Oxfam GB Director

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Oxfam GB Director Barbara Stocking Visiting a
cotton field in Khatlon Tajikistan
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Livelihood protection and promotion in
agriculture Complementing Cotton

• Peter Pichler
• OXFAM
  GB
• Tajikistan Country Programme
• Dushanbe

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Impacts of agricultural growthon poverty
in theory

• Through
• profitability gains for farmers
• labour market gains for labourers
• product prices for consumers
• knock-on effects on demand (inputs,
  processing, marketing), leading to second round
  investments
• increase in tax yields and formal transfers
• Increased informal transfers to those
  chronically unable to engage in the productive
  economy

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Impacts - evidence

• Large body of evidence on impacts of agricultural
  productivity growth
• Irz et al, 2003 each 1 growth in agricultural
  productivity generates a decrease of between 0.6
  and 1.2 in those living on less than 1/day
• Hazell and Haddad, 2001 including discussion of
  pro-poor agricultural research prioritisation
• Dorosh and Haggblade, 2003 investments in
  agriculture generate the highest impacts on the
  poor

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What is a Livelihood System?

• The Activity(ies) that Households Engage in to
  Earn/Make a Living.
• Livelihoods can consist of a range of on- and
  off-farm activities or procurement strategies
  that together provide food and/or cash.

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What is a Livelihood System?

• The assets other resources that households
  possess
• and
• The human and social capital that households
  possess or can call on in times of need.

Social Networks Safety Nets
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What is a Livelihood System?

• Livelihood systems of the poor are often quite
  diverse
• Households often use their capabilities, skills,
  and know-how to diversify income sources and
  off-set risks

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The Process of Change
Transition
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Transmission mechanisms through growth and
markets - questions and issues

• How well do markets work? For whom? market
  failure is the norm, not the exception, in many
  parts of the World (Omamo, 2003)
• conventional features of market failure
  transaction costs raised through lack of
  transport and communications infrastructure, weak
  contract enforcement, moral hazard, inadequate
  insurance markets, high risks which cannot be
  insured against, externalities, increasing
  economies of scale, highly imperfect
  competition..
• overall overhasty liberalisation neoliberal
  facilitating and regulating not enough
• not enough attention given to segmentation and
  interlocking

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Impeded transmission via markets segmentation

• any form of non-economic discrimination does
  not include discrimination by skills,
  productivity, actuarial risk (in finance and
  insurance markets), but does include
• Gender discrimination paying less to women than
  can be justified on productivity grounds
  intra-household constraints on womens choice
• Discrimination on basis of religion or ethnicity
• Discrimination on basis of social status

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Improving transmission by reducing
entrepreneurial risk trampolines
Risks are shocks and stresses either external or
internal to the HH vulnerability is the HHs
capacity to withstand or cope with these A Social
Risk Management Framework as a means of reducing
risk and vulnerability, covers covariate and
idiosyncratic risk covers prevention, mitigation
and coping. Covers different policy levels,
stressing that even the highest level policies
(fiscal, investment.), and sector-based policies
(e.g. agriculture) can combine growth and
protection
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The PROBLEM TREE The issue of cotton and
overcoming poverty
Malnutrition Food security
poverty
EFFECTS
low access to education
poor health
difficult social situation of widows
emigration
MAIN PROBLEM
low income
CAUSES
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Challenges of diversifying the rural economy,
felt threats and evolving opportunities

• Threat 1 Cotton is not providing a sufficient
  income for farmers
• Opportunities crop rotation / crop sharing /
  crop diversification opening new opportunities
  for farmers increasing the individual household
  food security including enhanced nutritional
  support marketable agriculture surplus crops
  like vegetables creating income opportunities

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Challenges of diversifying the rural economy,
felt threats and evolving opportunities

• Threat 2 Cotton farmers lacking technical
  equipment and agric inputs
• Opportunities reconverting to appropriate
  technologies, adopting alternative farming
  techniques, new conceptions and cultivation
  approaches

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Challenges of diversifying the rural economy,
felt threats and evolving opportunities

• Threat 3 Cotton is vulnerable to climate change
  high water use and increased (at least 15 new
  agriculture insects since independence!) invasion
  of (ex. noctuid) pests will threaten future
  crops
• Opportunities through introduction of new
  farming techniques like conservation agriculture
  reduced need of agriculture water, crop rotation
  reduces vulnerability to pest occurrence

