Time for a step-change: The agricultural innovation and enterprise facility
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Presentation by Mark Holderness at the APAARI High Level Policy Dialogue, 8 Dec 2015
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Time for a step-change: The agricultural innovation and enterprise facility
- 1. The investment challenge: Time for a step-change in our actions Mark Holderness, GFAR
- 2. Investing in R & D can: • increase agricultural productivity • improve sustainability • promote food and nutrition security • support ecosystem services, and • promote economic growth and rural development. (G20 scientists, 2014) GFAR is all of us… Agriculture = nearly one-third of GDP in low income countries VISION The Global Forum makes agri-food research and innovation systems more effective, responsive and equitable, towards achieving Sustainable Development Goals MISSION Partners in the Global Forum, at national, regional and international levels, advocate for, and catalyse Collective Actions that strengthen and transform agri-food research and innovation systems Partners in GFAR Farmers CGIAR & AIRCA Consumers FAO NGOs/CSOs IFAD Private sector networks Finance & investment Regional Research & Devt Fora Youth Advisory services Women Education Advanced research (G20)
- 3. GCARD Road Map: “Research is essential but not in itself sufficient for development impact” Takes forward new GFAR Collective Actions to validate, increase and improve investment in National agri-food research and innovation systems Frames how international research best aligns with and adds value to national capabilities and aligns with national and regional demands Why GCARD3 is so important
- 4. Under-investment in national systems
- 5. Much greater investment is needed NOW Evidence is variable but clear need for increase CGIAR SRF 2010: Investments in national agricultural research and innovation systems need to triple by 2025 to meet changing global food needs UN 2015: Achieving Zero Hunger by 2030. 17% of new rural development investments, i.e. USD 17,628 million p.a., should be in agricultural research, development and extension, investing from innovation into impact Uruguay (M Allegri 2015) INIA Benefit: Cost ratio = 17:1 USDA – (TM Hurley et al 2014) 13.6% on average, for 4.1 billion p.a. invested, annual return is $439 million CGIAR - $1 invested in CGIAR = $9 of additional food, ROR = 39-100% A step change increase is required, bridging the Missing Middle with better investments
- 6. Formal institutional walls & hierarchies are breaking down, actions occurring by networks and soft power Social media cut quickly through layers of communication and control Economic growth in Asia, yet big inequalities remain. Subsidiarity and participation are the required reality From linearity to complex Knowledge and Innovation Webs, grounded in local realities ODA will not suffice. Addis Ababa Action Agenda (2015): Many new forms of financing are required to fill the gap: private sector investment, national tax collection, remittances and innovative financial instruments Innovation and enterprise are changing fast
- 7. The challenge How do we : • Transform national agricultural innovation systems to deliver change at scale? • Break down silo walls between us to generate, share, transform and use agricultural knowledge? • Attract sustainable, long term investment to the levels required? • Ensure agri-food innovation creates viable and attractive opportunities for women and young people?
