Review of trends and the challenges of monitoring progress

Donor profiles

The US is building an agricultural programme as substantial food aid assistance declines. Multi-sector programmes are low, but possibly increasing. The Millennium Challenge Corporation has a particular focus on long-term food security issues, including (in order of significance as of June 2009) rural roads / infrastructure, technical assistance and technology transfer, irrigation, rural finance, property rights and agricultural research.²³

The US is by far the largest bilateral donor to the agricultural sector. Bilateral commitments over the 2000-08 period saw agricultural aid as a proportion of total aid fall between 2000 and 2003 from 4% to 1% before steadily increasing to 5% in 2008. Between 2000-03 and 2005-08 agricultural aid rose by 179% from USD 364m to USD 1bn. South and Central Asia and the Middle East have experienced the largest increases in US agricultural aid (780% and 606% respectively between 2000-03 and 2005-08), while South and Central Asia (31%) and sub-Saharan Africa (24%) have been the largest recipients over 2005-08. Asian and Middle Eastern growth has largely been driven by aid to Afghanistan (and to a lesser extent, Pakistan) and Iraq, which accounted for 21% and 8% respectively of all US agricultural aid in 2007-08.

One of the most significant increases within agriculture over 2000-03 – 2005-08 has been agricultural alternative development (USD 295m). It now constitutes 29% (27% for 2006-08) of all US agricultural aid – the largest proportion of any agricultural category. Three quarters of US agricultural aid to Afghanistan, the largest recipient of US agricultural aid, has been directed to agricultural alternative development. Similarly, this purpose constituted over 95% of all US agricultural aid to Bolivia, Columbia, Ecuador and Peru over 2006-08.

Aid for water resources has also increased (USD 124m), now 12% of agricultural aid. Agricultural policy, while declining, is also significant, representing 21% of agricultural assistance.

The majority of US agricultural aid is channelled through the public sector – 80.4%.

Figure 13: Channels of Delivery of US agricultural aid, 2008



Rural Development

US ODA to rural development are still relatively small in comparison to all other sectors. Volumes, however, have fallen between 2000-03 and 2005-08 from USD 39.4m to USD 32.0m (19%).

ODA to General Budget Support have fallen over the 2000-03 and 2005-08 period by 53%. However, at USD 439.2mn for the 2005-08 average, it is the second largest bilateral GBS donor.

Food aid (comprising of development and emergency food aid) has increased by 16% between 2000-03 and 2005-08,rising steeply between 2001-03 and again in 2008.. Within this development food aid has declined by 44% over the two periods falling from USD 1.1bn to USD 632mn. By contrast emergency food aid has risen steeply by 103% from USD 788mn to USD 1.6bn. In 2008 Emergency Food Aid was at its highest levels for the period considered standing at USD 2.2bn.

Aid to social/ welfare services has also risen particularly steeply over the two periods, rising from USD 50mn in 2000-03 to USD 386mn over 2005-08 (a 666% increase). The United States is the second largest donor to this sector.

Aid to basic nutrition has been modest over the period considered. It has decreased by 79% between 2000-03 to 2005-068 by USD 57m to USD 12m.

Transport and Storage has seen a 59-fold increase in aid between 2000-03 and 2005-08, increasing from USD 21.3m to USD 1.3bn. Levels now comparable with those of agricultural aid are, on average, 24% higher over the 2005-08 period.

The UK supplants direct agricultural assistance with multi-sector rural development and high levels of budget support. In 2008 it was the fourth largest bilateral donor to agriculture; it was the fifth largest bilateral donor over 2005-08.

Between 2000-03 and 2005-08 bilateral ODA to the agriculture sector rose by 31% from USD 147.8m to USD 193.6m. The UK, despite being one of the top bilateral donors to agriculture, however, is one of only 6 bilateral donors where agricultural aid represents less than 3% of all its ODA over 2005-08. Sub-Saharan Africa (14%) and Far East Asia (8%) are the largest recipients, although ‘unspecified’ recipients constitute 66%.

Contrary to the general trend, aid to agricultural policy increased over the 2000-03 and 2005-08 period by USD 13mn, and is by far the most significant area of activity (26%). Agricultural Extension also increased (now USD 20m) constituting 11% of agricultural ODA over the 2005-08 period. Meanwhile, assistance fell across 12 other categories, with zero ODA made across 6 other categories.

The UK channels its agricultural assistance mainly through the public sector and multilateral organisations. A very minor proportion (1.5%) is channelled through NGOs.

The UK was the largest bilateral donor to rural development in 2008 (USD 112m). Aid to this sector has increased 18% between 2000-03 and 2005-08, rising from USD 138.0m to USD 162.6m.

Similarly the UK is the largest contributor to GBS over 2005-08. ODA to this sector increased by 4%from USD 713.2m to USD 744.0m between 2000-03 and 2005-08. Resources to General Budget Support as a proportion of total ODA to agriculture was 384% over 2005-08.

