A Conducive policy environment for effective investment in water - Dr. Rudolph Cleveringa, IFAD, Italy

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  • Boeren, Burghers, Buitenlui, The old way of greeting a crowd, meaning Farmers, Citizens and Outsiders. Are there any farmers amongst us? Because it is they who are behind the plow. Why invest in water? David has already used the same graph to illustrate we need to dyslink Ag GDP growth from rainfall vagaries. How this may be done: many people coincide that conducive policies are helpful. Whether they are helpful is to be seen-ReSAKSS will be monitoring this performance.
  • So if policies are to be conducive, the question remains for whom. Obviously for the rural poor who are distributed as a Big 7-Up around Sub Saharan Africa and Madagascar. Although no big surprise to most of us here, this would constitute the first detailed map of rural poor done in conjunction with FAO, our Rome sister agency, that I would like to thank here for having made 150 copies available, most of which have already found new owners. (Refer to pub in hand). The darker the red or the more concentrated the rural poor, the more or better policies we need
  • Getting money out to investments for the rural poor is not yet where it needs to be. David was confident we can double or more production of food in Africa if we use water better. Indeed the Green Revolution managed to do just that-but 40 years ago when population pressure was less. It would already be great if we could pump investments in agriculture, not just extractive industries. But we are not practicing what we preach. Maputo was a milestone, and Aquila promised more bending this green low line up to where it needs to be-closer to 30% rather than 3% Nobody expects a global deal at Cancun, but there will surely be one before too long. Associated with this will be financing for both adaptation and mitigation. It’s vital that agriculture is understood to have a key role to play and that the needs and interests of the farming and food communities in developing countries are reflected,” Steer said.   He WB Special Envoy on AG and CC resilience at The Hague 3 Nov 2010.continued, “There has been a sad history of under-investment in agriculture over the past decades which must be reversed. Things have changed for the better recently, but still not enough. African countries have committed to increasing spending on agriculture to 10% of their national budgets, and progress towards that goal has begun. And international supporters are doing more. World Bank Group financing for agriculture, for example, has increased by 60% over the past six years, and doubled in Africa. A strong IDA 16 replenishment will be essential to help maintain the momentum of the renewed focus on agriculture.”
  • So money for agriculture and water is good? Maybe, because actually the self-sung mantra on ‘investments in agriculture do better than other sectors’ isn’t underpinned by financially sound business plans that bring and keep money in our female farmers pockets. Low Benefit/Cost ratios persist and increases in gross revenue per ha per year are still modest, too modest to catapult poor farmers out of poverty.
  • So we need new ways of getting people out of poverty. One current school is to complement or replace the meagre ODA with Chinese Yuan. Amounts invested are growing by the day… Controversial still is the extractive nature of most such investments and the limited effects of outsourced food production –the land grab- on poverty reduction, but we will leave this to ReSAKSS to monitor and ring the NEPAD alarm bell if and when it should. Should it? Maybe a third finance stream can be tapped into : Remittances
  • Some countries have an important third finance flow: remittances. These person-to-person transfers usually are used at household level to finance personal consumption like food, education etc. Governments like to tax these transfers, but then squander the proceeds Can these enormous finance flows be tapped to also fund group goods and assets like water points for villages, households or even for backyard gardening or even other public level co-investments.
  • So bringing in new money hasn’t done the trick yet. Why? Water Governance hampers Performance. First and foremost water issues are complex in nature as they need intensive interaction between service and policy provider with the client-the rural poor farmers, men and women, old and young. Water Reform and Governance issues are like Russian Dolls, you take off one and there is a new one waiting to be unpacked. The other issue is that Water Governance needs a set of minimum conditions in the understanding of the rrelationship between the State and it Citizens, remember I addressed you that way earlier when greeting you. According to ADB, about 2/3 of African countries are qualified as Fragile States. What is the use of governance reforms of a sector, embedded or not, if the basic contract between State and citizens is not honored
  • Another matter is of course scale of investments. These range from whole riverbasins like the Nile in the upper left corner, to watersheds-like this deforesting Mau Water Tower in Kenya in the lower right corner. Prof Elijah referred to cutting Forests is not a good idea when capturing Green Water turning into Blue water for irrigation And then we have our farmers in the filed but also their city brethren in cities which require water as in Cochabamaba, Blivia where new investment models –here privatisation- didn’t quite work out. So what does?
  • So in order to break the deadlock around old money, ODA promises, Chinese models, Fragile States and scales of investments, the answer lies in working top-down and bottom-up at the same time. There is a plethora of stakeholders, actors and initiatives which –by their very nature of being political processes- refer to the tweaking the status quo. Decentralization and empowerment can create new accountability frameworks where governments are willing and able to change. NEPAD and CAADP may be promising but we need to start doing business as un-usual as IFPRI coined it
  • And doing business as un-usual would need to look at the Russian Dolls: That implies looking at Education Gender Knowledge Mgt & Innovation Rural Institutions Decentralization Private Sector Research & Devt Finance (micro) Finance (macro) Concluding: whatever we do, let’s not make the mistake of unpacking the Dolls and focus on only one of the policies. We need to create alliances that would in parallel do a similar reform job
  • We need more money, but we need it in an accountable way-corruption in the water sector is still treated as the invisible Elephant in the Room, a hush-hush issue. Are Chinese or Remittance finance flows be made subject to national laws and regulations, or do they escape public sector reform processes? For me to know, for you to find out.
  • A Conducive policy environment for effective investment in water - Dr. Rudolph Cleveringa, IFAD, Italy

