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Science and Technology in Agriculture –

Creating new synergy and stronger partnerships between the World Bank, CGIAR, and NARS

Sushma Ganguly, The World Bank, Washington D.C.

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Presentation Outline:

Why Science and Technology?The context is changing:

Global integrationSocietal demandShift in financing: public and private

Issues for consideration

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Science and Technology - for What?

Agricultural productivity and income growth

Important component of rural poverty reduction

Food security and nutrition—global, national

Availability Access Utilization

Natural resources conservation

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Changes in Societal Context for Food and AgricultureGlobalization of food systems:

Food safetyProduct quality and post-harvest issuesTrade, IPRs, International Standards.

Environmental concernsBiosafety, Biodiversity“Green trading”

Social and ethical concernsAnimal welfare, bio-piracy

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The Context of Agricultural TechnologyKey role of agricultural productivity growth - engine of growth, poverty reduction, competitiveness, environmentAgricultural production more knowledge- and skill-intensive => changing technological needsRapid advances in science, especially the new biotechnologies and information technologies

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Changes in the Societal Context of Science GloballyShifts in the funding and organizations for agricultural R&D

Private sector involvement growing rapidlyPluralistic R&D systems with much agricultural R&D outside of the sectorStagnant and irregular public fundingTraditional role of CGIAR – based primarily on staple crops – what about high value-added products? – production for the market?

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Context: Agricultural Research Systems in Developing Countries

Lack of financial sustainabilityCritical shortage of operating costsComplete dependence on public budgetLow salaries and loss of quality scientists

Supply DrivenLack of stakeholder participation and accountability

Impacts narrowly basedWeak in focusing on the needs of poor farmers

Unable to respond to changeNew science, new agenda, new actors

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Agricultural Research Requires a Mix of Approaches

Agro-ecological approachesSocial science and policy researchConventional breedingBiotechnology (with IT)

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Why Should the Bank be Concerned?

Largest donor/investor in agricultural R&D

Modest support to biotech in lendingIncreasing requests for support

Largest supporter to CGIARIFC support to new industries in several countriesRole in global partnerships

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Total Loan Commitments in the Research and Extension Portfolio, 2002

Total Committed = $US 2.2 billion

Education1%

Extension63%

Research36%

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Regional Distribution of Total AKIS Portfolio in FY 02

AFR24%

EAP30%ECA

3%

LAC23%

MNA4%

SAR16%

Regional Distribution of Total Research and Extension Portfolio In FY02

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Trends in Lending for Agricultural Research and Extension

0

50

100

150

200

250

300

1981-1985 1986-1990 1991-1995 1996-2000 1999-01

Av

era

ge

An

nu

al L

en

din

g (

$ M

illio

n)

Research

Extension

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Trends in Lending for Research and Extension, 1981-2001

0

100

200

300

400

500

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

$US

Mil

lion

Research Extension

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Types of Organizations in a Research System

Public Ministries--Agric., S&T, Environment Agricultural research institutes

• Federal, national, or local

Universities--General and agricultural

Private for profit Agri-business

Private not-for profit Foundations, NGOs, Universities

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The Growing Role of Private R&D

Determinants of Private R&D General economic policies Policies on technology importation and release Regional integration Strong public sector R&D Strengthening of the legal environment (e.g. IPRs)

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Public and Private Agricultural R&D Investment, 1976-95

0

2

4

6

8

10

12

US

$ B

illi

on 1

993

PublicIndustrial

PrivateIndustrial

PublicDeveloping

PrivateDeveloping

19761995

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Agricultural Research Intensity by Region: Public Sector Only

0

0.5

1

1.5

2

2.5

3

Africa China Other Asia Latin Am. Industrial

% A

gGD

P

1976

1985

1995

Source: Pardey and Beintema, 2001

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Intensity of Investments in Agricultural R&D, 1995

0

1

2

3

4

5

6

Developing countries Industrialized countries

% A

gGD

P

PrivatePublic

Source: Pardey and Beintema, 2001

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Major Issues for Future Partnerships in R&D

Facilitate private investment in R&DFocus of public funding on public goodsFocus public research on natural resources, less favorable areas, and neglected cropsInstitutional pluralism in research execution

Allocate funding through competitive grantsDiversification of funding sources for public institutes

Increase client participation

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The Future: Increased Focus on Poverty

Integrate socio economic knowledge in designing technology for poverty alleviationEstablish database for monitoring change in rural space - Rural development is more than growth in agricultureLink research on agriculture with other scientific services: health, education, and infrastructureRemove boundaries between research disciplinesIntegrate universities in NARSIncrease focus on farm incomes and not just production

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The Future: Knowledge-Based Agricultural and Rural Growth

Natural resources – finiteGrowing scarcity of land and water

Diminishing returns to external inputsHuman ingenuity – unlimited?

Substitution of knowledge for resources and inputs

How to secure an enabling environment to unleash the potential of S&T in agriculture?

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CGIAR/WB CollaborationBank loans for agricultural research to support country membership in the CGIAR (Brazil)

Several countries used loans to contract CGIAR centers for TA or collaborative research, for e.g.

In Africa ISNAR for capacity buildingIn Asia CIMMYT, IRRI research programs with NARS on rice-wheat systemsIn Latin America, national organizations and a CG center successfully obtained competitive grants set up with Bank loansIFPRI, ICRISAT, ICAR, Bank study of rainfed agriculture in India

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CGIAR/WB Collaboration

Future collaborationStaff exchanges between the Bank and CG centersJoint agriculture sector analysisSharing of knowledge, information and data on rural poverty, crop productivity and diversificationIs the current structure/focus of CGIAR ready for new challenges?