Synthesis of EGDI Workshop

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Synthesis of EGDI Workshop
Policy, Poverty, and Agricultural Development in
Sub-Saharan Africa

• March 8-9, 2006
• Stockholm

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Agricultural growth is key

• Africa cannot achieve the MDGs without a
  concerted focus on rural, broad-based, growth
• Agriculture is key to economic growth and poverty
  reduction in sub-Saharan Africa
• While non-traditional, high-value, agriculture is
  clearly important, the greatest gains in poverty
  reduction and growth will come from growth in
  food staples (crops, livestock, fish), due to the
  structure of African economies
• Need to turn around declining aid and investment
  in agriculture by both governments and donors
• Need to remove OECD distortions
• Need to achieve donor policy coherence
  (Sweden-led)

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Africa needs a smallholder productivity revolution

• Africa is the only region where food productivity
  has not increased
• Increased productivity will generate a surplus
  for market, generate non-farm demand and
  employment, and increase rural household incomes
• To close the yield gap, technology generation and
  diffusion requires greater support
• There are important success stories to recognize
  and build upon
• cassava, NERICA, farmer innovations
• examples of intensification, commercialization,
  specialization of farm systems.
• There is an African institutional framework in
  place to support FAAP, NEPAD/CAADP
• However, the yield gap will not be closed by
  technology alone
• Knowledge gap within rural communities
• Weak security of land tenure constrains
  investment and NRM
• Input use is extremely weak
• input prices are the highest in the world
• missing financial markets constrain input
  adoption
• ? need to urgently address input delivery
  systems, included pre-reform inter-linked
  input-output markets

4
Agricultural growth must be market oriented

• Unique African challenge to achieve
  market-based Green Revolution, which implies
  greater risk for farmers
• Market and trade opportunities must be targeted
  at domestic, regional, and global levels (in that
  order)
• There is no pure subsistence model out there
  most smallholders are engaged in the market as
  both buyers and sellers? False dichotomy of
  smallholder versus commercial
• Need concerted policy focus and interventions to
  promote market participation of smallholders,
  regardless of scale or location

5
Making markets work involves private and public

• Private sector led markets are emerging but
  appropriate public sector role must be developed
• Inconsistent and ad hoc approaches to
  interventions by both donors/NGOs and governments
  to support markets
• Market development must be holistic, addressing 3
  Is (incentives, infrastructure, and
  institutions), and tailored to specific market
  and societal conditions
• Reducing market margins is vital to achieving
  market potential
• Need a strategy to manage volatility and risk
  that involves short and long-term approaches

6
Collective action by farmers is critical

• A whole range of new and innovative farmer
  organizations are emerging at various levels
  (local, national, regional), with considerable
  variation across countries
• Increasing space for these organizations is
  being opened up through democratization and
  decentralization and the dismantling of state
  institutions
• These organizations play a critical role
• Access services and markets
• Hold governments accountable
• Engage in policy processes
• Need further support at different levels
• Emergence and sustainability and social
  inclusiveness
• Larger scope for engagement at national/regional
  levels
• Agenda must be driven internally, not by
  donors/governments

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The state has an appropriate role

• Need to support partnership between state and
  civil society
• Need to address public goods and services
• Need to create enabling environment and public
  goods for private markets to thrive
• Need to be accountable to the citizens

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Africa must lead

• African participation and ownership of the agenda
  is emerging (NEPAD, RECs, SROs,national
  governments)
• Need for international community to respect and
  enhance this process
• The poverty reduction strategy and MDG processes
  are evolving toward greater emphasis on the rural
  growth agenda
• These processes are also gradually becoming more
  inclusive
• Responsibility for governments to increase focus
  and resources to rural sector, and to lead donors
  in aid effectiveness agenda. Donors to support
  and respond to this.

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Can Africa do it?

• More favorable domestic policy environment
• Emerging private sector
• Active civil society
• Inclusion and participation
• Commitment to governance
• Commitment by African governments to agriculture,
  markets, and investment
• New innovation systems are emerging
• Success stories to build on
• Increased pressure within OECD for pro-poor

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Take-home messages

• Agricultural growth is key to stimulate rural
  development, alongside non-farm development
• Africa needs a productivity revolution
• Agricultural growth must be market-led
• Making markets work involves private and public
• Collective action by farmers is critical
• There is an appropriate role for the state
• Africa must lead
• Can Africa do it?