Download reading - 5th International Conference of the African Association

Proposal for a Symposium for the 5th Conference of African Association of Agricultural
Economists (AAAE) “Transforming smallholder agriculture in Africa: The role of policy
and governance.” To be held at the United Nations Conference Centre - Addis Ababa,
Ethiopia, 26-29 September, 2016.
Session Title: “Policy-Oriented Action Learning and Research on Agricultural Micro
Policy and Regulatory Reforms in African Countries: Burkina Faso, Ethiopia, Ghana,
Nigeria and Tanzania”
Session Rationale: Under the Malabo Declaration of 2014 for Shared Prosperity and Improved
Livelihoods, African government leaders committed to Accelerated Growth and Transformation
of agriculture and agribusiness and to put in place appropriate policy and institutional framework
support systems for facilitating domestic and international private sector investments in
agriculture, agribusiness and agro-industries. Priority is given to domestic investors to ensure
African ownership of the approach and results to drive sustainability.
However, many of the agricultural policies, laws, regulations and administrative practices that
African countries still carry on their books and implement in practice deter rather than promote
private sector investments in agricultural input and output markets. These we refer to as
“problem” policies. These need to be changed in order to permit private-sector led, government
enabled agricultural transformation and inclusive growth. Therefore there is a need to leverage
Policy-Oriented Action Learning and Research on Agricultural Micro Policy and
Regulatory Reforms in African Countries to change these “problem” policies, laws,
regulations and administrative practices in order to promote expanded private sector investments
in agriculture, agribusiness and agro-processing. But it takes time to change a policy, an act or a
regulation. There is a need to follow several administrative and legal processes and stages of
government decision-making and approval. These processes are laid out in the country’s
constitution. These processes are technically complex because they involve many disciplines and
ministries, departments and agencies. There are trade-offs among competing objectives and
interventions. There exist many moral dilemma choices that need to be made. There often exist
disagreements among policy makers, decision makers and stakeholders with the fallout of the
decisions taken creating conflict among those perceived to be winners and losers and organized
interest groups. The losers can block the policy changes. This may require investment of political
capital by government authorities to overcome the political weight of interest groups. This may
result in directly unproductive profit-seeking (DUP) activities and rent-seeking. The processes
require specialized policy reform management, economic modelling and legal expertise, broad
stakeholder consultations, trade-offs and horse trading among the winners and losers, consensus
building and commitment, capacity building, and resources.
This session contributes to “Transforming smallholder agriculture in Africa: The role of
policy and governance” through sharing some on-going policy-oriented action learning and
research focusing on what is working and what is not working, where, why, how, for whom and
at what cost. The research is being carried out in close interaction with policy-makers in five
African countries. The objective is to support governments in creating the enabling environments
for engaging private sector investments in smallholder agricultural value chains, have impacts on
farmers’ fields and improve welfare. The session highlights the role of participatory action
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learning and research in planning, scheduling and controlling policy-oriented action research
interventions. A key question is how can African countries better work out policy-reform workplanning, initiate and manage individual reform processes in order to have successful impact on
outcomes of interest in a timely way and within set budgets.
