Arab Fund for Economic and Social Development and Kuwait Fund
64
Arab Fund for Economic and Social Development and Kuwait Fund for Arab Economic Development Joint Technical Meeting Arab Coordination Group Institutions and The OECD Development Assistance Committee Vienna, Austria, 29-30 April 2010
Transcript of Arab Fund for Economic and Social Development and Kuwait Fund
Arab Fund for Economic and Social Developmentand
Kuwait Fund for Arab Economic Development
Joint Technical MeetingArab Coordination Group Institutions and
The OECD Development Assistance CommitteeVienna, Austria, 29-30 April 2010
The Arab Organization for Agricultural Development defines the concept of food security as follows:
“To provide the quantity and quality of food required to keep, at all times, all community individuals active and healthy, based, first, on domestic production and the comparative advantage each country has in the production of food commodities; and making it available to people at prices commensurate with their incomes and financial means”
(Original : Arabic)
1.
Population indicators for Arab countries
2.
Role of agriculture in the economies of Arab countries.
3.
Potential for food security in Arab countries
Arable land
Water resources
Other factors
4.
Financing agricultural operations in Arab countries
5.
Prospects and Requirements for agricultural development.
Total population of Arab countries estimated at 334.5 million in 2008. An increase of about 8 million over 2007.
Population growth averaged about :
2.55% annually over the period 1985 –
1995
2.36% annually over the period 1995 –
2008
Total population with annual growth of 2.3%
550 million in 2030
870 million in 2050
Average GDP per capita estimated at US$ 5,858 in 2008
Total labor force about 128 million, equivalent to about 39.2% of population in 2007
Unemployment rate about 13.7%
Average growth of labor force about 3.3% annually over the period 1995 –
2007, and exceeds the average growth of population
About 25.4% of labor force work in agriculture
Share of agricultural worker in value added in agricultural sector amounted to $ 3,600 in 2008.
Value Of Total Agricultural Production In Arab Countries Increased From $56.4 Billion To $103.4 Billion Over The Period 2000 –
2008
Contribution Of Agriculture Sector To GDP Shrank From 8.3% To 5.4% Over The Period 2000 –
2008.
CountryContribution of
Agricultureto GDP (%)
Sudan 29.3
Syria 20.4
Egypt 12.6
Mauritania 11.1
Morocco 13.1
Yemen 10.4
Tunisia 9.7
Libya, Jordan, Djibouti, Iraq, Algeria, Lebanon 2.1 –
7.8
GCC Countries: Qatar, Kuwait, Bahrain, Oman, Emirates, Saudi Arabia
1 –
2.3
Source : Unified Arab Economic Report, 2009
2000 2007 2008
Annual Average Growth
(%)(2000-2008)
Annual Average Growth
(%)(2007-2008)
Agricultural Product ($Billion) 56.4 90.5 103.4 7.9 14.2
Agriculture Contribution To GDP (%) 8.3 6.0 5.4
Per Capita Agricultural Product ($) 210 286 319
Source : Unified Arab Economic Report, 2009Remarks•About 80% Of Agricultural Product In Arab Countries Is Produced By 6 Countries: Sudan, Syria, Egypt, Morocco, Mauritania, Yemen•Agriculture Sector Contribution To GDP Varies Widely From 1% In Qatar To 29.3% In Sudan.
Food Commodities 2000 2007 2008Annual
Change (%)(2000 –
2008)
Cereals 37.6 50.1 55.6 5.0
Wheat 16.8 22.9 26.4 5.8
Vegetable Oils 1.7 1.6 1.6 -0.7
Sugar 2.4 3.0 3.0 2.8
Fruits 27.3 30.2 30.8 1.5
Vegetables 39.1 48.3 50.6 3.3
Meat 6.3 7.0 7.0 1.3
Dairy Products 19.3 24.6 25.8 4.1
Fish 3.0 3.4 3.6 2.3
(Million Tons)
Source : Unified Arab Economic Report, 2009
Commodities2000 2008
Production Consumption Gap (%)* Production Consumption Gap (%)*
Cereals And
Flour37.6 84.0 55.2 45.5 102.0 54.6
Wheat 16.8 35.4 52.6 20.5 48.3 58.3
Vegetable Oils 1.7 3.8 55.0 1.6 4.2 63.2
Sugar 2.4 6.5 63.0 3.0 10.0 70.8
Meat 6.3 7.3 13.7 7.5 9.2 18.0
Dairy Products 19.3 26.7 27.8 25.0 36.0 30.0
Fish 3.0 2.8 - 3.9 3.7 -
(Million Tons)
* Net imports as percentage of consumption.Source: Unified Arab Economic Report 2009.
(Million Tons)
The deficit value of main food commodities increased from about $11.8 billion in 1990 to about $14 billion in 2000. A deficit increase of about 1.7% annually.
