IFAD IN PR CHINA

Country Program Review1997-2010

Thomas Rath, Country Program ManagerIFAD-international Fund for Agricultural Development

Rome 15 July 2011

Why a country program review?

CPR-methodology Country Program Review -CPR CPE

Executing division: APR IOE

Quality assurance: in Country & in House Peer Review Group

IOE

Assessment :a) loan portfolio

11 out of 23 loansfrom 1997-2010

Yes

b) non-lending grant including KM, policy dialogue and partnerships

1997-2010 Yes

c) COSOPs 1999 & 2005 Yes

Impact domains1. HH income and assets2. Human/ social capital and empowerment3. Food security & agric. Productivity4. Natural resources/environment5. Institutions/policies

Yes

China’s pathway to growth and wealth – Are all on board ?

• Population: 1.3 billion (55% rural residents)• Extraordinary economic growths since 1975:

per capita income grew at 8.3 % (1981 –2005)• China became world’s 2nd largest trading nation• GNI per capita: USD 3,650 (in 2009)• HDI: 0.541 (1980) to 0.772 (2007; rank 92)• Poverty fell from 652 mill. to 135 mill. (1981-2004)

Poverty fell from 65 % to 10 % of the population

• Inequality has increased: urban – rural ; east – west

China

• Pic of Beijing • Pic of an IFAD village or Farm

- IFAD in China – 30 Years of rural development history

Key Points – IFAD’s Country program

•

First IFAD loan funded programme to China

1981

Total loans funded projects approved 23Total amount of IFAD lending USD 590.6 millionLending terms Highly Concessional (19), Intermediate (4)

GoC Counterpart funding USD 892.8 million Co-financing Amount 56.9 million Total portfolio cost USD 1.54 billionFocus of Operation Agricultural development, micro-finance, women’s empowerment,

institution building and livelihood

Co-financiers WFP, GTZ, ACIAD, UNDCP, UNDPCooperating agencies UNOPS (16), WB (3), IFAD direct supervision (4)

Number of ongoing projects 7 projects (with 2 projects spread over 2 provinces)

Total Grant amount Completed: 7 country grant (USD 648,137), 19 regional grants (USD 12.7 m):

Ongoing 4 country grants (USD 2.1 m), 13 regional grants (in total of USD 15 m)

CPM 8 CPMs since 1981

Country Presence Office in China Since 2005

Overall Rating of the Portfolio

Evaluation Criteria OverallI. Portfolio Performance Relevance 5Effectiveness 5Efficiency 5Rural Poverty Impact 5Sustainability 5Innovations, replication and scaling up 3Overall Lending Portfolio Rating 5

II. Partnership Performance

IFAD 5GOC 5RCC 4ACWF 4III. Non-lending activities 4IV. COSOP performance 4Overall IFAD-Government Programme 5

EFFECTIVENESSPhysical & financial delivery consistently highTargets have been met or exceededStrong leadership of prov. PMOs

Example: Outreach to women training on adult literacySchool drop outs for girlsTechnical skills trainingImproved access to water and energy => more time for training & IGALong-term impact on women’s status

Figure: Proportion of Women in Agricultural Training Activities

0

10

20

30

40

50

60

Qinling(2007)

Guangxi(2007)

Gansu(2009)

Xinjiang(2009)

InnerMongolia

(2009)

Ningxia(2009)

%

% women in agricultural training

% women in agr. technicians trained

Source: Cumulative Data, Project Monitoring and evaluation systems.

BENCHMARKING PROJECT EFFICIENCY

QMAPAP Wuling MMADP West Guangxi PAP

Gansu ( World Bank)

Beneficiary Reach 1,292,000 1,352,902 896,018 1,040,000Loan Amount US$(Total Project Cost)

$29M ($106M)

$28.1M $41.83M(128.22M)

$47M ($160M)

Loan Utilization 100 % 100% 100% 92 %Years of Implementation 6 8 6 7

Operating Costs/ Total Investment

12 % 26% 10% 4.5 %

Cost/Beneficiary $22 $21 $47 $45

Increase in per capita real net Annual Income

17% 150%(per household gross)

94.1%(per household gross)

9.7 %

RURAL POVERTY IMPACTDomains:1. Household income and assets2. Food security and Agric. Productivity3. Human & social capital & empowerment4. Natural resources & environment5. Institutions & policies

HOUSEHOLD INCOME & ASSETSPoverty reduced from 84% (1995) to 7 % (2001) in Jiangxi

