agricultural public expenditures analysis in africa

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With the financial support of Public expenditure in selected West and East African countries: The Maputo Target and what’s behind it? Monitoring African Food and Agricultural Policies (MAFAP) Jean Balié, FAO ReSAKSS Conference, Dakar, 12 and 13 November 2013

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Agricultural Public Expenditures Analysis in Africa, presented by Jean Balié, Senior Economist, Monitoring African Food and Agricultural Policies (MAFAP), Food and Agriculture Organization (FAO) at the 2013 ReSAKSS Annual Conference in Dakar Senegal, Nov 12-13

TRANSCRIPT

Page 1: Agricultural Public Expenditures Analysis in Africa

With the financial support of

Public expenditure in selected West and East African countries: The Maputo

Target and what’s behind it?

Monitoring African Food and Agricultural Policies (MAFAP)

Jean Balié, FAOReSAKSS Conference, Dakar, 12 and 13 November 2013

Page 2: Agricultural Public Expenditures Analysis in Africa

MAFAP System1. Working with national partners to build evidence

a) Price incentives for key agricultural value chainsb) Public expenditure and aidc) Policy coherence

2. Facilitating policy dialogue, uptake and advocacy– Regional (CAADP) and national (investment plans, policy

reforms)

3. Developing institutional capacities4. Establishing a community of practice

Page 3: Agricultural Public Expenditures Analysis in Africa

Agriculture-specific expenditure (food and agriculture development support)

Agriculture-supportive expenditure (rural development

support)

Individual support to food and agriculture

General support to food and agriculture

Payments to consumers

Payments to producers

Payments to other agents

Inputs subsidiesIncome support

CashFood aid

Research

Feeder roads

Technical assistance/extension services

Training

Rural education

Idem Rural health

Rural infrastructure

Overarching categories Categories Sub-categories Components

Irrigation

Storage

Inspection

Marketing

School feeding

Page 4: Agricultural Public Expenditures Analysis in Africa

Level of public expenditure for agriculture and rural development:

Overall decline of public expenditure for ag. and rural development between 2006 and 2010

AbsoluteRelative

10%

Governments agreed to increase PE in support to Ag. and rural development (CAADP) ≠ Decline of PE

Page 5: Agricultural Public Expenditures Analysis in Africa

Behind the Maputo target…

From 2006 to 2010 : National spending : +14% Donor spending : -8.3%`

Page 6: Agricultural Public Expenditures Analysis in Africa

Behind the Maputo target… (2006-07 vs 2008-10) Share of aid in public

expenditure for food and agriculture

Burkina Faso -10

Kenya +2

Mali -2

Tanzania -19

Uganda -19

Page 7: Agricultural Public Expenditures Analysis in Africa

Behind the Maputo target…

Share of total budget going to ag (05-10)

Ag PE per agricultural worker - USD (05-10)

Ag PE per agricultural land – USD/ha (05-10)

Burkina Faso

15.5 % 46 22

Kenya 6.3% 62 18

Mali 11 % 74 4

Tanzania 12.1% 34 14

Uganda 11.1% 51 31

Page 8: Agricultural Public Expenditures Analysis in Africa

Composition – general categories

Decline of rural expenditureSpecialization towards agricultural specific expenditure (direct and indirect)

Share of donor spending in rural development

Burkina Faso Kenya Mali Tanzania Uganda

82% 0 83% 64% 31

Policy objectives focus on boosting production and productivity rather than fostering rural development.East Africa : specialization of expenditure towards private goods rather than public.

Page 9: Agricultural Public Expenditures Analysis in Africa

Composition – Ag-specific support

Low support to consumers though public spending.PE target mainly producers.

Pillar 3 of CAADP- Promotion of food security by fostering productivity and production and improving food availability

Page 10: Agricultural Public Expenditures Analysis in Africa

Composition – payments to producer

Western African countries: capital (on farm irrigation)Eastern African countries: variable inputs

Burkina Faso

Composition of capital subsidies

Coherent with national policy strategies for Western African countries : boosting rice production and yields.East African : technology based improvmt of productivity

Page 11: Agricultural Public Expenditures Analysis in Africa

Composition – indirect ag-specificResearch and dissemination of knowledge

Higher spending in Eastern African Countries in support to research but overall relative decline.

Pillar 4- Investments in agricultural researchOverall relative decline

Pillar 2- Improved market accessLimited support to marketing activities- Supported trough infrastructure spending

Page 12: Agricultural Public Expenditures Analysis in Africa

Composition – groups of commodities

Crops mostly targeted

East Africa : more diversified support than West Africa

Share of PE targeting individual commodities

Page 13: Agricultural Public Expenditures Analysis in Africa

Conclusions after food crisis, mixed signals sent to producers: - price

& trade policies versus subsidies

reduction in donor funds affects rural development spending

regional differences: importance of capital, variable inputs, research and extension

period analyzed was exceptional: regular tracking required

Page 14: Agricultural Public Expenditures Analysis in Africa

Thank you!

Page 15: Agricultural Public Expenditures Analysis in Africa

For more information: www.fao.org/mafap