    1. 1. Conducive policy environments for effective investment in water Rudolph Cleveringa, IFAD Pretoria, November 2010 [email_address]
    2. 2. Rural Poverty in Africa: over 400m and growing
    3. 3. Scope for improvement
    4. 4. Where and what does it bring
    5. 5. Where is the money? Yes, China can Transparency International Guardian land grabs Remittances?
    6. 6. Annual remittances to Africa 38.6 billion USD 0 to 5 per cent of GDP Libya 0.3 Gabon 0.6 South Africa 0.6 Botswana 1.0 Cameroon 1.5 Cote D'Ivoire 1.6 Zambia 1.8 Sudan 2.0 Chad 2.1 Angola 2.2 Tanzania 2.4 Egypt 3.4 Swaziland 3.4 Kenya 3.8 Mauritania 3.9 Ethiopia 4.4 Malawi 4.6 Algeria 4.7 Nigeria 4.7 Central African Republic 4.9 Over 25 per cent of GDP Liberia 25.8 Cape Verde 34.2 Eritrea 37.9 Somalia Est. up to 60% 10 to 25 per cent of GDP Morocco 10.7 Sierra Leone 11.6 Mali 12.5 Gambia 17.0 Comoros 21.1 Burundi 22.8 Lesotho 24.1 5 to 10 per cent of GDP Tunisia 5.1 Benin 5.5 Madagascar 5.7 Republic of Congo 5.7 Niger 5.8 Rwanda 6.0 Togo 6.4 Ghana 6.6 Uganda 6.9 Zimbabwe 7.2 Democratic Republic of the Congo 7.4 Mozambique 7.4 Senegal 7.2 Burkina Faso 8.2 Guinea 8.6
    7. 7. Russian Dolls: Embeddedness– Water Governance in Fragile States
    8. 8. It is all a matter of scale Farmer in field-take Haiti if no other Kevin Cocha water wars Water towers
    9. 9. Who to break the impasse? <ul><li>Policy levels </li></ul><ul><li>NEPAD/CAADP Pillar 1 </li></ul><ul><li>AMCOW, AU, ECOWAS </li></ul><ul><li>CGIAR Reform Programme </li></ul><ul><li>Global Donor Platform for Rural Development </li></ul><ul><li>World Business Council </li></ul><ul><li>World Water Council </li></ul><ul><li>UN Water, UNECA, UNCCD </li></ul><ul><li>Etc </li></ul><ul><li>The real issues; </li></ul><ul><ul><li>Agricultural trade restrictions </li></ul></ul><ul><ul><li>The ‘hidden’ tied-aid agenda </li></ul></ul>
    10. 10. Business as un-ususal: using innovations <ul><li>Incentives/fellowships </li></ul><ul><li>Labour saving for women </li></ul><ul><li>Knowledge Management and communication </li></ul><ul><li>Rural Citizen building </li></ul><ul><li>Governance & Name-and-Shame </li></ul><ul><li>Economic Zones and Tax Breaks </li></ul><ul><li>Anticipate markets and consumer behaviour </li></ul><ul><li>Water and Nutrient recycling </li></ul><ul><li>Fancy finance (micro) </li></ul><ul><li>Fancy finance (macro) </li></ul><ul><li>F2F, CAPNET, Universities </li></ul><ul><li>Domestic water and technology, Multiple Use, Literacy </li></ul><ul><li>Smart ICT Africa, Networks, COP’s, Envt services </li></ul><ul><li>L&W rights, WUAs, Water parliaments, decentralization </li></ul><ul><li>Anti-corruption, Mo Ibrahim Prize </li></ul><ul><li>RAI, VC, out-grower schemes, non-ag labour (‘maquila’) </li></ul><ul><li>Convenience food, packaging & labelling on farm </li></ul><ul><li>Peri-urban ag and waste water mining </li></ul><ul><li>Remittances, insurances </li></ul><ul><li>Cash transfers, vouchers, subsidies, buy-outs </li></ul><ul><li>Capturing Climate funds, BMGF, etc </li></ul>
    11. 11. More of it, and now – in a transparent, accountable way!

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