Growing the Rural Nonfarm Economy to Alleviate Poverty An Evaluation of the Contribution of the World Bank Group A N I N D E PE N D E N T E VA LUATI O N © 2017 International Bank for Reconstruction This work is a product of the staff of The World RIGHTS AND PERMISSIONS and Development / The World Bank Bank with external contributions. The findings, The material in this work is subject to copyright. 1818 H Street NW interpretations, and conclusions expressed in Because The World Bank encourages Washington, DC 20433 this work do not necessarily reflect the views dissemination of its knowledge, this work Telephone: 202-473-1000 of The World Bank, its Board of Executive may be reproduced, in whole or in part, for Internet: www.worldbank.org Directors, or the governments they represent. noncommercial purposes as long as full attribution to this work is given. The World Bank does not guarantee the accuracy of the data included in this work. Any queries on rights and licenses, including The boundaries, colors, denominations, and subsidiary rights, should be addressed to other information shown on any map in this World Bank Publications, The World Bank work do not imply any judgment on the part Group, 1818 H Street NW, Washington, DC of The World Bank concerning the legal 20433, USA; fax: 202-522-2625; e-mail: status of any territory or the endorsement pubrights@worldbank.org. or acceptance of such boundaries. Growing the Rural Nonfarm Economy to Alleviate Poverty An Evaluation of the Contribution of the World Bank Group An Independent Evaluation   Contents ABBREVIATIONS ................................................................................................................................. VI  ACKNOWLEDGMENTS ....................................................................................................................... VII  OVERVIEW ............................................................................................................................................ IX  MANAGEMENT RESPONSE ............................................................................................................ XVII  World Bank Management Response .................................................................................................................... xviii  IFC Management Response .................................................................................................................................. xxii  MANAGEMENT ACTION RECORD ................................................................................................ XXVII  1.  INTRODUCTION AND BACKGROUND .................................................................................... 1  Definitions ................................................................................................................................................................. 1  Analytical Underpinnings ........................................................................................................................................... 2  Evaluation Rationale ................................................................................................................................................. 3  Strategies and Analyses of the World Bank Group Related to the RNFE ................................................................. 3  The Rural Nonfarm Income-Generating Portfolio ...................................................................................................... 7  The Evaluation Lens: Key World Bank Group RNFE Approaches across the Three Worlds ................................. 10  References .............................................................................................................................................................. 12  2.  POVERTY-TARGETED APPROACHES TO GENERATING INCOME AND EMPLOYMENT 15  Community-Driven Development Projects with an Income-Generating Focus ....................................................... 16  Rural Livelihoods ..................................................................................................................................................... 18  Social Protection Productive Inclusion Approaches ................................................................................................ 20  What Works: Lessons from IEG’s ICRRs and PPARs ............................................................................................ 22  References .............................................................................................................................................................. 23  3.  GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY .................. 25  World Bank Crop Value Chain Approaches ............................................................................................................ 27  IFC’s Agriculture Value Chain Activities .................................................................................................................. 32  Rural Tourism Value Chains ................................................................................................................................... 38  Agglomeration Approaches within the Trade and Competitiveness GP ................................................................. 39  Synthesis Findings on the World Bank Group’s Poverty- and Growth-Oriented Approaches in the RNFE ............ 40  References .............................................................................................................................................................. 40  4.  COUNTRY STRATEGY, ANALYTICS, AND ENABLERS ...................................................... 42  Country Strategies and Rural Dynamics ................................................................................................................. 42  iii CONTENTS The Rural Nonfarm Enabling Environment ............................................................................................................. 48  References .............................................................................................................................................................. 56  5.  CONCLUSIONS AND RECOMMENDATIONS ........................................................................ 