effectiveness factors in cotton cooperation – some reflections

Effectiveness factors in cotton cooperation – some reflections

Willem OlthofDG DEVCOEuropean Commission

1. Context• Policy context• Main orientations in agriculture• Instruments

2. Effectiveness in cooperation – five key factors3. Concluding remarks

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1. Context

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Current Policy Context for EU Cooperation• Agenda 2030

• Social, economic and environmental dimensions

• SDGs interrelated

• The new European Consensus on Development(2017) recognises sustainable agriculture as a drivingpower to achieve growth and poverty reduction.• Paris Agreement on Climate Change• Africa: New Africa-Alliance Alliance for SustainableDevelopment and Jobs

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Main orientations of support to agriculture

• Aim: productive, sustainable and resilient agriculture to support (rural) livelihoods

• Methods: investment promotion, research & innovation, inclusiveness

• Means: integrated, multi-stakeholder approaches, evidence based, nationally owned• Look beyond agriculture• Farmer Organisations as key actors

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Financial Instruments

Three main categories1. Budget Support – with Governments; general/sector-

specific2. Project Support – with multitude of actors (International

Organisations, Governments, NGOs etc.)3. Blending – to support investments (geographic,

thematic)• Several forms• Includes TA

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• Provides a detailed assessment of a VC from an economic, social and environmental point of view

• Comprises an overall understanding of the VC dynamics (a functional analysis)

• Responds to 4 framing questions: What is the contribution of the VC to sustainable economic

growth? Is this economic growth inclusive? – distribution of the added-

value Is the VC socially sustainable? Is the VC environmentally sustainable?

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Analytical Instrument: VCA4D

2. Effectiveness Factors

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1. The National level is key

• National ownership and commitment - a sine qua non• Situations in countries differ (-> pragmatism)• Reforms require broad support• Long-term view needed • Regular policy dialogue

• National level can be supported by other levels (research & innovation; lessons learning; norms and standards etc.)

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2. A Multistakeholder approach works best

• Progress requires concerted involvement of all relevant actors, taking a broad developmental view • Stretches beyond narrow cotton/agriculture sub-sector• Includes general investment climate issues, and rural

development functions of cotton• Farmer organisations/professional organisations are often

a central factor for success

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3. A sound analytical base to start from

• EU: VCA4D is proving a useful tool for other value chains

• Starting point for policy dialogue, development interventions, private investments

• Covers products along the chain, by-products, bottlenecks/challenges in a dynamic way

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4. Use appropriate (financial) instruments

EU: mixture of budget support (policy reforms; policy dialogue), blending (investment support) and project assistance (at various levels)

Overall (1): sustainable debt considerationsOverall (2): case for CBA to include economic, social and

environmental effects.

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5. Invest in results measurement and monitoring

General: difficult to show clear results from past interventions

To capture more systematically: effects on livelihoods of target population, including effects on employment, income, environmental qualities (e.g. water, soil), and stability (e.g. land conflicts)

Costly but worthwhile

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3. Concluding Remarks

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Update on support to the Cotton Sector

Yvonne ChilesheExpert - Commodities and Value Chains

African, Caribbean & Pacific (ACP) Secretariat

WTO DG Consultative Framework Mechanism on Cotton & 31st Round of Consultations on Cotton Development Assistance Geneva

ACP-EU COTTON PROGRAMME

€11 million in funding from the 10th EDF – 2013 - 2017

Objective to contribute to the sustainable improvement of the Africancotton sectors' competitiveness, through promotion of value addition,in order to optimize its impact on producers' income.

Achievements: the Programme contributed to the improvement ofthe quality of African cotton which lead to the increase of exports ofcotton fibre, enhanced local capacities to process cotton, strengthenedlocal Integrated Production and Pest Management (IPPM) capacities etc

As the Support Programme drew to a close in 2017, the ACP Group,the European Union and the African Union, agreed to develop a follow-up programme called the Pan African Cotton Investment Programme,which aimed at also incorporating aspects of “ Route du coton”

WTO DG Consultative Framework Mechanism on Cotton & 31st Round of Consultations on Cotton Development Assistance, Geneva,6 J 2019

PAN AFRICAN COTTON INVESTMENT PROGRAMME

Aims at: promoting sustainable development of African cotton valuechains as one of the instruments for transforming agriculture, enhancingvalue addition and promoting integration through trade therebyultimately increasing people's incomes, in consistency with the Malaboagenda.

Strategic focus includes:

Increase producer income and cotton productivity

Increase investment in Processing of Cotton

Improve the marketing and consumption of cotton and it’s by-products

Develop capacities of institutions and professional organizations ofcotton-textile

Reinforce contribution of the cotton system to the implementation ofthe SDGs


PAN AFRICAN COTTON INVESTMENT PROGRAMME

Where are we?

ACP and EU have just agreed with ITC to make an intervention on cotton from the PSD Business friendly component i.e Intra ACP Funds.

we can confirm that support will start this year and more important focus on investment in cotton will come from next years.

We intend to identify from PACIP (including Route du coton) which actions can be implemented by ITC for 2 to 3 million euros.


THANK YOU!MERCI BEAUCOUP!

Yvonne ChilesheExpert - Commodities and value chain development

African, Caribbean & Pacific (ACP) SecretariatBrussels, Belgium

Email: [email protected]


effectiveness factors in cotton cooperation – some reflections

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