Third Steering Committee Meeting, Rome 14-15 June 2005 Output 4: Establishing Mechanisms for Effective Stakeholder Representation in the Negotiation of Policy and Institutional Changes PPLPI Third Steering Committee Meeting, Rome 14-15 June 2005

PPLPI Purpose and Outputs Strengthened capacity of FAO, member nations & international organizations to formulate (livestock) sector policies & implementation plans that reduce poverty whilst… Increased awareness and consideration of potential contribution of livestock to poverty reduction Portfolio of livestock-related policy interventions for poverty reduction whilst… Mechanisms for stakeholder representation in the negotiation of policies and inst’l changes Effective systems for livestock policy information, analysis, and decision support and M&E

Country level activities 5 Hub Focus Countries: Viet Nam India Uganda Senegal Peru Structure of Presentation: The strategic sector chosen for intervention (one) Our strategic Partners & Activities, and rationale Outcomes (so far); Indications of policy shifts; Challenges & follow up

VIET NAM Pig Sector

Pig has largest contribution in livestock sales Rural household types

Significance to rural HH of income from pigs (VLSS 1998; Maltsoglou, et al., 2005) Among all types of households (diversified or agri-dependent): Livestock Income: 58-78% comes from pig Source of Cash Income: 94-99% of pig (value) is marketed

Pathway out of poverty linkages: (VLSS 1998; Maltsoglou, et al., 2005) The larger the stock holdings (per capita), the less likely to fall into poverty The stronger the market engagement of the HH, the more likely to climb out of poverty

PPLPI Policy Goal for Pig Sector - Viet Nam A livestock policy that promotes growth and development of the pig sector with gainful participation of smallholders Desired Impact: A broader-based income improvement involving rural households A reduction in rural poverty (poverty largely a rural phenomenon)

Focus of Current VN Policy Environment To develop pig farming for export, through the creation of industrial/commercial zones to produce high quality pigs (Policy document: Decision 166/2001/QD-TTg) To promoting contact farming between enterprises and farms in support of the industrial/commercial strategy (Policy document: Decision 80/2002/TTg)

Semi-SOE Industrial/ commercial farms Implications of an Export-oriented Strategy on Allocation of Government Resources Government resources High quality pig/meat Market access Specific support infrastructure Semi-SOE Industrial/ commercial farms (20% of output) Incentives: tax holidays, subsidized credit, duty-free imports Export Market Livestock and Institutional Services Contract farms

Spillover effects on Local Market Government resources High quality pig/meat Market access Specific support infrastructure Semi-SOE Industrial/ commercial farms (20% of output) Incentives: tax holidays, subsidized credit, duty-free imports Export Market Livestock and Institutional Services Domestic Market Contract farms Smallholders

Bypassed in Modernization Strategy

Consigned to residual local markets…

Alternative configuration of gov’t resources Improved breeds for domestic market Lower tariffs & deregulated trading on feedgrain Legal & Institutional framework on Contracts Animal Health Services (CAHWs) General rural-urban mkt infrastructure

Other Econ Opportunities Policy & Inst’l Change for Expanding Mkt Linkages & Opport. of Rural Smallholders Improved breeds for domestic market Lower tariffs & deregulated trading on feedgrain Legal & Institutional framework on Contracts Traders/ Input-Service providers Domestic Market Smallholders (mixed farms) (80% ) Animal Health Services (CAHWs) Other Econ Opportunities General rural-urban mkt infrastructure

Sights on export markets can still be integrated Industrial/ commercial farms (20% ) Improved breeds for domestic market Export Market Lower tariffs & deregulated trading on feedgrain Legal & Institutional framework on Contracts Traders/ Input-Service providers Domestic Market Smallholders (mixed farms) (80% ) Animal Health Services (CAHWs) Other Econ Opportunities General rural-urban mkt infrastructure

Weighing the Balance of Current Policies PROS Rapid modernization of the industrial/commercial sector close to cities; capacity to produce quality meat Growth in industrial sector will create income and employment opportunities (direct and 2nd round impacts) Access to export markets brings FOREX earnings; contributes to trade balance position of Viet Nam CONS Smallholder producers in the rural areas will remain backward, producing low-priced pigs Slow growth, low income and employment opportunities in the rural areas (direct and 2nd round impacts) Not even improvement in access to domestic markets (little public resources to improving market infrastructure & institutions, and livestock services)

Weighing the Balance of Current Policies 2 PROS Contract farms (medium- commercial) obtain ready markets for their output Distribution of gains??? Output unsold in the export market can be profitably sold in the mainstream DOMESTIC market CONS Smallholder ‘household production’ activities are not included in the definition of ‘farms’ in VN livestock policy Smallholders are in a disadvantaged position to compete with government-assisted commercial suppliers

Strategic Partners Activities 2. PPLPI Engagement in Viet Nam for Building Stakeholders’ Capacity to Negotiate for Policy & Institutional Change Strategic Partners Activities

Strategic Partners – National Government 1 FAOR - VN MARD (Vice-Minister) Information & Endorsement of activities FAO PPLPI