The UK’s provision of food aid over 2005-08 is equivalent to just over 80% of its agricultural aid; food aid increased by 13% over 2000-03 and 2005-08. Contrary to the wider trend, this is mainly attributed to development food aid which has risen by 47% over the period. Emergency food aid has decreased by 9% between 2000-03 and 2005-08.

Aid to basic nutrition have increased by 417% between 2000-03 and 2005-08, rising from USD 2mn to USD 10mn.

Aid to social/welfare services has increased by 208% over 2000-03 and 2005-08, rising from USD 55mn to USD 170mn. In 2005-08, the United Kingdom was the fifth largest donor to this particular sub-sector

The United Kingdom’s provision of aid to Economic Infrastructure and Services, which is inclusive of Transport and Storage has increased 18% between 2000-03 and 2005-08 from USD 579.4m to USD 681.2m. However, in absolute volume terms the United Kingdom committed 3.5 times more to this sector than the total for agriculture during this period. Within this, transport and storage saw a 52% increase in aid between 2000-03 and 2005-08 to USD 157.3m – levels comparable to agricultural aid.

France combines agricultural support through high levels of assistance to the transport and storage sector. Over 2005-2008 it was the third largest bilateral donor in terms of assistance to the agricultural sector.

France is the third largest agricultural donor after the US and Japan. ODA has risen between 2000-03 and 2005-08 by 30% from USD 286.5 million to USD 372.3 million. Just under 6% of all ODA has gone to agriculture over 2005-08. Sub-Saharan Africa has seen a large increase over the period (40%), with largest proportional increases for South America (182%). Sub-Saharan Africa (49%) and Far East Asia (18%) receive the biggest share of agricultural aid, even though the latter has seen a minor increase decline (USD 2.8m, 4%) over the period.

France channels one-third of its agricultural aid through the public sector. Just under 1% is channelled through NGOs and Civil Society.

France committed an average of USD 23m over 2005-08 to the Rural Development Sector. Levels of assistance to this sector are low relative to agriculture. Between 2000-03 and 2005-08 assistance to the Rural Development sector has declined by 66%.

France’s total ODA to General Budget Support have risen over the 2000-03 and 2005-08 period by 47% from USD 298.2m to USD 437.5m. In volume terms it was the third largest bilateral provider of general budget support in over 2005-08. It was the top provider of General Budget Support in 2008 with levels rising by a massive 192% between 2007 and 2008.

France’s provision short term assistance is modest when comparing it against its agricultural aid.

Between 2000-03 and 2005-08, food aid increased by 78%. Development food aid rose by 8% from USD 35m to USD 38m. France has only recently started an emergency food programme starting in 2003²⁴ which has meant that between 2000-03 and 2005-08 Emergency Food Aid has risen from USD 0m to USD 25m.

Aid to social/ welfare services decreased by 35% over 2000-03 and 205-08 falling from USD 78m to USD 51m.

Aid to basic nutrition has risen by 44,691% between 2000-03 and 2005-08, rising from USD 0.01m to USD 3m.

Economic Infrastructure and Services

Economic and Infrastructure Services has experienced a significant rise in aid from USD 299m to USD 1.03bn or a 245% increase. Within this, Transport and Storage has seen a 377% increase between 2000-03 and 2005-08. Volumes are significant in proportion to France’s agricultural aid. Over 2005-2008 aid to Transport and Storage were USD 722mn – almost double its aid to agriculture over the same period. France directed 20% of all bilateral and multilateral aid to the Transport and Storage sector. Transport and Storage comprises of 70% of total aid to Economic and Infrastructure Services.

JAPAN

Japan combines large agricultural assistance with lower levels of rural development and budget support.

Japan is the largest agricultural donor after the US. Aid, however, rose very marginally between 2000-03 and 2005-08, some 2% from USD 496.6m to USD 506.4m. Almost 5% of aid has gone to agriculture over 2005-08. South and Central Asia has seen the largest increase over the period (USD 169m in 2005-08, a 250% increase), with small increases for South America (USD 28.2mn in 2005-2008, a 112% increase). South Asia (39%) and Far East Asia (28%) receive the largest share of agricultural aid, even though the latter has seen a significant decline (USD 294m, 69%) over the period.

Japan channels over 95% of agricultural through the public sector.

Japan is the third largest bilateral donor of rural development (an average of USD 73m over 2005-08), although levels are low relative to agriculture (14%). Assistance to the multi-sector has fallen by 42% over the 2000-03 – 2005-08 period.

Japan’s total assistance to General Budget Support has fallen over the 2000-03 and 2005-08 period by 37% to from USD 357.9m to USD 224.9m. However, in volume terms its assistance remains large as compared to other bilateral donors, being the fifth largest bilateral provider.

Japan’s provision of Food Aid is just under one-third the amount it directs to agriculture (2005-2008 average). Between 2000-03 and 2005-08, food aid increased by 203%. This is mainly attributed to Development food aid which has risen by 189%, rising from USD 45.7m to USD 132.1m.

Japan was also the fifth largest donor in terms of ad to social/welfare services. Levels have risen dramatically from USD 3m to USD 100m.