Session Organizers: Joseph Rusike and Boaz Keizire (AGRA)
Session Speakers
Chair: Nega Wubuneh (AGRA)
Paper Presentations:
“Policy-Oriented Action Learning and Research on Agricultural Micro Policy and
Regulatory Reforms in African Countries: Conceptual Framework and Research Agenda”
by Joseph Rusike, Boaz Keizire, Mandi Rukuni, Aboubacar Diaby
Abstract: Sub-Sahara African governments are now placing a heavy emphasis on attracting
private sector investment in agricultural input supply and output marketing in the development of
agricultural value chains of staple food crops, fisheries and livestock for smallholders. Many
African governments are focusing on staple food crops in order to increase smallholder farmers’
access to land, certified seed of improved varieties and hybrids, quality fertilizers, agricultural
machinery and farm equipment, structured markets, finance, extension and infrastructure. These
interventions are being implemented in order to improve farm uptake of better technologies,
agricultural productivity, food and nutrition security and incomes and human welfare. We draw
on the conceptual framework developed by Bromley and Yao (2006) for analyzing policy
making processes and the cause and effect relationships between the polity and its governance,
institutional architecture, the economy, firms, households, institutional change and economic
transformation. We develop a participatory action learning and research approach for identifying,
prioritizing and reforming “problem” agricultural policies, laws, regulations and administrative
practices. We apply the approach to diagnose and assess current landscape of policies, laws,
regulations and administrative practices in selected African countries and the consequent impact
on smallholders’ access to agricultural input and output markets in order to identify the key
constraints to private investment in smallholder value chains and to identify micro reform
opportunities. We have found that the “problem” agricultural policies, laws, regulations and
administrative are consistently similar across countries although their incidence and severity vary
country by country. Reforming the policy and regulatory constraints requires public and private
partnerships to drive systematic and methodological approaches to engage government policymakers, private sector firms’ and associations and civil service organizations in making better
decisions through participatory collective action learning-by-doing and planning for change.
“Policy-Oriented Action Learning and Research on Micro Reforms in Burkina Faso” by
Abdelaziz Ouedraogo, David Tiemtore, Jean-Marie Byakweli
Abstract: The Government of Burkina Faso is implementing policy and regulatory reforms in
agricultural sector to expand private sector investment in agricultural input supply and output
markets in agricultural value chains for staple foods for smallholder farmers. These are rooted in
a number of agricultural sector level frameworks that have been implemented since 1990. These
include the Program for Adjustment of the Agriculture Sector (PASA), National Strategy to
Fight Poverty (CSLP), the Policy for a Decentralized Rural Development Programme (LPDRD),
the Rural Development Strategy (SDR), the Strategy for an Accelerated Growth and Sustainable
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Development (SCADD) and the National Program for Rural Sector Development (PNSR). The
ongoing policy and regulatory reforms are focusing on land tenure, integrated water management
and supply of agricultural to inputs (fertilizers, and seeds, equipment). Micro policy and
regulatory reforms that build on ongoing reforms have been identified and prioritized in the areas
of seed, fertilizers, agricultural marketing, agricultural warehousing receipt system and
agricultural investment code. Reforms have been started in seeds and fertilizers and agricultural
warehousing receipt system and agricultural investment code. This paper applies the program
evaluation and review techniques (PERT), cost-benefit and capital budgeting methods to guide
technical assistance plan, schedule and control activities to bring about reforms in these areas in
a timely way and within budgets and have impact on outcomes of interest.
“Policy-Oriented Action Learning and Research on Micro Reforms in Ethiopia” by Nega
Wubeneh, Mengesha Tadesse, Lemma Dessalgne, MelakuAdmassu
Abstract: The Government of the Federal Democratic Republic of Ethiopia is placing emphasis
on expanding private sector investment in agricultural input supply and output marketing in
smallholder staple food value chains with the aim of boosting total factor agricultural
productivity and profitability; expand farm incomes; and enable smallholder farmers to increase
food security and lift themselves out of poverty. The policy reforms are underpinned by several
agricultural sector wide frameworks that have been implemented since 1990s. These include the
Agriculture Development Led Industrialization (ADLI), the Reduction Strategy Program
(PRSP), the Sustainable Development and Poverty Reduction Program (SDPR), the Plan for
Accelerated and Sustainable Development to End Poverty (PASDEP), the Growth and
Transformation Plan I (GTP-I) and the Growth and Transformation Plan II (GTP-II).
The policies, strategies, programs and projects are gradually putting in place policy and
institutional conditions and support systems for enabling private sector investment in
agribusiness in smallholder staple food value chains. Despite this success several industry and
subsector level “problem” policy, laws, regulations and administrative practices are constraining
expanding private sector investment in staple food value chains of smallholder farmers. Micro
policy and regulatory reforms that build on ongoing these sector wide reforms have been
identified and prioritized in the areas of seed, agricultural markets and agricultural sector
taxation. This paper applies the program evaluation and review techniques (PERT)/Critical Path
Method (CPM), cost-benefit and capital budgeting methods to guide technical assistance that is
being provided to bring about reforms in the area of seeds.