60  Recommendations .................................................................................................................................................. 62  Reference................................................................................................................................................................ 63  BIBLIOGRAPHY ................................................................................................................................... 65    Boxes Box 1.1. Partnering to Develop the Rural Economy to Reduce Poverty: The Role of IFAD .................... 7  Box 2.1. RNFE-Related Measurement Challenges in Productive Community-Based Approaches........17  Box 2.2. The Challenge of Layering Productive Expectations on Successful Safety Net Systems ........21  Box 3.1. Rwanda: A Rapidly Modernizing Agriculture Sector May Be Leading to Increased Inequality in the Farm and Nonfarm Economies ........................................................................................................28  Box 3.2. Global Partnerships Have Helped Extend IFC’s Value Chain Support to Frontier Areas.........32  Box 3.3. IFC Agri-Food Investments and Their Links to the Rural Nonfarm Economy ..........................34  Box 3.4. Tapping Touristic Opportunities to Support Youth Employment in Morocco ............................39  Box 4.1. A Patient and Multifaceted Approach to Expanding Rural Finance in Tajikistan ......................55  Figures Figure 1.1. Three Worlds of Agriculture from the 2008 WDR ................................................................. 5  Figure 1.2. RNFE Poverty-Focused versus Growth-Oriented Approaches by Approval Year and Commitment Level .................................................................................................................................10  Figure 1.3. Key RNFE World Bank Group Approaches Oriented by Proportion of Agrarian Activity (2004–14) ..............................................................................................................................................11  Figure 1.4. Logical Framework of the RNFE Storyline ...........................................................................12  Figure 2.1. Poverty-Oriented RNFE Portfolio Is Mostly in Agrarian and Transition Areas .....................16  Figure 3.1. World Bank Group Growth RNFE Portfolio Is Mostly in Transitioning and Urbanized Economies .............................................................................................................................................27  Tables Table 1.1. World Bank Approaches in the RNFE .................................................................................... 9  Table 1.2. IFC Approaches in the RNFE ................................................................................................ 9  iv CONTENTS Appendixes APPENDIX A. IFC AND WORLD BANK PROJECT LIST ................................................................... 75  APPENDIX B. COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS . 76  APPENDIX C. CROP VALUE CHAINS .............................................................................................. 100  APPENDIX D. LIVESTOCK AND PASTORAL .................................................................................. 141  APPENDIX E. PRODUCTIVE PARTNERSHIPS ................................................................................ 148  APPENDIX F. RURAL LIVELIHOODS ............................................................................................... 151  APPENDIX G. IFC VALUE CHAIN ..................................................................................................... 155  APPENDIX H. METHODOLOGY ........................................................................................................ 208  APPENDIX I. ANALYTICAL AND ADVISORY ASSISTANCE AND ECONOMIC AND SECTOR WORK RELATED TO THE RNFE ......................................................................................... 218  APPENDIX J. RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS ................................. 219  APPENDIX K. LIST OF PERSONS CONSULTED ............................................................................. 235    v Abbreviations DEC Development Economics Group GAFSP Global Agriculture and Food Security Program GP global practice GWFP Global Warehouse Finance Program ICA investment climate assessments IEG Independent Evaluation Group IFAD International Fund for Agricultural Development IFC International Finance Corporation MSMEs micro, small, and medium enterprises PPAR Project Performance Assessment Report RICA rural investment climate assessments RNFE rural nonfarm economy SBA Sustainable Business Advisory SMEs small and medium enterprises SURR Social, Urban, Rural, and Resilience WDR World Development Report All dollar amounts are U.S. dollars unless otherwise indicated. vi Acknowledgments This report was prepared by an Independent Evaluation Group (IEG) team led by Lauren Kelly and Andrew Stone. The evaluation was conducted under the guidance and supervision of Midori Makino and Stoyan Tenev and under the overall direction of Caroline Heider. Marie Gaarder was the manager during the approach paper stage. Members of the evaluation team included Jacqueline Andrieu, Amitava Banerjee, Francesco Cuomo, Alexandra Christina Horst, Hassan Kaleem, Sama Khan, Pradeep Mitra, Christopher Nelson, Jack W. van Holst Pellekaan, Detlev Puetz, John Redwood III, Arianna Ranuschio, Mari Noel Lantin Roquiz, Nathan Rosenblatt, Sonia Sardar, Pallavi Sengupta, Inder Sud, Marcelo Selowsky, Kathryn Steingraber, Kendra White, and Jingwen Zheng. The evaluation team was also supported by several experts who provided cross-cutting guidance, including Elena Bardasi on gender, Rasmus Heltberg and Anahit Aghumian on partnerships, and Raghavan Narayanan on public-private partnerships. Vibhuti Khanna and Emelda Cudilla provided administrative support. Cheryl Toksoz led the editorial team, and Amanda O’Brien edited the report. Francis Gagnon provided inputs on graphic design. The evaluation included extensive fieldwork, which was supported by international and national consultants in the case study