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Bill and Melinda Gates Foundation Agriculture Strategy presentation 26 Sept 2011 at IFAD
 

Bill and Melinda Gates Foundation Agriculture Strategy presentation 26 Sept 2011 at IFAD

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  • More than a decade ago (in 1994), Bill and Melinda read an article about all of the diseases killing millions of children every year in poor countries. One pathogen really caught their attention called rotavirus. Rotavirus is one of the main causes of diarrhea — kids in the United States get it all of the time and we give them Pedialyte. But when kids in the developing world get it they often die. Bill and Melinda concluded that in our world not all lives were being treated as if they had equal value, so right then they decided that this would be the priority of their giving. They started making grants in support of global health initiatives, as well as initiatives within the United States. One of their first initiatives was helping libraries in the United States get connected to the Internet in 1997. They officially set up the foundation in 2000, solidifying their commitment to philanthropy. Then, six years later, the foundation was pleasantly shocked when Warren Buffett donated most of his shares of Berkshire Hathaway stock (and doubled our endowment). When Warren made the announcement, Melinda said “it’s something that we take very seriously, we feel an incredible responsibility. I think when you give away your own wealth it’s one thing, but to give away the body of somebody else’s life’s work is really quite something.”
  • © 2010 Bill & Melinda Gates Foundation
  • Significant high-level impact has been made We have stimulated substantial innovation in the development of new technologies and delivery methods In our Market Access portfolio, we have increased the incomes of smallholder farmers at scale We have shaped the agenda and results orientation of major agricultural institutions, particularly the CGIAR We have contributed to agriculture’s return to the policy agenda and to the reversal of two decades of funding declines Greater impact on farmers is still needed Deeper engagement in the regions of Sub-Saharan Africa and South Asia where most farmers live will help farmers increase their productivity, creating a ripple effect of self sufficiency across communities © 2010 Bill & Melinda Gates Foundation
  • There is a saying in the Foundation; if you go alone you go fast, but if you go together you go far.

Bill and Melinda Gates Foundation Agriculture Strategy presentation 26 Sept 2011 at IFAD Bill and Melinda Gates Foundation Agriculture Strategy presentation 26 Sept 2011 at IFAD Presentation Transcript

