OAgriculture Research and Poverty

Reduction: Pathways and Drivers in West and Central Africa

By

Baba Yusuf Abubakar

Executive Secretary,

Agricultural Research Council of Nigeria

12TH – 14TH April, 2016

OutlineO

1. Introduction

2. Dimensions of Rural Poverty in WCA

3. Agricultural Research Pathways & Rural Prosperity

4. Rethinking the Pathways to Rural Prosperity: Key Drivers

5. Multisectoral & Multistakeholder Partnerships6. Conclusion

1. IntroductionO

Agriculture is a major driver of rural poverty reduction.

Agricultural growth reduces poverty directly by raising farm incomes, and indirectly through employment generation and reduction in food prices.

There are challenges limiting agricultural sector’s potentials to decisively reduce rural poverty.

In spite of several efforts and programmes to combat poverty, it is still endemic in SSA.

…IntroductionO

Indicates the dynamic nature of poverty and the need for appropriate, effective, multidimensional and inclusive strategies towards poverty reduction.

Rural poverty reduction discuss must take agriculture, R&D, climate change, environmental sustainability and non-farm activities into account.

Therefore: “How do we conceptualize and formulate research agenda that would lead to better inclusive growth and more sustainable rural prosperity?”

2. DIMENSIONS OF RURAL POVERTY IN WCAO

Rural poverty connotes living conditions very close to bare subsistence

Poverty is predominantly rural in WCA

Some of the World’s poorest countries are in the sub-

region.

Between 2000 & 2010, rural poverty declined in West Africa but increased in mid-Africa (IFAD 2011)

…DIMENSIONS OF RURAL POVERTY IN WCA

O

SSA has the highest incidence of rural poverty and hunger >300 million rural poor in SSA

>60% of rural poor live on less than US$1.25/day, About 90% live on less than US$2/day in SSA.

Causes of rural poverty are complex and multidimensional involving:

forces of nature, markets and public policy

…DIMENSIONS OF RURAL POVERTY IN WCAO

Rural poor households have diverse sources of livelihood, which is either farm or non-farm

“Agenda for rural growth and poverty reduction should be contextual with robust attention to smallholder agriculture, but greater recognition to the importance of non-farm self-employment and wage labour”

3. Agricultural Research Pathways O

1. Agricultural Productivity Growth

Some improvement in agricultural productivity growth in SSA in recent time

However, agricultural productivity in SSA still lags behind other regions of the world (Figure 1)

Several evidence that agricultural productivity is an important link to poverty reduction

Agricultural research technologies are also critical factors in achieving productivity growth in SSA (Figure 2)

Figure 1: Growth in agric. factor productivity in SSA O

Figure 1: Technologies adoption & Agric. ProductivityO

… Agricultural Research Pathways O

Pathways through which agricultural productivity would promote prosperity:

Real income changes, Employment generation, Rural non-farm multiplier effects, and Food prices effect

The rural poor may be excluded from the gains of agricultural productivity growth through:

Barriers to technologies adoption, Initial asset endowment and Constraints to market access

… Agricultural Research Pathways O

In driving to achieve agricultural productivity growth

through technology innovations, with the aim of

reducing poverty, there is need to ask several

fundamental questions relating to the multiple

pathways out of poverty and potential barriers to

the poors’ participation in such productivity gains.

… Agricultural Research PathwaysO

2. Increasing investment in agricultural research

Inclusive growth in agriculture is critical to promoting rural prosperity in Africa

R4D and Deployment of Appropriate Technology is one of the key drivers of inclusive growth

Definite shift from the current narrow approach to a more holistic sector growth approach required

Scaling up agricultural R4D financing will enhance agriculture productivity and rural economies’ ability to offer more employment and provide diverse income opportunities (see Figure 3)

Figure 3: Growth in Agric R&D funding in SSAO

***Growth in R&D funding should be sustained and long term***

… Agricultural Research PathwaysO

3. Value Chain Development

Agricultural value chain provides a high level of inclusive opportunities for farmers and non-farmers in rural areas.

SMEs integration in agriculture and agro-industry value chains is critical to employment generation, income opportunities, unlocking of untapped market opportunities, sectoral growth, etc.

Adequate support to smallholders in form of entrepreneurial training and micro enterprises for greater integration along the value chains

… Agricultural Research PathwaysO

4. Market and Market Competitiveness

Lack of access to markets due to non-compliance to standards, inadequate information, non-competitiveness, etc.

