Benchmarking the Business of Agriculture


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Metrics for Agricultural Transformation: Update on Recent and Ongoing Developments
April 19, 2013
Washington, DC

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Benchmarking the Business of Agriculture

  1. 1. Benchmarking the Business of Agriculture Augusto López-Claros Director, Global Indicators & Analysis Department Financial and Private Sector Development Vice Presidency World Bank Group Grahame Dixie Adviser, Agriculture & Environment Services Department Sustainable Development Network World Bank Group Washington DC April 19, 2013
  2. 2. Benchmarking the Business of AgricultureBackground Increasing food prices and expanding urban demand have heightened food security and agriculture as priorities for development World Bank’s Spring Meetings in 2012 solidified support for agribusiness indicators G8 called for the World Bank “to develop options for generating a Doing Business in Agriculture Index” World Bank Group’s Agriculture and Environmental Services (AES) and Global Indicators and Analysis Department (GIA) merge efforts to begin producing a “Benchmarking the Business of Agriculture” project Convening in Copenhagen: Agriculture Transformation Index and agri-business component “fast-tracked", housed in the World Bank Group 2
  3. 3. Benchmarking the Business of AgricultureStructure and Objectives BBA’s integrated approach Doing Business in Deep Dives: Agriculture: • In-depth metrics of a Synergies broader range of factors enable more • Will provide policymakers robust that affect agricultural with new benchmarks of comparisons productivity the regulatory environment between • Comparable across countries affecting the business of countries, but greater agriculture flexibility in reporting • Comparable across many structure to analyze case economies over time studies of positive change Objective: Leverage positive policy change for a stronger commercial agricultural sector 3
  4. 4. Benchmarking the Business of AgricultureTheory of ChangeResearch findings: Better government policies can encourage transformativechange to benefit agribusiness and informal smallholders BBA Proven effectiveness in Will catalyzing change in Doing Business in leverage Doing Business regulatory frameworks Agriculture that impact SMEs positive policy Proven utility in going beyond governments change for ABI Deep Dives and including the a stronger private sector commercial agricultural sector • Smarter business regulation promotes economic growth. Informal economies tend to be smaller in countries where rules and regulations are strong and efficient. • Some areas of legislation have a critical impact on the productivity of small-scale agribusinesses. Rules and regulations that directly impact medium to large-scale businesses can also significantly affect the profitability of small and medium-scale farmers. 4
  5. 5. Benchmarking the Business of AgricultureContext for BBA Indicators Three key considerations 1. BBA indicators will serve as one component of the Agricultural Transformation Index • BBA indicators should complement , not replicate, indicators of other ATI components 2. BBA indicators will provide guidance for building ‘supply chain quality’ • BBA will cover operational, economic and policy aspects of the supply chain 3. BBA indicators will target countries at different stages of overall and agricultural development • Ag-based, transforming, urbanizing. 5
  6. 6. Benchmarking the Business of AgricultureRaison dêtre Very significant increases in food demand in towns, key suppliers the larger scale small–holder farmers Major implications for improved market access in SSA and India 6
  7. 7. Benchmarking the Business of AgricultureResearch & Analysis Approach “Transforming” agriculture will require recognition of the economic capacity within each grouping’s supply chain Trade Inputs (exports) Water Handling, Land storage Contract Transport. farming services Credit 7
  8. 8. Benchmarking the Business of Agriculture - The BBA Team Who we are, what we do ? Sanjib & Raissa – Valerie, James, Arnou & Niels– Inputs i.e. Seeds, Water Country Analysis Fertilizer, Mechanization John & Samjhana Thea & Nuria– Land Issues John, Yucheng & John - Markets & Trade Rural Transport Joanna & Samjhana Alva -Data Systems & Rural Melissa, Fedrica & Grahame Finance Energy/Communication Donors, Survey, Indicators & Outreach 8
  9. 9. Benchmarking the Business of Agriculture Our first year’s programForming and merging teams, developing indicators, developing and testing them with key advisors and the Core and Advisory Committee before field testingJan April May June Jan 2014 Research 1st Draft 2 nd Draft + Outreach Field DBA & DD DBA & DD to Advisors testing indicators indicators DBA BBA DBA in 10 + 30 countries countries BBA BBA Deep Dives x 2 DD x 3 DD Prepare paper on Pressure Test Consultation & Review Review of 1st Field reasons for Indicators internal Advisory & Core Surveys inclusion/ exclusion Specialist + Advisors Development Group 9
  10. 10. Benchmarking the Business of AgricultureCountry SelectionNeed to generate a purposeful sample – distinct groupings based oneconomic importance of agriculture* Illustrate Split of Countries, which will be divided across regions COUNTRIES % Nos Advanced 6% 5 Urbanising 20% 16 Transition 37% 30 Agricultural 37% 30 * % Rural Population could be replaced by % Labor Force in Agriculture 10
  11. 11. Benchmarking the Business of Agriculture Deep DivesThe prototype of the Deep Dive reporting started in 2010 with 9 SSA countrystudy of Agribusiness Indicators. This has generated a raft of new metrics tojudge the enabling environment for agricultural commercialization. Ghana TESTING Ethiopia CONTENT Mozambique Tanzania Syn- Deep thesis Dive Kenya report REPORTING reports Nigeria Burkina Faso Mali COMMUNICATION Zambia 11
  12. 12. Thank you 12
  13. 13. ANNEX 13
  14. 14. Doing Business ProjectResults show strong convergence across economies since 2005 14