  • Agricultural Development A refreshed strategy Sam Dryden Prabhu Pingali Bill & Melinda Gates Foundation September 26 th , 2011
  • How We Got Started 1994
    • FOUNDATION OVERVIEW
    2000 2006 Bill and Melinda read an article about rotavirus They officially create the foundation Warren Buffett decides to give Berkshire Hathaway stock
  • Why Agriculture? October 4, 2011 © 2011 Bill & Melinda Gates Foundation | 75% of world’s the poor live in rural areas and the majority depend on agriculture for thei r livelihoods Agricultural productivity growth is the most direct and efficient lever to reduce rural poverty. Agricultural growth builds self sufficiency for individuals and communities
  • Agriculture Development Assistance: The Lost Decades October 4, 2011 © 2011 Bill & Melinda Gates Foundation | Net ODA Disbursements to Agriculture (in constant $2009 and as share of DAC donor GNI) Total Net ODA disbursements (in constant $2009)
  • Poverty and Hunger
    • Are we even working with the right numbers?
    October 4, 2011 © 2011 Bill & Melinda Gates Foundation | Number of undernourished people in developing countries: observed and predicted levels relative to the 1996 World Food Summit target Source: Anti-Hunger Programme (FAO, 2002) 2009 FAO estimate: 1.02 billion
  • The Foundation’s Contributions
    • BMGF agricultural commitments have grown faster over 2005-08 than any DAC donor, save Finland ($18m in 2008);
    • By 2008 it became the 2 nd largest agricultural donor (commitments) to the region.
    October 4, 2011 © 2011 Bill & Melinda Gates Foundation | BMGF Commitments to agriculture development in SSA relative to others
  • By the end of 2010, we committed $1.72 B across our initiatives in agriculture development ** 2010 figures are projections based on 2010 annual plan. (director’s office) 9 FTEs 10 FTEs 11 FTEs 14 FTEs 6 FTEs
  • October 4, 2011 © 2011 Bill & Melinda Gates Foundation | Our Goal Reduce hunger and poverty by sustainably improving productivity of poor farming families.
  • Why the need to recalibrate?
    • Strategy too broad and opaque
    • Inadequate Segmentation of target population
    • Weak connection between our public good investments and impact on the ground
    • Re-calibration of our efforts relative to renewed interest in agriculture and increased aid commitments – GAFSP, FtF, etc.
    • Need for better integration with country plans, such as CAADP plans, and local partners
    October 4, 2011 © 2011 Bill & Melinda Gates Foundation |
  • Focusing Our Strategy October 4, 2011 © 2011 Bill & Melinda Gates Foundation | Building on the previous work of others Learning from our work to date Input from experts, partners, grantees, donors, farmers, and critics Focus on the staple crops and livestock with the greatest impact on the poor
  • Source: . © 2010 HarvestChoice f People living on less than $1.25 per day (2005)* *Per 10x10km cell Source: Wood et al 2009. Strategy & Results Framework Background Paper. CGIAR. Number of people below $1.25/day (2005 PPP US$)
  • Top Tropical SSA Crops by AEZ (Ranked by Area of Production) Source: HarvestChoice 2010
  • Yield Gaps By AEZ Maize Sorghum Cassava
  • Low agricultural productivity in Africa is a multi-faceted problem Low investment in research Very limited access to markets Poor policy and regulatory environments Low input usage and yield levels Average cereal yields by region, 1960-2003 mt/ha SSA ROW 4 SSA 101 World Fertilizer use kg/ha arable land, 2002 Nigeria India USA Road access Metres road/capita Agricultural research expenditures, 2000 $13.8 billion ME and N. Africa LATAM SSA Asia-Pacific 100% = $36 billion per year 62% 38% Developed countries Developing countries Of the ~$36 billion spent on agricultural research in 2000, only ~$1.5 billion (~4%) was spent on SSA Source: FAOStat; IFDC; World Bank Net ODA and Subsidies to Domestic Agriculture Producers ( (Avg. 2003-2005) Policies, such as trade and investment, towards the developing world often contradict and counteract official development assistance 4 Developing countries Although these regions have abundant potential (e.g., sunlight, labor, water, knowledge), productivity is low, which represents both a huge need and opportunity.
    • Continental Investments
    • Investments in public goods to increase productivity
    • Focused Geography Investment
    • … paired with targeted country level delivery systems and policies to realize productivity goals
    Our Strategy: A Two-Pronged Approach October 4, 2011 © 2011 Bill & Melinda Gates Foundation | 1 2 Global public goods with highest potential to impact productivity in Sub-Saharan Africa and South Asia Deeper engagement in the regions of Sub-Saharan Africa and South Asia where most farmers live will help increase productivity, creating a ripple effect of self sufficiency across communities
  • Our Priority Value Chains October 4, 2011 © 2011 Bill & Melinda Gates Foundation | Priority products (staple crops) Sub-Saharan Africa South Asia
    • Maize
    • Cassava
    • Rice
    • Sorghum
    • Millet
    • Yams
    • Sweet potatoes
    • Cow peas
    • Groundnuts
    • Beans
    • Rice
    • Wheat
    • Maize
    • Beans
    • Chick peas
    Priority products (livestock) Sub-Saharan Africa South Asia
    • Cattle
    • Goats
    • Sheep
    • Chickens
    • Pigs
    • Dairy
    • Chicken
    • Goats
  • Our framework for achieving the objectives of our strategic initiatives, and the ‘scope’ and ‘scale’ of our strategy ‘ Scope’ is driven by our choice of anchor countries and products, ‘scale’ is driven by our target number of beneficiaries [...]
    • Research & Development
    • Crop improvement
    • Livestock health & improvement
    • Discovery research
    • Local adaptation
    • Agricultural Policy
    • Country policies
    • Data & diagnostics
    • Multilaterals
    • Trade-offs and synergies
    • Access & Market Systems
    • Input delivery
    • Knowledge exchange
    • Post-harvest and markets
    • Regions
    • Other Areas
    • Strategic partnerships
    • Finance
    • Farmer households
    • Ramp up to the # of farmer households targeted in our strategy over time
    • Countries
    • BMGF’s anchor countries
    • Other donors’ anchor countries (which we call ‘spillover’ countries)
    • Other countries
    • Products
    • BMGF’s priority crops and livestock
    Strategic initiatives Scope Scale Unit costs Total investment over time Average cost per farm 2030 $ 2011 $ per farm # of farms Analysis of strategic choices Total costs ROI / trade-offs Income per farm,$ # of farms Farm-level Global National Maize Rice Ethiopia Mali
  • Partnerships
    • We won’t succeed on our own. We rely on partners to carry out the work.
      • From developed and developing worlds
      • From public, private and nonprofit sectors
    October 4, 2011 © 2011 Bill & Melinda Gates Foundation |
  • Towards Strategic Alliances
    • Knowledge transfer from China and Brazil to Africa
    • GAFSP and other multi-lateral efforts
    • Aligning better with Rome based food agencies
    • CGIAR Reform and renewal
    October 4, 2011 © 2011 Bill & Melinda Gates Foundation |
  • Success is possible if we work together
    • OUR WORK IN CONTEXT
  • Thank You © 2011 Bill & Melinda Gates Foundation. All Rights Reserved. Bill & Melinda Gates Foundation is a registered trademark in the United States and other countries.