“Policy-Oriented Action Learning and Research on Micro Reforms in Ghana” by Daniel
Ohemeng Boateng, Josephine Quagraine, Dorothy Effa, Emmanuel Asante-Krobea, Edmond
Kojo Jack-Vesper Suglo, Jean-Marie Byakweli
Abstract: The Government of Ghana is implementing policy reforms to expand private sector
participation and investments in farm input supply and output marketing in agricultural value
chains of smallholder staple food crops. These are rooted in two agricultural sector wide policy
frameworks. The first framework is the Food and Agricultural Sector Development Policy II
(FASDEP II). The second framework is the Medium Term Agricultural Sector Investment
Policy (METASIP). The policy interventions include price support schemes (fertilizer subsidy);
input credit support schemes (Block Farms and Youth in Agriculture); micro credit schemes
(outgrower value chain fund, export development and agricultural investment fund, rural
agricultural finance); research development (planting material, breed improvement, food
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processing and preservation); extension services, agricultural mechanization service centers,
market information services (radio, television, mobile phone); development of value chains;
markets (National Buffer Stock Company, grain warehouse receipt system and commodity
exchange); establishment of land banks; postharvest storage infrastructure (appropriate
machinery, on-farm storage structures, rehabilitation of bulk silos, storage technologies);
irrigation schemes; and development of road networks; and creating a conducive policy
environment. Micro policy and regulatory reforms that address specific challenges of the
enabling environment through appropriate institutions (regulations, rules, policies) in order to
capitalize on the agriculture sector potentials, improve economic performance and achieve the
transformational agenda have been identified and prioritized in the areas of seed, fertilizers,
agricultural marketing and trade and agricultural finance. Reforms have been started in seeds,
fertilizers and agricultural marketing. This paper applies the program evaluation and review
techniques (PERT)/Critical Path Method (CPM), cost-benefit and capital budgeting methods to
provide information on which project activities have to be intensively managed to ensure
completion of reforms on time and within the available resources and demonstrate success by
having impact on outcomes of interest.
“Policy-Oriented Action Learning and Research on Micro Reforms in Nigeria” by Tony
Bello, Ibrahim Abdullahi, Gideon Negedu, Joseph Rusike
Abstract: The Government of Nigeria has made significant progress to liberalize agricultural
input and output markets in the past 4 years. The Growth Enhancement Support Scheme (GES)
was instituted to drive liberalization of the seed and fertilizer sub-sectors, output markets and to
facilitate financing of private-sector led input markets reforms. The flagship GES uses an ewallet system to deliver subsidies through the mobile telephone to over 14 million registered
smallholder farmers for the purchase of seeds and fertilizer. Despite the progress and outcomes
in meeting the food security needs of Nigeria, strengthening the institutional framework for
expanded private sector investments in the seed industry is being constrained by a lack of
legislation to advance liberalization of foundation seed production, domesticate the gazetted
ECOWAS harmonized seed regulations, the lack of Intellectual Property Rights, the lack of out
sourcing of seed certification and the lack of quality standards for seeds. Similarly, expanded
private sector investment in fertilizer supply is being constrained by a lack of legal and
institutional framework for monitoring, evaluation, controlling and enforcement of fertilizer
quality standards. This paper applies the program evaluation and review techniques (PERT),
cost-benefit and capital budgeting methods to guide the AGRA technical assistance program that
is being provided to Micro Reforms for African Agribusiness-Nigeria to bring about specific and
granular seed and fertilizer reforms that can be completed within two years with a modest budget
under a new political dispensation and the All Progressives Congress Manifesto.
