Enabling the Business of Agriculture (EBA) March 2015 Hanoi, Vietnam STRUCTURE OF THE PRESENTATION • Genesis and objective of the EBA project • Country and thematic coverage • EBA methodology: particularities and challenges • Going beyond regulations? • Objectives of the mission 2 EBA: GENESIS AND OBJECTIVE EBA progress report was published in November 2014 EBA officially started in January 2013 (6 topics/10 countries) October 2012: World Bank committed to merging the efforts of June 2012: G8’s call its Agricultural experts for the World Bank “to with its Global develop options for Indicators experts to generating a Doing develop a Business in Agriculture benchmarking product Index” 3 OBJECTIVE Provide policy makers with an evidence-backed tool that can be used to foster an enabling environment for local and regional agribusinesses by identifying and monitoring relevant regulations and policies EBA as a policy tool: • Provides an overview of relevant agricultural indicators and global trends • Helps policymakers set meaningful targets and track progress over time • Allows countries to compare with others, potentially leading to better practices 4 WHY GLOBAL FOCUS ON AGRICULTURE? Agriculture can contribute to ending poverty and boosting shared Over ¾ of world‘s poor people live in prosperity rural areas and depend on farming for food, income and jobs Globally, population will exceed 9 billion and food demand will increase by 63% by 2050 Food demand growth in: - Africa more than 300% - India more than 200% Population in cities in developing countries will more than double and food demand will grow by 145% The strength of the institutions and the quality of regulations can make a difference in addressing these challenges 5 Country and Thematic coverage 6 EBA COUNTRY COVERAGE EBA15 (10) EBA16 (40) EBA17 (80) Geographical coverage EBA16: • East Asia & The Pacific (5) • Eastern Europe & Central Asia (7) • OECD (5) • Latin America & the Caribbean (4) • Middle East & North Africa (2) • South Asia (3) • Sub-Saharan Africa (14) 7 EBA COUNTRY COVERAGE (2) Structural coverage: different levels of agricultural transformation Vietnam 8 EBA INDICATOR AREAS 1. Land tenure 1. Lending 1. Access to 1. Evaluation 1. Registration 1. Importing security supervision Water Use and of fertilizer agricultural Rights registration of products machinery 2. Land 2. Branchless new varieties registration banking 2. Legal 2. Imports 2. Safety standards Autonomy of 2. Availability of and consumer 3. Agric. land 3. Non- Water User new seed 3. Subsidies protection sales traditional Associations varieties collateral 4. Quality 3. Machinery hiring, 4. Agric. land 3. Access to 3. Quality control renting and leasing lease markets Irrigation control and services Technology assurance 4. International and regional seed trade 9 EBA INDICATOR AREAS 1. Licensing of 1. Licensing for 1. Phytosanitary 1. Genetic 1. Access and mobile cellular trucking Protection and resources sustainable use of and broadband International management plant genetic services 2. Pricing and trade resources freight 2. Animal 2. Government allocation 2. Domestic disease 2. Production and strategies to Trade prevention commercialization improve 3. Weighing and and control of land races access to ICT axle-load limits 3. Farmers’ in rural areas organizations 3. Feed 3. Water resources 4. Cross-border resources management 3. E-extension competition 4. Contract services and farming 4. Food safety mobile 5. Road access, and applications density and consumer quality protection 10 EBA INDICATORS – COMMON STRUCTURE Institutional framework • Competencies and responsibilities • International standards Market entry • Administrative barriers (procedures, time and cost) • De jure barriers (e.g. licensing requirements) Operations • Consumer protection and quality control (e.g. Seeds or Fertilizers) • Health & Safety standards (e.g. SPS) • Administrative barriers (procedures, time and cost) • De jure barriers (e.g. maximum loan volumes for MFIs) 11 INDICATOR TYPE 1: TRANSACTION COST OF COMPLYING WITH REGULATIONS Registration of new fertilizer product Time (calendar Cost (US$) Country days)  Ethiopia 120 -  Guatemala 154 323  Morocco Registration not needed  Mozambique Just passed law  Nepal 1125 7,210  Philippines 105 202 Rwanda - 15 Spain 60 Free Uganda 853 983 Ukraine 595 14,753 12 INDICATOR TYPE 2: LEGAL REQUIREMENTS      13 PRELIMINARY FINDINGS (PILOT REPORT) • • 14 PRELIMINARY FINDINGS (PILOT REPORT) • • 15 EBA methodology: particularities and challenges 16 EBA data collection Data is collected primarily through questionnaires sent to contributors in the public and private sectors: Public Sector • Ministries of Agriculture, Transport, Environment, Trade and Commerce, Information and Technology • Central Bank, Financial Supervisory Authorities • Customs, State Inspectors, Land Registries, Cadasters, Agricultural Research Institutes and others Private Sector • Agricultural Input Companies (Fertilizer, Machinery, Seed, Irrigation) • Trucking companies • Freight forwarders • Cooperatives and Farmers’ associations • Agricultural Holdings • Mobile Network Operators • Lawyers • Commercial Bankers and Microfinance Institutions 17 EBA METHODOLOGY: PARTICULARITIES AND CHALLENGES Different case studies across topics: each topic defines a case study that focuses on key actors for the sector: • fertilizer importer • trucking company transporting agricultural goods • agricultural trader • community seeking to register its land Defining the relevant product: comparability (use of maize for registration of a new variety or urea for fertilizer imports in all countries) vs. relevance (use of different product groups –cereal, fruits, vegetables, cash crops- for agricultural exports) Methodology challenges: balance between streamlining procedures and promoting minimum essential standards related to health, safety and environment: definition of best practices 18 Going beyond regulations 19 GOING BEYOND REGULATIONS – DEEP DIVES (PILOT) Original Deep Dive areas Challenges faced • Public policy and expenditure (ex. use of • Secondary data not available or subsidies, taxes and tariffs; public expenditure on not reliable. rural road maintenance) • Data incomparability (varying • Prices of products and services (ex. land price collection methodology) per hectare; trucking price per ton of agricultural • Insufficient contributor base (i.e. freight; CIF price of fertilizer at the port of import) for prices) • Accessibility of products and services (ex. • Reluctance to provide information density of agro-input dealers; percentage of rural • Moving ahead, the team is working people living within 2 km of an all-season road) on comparable indicators that • Quality control (ex. percentage of address the enforcement of fake/counterfeit seed estimated in the market; regulation and capacity building. quantity and quality of fertilizer testing facilities) • Market structure (ex. number of mobile telephone companies; private sector participation/competition in the transport sector) 20 Mission Objectives 21 OBJECTIVES OF THE MISSION AND NEXT STEPS i. meet with the principal counterparts at the MARD and other related Government agencies to introduce and discuss the project; ii. identify and meet relevant contributors from the public and private sectors, civil society and academia to broaden the contributor base of the project iii. collect data by administering surveys to relevant respondents 22 THANK YOU AND … 23