Investing in Agriculture for Poverty Reduction

1. Investing in Agriculture for Poverty Reduction Comments on the Papers of Dr. Otsuka and Dr. Sawada Professor Ernesto Garilao, Asian Institute of Management

2. Outline of the Presentation • Global Picture of Poverty • The Multi-Dimensionality of Poverty • World Bank Framework for Action to Reduce Poverty • Case studies: Sri Lanka and Uganda • Getting Agriculture at the Center of Poverty Reduction • Two Components of the Agricultural Intervention • The DAR Experience: JBIC and WB Projects • Conclusion

3. Global Picture of Poverty • Global poverty is essentially rural • Approximately 75% of the world’s poor reside in rural areas: South Asia,sub-Sahara Africa • Global percentage of poor in rural areas will not fall below 50% before 2035 • Steady overall decline in aid to agriculture form 20% of overall assistance in the late 1980’s 12% in 2001

4. The Multi-Dimensionality of Poverty • Lack of opportunity, low capabilities, security and empowerment • Interventions must also be multi-dimensional • Human Security Framework is one articulation of multi-dimensionality of poverty

5. Framework for Action to Reduce Poverty • Promoting Opportunity and Access • Security • Empowerment

6. Case Studies: Sri Lanka and Uganda • Irrigation project in Sri Lanka • Providing infrastructure like irrigation has a positive impact on reducing both chronic and transient poverty • There is a need for continued maintenance of the irrigation systems • Introduction of New Rice for Africa (NERICA) in Uganda • Resulted to increases in rice yields and incomes • NERICA technology has great potential for poverty reduction in Africa, especially in Uganda

7. Case Studies: Sri Lanka and Uganda • Question of sustainability • Address only one part of the framework for action • There is a need to think about empowerment • For Sri Lanka, it is to ensure the maintenance of infrastructure • For Uganda, it is to give the people the capability to engage institutions to provide safety nets required to address vulnerabilities; women issues; focus on land-poor farmers

8. Getting Agriculture at the Center of Poverty Reduction • For agriculture to be at the center, it must link itself to the greater frame of human security (access, participation and empowerment, security) • The poverty reduction strategy of Uganda (Plan for Modernization of Agriculture: Eradicating Poverty in Uganda, 2000) captures such framework • Programs have to be redesigned to stress participation and empowerment

9. Two Components of the Revised Agricultural Intervention • Need for an integrated agricultural system intervention • Need for farmers empowerment to engage other systems in the delivery of development/security services

10. The DAR Experience: JBIC and WB Projects • Primarily infrastructure programs but participatory and empowerment processes were included • Agricultural infrastructure projects can be made more relevant if it involves linkages to other opportunities provided by other agencies • Results: Increased productivity and incomes; increased capacity to influence agenda and budget usage of other institutions

11. Conclusion • Agriculture projects must be integrated • Delivery of agriculture must be participatory and empowering • Requires a shift of perspective from farmer production and incomes to the farmers’ capabilities vital to his/her human security

12. “While production and incomes are important outcomes, there is another equally important outcome: that of an empowered farmer who has the capacity to engage other institutions to be more responsive to his/her development needs. This shift in perspective firmly puts agriculture within the frame of human security.”