RURAL%20DEVELOPMENT%20PRIORITIES%20AND%20%20REACHING%20THE%20RURAL%20POOR - PowerPoint PPT Presentation

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RURAL%20DEVELOPMENT%20PRIORITIES%20AND%20%20REACHING%20THE%20RURAL%20POOR

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Title: RURAL%20DEVELOPMENT%20PRIORITIES%20AND%20%20REACHING%20THE%20RURAL%20POOR


1
RURAL DEVELOPMENT PRIORITIES AND REACHING THE
RURAL POOR
2
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

3
Some Global Success in Food Production, 1959-1997
4
Broader Successwith 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

5
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

6
Prognosis for Poverty, Education and Child
Mortality MDGs
Poverty headcount ( living on less than 1 per day Poverty headcount ( living on less than 1 per day Primary completion rate () Primary completion rate () Under-five child mortality (per 1,000 live births) Under-five child mortality (per 1,000 live births)
Region MDG target 2015 growth alone MDG target 2015 growth alone MDG target 2015 growth alone
East Asia 14 4 100 100 19 26
Europe Central Asia 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
Source Global Economic Prospects, World Bank,
2003 Devarajan, S.,Growth is not Enough, World
Bank, 2001
7
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)

8
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

9
Can Agriculture Grow Faster in Low Income
Countries?
10
Water Supply is Less Assured in Rural Areas
11
Rural Education is Weaker Than Urban
12
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 Banks previous
    rural development strategy was negligible.

13
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

14
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)

15
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.

16
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.

17
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.

18
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.

19
WHATS 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)

20
RECOGNITION OF THE IMPORTANCE OF RURAL NON-FARM
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
    public-private cooperation

21
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

22
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

23
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

24
Countries for focus for national rural
development strategy preparation first cohort
25
Bank Operations in Rural Space Potential Areas
for Scaling-Up and Innovation
26
Bank Operations in Rural Space Potential Areas
for Scaling-Up and Innovation (cont.)
27
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
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