countries, including Mauricio Carrizosa (Brazil); Abhinav Gupta (Bangladesh); Xavier Justino Muianga and Gaurav Relhan (Mozambique); Mohammed Musa (Ethiopia); and Camilo Pacheco and Kay Stubbs (Nicaragua). Peter Lanjouw, former Research Manager, Poverty and Inequality, Development Research Group at the World Bank; Nora Dudwick, former Senior Social Scientist at the World Bank; and Steve Haggblade, professor of international development in the Department of Agricultural, Food and Resource Economics at Michigan State University, were the peer reviewers. IEG is grateful to the numerous representatives of country governments, private sector entities, international and bilateral development organizations, academia, and to the more than 1,200 project-affected persons that shared their views as part of the evaluation. vii Overview Highlights  Most of the world’s poor live in rural areas, and rural nonfarm activities are an important part of their livelihood strategies. However, for the poor to benefit from the rural nonfarm economy (RNFE), they need to overcome a host of human, physical, financial, institutional, and social capital constraints.  The World Bank Group has highlighted the RNFE in its strategies. From 2004 to 2014, the World Bank Group implemented 1,141 projects, valued at $46.5 billion, that included support for RNFE activities. However, the World Bank Group currently lacks an articulated approach to developing the RNFE to alleviate poverty. Many units have products in this space, but there is no coordinating mechanism.  There is a gap between poverty and growth-oriented approaches in the RNFE. Those designed to reach the rural poor have reduced vulnerability and increased access to services but have not generated sufficient, sustained income to lift the rural poor out of poverty. Those RNFE projects with a growth aim—mainly value chain approaches—achieved increased revenues but mostly without evidence of benefits for the poor. Spillover effects are not measured. Efforts to bridge this gap asked approaches adept at service delivery to achieve earned income goals beyond their original design.  Where investments by the International Finance Corporation (IFC) in food processing have had strong links to rural areas, they have mainly generated positive rural employment outcomes and demonstrated links to the RNFE. However, in its agribusiness portfolio, there was little in project design that targeted or tracked benefits for the poor. IFC’s retail investments linked to rural areas seek to increase the availability of goods and drive down costs for rural consumers. However, none of the investments tracked consumer benefits (costs) and only a few included local sourcing. In spite of examples where market power has adversely affected poor value chain participants, the risks imposed by market structure, its impact on the poor, and related mitigants are rarely treated explicitly in project documentation.  The World Bank has been a leader in researching the RNFE, including its link to poverty. But there is a gap on the diagnostic and analytics side that has been addressed occasionally but not systematically.  Addressing binding constraints is key to linking the rural poor to productive activities in the RNFE.  World Bank–financed rural transport projects have not measured their contribution to local economic gains, in spite of intentions to achieve this. Rural connectivity is being achieved through synergies between transport and agriculture lending but mainly in transitioning economies. Basic literacy and skills are critical enablers in the RNFE, but dialogue is lacking between the Agriculture and Education Global Practices. Although many value chain projects include a skills component, impact is not assessed. The delivery of sustainable, low-cost rural financial services requires research, piloting, and scaling-up of innovative business models to reach the underserved. World Bank support has extended some financial services to the poorest rural segments, but subsidization raises questions about sustainability, crowding out, and potential for ix OVERVIEW politicization. IFC investments reach countries with high exclusion rates, but only a fraction caters to the lower end of the retail segment.  Based on its evaluation, the Independent Evaluation Group recommends the World Bank Group do the following:  At the corporate level, clarify its approach to the RNFE and how it engages across institutions.  More flexibly and relevantly select and design projects in a manner tailored to country conditions and the needs of the target rural population.  Close knowledge gaps about what works to reduce rural poverty within the RNFE.  For IFC, include in its value chain analysis, and monitoring and evaluation, a consideration of poverty and gender impacts. In project documents, articulate market power risks as applicable.  Where the rural economy is a key part of the solution to ending poverty, collect information on rural enterprises to better inform the Systematic Country Diagnostic.  Strengthen and deepen gender analysis during project preparation and more consistently use the results to address key constraints in project design. Background 35 percentto 50 percent of rural income in developing countries, are an important part Assisting the development of the rural of rural poor households’ complex income nonfarm economy (RNFE) is essential to strategies. For the landless and the very the World Bank Group’s twin goals of poor, who are often employed as farm poverty alleviation and shared prosperity. laborers, sustainable income gains at the Most of the world’s poor live in rural areas. household level are generally associated with In 2013, an estimated 767 million people additional wages earned from rural nonfarm were living under the international poverty employment opportunities. However, line of $1.90 a day. Although rural poverty households that rely solely on farm labor has significantly declined during the past tend to be among the poorest. In rural two decades, 80 percent of the poor live in areas, agricultural workers are more than rural areas. There are also wide regional four times more likely to be poor compared variations in the distribution of the poor, with people employed in other sectors. most