PIM - Presentation for Discussion with Donors and Partners - June 2013
WITH BIOVERSITY, CIAT, CIMMYT, CIP,ICARDA, ICRAF, ICRISAT, IITA, ILRI,WORLDFISHConsultation withPartners and DonorsJune 17-18, 2013Montpellier, FranceINTERNATIONAL FOOD POLICYRESEARCH INSTITUTE
Topics• Impact pathways and present work– Gender– Productivity– Access– Value Chains• Proposed evolution of PIM1 to PIM2• Partnership• Capacity building/mentoring
Impact PathwaysAgricultural ResearchLocal Adaptation Communication/Extension Policy Complementary InvestmentProductivityAccessNRM[Income} [Food Prices] Social ProtectionProperty rights Management of Common PropertyTechnical changeAsset pricing
1. Strategic Gender Research2. Deepening Current Gender Worke.g. Value Chains3. Exploring NewPossibilitiese.g. Macro andForesight workPIM Gender Strategy
Strategic Gender Research• Workshop on Methods and Standards forResearch on Gender in Agriculture• Collaboration with FAO on sex disaggregateddata• Women‘s Empowerment in Agriculture Index• Women’s Empowerment in South Asia• In Africa, what share of land do women own?
The Productivity Theme: Unpacking therelationship between agricultural researchand productivityMean values of output-R&D elasticities for developing regionsRegion MeanAsia 0.142China 0.170Latin America 0.103Africa 0.093Source: Nin Pratt (2013) using information from Evenson (2001).
Constituent elements of relationship• Agricultural Research: Science Policy , Organizations, Incentives, Foresightmodeling, Public and private• Local Adaptation: Structure and organization of NARS; linkage of NARS, SROS,Global Centers, Private; technology tracking• Extension: Organization and dimensioning of extension systems; ICT• Policy: Trade, subsidy, value chains• Investment: Public expenditure, geospatial coordination of infrastructure
Measuring Agricultural IncentivesThe need to go from Distortions to Incentives• Agricultural policies (domestic support and trade) arecomplex, various and change over time and countries;• Few initiatives aim to monitor policy distortions :OECD (PSE/CSE), World Bank (Ag. Distortions), IADB,MAFAP-FAO, WTO, but they differ:– In country coverage– Time coverage (eg. OECD PSE-CSE last updates for2011, World Bank 2007)– Methodologies, leading to contrasted pictures, evenfor very well documented countries:
Measuring Agricultural IncentivesDifferences: Example USARiceMilk“All Goods”
Why the need to improve themeasuring Ag. Policies?• Need to measure the policies and their effects todiscriminate between:– Well-designed policies aimed to target market failures:externalities, public good– Vs Distortive policies leading to new distortions, unfaircompetition, inefficiencies and international retaliations ;• Good measurement will help to:– Provide transparency and information;– Identify effective policies;– Favor international dialogues and International cooperation(G20, WTO, CAADP);– Public goods for policy makers and researchers (important needfor quantitative information in all modeling exercises: policyreform, foresight).
Proposed work for next phase• Coordination and extension in data collection;• Important methodological work by a researchteam/institution needed, beyond existing work:• Explain existing methodologies and their differences andlimitations• Methodological improvements so that price distortions canbe translated directly into “incentives” or “disincentives”.• Need to move from an accounting approach to abehavioral/modeling approach• It will rely on economic models (eg. CGE like MIRAGE tobuild Policy Index), well informed (link with research onvalue chains)
Value chain overview• Value chains are a linked set ofactivities* that are required tobring a product fromconception, through thedifferent phases of productionto delivery to final consumersto its disposal.• The study of value chains isuseful to identify critical issuesand bottlenecks that limitgrowth and in this way,support poverty reduction.Simple Map of a Value Chain* Also can be called nodes or segments.
Sub-Theme 3.1: Innovationsacross the value chain for:• reducing transactioncosts;• managing risk;• building social capital;• enabling collective action;and• redressing missingmarketsHow?Sub-Theme 3.2: Impact ofupgrading value chains• Tools, methods• Comprehensive strategyfor evaluating andassessing the impact ofdifferent interventionsWeb-based clearing housewith tools, data and anetwork as an input forCRP2 and all othercommodity CRP’s
14i?!Example 1 : On Dairy in Vietnam:Experimental design
Example 2: Working capital loanintervention in UgandaSmallholder1. Farmersdeliveroutput togroup,receives nopayment yetFarmer group2. Groupbulks fromfarmers anddelivers tobuyerProcessor /ExporterItineranttraderA. Traderbuys outputfromproducer atfarm gate3. Price and volumesare negotiated andbuyer pays for groupdelivery4. Group deductsfees anddistributespayment betweenfarmersB. Traderpays farmeron the spotIntervention: 1Working capitalloan to allowgroups to makea partialpayment tofarmers ondeliveryIntervention: 2we introduce asimplevoucher/bookkeeping system(easy to claimpartial paymentand understanddeductions)Results:• Reduction in cost of sellingthrough the group• Working capital loan almostdoubled the amount of outputcollected from members forgroup sales, which resulted inprices 80% higher than thoseaccepted by farmers sellingindividually• Farmers motivated to applyfor loans from microfinanceinstitutions
Example 3: Simple Weather SecuritiesCan we improve thedesign indexed productsso that:(i) Smallholder farmerswant?(ii) Protect farmers in badyears and thatallowing them toincrease agriculturalinvestment16
Lessons: demand for insurance Demand is strong whenfarmers are offered highquality insurance products(Ethiopia, Bangladesh) Complementary financialproducts are alsoimportant (Dercon, Hill,Clarke, Outes-Leon andSeyoum Taffesse 2012): In Ethiopia: demandwas 50% higher wheninsurance sold togroups encouraged toshare non-insured risk• Weathersecurities: simpleand flexibledroughtinsuranceproducts• Gap insurance:protects againstbasis riskHigh qualityindexinsurance• Group saving andlending: protectsfarmers againstindividualagricultural riskFinancialproducts tocomplement
Improving the quality of insurance for nextphase: innovating with gap insurance Farmers’ concern: index insurance will not pay them when theyneed it, what if they had a bad year, but the index is good? Gap insurance addresses this concern: if the year has been bad,but the index does not pay, a crop cut is requested. If average yieldis low, a payout will be made. Experience: Once gap insurance was introduced in Ethiopia, demand increased:In 2012, 1500+ policies issued with 48% of targeted farmerspurchasing in some districts (compared to about 500 policies in theprevious year) Strong demand in Bangladesh for a similar product.
