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RURAL
DEVELOPMENT
PRIORITIES
AND
REACHING THE
RURAL POOR
Some
Countries
have had
successful
rural
development
 Successful broad based rural development in
China, Thailand, Central Europe, parts of Latin
America was initial stimulus to their rapid
economic growth
Some Global
Success in Food
Production, 19591997
Broader
Success
with
Agriculture
 International price of food
decreasing
 Caloric intake rising
 Percent of undernourished
fallen
 Rates of return to research projects high
 Success rate of World Bank agricultural projects
about 70% (OED)
 Agriculture contributed to the success in rural
development in China, Thailand, Central Europe,
parts of Latin America
The MDGs: 8
goals and 18
targets – all
interrelated
The goals are:
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower
women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria and other
diseases
7. Ensure environmental sustainability
8. Develop a Global Partnership for
Development
Poverty
headcount (%
living on less than
$1 per day
Prognosis for
Poverty,
Education and
Child Mortality
MDGs
MDG
target
2015
growth
alone
East Asia
14
Europe & Central
Asia
Primary
completion rate
(%)
Under-five child
mortality (per 1,000
live births)
MDG
target
2015
growth
alone
MDG
target
2015
growth
alone
4
100
100
19
26
1
1
100
100
15
26
Latin America and
the Caribbean
8
8
100
97
17
30
Middle East &
North Africa
1
1
100
96
25
41
South Asia
22
15
100
100
43
69
Sub-Saharan
Africa
24
35
100
60
59
151
Region
Source: Global Economic Prospects, World Bank, 2003; Devarajan, S.,”Growth is not
Enough,” World Bank, 2001
AGRICULTURAL
DEVELOPMENT IS
AT THE
CONFLUENCE OF
THE MDGs,
HUNGER, AND
SOCIAL
PROTECTION
Agriculture is key to:
 Growth in most low income countries
 Household poverty reduction of the rural poor
 Food security through farm income growth and in some
cases food availability
 Safety net for the rural poor (who are often subsistence
farmers)
Agriculture
Must Grow
Faster in Most
Low Income
Countries to
Achieve
Millennium
Development
Goals
 Rural poverty and low agricultural growth
persists in most low income countries
 3.6 % p.a per capita GDP growth is
needed in low income countries to cut
poverty in half by 2015
 24% of low income country GDP is
agricultural; agriculture must grow at
about 3.5% p.a to achieve the overall
growth and poverty reduction objective
Can Agriculture
Grow Faster in Low
Income Countries?
Water Supply is
Less Assured in
Rural Areas
Rural Education
is Weaker Than
Urban
A Major
Challenge:
Declining Interest
by the Bank and
by Other Donors
 Champions of rural development are weak
 Other priorities have been added by governments and donors;
developing countries allocate half the public budget to rural
areas as they do to urban
 Rural development projects often performed poorly in the past
 Irrigation, water, forest, fisheries projects are often
controversial
 Private returns to investment in agriculture in low income
countries is often very low
 Consequently, the impact of the Bank’s previous rural
development strategy was negligible.
APPROACH
TO THE NEW
STRATEGY
 Regional rural development strategies
 Review of project experience and analysis
 Consultations in client countries, in the Bank, with donors and
NGOs
 Analysis published in technical documents
 Corporate strategy developed through ‘bottom-up’ approach
 Detailed implementation plan
A SHIFT IN
EMPHASIS
 Giving voice to the rural poor
 Addressing the entire rural space
 Forging alliances of all stakeholders –
donors and recipients
 Addressing impact of global developments
on client countries (trade, subsidies,
climate change)
NEW
STRATEGIC
PRIORITIES
 Fostering an enabling policy and institutional environment
for broad-based and sustainable economic growth;
 Enhancing agricultural productivity and competitiveness;
 Encouraging non-farm economic growth;
 Improving social well-being, gender equity, managing risk,
and reducing vulnerability;
 Enhancing sustainable management of natural resources.
RESPONSIBILITIES
OF DEVELOPED
COUNTRIES
 Agricultural trade liberalization, to the levels of tariffs and
non-tariff barriers which are established for non-agricultural
products.
 Reduction of agricultural subsidies, which currently depress
world prices and expand world agricultural market share
held by developed countries.
 Expansion of agricultural and rural development assistance
to developing countries to the levels characteristic of the
early 1990s.
RESPONSIBILITIES
OF DEVELOPED
COUNTRIES
(CONTINUED)
 A focus on Sub-Saharan Africa is required in international
assistance for rural development given the particularly
difficult food and agricultural situation which exists there.
 Better coordinate aid flows to developing countries.
 Support to the transfer of scientific findings of relevance to
developing country agriculture.