notably in Sub-Saharan Africa and Research has demonstrated that the rural South Asia. nonfarm sector can, and often does, Although agriculture has traditionally contribute to economic growth, household accounted for a large share of rural income diversification, rural employment, household income—over 80 percent of all poverty reduction, and a more spatially rural households farm to some extent— balanced population distribution. Emerging empirical evidence points toward the evidence shows that in some cases rural existence of a large and growing RNFE. diversification and secondary town Rural nonfarm activities, accounting for development are leading to faster poverty x OVERVIEW reduction and more inclusive growth excess labor from the farm. Embedded in patterns than large-scale urbanization. the action plan’s approach are five priority interventions to enhance RNFE But for the poor to benefit from development: (i) a systematic analytic opportunities in the RNFE, including approach to the rural investment climate, opportunities presented by mobility, they (ii) attention to rural livelihoods, (iii) the will need to overcome a host of institutional provision of skills upgrading and rural connectivity, human, social, and capital education, (iv) investment in rural constraints. Various studies show there is a infrastructure, and (v) addressing youth positive correlation between increased employment. access to rural services and resources and the ability of the poor to benefit from the Interviews with World Bank staff at RNFE. headquarters and at the country level revealed that a key challenge of World Bank Group Strategies Related to the implementing the RNFE pillar of the World RNFE Have Shifted Bank’s agriculture action plans was that Prior to and during the evaluation period, many of the enabling conditions needed to the World Bank approved and implemented grow the rural nonfarm economy lie outside two successive rural development strategies. of the span of control of any single Global The later strategy, Reaching the Rural Poor, Practice (GP). This evaluation also found had a chapter on fostering the growth of the that the agriculture action plans lack a RNFE. Midway through the partnership approach for the development implementation of this strategy, and on the of the RNFE, whereas a number of partners heels of the global food crises (2008), the were identified in the agricultural space. For World Bank Group shifted its approach in example, several instances of collaboration the agriculture and rural space. Partly in have been identified, but country missions response to findings from the Independent determined untapped opportunities to Evaluation Group’s (IEG’s) 2007 Report on leverage partnerships to achieve World Bank Assistance in Sub-Saharan Africa: complementarities in linking the rural poor An IEG Review that the agriculture sector to more productive opportunities in the has been neglected, the World Bank RNFE. adopted an agriculture action plan The World Bank Group’s current approach (roadmap) for Africa, then for all regions. in the agriculture sector and the RNFE is But as stated in IEG’s agriculture largely rooted in analysis conducted for the evaluations, the broader aims of the World 2008 World Development Report: Agriculture for Bank’s rural development strategy, including Development (WDR), which recommended an analysis of the contribution of rural that when crafting policy, the World Bank nonfarm income-generating activities to Group should consider the specific growth poverty reduction, were not evaluated. pathways of client countries—with The World Bank Group’s agriculture action particular attention to their dependence on plans (FY10–12 and FY13–15) include the agriculture and the nature of rural poverty. RNFE as a strategic pillar that recognizes The 2008 WDR introduced a “three worlds” the production and expenditure linkages lens of agrarian, transitional, and urbanized between the farm and the nonfarm sector countries, which facilitates observing some and the potential labor-smoothing and wage systematic differences in the country benefits that could be obtained by removing context and in the World Bank Group xi OVERVIEW portfolio, as well as the relationship of the projects and productive partnerships— RNFE to the farm, urban, and global implemented across all three worlds—have economies. The 2008 WDR emphasized the frequently achieved increased sales, need for improved enabling conditions for revenues, and incomes; however, reach to the RNFE, including the investment the rural poor is often not evident (poverty climate, skills and basic education in rural is not targeted or tracked). In these projects, areas, and the need to think spatially. there are likely spillover or secondary effects, but these are not measured. Effectiveness of the World Bank Group in Growing the RNFE to Reduce Poverty IEG found that efforts in the World Bank to bridge this divide have asked instruments This evaluation asked a key question: “How adept at reducing vulnerability to achieve successfully has the World Bank Group income and employment goals that are not contributed to the creation of sustainable in their comparative advantage. Social safety income-generating opportunities for the nets, for example, are increasingly rural poor within the RNFE? And, what incorporating productive activities to attributable effects has this had on reducing stimulate earned income, as are projects in poverty?” the Agriculture GP. But these approaches The portfolio review revealed that multiple are somewhat “siloized,” suggesting a need GPs are engaged in activities in the RNFE. to think more flexibly about how to draw Although only 40 percent of the activity is from the tool kit of interventions to arrive situated under the Agriculture GP, there is at new, more tailored approaches. Another no one GP or unit with coordinating phenomenon observed was “discontinuous responsibility. Instead, there have been change”: a sudden shift from one approach multiple global solution groups, to another with different target groups but communities of practice, and International without a clear plan to fill the social or Finance Corporation (IFC) departments productive gap left by the change. There are with products in the