“Policy-Oriented Action Learning and Research on Micro Reforms in Tanzania” by Gungu
Mibavu, Liston Njoroge, Bob Shuma and Salum Mkumba
Abstract: The Government of the United Republic of Tanzania is implementing policy reforms
to expand private sector investment in agricultural expand private sector investment in
agricultural input supply and output markets in agricultural value chains for staple foods for
smallholder farmers. These are grounded in agricultural sector level policy frameworks that the
government has introduced at different times over the past 10 years starting in 2006. The policy
frameworks include the Agricultural Sector Development Programme 1 (ASDP I), Long Term
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Perspective Plan (LTTP), the First 5- year Development Plan (FYDP I), the National Strategy for
Growth and Reduction of Poverty (NSGRP II) or Mkukuta, the Kilimo Kwanza (Agriculture
First), the Tanzania Agricultural and Food Security Investment Plan (TAFSIP), the Southern
Agricultural Growth Corridor of Tanzania (SAGCOT), the New Alliance for Food Security and
Nutrition, Mkukuta II, FYDP II, Big Results Now, and ASDP-II. Micro policy and regulatory
reforms that build on ongoing these sector wide reforms have been identified and prioritized in
the areas of seed, fertilizers, agricultural markets and trade and agricultural finance. Reforms
have been started in seeds and fertilizers. This paper applies the program evaluation and review
techniques (PERT)/Critical Path Method (CPM), cost-benefit and capital budgeting methods to
support interventions targeted on few specific and granular seed and fertilizer reforms so that
these can be completed on time and within the available resources and demonstrate success by
having impact on outcomes of interest.
“Developing a Policy Practice Index for Advancing Agricultural Transformation in Africa”
by Mandivamba Rukuni, Mabel Hungwe and George Mapope
This paper summarises the initial findings from an on-going project that has developed an
Agriculture Policy Practice Index (APPI) that seeks to develop a typology of policy practices
with the ultimate goal of strengthening African agricultural policies. The APPI has been
developed and tested in Ghana, Mozambique and Tanzania by the Barefoot Education for Africa
Trust (BEAT) in collaboration with AGRA. The tool assesses policy practice around 5 thematic
areas considered crucial for agricultural transformation: a) crop and livestock improvement; b)
sustainable natural resources management; c) rural finance and investment; d) national and
regional integration; and, e) systemic institutional capacities. The project developed a framework
and methodology for countries to ‘self-assess’ their performance in policy practice and help them
to design appropriate policy reform agenda. Responding to previous research and field
implementation experience that revealed a number of ‘good’ policy documents that are poorly
implemented, the APPI is aimed at assisting African countries assess the implementation
modalities of policies. ‘Policy Practice’ is the art of working with key stakeholders in addressing
formulation and implementation simultaneously, so as to guarantee commitment to action and
getting things done. The main findings in the paper are on the 5 agricultural transformation
thematic areas. In addition, the general findings so far are that: in embracing the ‘policy-practice’
approach, governments should utilise already-collected administrative data within government
agencies to inform policy formulation and implementation; avoid formulating new policies
before engaging with farmers, producers and entrepreneurs in robust dialogues on existing
policies; and governments ought to insert policy engagements at different points of policy
implementation.
Proposed layout
The session is expected to last one and a half to two hours organized as follows. First, the chair
will motivate the topic and introduce the speakers. The key contributions of the session will
come from seven paper presentations from institutions such as the Alliance for a Green
Revolution in Africa (AGRA); Barefoot Education for Afrika Trust (BEAT); Direction Générale
pour la Promotion de l'Economie Rurale, Ministère de l'Agriculture et des Aménagements
Hydrauliques, Burkina Faso; Agricultural Transformation Agency, Ethiopia, Ethiopian Seed
Association (ESA); Policy, Planning and Budget Directorate, Ministry of Food and Agriculture,
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Ghana; Nigerian Agribusiness Group (NAGB), Fertilizer Producers and Suppliers Association of
Nigeria (FESPAN), Seed Entrepreneurs Association of Nigeria (SEEDAN); Directorate of
Policy and Planning (DPP), Minister of Agriculture Livestock and Fisheries, Tanzania, Tanzania
Seed Trade Association (TASTA) and Tanzania Fertilizer Society (TFS). The session will end
with an open discussion of the papers and related issues.
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