The deficit increased by about $12 billion between 2000 and 2008. An increase of about 8% annually.
Commodities 1990(%)
2005(%)
2008(%)
Cereals 45 51 56
Vegetable Oils 68 72 73
Sugar 68 62 71Source: Arab Organization For Agricultural Development* Rounded Percentages
Arable Land
Water Resources
Rural Development And Agricultural Labor Force
Agricultural Productivity
Agricultural Research And Development
Investment In Agriculture
Total Area Of Arable Land :
197 Million Hectares
Cultivable Area
:
70 Million Hectares(About 36.5% Of Arable Land)
Irrigated Area
:
15%
Rain-Fed Area
:
57%
Uncultivated Area
:
28%
Desertificated
Land Area (2007): About 886 Million Hectares, Equivalent To About 63% Of Area Of Arab Countries
Land Threatened By Desertification: About 360 Million Hectares, Equivalent To About 25% Of Area Of Arab Countries
Average Annual Growth Of Arable Land Over Last Two Decades: About 1.5%
Arable Land Per Capita Decreased From 0.3 Hectares In Early Seventies To About 0.2 Hectares In 2007
Rain-Fed and Uncultivated
Irrigated Total
1990 45.0 11.0 56
2000 55.5 9.5 65
2007 60.0 11.0 71
(Million Hectares)
Source: Unified Arab Economic Report, 2008•It Is Noted That The Irrigated Area Remained Unchanged Over 17 Years
Total Renewable Water Resources: About 338 Billion M3
(About 1% Of World Renewable
Resources)
Total Surface Water Resources: 296 Billion M3
Total Ground Water Resources: 42 Billion M3, Of Which:
35 Billion M3 Are Available For Use.
Rainfall: About 2,300 Billion M3 Per Year, Equivalent To About 0.5% Of World Rainfall.
Desalinated Water : 2.5 Billion M3
Treated Wastewater : 8.1 Billion M3
Renewable Water Resources Per Capita:
2010
:
965 M3
2030 :
610 M3
2050 :
390 M3
World Average Per Capita (2007): Over 8,000 M3
SectorShare of Renewable
Resources (%)
Agriculture : 89%
Municipal : 6%
Industry : 5%
Total Uses : 100%
Indicator 2007
Efficiency Of Water Transport 60%
Efficiency Of Traditional Field Irrigation 50%
Percentage Of Land Under Traditional Irrigation Systems 85%
Estimated Annual Water Losses In Irrigation (Billion M3) 90
Source: Arab Organization For Agricultural
Development
Total Renewable Water Resources : 338 Billion M3
Surface Water : 296 Billion M3
Agriculture Use : 263 Billion M3
Agriculture Demand : 354 Billion M3
Deficit In Agriculture : 91 Billion M3
Traditional Surface Irrigation : 75% Of Irrigated Area
Modern Irrigation Techniques : 25% Of Irrigated Area
15% Sprinkler Irrigation
10% Localized Irrigation
Irrigation Efficiency : 40 -
50%
This low efficiency is due to use of earth and open irrigation canals, as well as traditional irrigation techniques. Loss of irrigation water amounts nearly to half of water amount used in irrigation
Improving Irrigation Efficiency to 70% would save as much as 50 Billion M3
Year AgricultureMunicipal and
Industry Total
2008 330 24 354
2020 369 40 409
2030 378 58 436Source: Unified Arab Economic Report, 2009
Source: World Resources Institute (earthtrends.wri.org)
Country Per Capita (M3)/Year
Country Per Capita (M3)/Year
World Average 8209.9
Mauritania 3510.9 Oman 369.2Iraq 2489.8 Djibouti 365.9Sudan 1706.7 Palestinian Territories 202.8Somalia 1619.9 Yemen 183.7Comoros 1426.9 Bahrain 154.5Syria 1313.8 Jordan 147.5Lebanon 1206.4 Libya 98.6Morocco 894.7 Saudi Arabia 93Egypt 758.6 Qatar 61.8Tunisia 441.9 U.A.E. 31.4Algeria 422.9 Kuwait 7
About 50% Of Arab Population Live In Rural Areas
About 25% Of Arab Population Suffer From Poverty, With About 70% Of Them Living In Rural Areas.
About 25% Of The Labor Force Work In Agriculture
Average Per Capita Income Of Workers In Sectors Other Than Agriculture Ranges Between 3 To 6 Times That Of An Agricultural Worker.
Increase In Production Of Cereals In The World Is Attributed Primarily To Modern Irrigation Techniques And Systems.
Scientific Knowledge And Technology Play An Essential Role In Raising Efficiency Of Agriculture And Livestock Sector In Producing Main Food Commodities, And Contributing To Reducing The Food Gap.
