Governance of Food Security - FAO

Rima Al-Azar World Bank – INT/PSU Rome, 6 December 2011

Governance of Food Security

Outline

1.  Governance and Anti-Corruption (GAC) at the World Bank

2.  GAC in agriculture/rural development

3.  Cross-cutting factors for improving GAC

4.  World Bank indicators

Principles of Engagement on Governance and Anticorruption 1.  The focus on GAC is rooted in its mandate to reduce poverty - a

capable and accountable state creates opportunities for the poor. 2.  GAC work must be country-driven. 3.  Implementation is adapted to individual country circumstances. 4.  The World Bank will remain engaged even in poorly governed

countries so “the poor do not pay twice.” 5.  The World Bank aims to engage in its GAC work with a broad array of

stakeholders. 6.  The World Bank will strive to strengthen, not by-pass, country

systems. 7.  The World Bank will work with governments, donors, and other actors

at the country and global levels to ensure a harmonized and coordinated approach.

GAC at the World Bank World Bank Engagement on Governance and Anticorruption: An Evaluation of the 2007 Strategy and Implementation Plan, IEG 2011.

•  Public sector •  Judiciary PREM •  Demand for good governance •  Grievance Redress Mechanisms SDV •  Human Development (e.g., Education, Health •  Infrastructure (e.g., Roads) Sectors •  Financial Management •  Procurement •  GAC-in-Projects

Operations •  Investigations •  Prevention (PREM, SDV, Sectors, Operations) INT

30 years ago…Amartya Sen �  Most recent famines have been

caused not because food wasn't available but because of bad governance -- institutional failures that led to poor distribution of the available food, or even hoarding and storage in the face of starvation elsewhere

�  As Sen put it, "No substantial famine has ever occurred in any independent and democratic country with a relatively free press”. Amartya Sen (1982)

Possible reasons for operational lag �  Food security is an outcome and not a sector �  Complexity and multi-sectoriality �  Decrease in investments in the last couple of decades �  Low capacity of government institutions �  Lack of awareness of staff �  Lesser voice of beneficiaries (tend to be poorer, illiterate, less access

to information, etc…) – “Hungry people have other things to do then demonstrate”

P However, commitment to MDG 1 (to halve hunger by 2015), renewed interest due to increase in agriculture investment, higher food prices, political instability

Agriculture and Rural Development (ARD): conceptual stage �  World Development Report (2008) “Agriculture for Development”

�  Currently, Agriculture Risk Assessment and Management �  Governance and corruption as a sub-set of risk assessment and management and

not a stand-alone initiative �  Next steps: Concept Note Review and Knowledge Product

�  Other relevant products: Lessons Learned in CDD Operations (INT); Guidance Note on CCTs (INT); Global Food Crisis Response Program (INT); Does Participation Work (DEC), several ongoing case studies on DFGG

�  FAO’s initiative is welcome and long-needed; look forward to working with FAO and other Rome-based agencies

Agriculture Risk Matrix Mitigation Transfer Cope

Production risks

Irrigation Earth work and drainage Improvement in agronomic practices Livestock vaccination programs Drought and disease resistance varieties Early warning systems/disaster preparedness

Agriculture insurance Weather derivative products

Social safety nets programs CDD programs Emergency/relief funds

Market risks Staggering production Promoting back-to-back sale of physical commodities and forward sales Investment in storage

Hedging in commodity exchanges (futures and options)

Price stabilization funds

Enabling environment risk

Land policies Advocacy for better legislation Sanitary and phyto-sanitary controls

Political risk cover Decentralization policies

Zooming from the forest to the tree

Cross-cutting governance issues �  Policy formulation

�  Decision-making and coordination at al levels (risk of conflict of interest, e.g., weather derivative products; governance of coordinating bodies)

�  Targeting (risk of elite capture)

�  Value-chain analysis (seeds, fertilizers, pesticides, tools, transport, storage – corruption and how it leaves people worse off)

�  Capacity building (virtuous or vicious cycle: to participate, to implement and to increase understanding of rights)

GAC throughout the Project Cycle Policy

formulation

Decision-making

Targeting

Implementation

Capacity building

M&E

Oversight

Governance Risks: Conflict a special challenge �  Government institutions and “rule of

law” particularly weak �  Should efficiency trumps governance? –

educating donors �  Security issues: lack of access to land due

to landmines; difficulty of oversight �  Population displacement (away from

their own land and unable to cultivate it; or on other people’s land preventing them from cultivating it)

�  Special challenge of relief distribution in a conflict zone and the diversion of aid to unintended beneficiaries

Cross-cutting factors for improving governance

�  Design of activities as well as mitigating measures according to context: no “one-size-fits-all” rather “good fit”; importance of political economy analysis

�  Transparency at all levels (donors, central government, decentralized structures)

�  Linking supply-side (e.g., laws, financial management systems) with demand-side measures (social accountability, grievance redress mechanisms)

�  Capacity building �  M&E �  Improved oversight (supervision and audits): donors and beneficiaries �  Use of new technologies (ICT: e-governance – computerized land records,

cameras with GPS, mobile phones, etc…) �  Donor coordination and alignment (policies, implementation, information)

Alicia

Balligui

Cabua-an

Cofcaville

Diduyon

Dipint in

Divisoria Sur (Bisangal)

Dumabato Nort e

Dungo (Osmena)

MADDELA

MangladP edlisan

San Bernabe

San P edro

San Salvador

Santo Nino

Santo T omas

Victoria

Villa Hermosa Nort e

Villa Hermosa Sur

Villa Sant iago

2. Balligui-Dumabato Road added to DPWH network 10th December 1999

Nodes are not connectedFictitious roads were added to the national road map

…The roads were supposed to be 22% longer than the works implemented and paid for

Example: Risk-based oversight

M&E: World Bank Indicators

A composite index based on aggregating perception data from various sources, constructing 6 broad ‘governance’ indicators: �  Control of corruption �  Rule of law �  Voice and accountability �  Political stability and the

absence of violence �  Regulatory quality �  Government effectiveness

4 criteria for second-generation governance indicators 1. Generated through a transparent process Should be replicable through a well-documented process. The data should be based on publicly available data and come from sources that are politically acceptable.

2. Available across many countries and over time Broad country coverage is necessary for testing relationships between indicators and valued outcomes. Ideally an institutionalized procedure is in place or could reasonably be set up to collect data on the proposed indicators in the future.

3. High quality and accurate Should be measured in a consistent manner across countries and values should reflect what he indicator purports to measure.

4. Specific Should measure either a particular set of governance institutions or a defined output.

Second generation: actionable governance indicators (examples) �  Examples: change in $$$ agriculture investment/change in % of food insecure

population �  equitable distribution of agriculture land (sort of a GINI coefficient for land); �  civil service numbers �  passing of specific laws on land tenure �  publication of MinAgri detailed budget and budget allocation at decentralized level �  Timeliness of audited financial statements �  publication of targeting criteria and number of beneficiaries/district �  setting up a hotline at MinAgri and number of complaints received �  household surveys, (Global Corruption Barometer – Land governance questions,

Afro/Asia/Latinobarometer, Gallup International ‘Voice of the People’) �  etc…

Thank you Any comments/questions?