Agriculture & Rural Development

Agriculture & Rural Development

The World Bank Program in South AsiaSimeon Ehui

Sector ManagerSouth Asia Agriculture & Rural Development

A Region of ContradictionsPopulation: 1.6 billionRural population: 1.1 billionAverage GDP Growth 2000-2010: 7.1%Average Agricultural Growth 2000-2010:

3.1%Largest concentration of poor in the worldMalnutrition higher than Sub-Saharan AfricaLarge concentration of conflict and natural

disasters

Where do our clients want to be in 2030?

Faster Growth Higher productivity Lagging areas

Inclusiveness Women & res. poor farmers Economic opportunity

Sustainability Environmental degradation Resilience to climate shocks

Food security

Challenges to Agriculture & RuralSlowing agricultural productivity growthDegraded natural resource base (soils, water)Increasing water scarcity and competitionDeclining competitivenessDemographic pressure, declining & fragmented farmsNeglect of agriculture sector, poor public expendituresChanges in official development assistance

Constraints and challenges

Climate Change• Adaptation• Mitigation

Price Volatility• Food • Fuel• Global Crisis

Conflict• War• Insurgency• Rule of Law

Disaster• Flood• Drought• Earthquakes

Changing context and opportunities

Better Investment Incentives• Prices• Taxation

New Actors And Business Models• Public-Private-

Producers

ICT Revolution• Production• Marketing• Financial services

Science And Technology• Biotechnology • Appropriate

technology• Existing

technology

How We Work at the World BankCountry

Partnership Strategy

IBRD/IDA Investments

Analytical Work, Studies

Special Programs

Technical Assistance

Sector Action Plan

Our Strategic ObjectiveTo promote inclusive and sustainable rural growth and food security

Operationalizing the action plan

Innovate

DemonstrateConsolidate and scale-up

Focus areas and building blocksEmpowerment

& Poverty Reduction Productivity

Natural Resources

Management Competitiveness

Technology

Policies & Regulations

Institutions

Self-help groupsCommon interest groups

Remote SensingWater efficient systems

New seedsNew breedsSpread existing tech

Market informationQuality testing

Watershed groupsForestry groupsPublic sector

ITC for financial access, entitlements

Participation lawsIncreased awareness of rights

Remote SensingWater efficient systems

Incentives for diversification

Price supportMarking lawsPrivate sector access

Wholesale marketsQuality regulations & monitoring

Producer groupsCooperativesResearch & extension

Differentiated interventions for clients

Landless and subsistence

farmersSafety nets

Knowledge intensive agriculture

Livelihood Diversification

Skills and Employment

Smallholders in transition

Managing shocks

Crop diversification

Value Chains

Rural Non-farm Economy

Commercial smallholders

Risk Insurance

Value chains

Market Regulation

Market Efficiency

Bringing focus to lagging areas: food security and growth

Mobilization and organization• Creating demand for

services and organized supply to markets

Core sector public investment• Agricultural research,

advisory services, marketing infrastructure

Diversification• High-value agriculture,

livestock, and value addition

Natural resource management• Soil nutrient, water

efficiency, etc.)

Risk Management• Safety nets,

management strategies, and innovative financial instruments

Exiting Agriculture• Safety nets, support for

alternative livelihoods

Agriculture & rural comprise 25% of projects and 21% of the Bank’s current commitments in South Asia

Agriculture8,274

Transport8,270

Energy6,271

Urban3,869

Education3,340

Fi-nance

3,310

Health, Nu-tri-tion2,15

4

Other 2,926.95

Investment on an upward trend

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

05101520253035404550

Number of Projects IBRD, IDA, Grant

World Bank lending to agriculture is rising . . . dominated by India

- 250 500 750

1,000 1,250 1,500 1,750 2,000 2,250 2,500

SASDA CommitmentsSASDA in India

Inve

stm

ent (

USD

)

Projects and Lending Across the Region (millions)

Afghanistan Bangladesh India Nepal Pakistan Sri Lanka -

1,000

2,000

3,000

4,000

5,000

6,000

7,000

-

5

10

15

20

25

30

138 365

5,787

357932

265

2 5

26

8 7 5

Population 409 million

Rural Population 287 million

Average GDP Growth 2000-2010 6.9

Ag Contribution to GDP 20.1

Ag GDP Growth 2000-2010 3.1

Significant challenges outside of India

Coping with ongoing or recently ended conflicts that destroyed infrastructure, livelihoods, and citizen-state relations

Agricultural extension and research3%

Agro-industry, marketing, and trade3%

Animal production4%

Crops3%

Flood protectionForestry

General agriculture, fishing and forestry

sector22%

Gen. public admin. sectorGeneral water, sanitation and flood protection sector

Irrigation and drainage

50%

Micro- and SME finance3%

Other social services5%

Public administration- Water, sanitation and flood protection

Roads and highways

Most investment in water and general rural development

Activities and PrioritiesAfghanistan

Irrigation restorationContinued rural rehabilitationHigh-value agricultureConsolidating role of rural

institutions (CDCs)Capacity building of

government

Activities and PrioritiesPakistan

Water use efficiencyEmergency response (floods)Re-invest in R&D and

Dissemination Technology, seeds, breeds,

diversificationMarket competitivenessRural livelihoods for the poorRural policies and institutional

development

Activities and PrioritiesIndia

Go East InitiativeWater use efficiency - Climate

Smart AgricultureRainfed agriculture

Technology R&D and Dissemination Sustainable Land Management Mixed Crop-Livestock Farm Systems Farmer Collective Action

Market competitivenessRural Connectivity

Activities and PrioritiesNepal

Irrigation rehabilitationRural institutions for poverty

reductionFood price crisis response Improving seed and input systemsLinking producers to marketsRural Connectivity

Activities and PrioritiesBhutan

Increasing agriculture productivity

Improving farmer livelihoods

Activities and PrioritiesBangladesh

Emergency response (cyclones, flood)

Water managementRural institutions for poverty

reductionFarmer collective actionReform of research and extension

systems

Activities and PrioritiesSri Lanka

Reconstruction (Northern Province)

Rural infrastructureRural institutional

developmentIrrigation/water managementMarket competitiveness

Thank you