Changing Donor Priorities and Strategies For Agricultural R&D in Developing Countries:

Evidence From Africa

David J. Spielman, Fatima Zaidi, and Kathleen Flaherty

International Food Policy Research Institute

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

A stylized history of agricultural R&D funding

• The “good old days” – late 1960s to early 1980s

• The “lean years” – mid 1980s to early 2000s• Loss of faith• Loss of patience• Project completion• Regionalization• Competition• Complacency

Donor commitments to agricultural development and public spending agricultural R&D, Sub-Saharan Africa, 1973-2009

1973 1978 1983 1988 1993 1998 2003 20080

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0

5

10

15

20

25

Co

nst

ant

(200

7) U

S$m

Co

nst

ant

(200

5) U

S$m

DAC countries’ commitments to agriculture

Multilateral agencies’ countries’ commitments to agriculture

Agricultural R&D spending in Sub-Saharan Africa

Source: Authors, based on data from OECD (2011) and Beintema and Stads (2011)

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

A stylized history of agricultural R&D funding

• The “good old days” – late 1960s to early 1980s

• The “lean years” – mid 1980s to early 2000s• Loss of faith• Loss of patience• Project completion• Regionalization• Competition • Complacency

• The “renewal years” – early 2000s to present

Donor commitments and public spending on agricultural R&D in Sub-Saharan Africa, 1997-2009

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

0

10

20

30

40

50

60

70

80

0

100

200

300

400

500

600

700

800

DAC country assistance to agricultural research excluding France (3-year moving average)

Multilateral donor assistance to agricultural research (3-year moving average)

Public expenditures on agricultural research in Sub-Saharan Africa (3-year moving average)

Co

nst

ant

(200

9) U

S$m

Co

nst

ant

(200

5) U

S$m

Source: Authors, based on data from OECD (2011) and Beintema and Stads (2011)

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

Renewed commitments to agriculture

• 2000 • Millennium Development Goals (MDGs)

• 2001 • New Partnership for Africa’s Development (NEPAD)

• 2003• Maputo Declaration Comprehensive Africa Agriculture Development Program (CAADP)

• 2006 • Framework for African Agricultural Productivity (FAAP)

Public expenditure on agriculture as a share of total budgetary expenditure, selected countries, 2007

Angol

a

Botsw

ana

Burun

di

Chad

Cote

d'Ivo

ire

Gambi

a

Guine

a

Kenya

Libe

ria

Mal

awi

Moz

ambi

que

Niger

Seneg

al

Sudan

Tanza

nia

Ugand

a

Zimba

bwe

0

2

4

6

8

10

12

14

16

18

%

Source: Fan (2009), IFPRI RESAKSS (2011).

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

New donor landscape (1)

• 2005• Bill & Melinda Gates Foundation (BMGF) enters

agricultural development space

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

Bill and Melinda Gates Foundation funding for agricultural development and agricultural research, 2003-2011

Agricultural development Agricultural development in Africa

Agricultural R&D in Africa

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

269152

80

1,822

1,142

642

Grants (no.) Grants (US$ million)

Nu

mb

er,

US

$ m

illi

on

Source: Authors, based on data from BMGF (2010).

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

New donor landscape (1)

• 2005• Bill & Melinda Gates Foundation (BMGF) enters

agricultural development space

• 2006• BMGF and Rockefeller Foundation fund the Alliance for

a Green Revolution in Africa (AGRA)

• 2007-09• World Bank agricultural productivity programs (EAPP,

WEAPP)

International commodity prices, major staples, 2005-2011

Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-110.00

0.20

0.40

0.60

0.80

Maize Wheat Rice

US

$/k

g

Source: Fan (2011), based on data from FAO (2011)

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

Renewed donor commitments

• 2008• US Global Hunger and Food Security Initiative (GHFSI)

• 2009• L’Aquila Summit

Global Agriculture & Food Security Program (GAFSP) US Feed the Future (FTF) Initiative Increase in European commitments to agriculture

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

New priorities and strategies?

• Strengthen the international agricultural research system• Reform CGIAR governance and management• Increase funding for critical research

Donor funding to the CGIAR, 1980-2010

1980-1989 1990-1999 2000-20100

500

1,000

1,500

2,000

2,500

3,000

USA USAUSA

World BankWorld Bank

World Bank

Canada

Canada

Canada

Germany

Germany

Germany

IADBUK

UK

UK

UNDPJapan

Japan

Japan

EC

EC

EC

Switzerland

Switzerland

Switzerland

Italy

Netherlands

Netherlands

Denmark

BMGF

US

$ m

illi

on

s

Source: CGIAR (2011)

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

New priorities and strategies?

• Strengthen the international agricultural research system• Reform CGIAR governance and management• Increase funding for critical research

• Strengthen regional and sub-regional organizations• FARA, ASARECA, CORAF, SADC• EAAPP, WEAAPP

• Cultivate private sector investment• Crop-science, agri-food industries

• Open the doors for new donors• Brazil, India, China?

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

Discussion

• Diversification of donors, priorities, strategies• Accompanied by greater donor coordination?

• Greater recognition of need for policy reform?• Reallocation of funding from R&D projects to institution building?

• Greater interest in donor funding to private sector?• Will donor constituents give support?

• Sufficient recipient country voice in donor programs?• NEPAD, CAADP √ ; other donor investments √−

• Sufficient absorptive capacity in recipient countries?• Risks of replicating past failures

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

Thank you