Value Chain Knowledge Clearinghouse• It is an initiative led by PIMCGIAR Research Program[IFPRI, CIAT, ILRI, IITA, WorldAgroforestry Centre, ICRISAT,Bioversity, and CIP].• The purpose is to provide acomprehensive, easilyaccessible repository ofresearch methods and bestpractices surrounding valuechain performance that can beused by all the consortiumresearch programs andpartners.
Value Chain KnowledgeClearinghouse: Main components• Tools: Toolbox with guidelines for specific applications; bestpractices for evaluation; and gender-specific analysis to integrategender into agricultural value chains;• Data: Existing datasets evaluated by participating CGIAR institutionsand partners. The data will be directly linked to the portal’s tools andbest practices and will include questionnaires and a detaileddescription of the sampling strategies;• A Network of Practice: This will bring all value chain experts in theCGIAR together in a common platform and will facilitatecollaboration among leading value chain scientists, ultimatelycreating a dynamic research community;• Community and Learning: Learning materials, e-courses, andworkshop series on the tools included in the clearinghouse.
Tool’s applications• Indicators that could beused as a first step in theprocess to strengthenvalue chains (e.g.mapping gender roles)• Also to track changes andperformance, for examplewomen’s and men’sshares in chainemployment and income• Upgrade or create newopportunities for farmersValue chain analysis phases
Major activities on gender in valuechains• Map the participation in the value chain (occupations bygender), identify gender wage gap, time use analysis,discrimination, occupational segregation, workingconditions and access to work equality.• Identify the gender-based constraints and opportunities• Design solutions to remove gender-based constraints anddo impact evaluation of them• Construct indicators to measure success of action• Scale up solutions• Organize workshops/training• Value Chain Knowledge Clearinghouse development
Next phase for value chains• Focus on bringing solutions to bottlenecks andtools developed to focus on farmerassociations• Design interventions with the different toolsand solutions to generate better collectiveaction on farmer groups• Main outcome is to generate the necessaryeconomies of scale
Work on access to food• Continued work on social protection and safetynets– Matching instruments to circumstances• Evaluations of programs in Brazil (Bolsa Familia) and SouthAfrica (child protection grant)• Vouchers, cash, food for work, conditional cash transfers– Tradeoffs or complementarity between socialprotection and growth?• Ethiopia household asset-building component• Demographic change and demand for food– Youth bulge in Africa, Central Asia– Aging elsewhere
Work on NRM• Management of common property resources– Water: modeling of demand and pressures (jointwith WLE)– Biodiversity: value chains now; moving towardmetrics and management– Drylands in Africa: pastoral livelihoods,management of pasture– Agroforestry now; discussion on forests (joint withForests, Trees, and Agroforestry)
Research Areas Addressing Productivity,Access, and NRM; PIM Now and ProposedProposed areas of focus for next CRP phase2015-2020; preliminary Strengthening the innovation continuum Foresight modeling; link with household data,geospatial, gender Clarifying roles of the public and private sectors inagricultural research, identifying new spillovers Adoption of technology, dispersion of innovation,and metrics to assess impact; Technology Platform;gender roles Identifying and addressing distortions in theincentive environment Strengthening value chains Tracking public spending on agriculture Increasing access to food of the poor andvulnerable Ensuring food access for the rural poor: insuranceand safety nets Demographic change and access to food Policy foundations of natural resourcemanagement for resilient landscapes Managing common property, including biodiversityResearch Areas Science policy Sectoral policy andmanagement of publicspending Social protection Sustainable intensification andtechnology adoption Asset accumulation by thepoor and women Value chains
Capacity Building and Mentoring• Foundation of IFPRI’s programs already inplace; PIM co-finances– IFPRI country knowledge support programs– Regional Strategic Analysis and KnowledgeSupport System (ReSAKSS); SAKSS– AGRODEP African modeling network• Foresight modeling• Junior researchers
Major episodes of recent rapid agricultural growthlinked to policies, institutions, and markets.• China post 1978• Africa 2000’s after reforms of 1990s• Latin American after removal of importsubstitution policies.• Green Revolution: technology+policy• Global: greater openness to tradeStill much to be done, and CGIAR should be active andpresent.• Synergy with commodity and systems research• Partnership with developing countries