitment to expanded monitoring, analysis, expanded monitoring, analysis, evaluation and learning (M&E +)evaluation and learning (M&E +) is essential to facilitate is essential to facilitate transparency, accountability, and trust among partners and to transparency, accountability, and trust among partners and to ensure that implementing organizations become “learning” ensure that implementing organizations become “learning” organizations. Priorities include…organizations. Priorities include…

Going beyond government and donor entities with M&E+. How will civil Going beyond government and donor entities with M&E+. How will civil society and private sector organizations be engaged in planning, reporting society and private sector organizations be engaged in planning, reporting and learning from agricultural program implementation in a cost-effective and learning from agricultural program implementation in a cost-effective way, and in a way that strengthens their ownership of programs?way, and in a way that strengthens their ownership of programs?

Developing common metrics shared by national, regional and donor Developing common metrics shared by national, regional and donor partners to achieve cost- and other efficiencies in data-collection, capacity-partners to achieve cost- and other efficiencies in data-collection, capacity-strengthening, and messagingstrengthening, and messaging

Investing more in statistics and data collection, especially strengthening the Investing more in statistics and data collection, especially strengthening the capacity of African organizations to conduct surveys and analyze resultscapacity of African organizations to conduct surveys and analyze results

Building M&E + “learning” activities into contracts and grants so that Building M&E + “learning” activities into contracts and grants so that implementing partners have incentives to use and share knowledgeimplementing partners have incentives to use and share knowledge

Conducting retrospective evaluations to understand key issues and Conducting retrospective evaluations to understand key issues and interventions more thoroughlyinterventions more thoroughly

ConclusionsConclusions

We are witnessing historic changesWe are witnessing historic changes

A significant increase in funding and A significant increase in funding and political support for agriculture and political support for agriculture and food securityfood security

New commitment from the US and New commitment from the US and other donors to country-driven other donors to country-driven development and other Rome development and other Rome PrinciplesPrinciples

ConclusionsConclusions

But this is only the first step. What will But this is only the first step. What will be needed to assure successful be needed to assure successful implementation of “demand-driven” food implementation of “demand-driven” food security programs? security programs?

Challenges include:Challenges include: Fostering new ways of working togetherFostering new ways of working together Meeting the challenge of capacity buildingMeeting the challenge of capacity building Increasing private sector investment at Increasing private sector investment at

national and regional levelsnational and regional levels Improving metrics and accountabilityImproving metrics and accountability

Thank youThank you