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Challenges of diversifying the rural economy,
felt threats and evolving opportunities

• Threat 4 Cotton land absorbing the debt burden
  
• Opportunities
• Organic production and farmer organization as a
  means to reverse debt cycle of farmers
• joined lobby work for addressing the farm debt
  relief question, acquittal of Dekhans
• through increased diversified production on
  existing land marketable surplus production
  achieving increased stable income

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Challenges of diversifying the rural economy,
felt threats and evolving opportunities

• Threat 5 New Dekhan farmers are insecure about
  their legal situation and rights
• Opportunities
• Promoting changes in production to increase food
  security whilst aspiring to address women and
  children cotton workers labour situation
• legal resource center establishment and
  management Land Rights Information Centers or
  Land Ombudsmen similar or as a part / addition
  of the SITAF Agriculture Advisory and Information
  Centers

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Transmission via transfers to the chronically
poor, how to address?

• Many examples but what is best practise?
• transfers / support in agriculture inputs or in
  cash Kashina model?
• cash transfers have advantage of enhancing
  demand in local markets food transfers may
  diminish it even the chronically poor engage as
  consumers
• evidence that some transfers (e.g. remittance
  payments from emigrant workers) are used in part
  for productive purposes (investment in agric
  investment in grandchildrens education.) AND
  release informal transfers for productive
  investment

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Question What are profitable crops for
farmers to grow?

• Vegetable crops
• potatoes, onions, tomatoes, carrot, garlic.
• Grains
• corn, wheat, rice.
• Beans
• chick pea, green beans, French beans.
• Oil crops
• flax, safflower, sunflower.
• Fruit gardening Development.
• Melon.

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Question What are possible trade and
marketing options?

• Local Market
• Potatoes
• Vegetables
• Horticulture products
• Grapes
• Livestock production
• Export Market
• Processed horticulture products
• Onion, garlic
• Melon
• Nuts
• Dry fruit
• Lemon (citrus plants)

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Question What are major import crops can they
be replaced by local production?

• New approaches needed looking in this issue,
  possibilities for example are
• Olive trees and processing of respective fruit
  crop

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Organic grown cottonethical sourcing a realistic
option - marketable?

• European and US product market developments
• Fairtrade labelling (FLO) standards for cotton
  have recently been created, and many small cotton
  farmers throughout India, West and Central Africa
  have become fair trade certified producers.
  Through the fair trade system, these farmers
  receive a significantly higher price than they
  would for conventional cotton, as illustrated in
  the chart below.
•  
• Fair trade and fair trade/organic price for seed
  cotton lint per kg, for Mali. In CFA (1 FCFA
  545 USD on 13/6/05)
•  
• The demand for Fairtrade and organic cotton
  remains niche, but experiencing rapid growth. The
  current supply of fair trade organic cotton is
  small, but growing, and with the participation of
  a broad set of actors, fair trade organic cotton
  will become a new, more sustainable clothing
  alternative. Brands such as Marks Spencer,
  Otto, Patagonia, and Timberland have already
  incorporated organic and/or Fairtrade cotton in
  their ranges.
• Source D. Bright, Cotton-the truth behind the
  image

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Organic grown cotton a realistic option -
exchange of CA experience

• The Kyrgyzstan model

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EC TACIS SITAFModel Development Establishing an
Agriculture Extension System in Tajikistan
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Conclusions

• Agricultural growth through diversity is
  important for poverty reduction, BUT
  facilitating and regulating not enough, AND.
• Market imperfections are pervasive and need to be
  addressed to enhance the poverty-reducing impacts
  of agriculture. High risk is paramount among
  these
• New ways of managing risk and vulnerability
  (across domestic and entrepreneurial spheres)
  need to be found.
• Efforts in this direction need to be
  differentiated according to type of rural
  household

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Oxfam GB in Tajikistansynthesizing on success
Livelihoods development