- 8. • Focus on opportunities for women and youth • Turns innovation into enterprise, addressing key blockages in agri-food value chains • Integrated & leveraged funding, driven by national systems • Demand-driven processes, technical support as needed • Farmers and consumers empowered with knowledge, capacities and resource control • Working across all relevant sectors – Public/Private/Producer Partnerships (PPPPs) • Links to existing and new innovation processes Collective Action is required
- 9. The Solution More & Better Investment + Collective actions addressing national needs + Capacity support Agricultural research, education, extension and enterprise that delivers change and growth for the rural poor, especially women & youth
- 10. Integrated Agricultural Innovation & Enterprise Facility International technical support to help overcome key barriers, adding value & tools & technologies to address key blockages National delivery by informed & empowered local actors & mentors, working together in value-web based innovation platforms How it can work... Investing in innovation: national commitments and coherent development funding with accountable mechanisms
- 11. 1. Community foresight inclusively defines needs, desired futures and potential solutions 2. Creates equitable PPP partnership and accountability 3. Increases investments in human, institutional and financial resources for AR4D systems 4. Develops human and institutional capacities to generate, access and make use of agricultural knowledge & innovation 5. Effectively links innovation and development programmes and policies; and 6. Demonstrates its value by involving stakeholders in showing and reporting results Alignment with the GCARD Roadmap
- 12. Embed innovation in development investments • Research and innovation as components of integrated development, not separate projects • Develop the capacity of multi- stakeholder Innovation Platforms • Link youth and women’s opportunity & enterprise to loans & resources • Foster policies for SME development and rights • Producer accountability of the investment processes
- 13. Collective actions catalyzed to improve Capacity in Agricultural Innovation institutions of all kinds e.g. Coherent approach (TAP, GAP, Private Sector) to strengthen innovation & enterprise capacities Transforming formal agricultural education and informal learning (GCHERA & YPARD) Reform & strengthen advisory service & extension sector (GFRAS) Open access to information & data (GODAN & CIARD), transformed into new agricultural knowledge & innovation Supporting mechanisms: Partners in GFAR catalyzing capacity development through Collective Actions Policy makers, scientists, researchers Entrepreneurs, traders, processors, wholesalers Rural technicians and artisans Extension workers, change agents Small-holders and farmers Information, learning, resources, inputs, support I. Frempong
- 14. Demonstrate value, convince the Financiers • Develop capacity of agrifood R & I systems in strategy, planning , priority setting, managing change, results-based management and stakeholder involvement • Establish systems of M & E, impact assessment at national and regional levels • Foster learning on transformative processes and mutual accountability • Develop capacity of stakeholders to document success stories and lessons learned • Provide technical support for effective governance and management
- 15. National demand, Nationally owned & led Collective action demanded by Ministers, e.g. Egypt, Palestine, Fiji, Nepal, Senegal, Sierra Leone, IFAD, GAFSP & TAP focal countries Policy demands: FAO-COAG, G20, CGIAR, IFAD, GAFSP, EC- AGRIFI Investments & capacities empower change and overcome key blockages, risks and incentive barriers, turning innovation into impact Local Innovation platforms at core, processes driven by local & national needs, national systems, national voices Partners in GFAR involved at multiple levels – national, regional and international
- 16. Processes for change – e.g. Egypt Massive concern at rural out-migration and urban destabilization Government to invest $22 billion in opportunity for rural youth Focus – women & youth in poor Governorate of Luxor Innovation into enterprise – Innovation platforms, system funding integrated & cross-leveraged Partners – private sector, women’s groups, universities, ARC, extension, NGOs, social development funds, with international support
- 17. Next steps • Endorsed by IFAD and FAO, AfDB • Welcomed by the G20 Agricultural Chief Scientists • Working with funding agencies, developing the right focus and leveraging for each in sustainable funding mechanisms • Bilateral support - positive responses from a number of countries and Foundations • Working from the outset of rural loan needs-assessment processes: IFAD, GAFSP, AfDB, EC, Asian financing???
- 18. Thank You
Editor's Notes
- For developing countries, agricultural growth is critical to sustainable and inclusive economic growth. Agriculture currently accounts for nearly one-third of GDP in low income countries on average, compared with 10 percent in middle income countries and one percent in high income nations. Agricultural research and development (R and D) has been shown to provide some of the highest rates of return among all rural development investments. G20 scientists meeting in Australia in 2014 concluded global scientific research and innovation has the potential to increase agricultural productivity, improve sustainability, promote food and nutrition security and support the continued delivery of ecosystem services, as well as to promote economic growth and rural development. So why is it that, from the tens of billions of dollars are currently invested in agricultural R and D globally each year, there have not been commensurate gains in productivity, nutrition and food security?