Strategic Partners – National Government 2 Info & Endorsement FAOR - VN MARD Rubrics of policy & inst’l change Organizes collaborative activities; Direct link to bureaucracy; Source of ‘authoritative’ data and information FAO PPLPI DOA Livestock

Strategic Partners – National Government 3 Info & Endorsement Endorses policy & inst’l changes for Party consideration FAOR - VN MARD Rubrics of policy & inst’l change FAO PPLPI DOA Livestock Organizes activities; Direct link to bureaucracy; Source of ‘authoritative’ data Info, local view & analysis of stakeholder & government concerns GSO NIAH VASI

Collaborative Activity: Contract Farming and Other Market Institutions for Equitable Pig Farming in Northern Viet Nam

International Partners + VN Univ.: Market Study FAO PPLPI ILRI-IFPRI Joint Program Contract Farm’g & other Inst’ns for Smallholder Mkt Integration HAU (National Collaborator)

International Partners + VN Univ.: Mkt Study (2) ACI (MMW4P) FAO PPLPI Breaking barriers to mkt participation Keys to effective market institutions Entrypoints for change Key stakeholders along mkt chain for policy & inst’l change ILRI-IFPRI Joint Program Contract Farm’g & other Inst’ns for Smallholder Mkt Integration HAU (National Collaborator)

Parallel work by ACI on ADB-MMW4P

Local International Partners with Local Footing Likemindedness with PPLPI on Smallholder concerns Credibility with the Bureaucracy

International/NGO Partners: Stakeholder Organization IFPRI (VN Liaison Ofc) FAO PPLPI ACI - VN AVSF - VN L’stock Work’g Grp

International/NGO Partners: Stakeholder Org’n IFPRI (VN Liaison Ofc) FAO PPLPI ACI - VN AVSF - VN LWG Solid groundwork among rural smallholders; - Catalyst for smallholder org’n

International/NGO Partners: Stakeholder Org’n IFPRI (VN Liaison Ofc) FAO PPLPI ACI - VN AVSF - VN L’stock Work’g Grp LWG Parallel work with “Making Markets Work for the Poor” (ADB) - Insights into bureaucracy & policy making

International/NGO Partners: Stakeholder Org’n IFPRI (VN Liaison Ofc) FAO PPLPI Poverty, Livestock & Mkt environment mapping ACI - VN AVSF - VN LWG

International/NGO Partners: Stakeholder Org’n Task Force DOA Livestock IFPRI (VN Liaison Ofc) FAO PPLPI Poverty, Livestock & Mkt environment mapping - Stakeholder characteriz’n- Stakeholder grouping - Stakeholder organization ACI - VN AVSF - VN LWG Parallel work with “Making Markets Work for the Poor” (ADB) - Insights into bureaucracy & policy making Solid groundwork among rural smallholders; - Catalyst for smallholder org’n

Activity: Stakeholder Groups Alliance Identification and Formation Vietnamese Task Force (with DOA - Livestock)

Stakeholder Alliance Identification Commercial pig/piglet producers Lower feedgrain tariffs; Quality feed Lower feed prices Smallholder producer associations Commercial feed millers

Stakeholder Alliance Identification AH care workers (CAHW) Commercial pig/piglet producers Financing AH services Credit with production & mktg contracts Lower feedgrain tariffs; Quality feed Lower feed prices Smallholder producer associations Women’s Union Commercial feed millers Pig/piglet traders & feed suppliers

Stakeholder and Policy Workshop Assembling the Pieces Stakeholder and Policy Workshop Collaborators AVSF & ACI Task Force Stakeholder Groups Stakeholders Constraints & Policy Impacts Contract Farm’g & Mkt Institutions

Assembling the Pieces POLICY DIALOGUE & NEGOTIATIONS Stakeholder and Policy Workshop Collaborators AVSF & ACI Task Force Stakeholder Groups Stakeholders Constraints & Policy Impacts Contract Farm’g & Mkt Institutions

3. EXPECTED OUTCOMES, CHALLENGES, HARNESSING PRESSURE FOR CHANGE TOWARD OUTPUT 4

Expected Outcomes Heightened awareness among stakeholders of how their constraints can be addressed by policy and institutional change Recognition by stakeholder groups that they have common interests with other stakeholders Alliance with them can develop into a ‘pressure group’ that can influence policy and institutional shifts in their favor Demonstration of capacity among stakeholders to negotiate with policy makers for policy and institutional change

Opportunities Indications of Winds of Change Growing recognition and restlessness among lower ranks of government bureaucracy of the need for policy and institutional shifts toward less anti-poor stance Challenge: Harnessing into a common stand; and bridging the disconnect between lower-level bureaucracy tendencies toward reform and Party-level Policy Pronouncements and Decision Making

Opportunities (2) External pressure from WTO Membership Necessity of legislation of more liberalized trade in meat and feedgrains Challenge: Getting domestic stakeholder and pressure groups in a position so that input side import restrictions are removed Getting international pressure groups to ensure that proposed legislative changes get the desired impact of addressing constraints of smallholders