Well-functioning markets populated by a dynamic and innovative private sector are required.

While addressing the challenge of competitiveness, markets must be developed to serve agriculture and

strengthen the agribusiness.

Improved access to markets could open up new non-farm activities that are more likely to increase income and food security

… Agricultural Research PathwaysO

5. Policy reforms that would strengthen incentives to farmers

Policy reforms that have improved economic incentives for farmers appear to have contributed to higher agricultural productivity in some SSA countries

With stronger economic incentives and freer markets, farmers tend to invest more in agriculture and allocate resources more efficiently.

Reduced policy distortions unfavorable to agriculture leads to widespread adoption of new technologies and more rapid productivity growth.

Greater Policy advocacy and linkages

4. Rethinking the Pathways to Rural Prosperity: Key DriversO

1. Climate Resilience Strategy

Climate change and other environmental challenges have serious consequences for rural poverty in WCA

Resource poor farmers are both key contributors to and victims of climate change.

Serious focus on climate smart agriculture in WCA required.

Development, adaptation and scaling up of effective climate smart technologies and innovative practices

Identify, review and commit funding to areas of priorities

…Rethinking the Pathways to Rural Prosperity: Key DriversO

2. Institutional reforms

SSA is not sufficiently integrated into the global economy due to the weakness of its infrastructure, lack of qualified human resources, and low level industrial

development,.

To facilitate its inclusion in the world economy, the region must begin to make significant institutional reforms that would refocus the functions of the state towards its essential mission of developing needed

public services, etc.

…Rethinking the Pathways to Rural Prosperity: Key DriversO

3. Agricultural Research-Health-Nutrition Nexus

Agricultural sector presents key opportunities for improving nutrition and health.

Potential impacts of agricultural activities on health and nutrition includes impact on households’ ability to produce, purchase and consume more, better and cheaper food.

For greater impact, multidimensional agricultural research approach are required to address the issues of

nutrition and health.

…Rethinking the Pathways to Rural Prosperity: Key DriversO

4. Smallholders strategies

Smallholders account for about 80% of agricultural output in WCA.

Strategies that lift majority of smallholders from poverty will most likely lead to greater rural prosperity and must be complemented with rural education, etc.

Examples are resource use efficiencies, smallholder friendly agricultural technological innovations, community based-smallholder seed multiplication, other strategies that would transit them from small to semi and large farms, etc.

…Rethinking the Pathways to Rural Prosperity: Key DriversO

5. Agriculture, R&D and Pro-Poor Technologies

To achieve overall agriculture productivity improvements, adaptable and better technologies particularly tailored to meet the needs and environments of smallholder farmers are required.

Technologies deployment is effective for poverty reduction when supported by long term comprehensive pro-poor public policies and provision of adequate public funding critical to responsive research.

…Rethinking the Pathways to Rural Prosperity: Key DriversO

5. …Agriculture, R&D and Pro-Poor Technologies

Adequately consider correct technology – environment-targeted user context mix for more effective and sustained poverty reduction

Commercialize smallholder agriculture and help farmers to evolve into sustainable economic units – This is a robust pathway towards encouraging more inclusive growth and realizing sustained poverty reduction.

…Rethinking the Pathways to Rural Prosperity: Key DriversO

6. Value Chain Innovation Platforms

A value chain innovation platform is a network of all economic and institutional actors/stakeholders who have vested interest in the commodity.

The purpose is to foster partnership among various stakeholders, share information and knowledge that may resolve challenges to increase productivity, income and enhanced livelihood.

Experiences with Value Chain Innovation Platform in Nigeria has shown some great potentials in solving the complex problems facing the individual farmers and farmers’ group

5. Partnerships for Rural ProsperityO

To sustainably promote rural prosperity:

Partnerships must cut across farm and non-farm sectors.

Partnership, either with traditional or non-traditional partners, should leverage expertise in all sectors that would address poverty and other major problems that

affect the livelihood of the poor either directly or indirectly.

Agricultural research should partner with organizations or groups that have similar vision of lifting people out of poverty

Partnerships must involve pro-poor institutions and representatives of the poor

ConclusionO

Boosting agricultural output growth in SSA will likely require faster rates of growth in both the use of resources and productivity.

There is strong need to develop research agenda that would address the key issues of sustainable intensification, agricultural & food systems for nutrition & health and expansion and improvement of agricultural markets & trade.

The outcomes are likely to impact better on substantially reducing poverty while increasing rural prosperity for the poor of the poorest.

O THANK YOU