UNDERLYING
FACTORS OF
SUCCESS FOR
DEVELOPING
COUNTRIES
 Expanded investment in rural infrastructure, rural health,
education, energy, telecommunications, in conjunction with
local communities and the private sector.
 Promotion of producer organizations and trade associations,
so that rural people have more responsibility and more say
in rural based activities.
 Improvement of governance, and decentralization of some
government functions to local government authorities, local
community groups, and the private sector.
 Where necessary, improved land administration and land
reform.
 Equity, especially in terms of gender.
WHAT’S
NEW IN
AGRICULTURE?
 From staples to high value crops
 From narrow agricultural focus to broader policy context –
including global impacts
 From focus on crop yields to market demands and incomes
 From primary production to entire food chain
 From agriculture to rural space
 From thinking of farms as homogeneous to heterogeneity
 From public to public-private partnerships, including
community driven development
 From avoidance of issues to head on approach
(biotechnology, forestry, water)
RECOGNITION OF
THE IMPORTANCE
OF RURAL NONFARM ECONOMY
AND THE PRIVATE
SECTOR
 Improve investment climate for private investment
in rural areas, promote labor mobility
 Provide agricultural, financial, infrastructural,
market and social services in part through the
private sector, using market solutions
 Promote producer organizations, trade
associations, business chambers, and publicprivate cooperation
DEVELOPING
RURAL
INFRASTRUCTURE
AND SOCIAL
ASSETS, AND
MANAGING RISKS
ARE ESSENTIAL
 Improve access to infrastructure and social services
 Improve access to nutrition and health
 Increase access to and improving the quality of rural
education
 Address HIV/AIDS in rural programs
 Provide assistance in managing household food security
 Provide new risk management instruments
 Build the capacity of the public and private sectors and
civil society to manage their own services
A CONTINUED
COMMITMENT TO
ENHANCING
SUSTAINABLE
MANAGEMENT OF
NATURAL
RESOURCES
 Environment, forestry and water strategies in the
Bank give overall guidelines in approaching rural
natural resource management
 Elements will include:
 Reducing land degradation
 Improving water management
 Sustainable production of forest products while
protecting the environment
OVERALL
IMPLEMENTATION
THRUSTS
 Raise the profile of rural development in national policy
 Scale up innovative and successful investments, while
exploring new approaches and innovation
 Improve the quality and impact of donor operations
 Implement global priorities (e.g. reduce deforestation,
water pollution, over-fishing, loss of bio-diversity, soil
erosion, adapt to climate change, bring agricultural
science to poor countries)
 Enhance partnerships
between governments,
civil society, NGOs, and
donor organizations for
rural development,
including a global forum
for rural development
Countries for
focus for
national rural
development
strategy
preparation –
first cohort
AFR
FY03
Madagascar
Nigeria
Cameroon
Ethiopia
Angola
Lesotho
FY04
Tanzania
Togo
Burkina
Faso
D.R. of
Congo
EAP
ECA
MNA
LCR
SAR
FY03
Vietnam
Philippines
Papua New
Guinea
FY03
Russia
Turkey
Uzbekistan
Ukraine
FY03
Yemen
Djibouti
FY03
Nicaragua
Brazil
Colombia
Mexico
FY03-FY04
Afghanistan
Bangladesh
Sri Lanka
Pakistan
India, and:
Uttar
Pradesh
Maharashtra
Andhra
Pradesh
Karnataka
FY04
Indonesia
FY04
Egypt
FY04
Honduras
Peru
Panama
Bolivia
Bank Operations in
Rural Space –
Potential Areas for
Scaling-Up and
Innovation
Objective
Theme
Policy and
Institutions
agricultural policy reform (ASL, PRSC, SAC)
development of rural strategies
institutional reform and capacity building
participatory planning
Agricultural
Productivity and
Competitiveness
land reform and administration
research and extension
information technology – marketing and knowledge
irrigation and drainage
support for producer organizations/user groups
food safety and agribusiness
rural finance – including micro finance
Bank Operations
in Rural Space –
Potential Areas
for Scaling-Up
and Innovation
(cont.)
Objective
Theme
Non Farm Rural
Economy
rural non-farm economy including business
development
private sector role in service provision
infrastructure, including small towns
Strengthening
Social Services
and Reducing
Risk and
Vulnerability
health and education: specific rural issues
community driven development/district programs
social inclusion, including women and girls
commodity, climate, and disaster risk management
emergency reconstruction
Sustainable
Natural
Resource
Management
soil fertility
watershed development
community natural resource management
community forestry
fisheries
RISKS
 Unable to give proper voice to the rural poor at national
level
 Desired multi-sectoral collaboration does not materialize
within donor agencies and governments
 Instruments available to donors not conducive to rural
focus, learning, and innovation
 Industrial country tariffs and subsidies continue to hinder
developing country access to markets