- The World Bank estimates that by 2050, agricultural production will need to increase by 70% in order to feed 9 billion people. However, chronic public underinvestment in agricultural research for development in low income countries has resulted in weak national agricultural research systems that are not able to cope with the massive challenges that lie ahead. As you can see here, global public spending on agricultural R&D has increased – but it’s the fast growing economies driving that growth and who are reaping the consequent benefits in terms of food productivity. Agricultural research spending in low-income countries, on average, grew by just 2 percent per year from 2000 to 2008, with spending in many countries stagnating or declining. The volatility of aid flows is an issue, as is the way we are investing in AR4D, which tends to be in short term and project–based. As a result many R&D agencies in these countries lack the necessary human, operating, and infrastructure resources to successfully develop, adopt, adapt and share science and technology innovations. But it’s not just a lack of investment or a lack of technological capacity that is stopping innovation from getting down the pipeline to those who can most benefit from it. Innovation and enterprise development flourish where they are actively valued and promoted at each step along the agri-food value chain, and when all sectors of society are engaged. And that has also been a failing of AR4D to date – there’s been too a narrow focus on research for productivity without attending to all the opportunities that may bring to rural communities.
- In 2013 G20 Agricultural Chief Scientists requested GFAR explore how to better link national agricultural research systems and the financing of international networked actions. The result is a proposal to establish a new model for funding and delivering agricultural knowledge and innovation : an INTEGRATED international support facility that brings together financial resources and technical support from leading and emerging economies to address research, extension, education, training and enterprise.
- The international investment and support facility would comprise three core, interrelated elements. 1. A multi-donor fund to strengthen national agricultural research and innovation systems by funding capacity development activities 2. National delivery by local research and development actors working together or in value-chain based innovation platforms. 3. The mobilisation of international technical support, as requested by the national innovation platforms, and guided by a common capacity development approach.
- The Global Conference on Agricultural Research for Development (GCARD) has described a well-functioning AR4D system as being committed to action for impact and that: Inclusively defines key AR4D priorities and actions, driven by evolving national, regional and global development needs Invests in ensuring equitable partnership and accountability among all stakeholders in agricultural innovation and developmental change Actively achieves increased investments in human, institutional and financial resources for AR4D systems to meet demands in development; Develops required human and institutional capacities for generation, access and effective use of agricultural knowledge in development; Effectively coordinates linkages relating innovation to development programmes and policies; and Demonstrates its value and gains recognition by society through involvement of stakeholders in effective demonstration and reporting of outcomes. This is the global agricultural community’s six-point plan or Roadmap for transforming agriculture research for development. The Global Innovation Investment Facility ticks everyone of these boxes – and here are just some examples of this.....
- This is still very much a work in progress and we are presently interacting with a cluster of funding agencies, to develop the right focus and vehicle for them that will work as a sustainable funding mechanism. We now have strong endorsement from FAO and Kanayo Nwanze, IFAD President and his senior management team as a means of mobilizing their support capabilities and country prioritization processes.. We are now exploring practical ways the facility may operate within IFAD, with a view to bringing together IFAD’s existing and planned investments as they relate to capacity development. The establishment the facility has been welcomed by the Chief Agricultural Scientists of the G20 nations, as an opportunity for greater involvement of G20 scientific capabilities in supporting capacity development in agricultural innovation around the world. It’s been positively received by several country governments and major philanthropic organisations The next few weeks and months will have much focus on bringing this into reality - at scale. Because to ensure to provide lasting and transformative change the facility needs to be sufficiently capitalized. It has an initial target of more than US$100 million. GFAR invites your agency to be part of this ‘nexus’ for change, in taking the concept to the next stage.
- This is still very much a work in progress and we are presently interacting with a cluster of funding agencies, to develop the right focus and vehicle for them that will work as a sustainable funding mechanism. We now have strong endorsement from FAO and Kanayo Nwanze, IFAD President and his senior management team as a means of mobilizing their support capabilities and country prioritization processes.. We are now exploring practical ways the facility may operate within IFAD, with a view to bringing together IFAD’s existing and planned investments as they relate to capacity development. The establishment the facility has been welcomed by the Chief Agricultural Scientists of the G20 nations, as an opportunity for greater involvement of G20 scientific capabilities in supporting capacity development in agricultural innovation around the world. It’s been positively received by several country governments and major philanthropic organisations The next few weeks and months will have much focus on bringing this into reality - at scale. Because to ensure to provide lasting and transformative change the facility needs to be sufficiently capitalized. It has an initial target of more than US$100 million. GFAR invites your agency to be part of this ‘nexus’ for change, in taking the concept to the next stage.