Economic Infrastructure and Services

Transport and Storage has seen a relative increase between 2000-03 and 2005-08, rising by 23%. Volumes remain significant – just under 5 times higher than aid to agriculture standing at USD 2.5bn. Transport and Storage comprises just under two-thirds of the total aid assistance to Economic Infrastructure.

Germany combines higher-than-average levels of multi-sector rural development assistance with agricultural aid and low, but increasing levels of budget support.

German bilateral agricultural aid has fluctuated between 2-5% of total assistance over the 2000-08 period. Aid has risen, on average, by 45% in absolute terms from USD 158m in 2000-03 to USD 229m in 2005-08, making it the fourth largest bilateral donor to the sector over this period. North Africa (26%) and sub-Saharan Africa (30%) receive the largest proportions of agricultural aid, the former seeing a significant rise over the period.

Germany channels just over half of its bilateral agricultural assistance through the public sector, with 31% via NGOs.

Germany is the second largest donor in volume terms to this sector, where assistance has grown by 38% between 2000-02 and 2005-08. In 2005-08 Germany directed USD 130m to this sector – 57% of what it committed to agricultural aid.

Levels of General Budget Support remain low, standing at USD 97.5m in 2005-2008. However, levels have increased significantly over the time period rising by 3,241% over 2000-03 and 2005-08.

Germany’s provision of Food Aid is just over one-half the amount it directs to agriculture (2005-2008 average). Between 2000-03 and 2005-08, however, food aid decreased by 13%. This is mainly attributed to emergency food aid, which fell by 19%, from USD 103.9mn to USD 83.8. Development food aid rose by 5% in the same period from USD 32.7mn to USD 34.4mn

Aid assistance to social/welfare services has fallen by 13% from USD 23.0mn to USD 20.0mn between 2000-03 and 2005-08.

Aid assistance to basic nutrition has risen by 72% from USD 2.3mn to USD 4.0mn between 2000-03 and 2005-08

Aid to Transport and Storage fell from USD 265m (2000-03) to USD 183m (2005-08), counter to the 86% growth of Economic Infrastructure in general. Unlike many other donors, aid to this area is thus less than that of agriculture.

IDA provides significant agricultural aid. By contrast, multi-sectoral assistance in rural development is minimal.

IDA is the most significant multilateral actor in agricultural development assistance, accounting for over half of all multilateral agricultural aid. Agricultural aid as a proportion of total aid has increased from 7% in 2000 to 13% in 2008. Agricultural aid as a proportion of total aid has increased between 8% and 11% over 2000-03 and 2005-08. Between 2000-03 and 2005-08 aid to the agriculture sector rose by 40%. South and Central Asia (38%) and sub-Saharan Africa (49%) dominate the recipients of IDA agricultural assistance.

Of its aid to Economic Infrastructure and Services, 39% has been for Transport and Storage. This has seen a 4% decrease in funding between 2000-03 and 2005-08, falling to USD 1.2bn.

Declines in wider food security measures are mainly attributed to social/welfare services which fell from USD 760m to USD 499m (a 34% decrease). Despite this IDA was still the largest donor to this sector.

Similarly, although low in absolute volume terms IDA is the largest donor to basic nutrition providing over a quarter of all aid to this sector. These have risen by 27% over 2000-03 and 2005-08 from USD 47m to USD 59m.

EUROPEAN COMMISSION

Figure 23: Agricultural and non-agricultural flows (total)

EC aid to agriculture have constituted approximately 3% of total aid over 2000-08. Volumes increased by an average of 30% between 2000-03 and 2005-08 to USD 375m. Sub-Saharan Africa receives the bulk of assistance (37%) while South America and Europe have seen large proportional increases.

Assistance in the development of export crops has grown considerably, and now constitutes 29% of all agricultural aid (USD 107m average over 2005-08). By contrast, food crop development has fallen to just USD 1m. Agricultural policy and agricultural development comprise the other significant areas of activity (32% and 14% respectively), although the latter has declined by some 47% in volume terms.

Rural Development

Rural development aid has fallen by almost 40% to USD 153m (2005-2008), the equivalent to a little more than 40% of its aid to agriculture.

The EC’s total aid to General Budget Support has risen over the 2000-03 and 2005-08 period by 33% from 1.1bn to USD 1.5bn. The EC’s total aid to General Budget Support was 393% that of what is gives to the agriculture sector.

Levels of food aid have declined by 24% over the period, mainly attributed to falls in development food aid to which stood at USD 379m in 2005-2008 (a 51% decrease). Emergency Food aid has, by contrast, risen by 152% to USD 307m.

The EC was also the third largest donor to social/welfare services. Levels of aid have risen significantly from USD 59mn to USD 171mn (an 189% increase).

Economic Infrastructure and Services

The EC’s provision of aid to Transport and Storage has increased by almost 94% to USD 1.7bn, comprising 65% of the total aid to Economic Infrastructure. Such volumes are now over 4 times that of agriculture.