With the financial support of Agricultural Public Expenditure in Africa a cross-country comparison Presenter: Christian Derlagen, FAO 30 July, 2013 CABRI Agriculture Sector Dialogue Dakar, Senegal

Motivation for MAFAP renewed attention for food security and nutrition food price increase/volatility enabling environment for agricultural growth how are policies affecting farmers’ incentives? limited availability of data capacities on quantitative evidence

Source: FAO (State of Food and Agriculture 2012) Importance of enabling environment in leveraging/deleveraging private investment decisions Need for evidence to support policy dialogue and decision making

FAO’s response: MAFAP a system to measure, monitor and evaluate the effect of policies on agricultural producers in Africa implemented by FAO through structural collaboration with national teams to develop institutional capacity and ensure sustainability provides evidence to support more effective policy making, investment decisions and dialogue at national, regional and pan-African levels

The MAFAP Monitoring System 1.Building evidence a. price incentives in countries’ key agricultural value chains b. public expenditure and aid c. policy coherence: - public expenditure vs. price support - policy effects vs. policy objectives 2. Facilitating policy dialogue regional and national levels, CAADP 3. Developing and institutionalizing capacities

Where we work Including PE analysis: Burkina Faso Kenya Mali Tanzania Uganda Other countries: Ghana (PE analysis ongoing) Ethiopia Malawi Mozambique Nigeria

Public Expenditure – Main Features Based on OECD methodology: 1. Agriculture Specific Expenditure (payments and general sector support) 2. Agriculture Supportive Expenditure (rural development) Focus on economic characteristics of expenditure measures, disaggregated level Covering five-year period, but updated annually

Methodology (..continued) Broad coverage: including rural development spending, share of aid vs own resources Comparable across countries; COFOG compatible Allocation to commodities to estimate commodity support Combination with price analysis provides comprehensive analysis of support to agricultural sector

Country-Level Approach Structural collaboration with national teams to develop a sustainable policy monitoring system Ministry of Agriculture Research Institutes Ministry of Finance

With the financial support of The Maputo Target and what’s behind it Public expenditure allocated to agriculture and rural development in five African countries

Level – Maputo target Expenditure across countries

Behind the Maputo target…

Behind the Maputo target… ( vs )

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 Faso15.5 %4622 Kenya6.3%6218 Mali11 %744 Tanzania12.1%3414 Uganda11.1%5131

Agricultural Orientation Index

Composition – general categories

Composition – Ag-specific support Payments to producersPayments to consumers Payments to other agentsIndirect support

Composition – payments to agents Burkina Faso

Composition – indirect ag-specific Agricultural research Inspection (veterinary/crops) Storage Tech assistance/extension/training Infrastructure Marketing Composition of agriculture-specific support,

Composition – individual commodities Ag specific expenditure Average

Composition – cotton and rice Agricultural production value Agricultural specific expenditure

Composition – groups of commodities Forestry Fisheries Livestock Crops % Ag specific expenditure

Support to agents in the food and agriculture sector Country example: Burkina Faso Source : MAFAP

Conclusions after food crisis, mixed signals sent to producers: - price & trade policies vs subsidies reduction in donor funds affects rural development spending focus in spending shows regional differences: importance of capital, variable inputs, research and extension increased private sector involvement replaces public spending (processing, commercialization) period analyzed was exceptional, regular tracking proposed

Our database and country reports are available