• 1600 Vulnerable Households supported with
  agriculture inputs and trainings
• 407 (25) Woman headed households
• 10 CBOs established, 35 Women CBO members 6
  Registered, 2 are implementing independent
  projects (9 warehouses and offices build)
• 6 WSHG established implementing independently
  different activities
• Income raised by 1500 TJS
• Khazina Created through Community Contributions
  Over 16000
• 185096 TJS were provided as revolving fund
• Sustainable Increased food security and income
  opportunities for vulnerable households through
  land rehabilitation (253 ha), irrigation and
  access to money.
• 9100 fruit and none fruit saplings provided
  (germination rate is 80)
• Local partners (NGOs) capacity build up - 4

Thresher connected to the donated tractor
working in the field. Tanobchi village,
Temurmalik District
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Oxfam GB in Tajikistan Salient Achievements
Agriculture development
Increased crop diversity and productivity 1000
Ton potatoes 1200 participants to fulfill own
consumption and for sale as well 2310 kg of
different vegetables produced by each
participant 370 TJS on average was earned by each
participant from sale of different vegetables 29
Ton wheat was produced for families
consumption Increased farmers interest on rain
fed cropping (grain, melon, vegetables) 48000 TJS
an income for Khazina fund from agriculture
activities Set of agriculture machinery
support 11 km of drainage canals were cleaned
(253ha land) Phenotypic evaluation and
multiplication of vegetables
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Oxfam GB in Tajikistan Salient Achievements
Policy and advocacy
Cotton Research / round tables with major
stakeholders Land 2 information advocacy
centers Action against Poverty White band day,
signature campaign, round table with local
NGOs Livelihood Workshop at regional level Jan 06
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What are the common issues faced by Cotton
farmers? Based on the above programmes,
developing Oxfam strategies and external trends,
a number of issues can be identified and mapped
below
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Oxfam GB in Tajikistan Some of our major
challenges

• Sustainable access to land and ownership
• Cotton and food production
• Institutional capacities Government NGOs
• Lack of accountability local NGOs, CBOs
• Lack of access to resources Financial,
  technical
• Advocacy and policies NGOs
• Infrastructure health, rural education, water
• Market policies and practices
• Women empowerment and Gender

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What we would ask this Forum to assist us

• Continuous and stable financial support to ensure
  implementation of our projects
• Back-up in achieving our set goals
• Providing a platform for positive dialog between
  all stakeholders

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What support we are seeking from Government

• Establishment of focal points both on central
  Government and local Oblast / Hukumat level for
  NGO involved in Livelihoods activities and
  cotton lands
• Round table for all above actors to assist in
  implementation of best practice models
• As a first step open up suitable access for
  Livelihood projects in each cotton producing
  area / district

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We could achieve this through the support of
EC Tajikistan Food Security Programme
EC TACIS Programme
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• References
• D. Bright (2006) Cotton The truth behind the
  image, Oxford Oxfam GB
• I. Borkenhagen (May06 draft vers. 5) Cotton Work
  in OGB, Oxford Oxfam GB
• Duncan, A et al (2003) Drivers of Change
  reflections on experience to date. Paper for DFID
  workshop, Oxford, June 23 2003. DFID Drivers of
  Change Team
• Farrington, J (2004) Social protection and
  livelihood promotion in agriculture towards
  operational guidelines. Paper for OECD Povnet.
  DFID NR and Agriculture Team, London
• Hazell, P and Haddad, L (2001) Agricultural
  research and poverty reduction. 2020 Brief 70.
  Washington DC IFPRI.
• Irz, X, Lin Lin, Thirtle, C and S Wiggins (2001)
  Agricultural productivity growth and poverty
  alleviation. Development Policy Review 19(4)
  449-466.
• P. Pichler, F. Quatratov, B. Rahmatjonov et al.
  Oxfam Tajikistan Report (2005-2007), Augmenting
  Livelihoods in Khatlon, Tajikistan, Oxfam TJK
  Livelihood team
• Ken Street Dr. (2005/6) Ancient Seeds of
  Survival, Partners in Research for Development
  Journal , Plant Genetic Resources
• H. Ungethuem et al.(2006) Establishing an
  Agriculture Extension System in Tajikistan, Model
  Development and Vision, EC TACIS-SITAF Final
  Project Report, Dushanbe, Project implemented by
  Scanagri/DLG/HTSPE/MNT with support of the
  European Commission