The Main Engine For What Has Been Termed "Green Revolution" Which Took Off In The Late 1960s Depended On Vertical Expansion In The Production Of Wheat And Rice, Through Irrigation, Agricultural Intensification, And Productivity Increase.
It Is Estimated That Less Than 10% Of The Increase In Cereal Production Is Attributed To Horizontal Expansion, While Over 90% Is Attributed To Vertical Expansion.
Irrigated Crops Became A Source Of More Than 60% Of Rice Production, And About 40% Of Wheat Production In Developing Countries.
Research In Arab Countries Has Not Been Accorded The Priority It Deserves. The Unified Arab Economic Report (2008) Indicates That Expenditure On Scientific Research And Development Did Not Exceed 0.2% Of GDP In Arab Countries In 2005, Compared To About 3% In The Developed Countries.
Average Participation Of Technical Staff In Research In Arab Countries Is About One Third Of The World Average, And About 7% Only Of That In The Developed Countries.
Countries Cereals Wheat BarleyYellow Maize
Cotton Flowers Beet
Arab Countries 1,600 1,970 557 2,050 2,104 37,220
Developing Countries 2,550 2,320 1,680 2,420 1,357 28,615
Developed Countries 5,100 5,700 2,970 5,600 2,185 37,120
World Average 2,330 2,800 2,300 3,450 1,620 36,650
Average Yield Of Selected Crops In Arab Countries Compared With Other Countries
2000 – 2007(Kilograms Per Hectare)
Source: Arab Organization For Agricultural Development, Food And Agriculture Organization Of UN,Agricultural Production Data, 2008.
Note: Actual Productivity Of Cultivated Land In Arab Countries Ranges Between 25–50% Of Similar Productivity At The Global Level, Indicating Potential For Increasing Productivity By 2 To 4 Times Of Existing Level.
Average Yield Of Selected Crops In Arab Countries Compared With Other Countries
2000 – 2007(Kilograms Per Hectare)
Countries
Agricultural WorkerValue Added ($)
(2003 – 2005)
Cereals Yield(Kg/Hectare)(2003 – 2005)
Egypt 497 7,545
Syria 1,196 1,786
Morocco 719 1,243
Sudan 371 481 *
Saudi Arabia 5,523 4,559
Chile 2,076 5,621
Philippines 429 2,916
Netherlands 23,396 8,308
United States 23,066 6,443Source : World Bank, World Development Report 2008* World Bank, World Development Indicators 2007
Source: Arab Organization for Agricultural Development
Source: Arab Organization for Agricultural Development
Among Challenges Facing Agricultural Development Is Inadequacy Of Financial Resources Allocated For Investment In Agriculture.
One Factor Affecting Low Level Of Investment In Agriculture Is The Rate Of Return On Agricultural Investments Compared To Returns In Other Sectors, Namely, Real Estate And Services.
Intra-Arab Private Investments Amounted To About $ 14 Billion In 2007, With A Share Of 6% For Agriculture, Which Is Much Less Than The Relative Share Of The Agricultural Sector In GDP In Most Arab Countries.
Other Shortcomings Include Financing Policies And Low Percentage Of Medium And Long-Term Loans. Short-Term Loans Amounted To About 85% Of Total Funding For Agriculture, Thus Limiting Farmers’
Ability To Develop Their Farms.
Sector Percentage
Services 44
Real Estate 35
Industry 12
Agriculture 6
Commerce 3
Total 100Source : Arab Investment Guaranty Corporation, Investment Climate In Arab Countries, 2008
Total Cumulative Value Of Financing Development Operations By Arab National And Regional Development Institutions Amounted To $ 96 Billion Up To 31/12/2009.
Share Of Agriculture And Livestock Sector Amounted To About $ 11.5 Billion, Or 12% Of Total Cumulative Value.
Transport &Communications
Energy(Electricity,Oil & Gas)
Water &Sanitation
Agriculture &Livestock
Industry &Mining
OtherSectors Total Share
(%)
Total
Cumulative
Financing
(All Recipients; $ Million)
22,314.0 25,341.4 7,598.4 11,516.1 10,555.4 18,593.7 95,919 100
Sectoral
Share (%)
23.3 26.4 7.9 12.0 11.0 19.4 100.0
Arab Countries ($ Million)
12,091.6 16,240.8 5,087.2 6,892.2 6,848.2 11,786.4 58,946.4 61.5
Share Of Arab
Countries(%)
54.2 64.0 67.0 59.8 64.9 63.4 61.5
* Include health, education, and housing services, and balance of payments support Source: Coordination Secretariat of Arab National and Regional Development Institutions
Arab Countries Have A Considerable Potential For Contributing To Their Self-
Sufficiency In Food.
Arable Land Not Yet Cultivated Amounts To About 126 Million Hectares.