Increase in income by 36.8 % in SW Anhui

Investments in rural infrastructure (e.g. feeder roads, irrigation,drinking water, biogas)

Rural Finance: resources in the hands of the poor farmers & women

FOOD SECURITYGrain availability: 256 to 500 kg per capita(Hubei - Qingling Mountains )Food security: 95% in Guangxi (food sufficiency for > 12 months)Challenges: Some malnutrition among children in marginal areas (20 – 30 %)

Agricultural productivity

Partnerships with local AgBureaus+New products (niche products, fruits), technologies (extension, terracing, irrigation)= ImpactExample: W-Guangxi PAP95% of HH increased crop production78 % HH increased livestock production55 % HH increased fruit tree production

Gansu, Inner Mongolia & Ningxia:Cropping index increased by 200-300% to greenhouses

Challenges: Variable market demandO&M in less organised villages

Human/Social Capital and EmpowermentEmpowered communities: VIG & VDP (Village Development Plan)Representation of farmers and women Dialogue with township governors

Women empowerment:Literacy & health awarenessWomen sign their credit contractsWomen specific trainingWomen taking on their IGAs

Ethnic minoritiesPoverty is frequent in ethnic minority areasProjects adapted measures to the needs of people (e.g. training in ethnic language)

INNOVATIONS, REPLICATIONS & SCALING UPGoC (2006) : “Innovation through introduction of useful new international experience is the most valuable role of IFAD in China”Participation of men & womenProject Management : modular approachExtension: on-farm demonstration with poor farmers; Technical envoy - TEAgriculture: intercroppingRural energy: Biogas Market access: farmer cooperativeRural Finance: new lending products, Weather index insurance

Innovations in AgricultureContinuous work on introduction of new products, technologies and approaches2 Examples: 1. intercropping of cowpea

and potatoes: - Increased land use efficiency - Soil fertility

2. Technical envoy: extension service model based on demand

Replication and Scaling up

Photo: herders in Shimoguo Village of QianshanTownship of Yiwu County in Xinjiang build simplegreenhouses on Gobi for mushroom productionintroduced by a technical envoy supported by theprogram. The original design is to use the idle warm shedfor mushroom production during summer while theanimals graze on pasture. Seeing the benefits of theenterprise prompted herders to expand the operation onGobi. Local government subsidizes the establishment offacilities.)

Some channels for dissemination: across projects:Annual Country program review workshopsProject leading groups assembling managers of different departments in a provinceExchange visits Publications & office websites

Þ Successful technological innovations scaled up quickly like biogas and water cisterns, new tree and niche crops , animal breeds , farming techniques through experimentation and piloting

Þ One example : warm shed of livestock in winter is used for mushroom cultivation in summer

KNOWLEDGE MANAGEMENT

IFAD approved KM strategy in 2007

IFAD – China: Chinese sub-site of ENRAP Project websitesThematic studies e.g. gender , rural finance, organic agricultureChina bookCPO dedicated to KMAnnual program workshopsProject exchange visitsIn RF policy and exchange platform was intended but not realizedSouth – south exchange visitsLast 2 projects have dedicated budget for KM

=> More systematic efforts to capture & disseminate knowledge

COSOP 1999Centered on an integrated multi-sector approach for rural development

VAM helped targeting the main poverty pockets (12 provinces)

Partnership with WFP (5 loans) was effective: FFW & FFT

Key decision: Microfinance was introduced through formal rural banks (RCC) to support agriculture & women IGA

Working through dedicated VIG – for participation, targeting and gender

COSOP 20052 thrusts: Access and innovations

Strong relevanceInnovations: Modular approach, TE and organic farmingStrong: reinforcement of gender focusModest : organics, market access, NRM

Modest achievements in institutional building and policy reformInnovation thrust has not gained much traction Systematic approach to KM to capture innovations was missing

REDUCING POVERTY IN

CHINA - SUMMARYStrong government commitment & resources & policiesTargetingParticipation of the poor – VIGWomen at the centreFocus on diversified agricultureCombination of sectors (ag-rf-social-infrastructure)Innovation & KM

THE WAY FORWARD

COSOP 2011 IFAD’s comparative advantage in China (MIC)Targeting approachIdentifying and disseminating innovation is keyImprove the “E” in M&EKM & South-South cooperation Coherent partnerships (government, NGO and private sector)Increase role of country presence

THANK YOU 谢谢