enabling environments for successful contract farming carlos arthur b. da silva, ph.d. rural...
TRANSCRIPT
Enabling Environments for Successful Contract Farming
Carlos Arthur B. da Silva, Ph.D.Rural Infrastructure and Agro-Industries Division
FAO - Rome
FAO – Rural Infrastructure and Agro-Industries Division
Contents
Enabling environments: the concept Assessing enabling environments What constitutes an EE for contract farming ? Questions for discussion
FAO – Rural Infrastructure and Agro-Industries Division
Let’s talk about “conditions”
FAO – Rural Infrastructure and Agro-Industries Division
Conditions can be favorable or not
FAO – Rural Infrastructure and Agro-Industries Division
Conditions can change!
FAO – Rural Infrastructure and Agro-Industries Division
“Enabling environments” can be seen as the general conditions The set of policies, institutions and support
services that create the conditions for enterprises to be started and grow the environment, or “climate” for business value chains cannot be developed without a
favorable business climate contract farming cannot work well if the
conditions are not right
FAO – Rural Infrastructure and Agro-Industries Division
Can we assess EEs ? Focus of increased attention in the recent
past perception of high potential impact from
interventions on EE reforms Evaluation of overall business climates
performed by several international organizations and private institutions guidance to investors; guidance to policy reform;
rankings of competitiveness, ease of doing business, FDI confidence indexes, etc.
Since late 70’s
FAO – Rural Infrastructure and Agro-Industries Division
The World Bank’s Doing Business Survey “The Doing Business database provides objective measures
of business regulations and their enforcement. The Doing Business indicators are comparable across 175 economies. They indicate the regulatory costs of business and can be used to analyze specific regulations that enhance or constrain investment, productivity, and growth”
Benchmarks (annual survey) Cross country comparison Monitoring of progresses in reforms Considers 10 items that form “the regulatory costs of
business”
FAO – Rural Infrastructure and Agro-Industries Division
What does the WB really assess? Starting a Business Dealing with Licenses Employing Workers Registering Property Getting Credit Protecting Investors Paying Taxes Trading Across Borders Enforcing Contracts Closing a Business
FAO – Rural Infrastructure and Agro-Industries Division
Who is faring well an who is not?
Africa 2009 2008
Mauritius 24 29
South Africa 32 35
Botswana 38 52
Namibia 51 48
Kenya 82 78
Ghana 87 82
Zambia 100 101
Seychelles 104 93
Swaziland 108 100
Uganda 111 105
Ethiopia 116 109
Nigeria 118 114
Lesotho 123 119
Tanzania 127 124
The Gambia 130 128
The World 2009 2008
Singapore 1 1
New Zealand 2 2
United States 3 3
Hong Kong, China 4 5
Denmark 5 7
United Kingdom 6 6
Canada 7 4
Ireland 8 10
Australia 9 8
Iceland 10 12
FAO – Rural Infrastructure and Agro-Industries Division
Who reformed the most in Africa ?
FAO – Rural Infrastructure and Agro-Industries Division
In sum Starting a Business Dealing with Licenses Employing Workers Registering Property Getting Credit Protecting Investors Paying Taxes Trading Across Borders Enforcing Contracts Closing a Business
•Not free of criticism, but highly effective in triggering reform
•Not specific to any economic sector
•Can we use a similar framework to promote contract farming ?
FAO – Rural Infrastructure and Agro-Industries Division
What could be the key elements of an EE for contract farming? General contract laws Land tenure laws Contract enforcement mechanisms Competition regulations Regulations on associations Grades and standards Finance and risk mitigation mechanisms Others?
FAO – Rural Infrastructure and Agro-Industries Division
Questions for discussion
What are the macro-level conditions for successful contract farming ?
How can we ensure they are in place?
What support institutions are required to facilitate contract farming? Sugar beet contract farmers in
Egypt