About 60 Million Hectares Of Arable Land Are Available In Sudan, In Addition To Available Water Resources.
Large Opportunities Exist For Investment In Fisheries, With Coastlines That Extend To About 23,000 Kilometers.
Fish Resources Are Estimated At About 8.2 Million Tons, With About 44% Exploited.
Livestock In The Arab Countries Is Estimated At About 395 Million Heads.
Arab Countries May Save About 100 Billion M3
Through The Use Of Modern
Irrigation Techniques.
Wheat Food Gap Which Is Estimated At About 25 Million Tons Require About 50 Billion M3
Of Water For Irrigation With
Traditional Techniques, And Only 25 Billion M3
If Modern Irrigation Techniques
Are Applied.
Raising Irrigation Efficiency To 70% Would Save About 50 Billion M3
Of Water.
Loss Of Fresh Crops In Arab Countries Is Estimated At About 15 –
40% Of Total
Production, While In Developed Countries Similar Ratio Ranges Between 5 –
20%.
Maximization Of Crop Benefits Would Require More Attention And Care To Post Harvest Operations, Including Transport, Storage, Marketing, And Agricultural Processing.
In Their Pursuit To Enhance The Prospects For Attaining Food Security, Arab Countries Need To Focus Their Efforts On The Development Of The Agricultural Sector.
Development of Agriculture Is Essential For Contributing To Food Security. Requirements, Among Other Things, Include:
Better Management And Uses Of Scarce Renewable Water Resources, And Declining Per Capita Share Over Time.
Development Of Arable Land And Expansion Of Irrigated Area
Introducing Modern Irrigation Practices And Techniques, And Adopting Measures to Avoid Negative Impact On Soil, Water Quality, And Environment
Recognizing The Vital Role Of Water In Human Life And Development, It Is Critically Important To Deal With Water Resources And Their Uses Within A Framework Of Policies Leading To Rationalization Of Water Consumption And Curtailing Loss In Various Uses, And Protecting The Environment, Based On Implementation Of Laws And Legislations.
Augmentation Of Water Resources, Including Through Development Of Water Desalination Technology, And Expansion In The Area Of Wastewater Treatment and Reuse. The Latter Is Significantly Important, Because It Can Attain The Twin Objectives Comprising The Uses Of Treated Water For Agriculture, And Avoiding The Pollution Impact of Wastewater.
Scientific And Practical Research Is One Of The Principal Pillars For Agricultural Development. With The Exception Of Some Cases That Contributed To A Large Extent In Improving Productivity Through The Use Of Improved Seeds, Research Expenditures In The Arab Countries Remains Very Low.
There Is An Immense Need For Concentrating Efforts To Improve Efficiency, To Introduce New Agricultural Inputs, And To Support National, Regional, And International Research Centers In Arab Countries.
More Attention Is Needed For Rain-Fed Agriculture, And Vertical Expansion To Increase Productivity Through The Use Of Modern Technology And Irrigation Techniques.
Expansion Of Extension Services For Farmers, Upgrading Their Skills, And Providing Them With Knowledge To Enable Them Use Modern Technology And Irrigation Techniques.
Creation Of An Enabling Environment For Private Sector Participation And Investment In Agriculture, Including Provision Of Long-Term Financing, And Adopting Laws And Regulations Conducive To Investment In General.
According Agriculture Higher Priority In Arab Countries’
Development Strategies And
Investment Plans, Making It Possible For Arab National And Regional Development Institutions To Provide More Support For The Agricultural Sector.
Establishing A Balance In Allocation And Distribution Of Public And Private Investments Among Sectors, With Due Consideration To The Importance Of The Agricultural Sector.
Undertake Necessary Actions To Increase Benefits Of Agricultural Products, By Increasing Value Added, Decreasing Losses And Wastage Of Crops, Especially During The Post Harvest Period.
Provision Of Adequate Infrastructure Such As Roads, Availability Of Suitable Inputs, Adequate Transport And Storage Facilities, In Addition To Use Of Modern Irrigation Techniques.
It Is Of Paramount Importance To Ensure The Proper Design Of Agricultural Projects To Take Account Of All Factors And Components Necessary For The Achievement Of The Desired Objectives.
Food Security (Self-Sufficiency) Is Unachievable At The Country Level Due To Limited Arable Land And Scarce Water Resources.
Enhancing Progress Towards Food Security Requires Integration Of Water With Land In Arab Countries Based On Relative Comparative Advantage.
Arab National And Regional Development Institutions Will Continue To Strengthen Their Support To The Agriculture And Water Sectors In Line With The Development Priorities Of Arab Countries. They Welcome Cooperation With Other National, Regional And International Financing Institutions And Country Donors In Assisting Arab Countries In Their Efforts Toward Achieving Food Security.