space. also regional concentrations of approaches observed. It also found that there has been a bifurcated approach in the World Bank to IFC’s RNFE portfolio of investments and the RNFE issue. In general, projects that advisory projects in the agricultural and have focused on reaching the rural poor food sectors was found to be primarily in have been effective in reducing vulnerability urbanized and transitioning economies. and increasing access to services but not in IEG’s portfolio analysis, which included an supporting the sustained income or examination of up- and downstream employment that will lift them out of linkages—found that a number of IFC poverty. This includes approaches such as investments in agrarian areas were working rural livelihoods, community-based to strengthen value chain development approaches with a productive aim, and across several of its segments, both up- and social safety nets with a productive inclusion downstream, and that this type of theme, all of which have been implemented engagement was increasing over time. in mainly agrarian and early transition Where IFC’s investments in food economies. processing projects have had strong links to On the other hand, projects with a growth rural areas and smaller urban centers, they aim, including agricultural value chain have generally generated positive rural employment outcomes and demonstrated xii OVERVIEW links to the RNFE. However, large urban migration, remittances, and (in many international client engagements, often countries) increasing youth unemployment conducted through lead firms, have lacked and the aging of rural populations. A measurable benefits for the poor. Further, broader review of RNFE content in the corporations with substantial market power existing Systematic Country Diagnostic for may disadvantage small producers in the agrarian and transitioning countries found value chain. IFC’s support for microfinance, that there was good coverage of the topic or the continued extension of microfinance from a rural poverty reduction perspective, to rural areas, alongside the development of including an analysis of the way that alternative financial instruments, presents an different income groups participate in farm observable connection to the rural poor and and nonfarm employment and associated the RNFE. The Global Agriculture and binding constraints. Yet, specific Food Security Program (GAFSP) has conclusions were lacking on how to more helped IFC take risks with an array of effectively use the RNFE as a poverty- financing options that, when combined with reducing platform. GAFSP, have allowed riskier investments in rural frontier, fragile, and conflict-affected Critical to guiding integrated country areas. approaches to the RNFE is the application of consistent diagnostics. The World Bank Sex-disaggregated data across the RNFE has been a leader in researching and portfolio increasingly record women’s documenting the rural nonfarm sector and participation in World Bank Group– in analyzing its relationship to poverty. financed projects, but few projects record However, on the diagnostic and analytics women’s access to economic opportunities, side, there is a wide gap in knowledge that and none record the distributional benefits has been addressed occasionally but not by gender. Value-chain activities require systematically. Pilot initiatives, financed better upfront diagnostics of women’s roles, mostly by trust funds, have not been including their relative access to assets, institutionalized. Where such country-level services, and markets as well as bargaining diagnostics have been conducted, they have power with actors across the value chains. valuably informed country strategies and programming. RNFE In-Country Strategies and Analytics At the country level, IEG’s country case Addressing Constraints in the Enabling studies across the three worlds found that Environment most of these had not pursued an integrated As identified in the literature review, there strategic approach to developing the RNFE. are several binding constraints that critically Bangladesh offers an important exception, affect the ability of the rural poor to find and beginning in FY16, so does Indonesia’s and capitalize on opportunities to pursue new Systematic Country Diagnostic. In rural nonfarm income through labor and general, the country case studies found that entrepreneurship. As established in the rural services have been delivered as part of approach paper, this evaluation covers four sector programs but not as part of a spatially of these, namely rural roads, rural skills, oriented approach to the rural economy rural finance, and gender. It also reports on (both farm and nonfarm). Such an approach others identified that have been included in would take into account a country’s stage of other IEG evaluations such as IEG’s Access structural transformation and would include to Electricity Evaluation (2015) but notes that an analysis of such dynamics as rural-to- work on water and sanitation (including urban xiii OVERVIEW and rural water) and essential health services services are harder to deliver in rural areas, (including in rural areas) are ongoing particularly where populations are widely evaluations. dispersed or geographically remote. Rural transport infrastructure. The World To deliver sustainable, low-cost services, the Bank committed $18.6 billion toward rural World Bank and its partners would need to road building and improvements between research, pilot, and scale up innovative 2004 and 2014. Yet the outputs of these business models and approaches to reach interventions are far better documented underserved clients. World Bank support than their impacts. In a third of all cases, has extended a certain level of financial rural transport projects included objectives services to the poorest segments of rural to link the poor to economic activities, but societies, but subsidization raises questions did not track this. Rural connectivity has about sustainability, crowding out, and been enhanced in transitioning countries potential for politicization. IEG found that that have strategically used both transport IFC investments often reach countries that and agriculture finance, but this has not have high exclusion rates, but only a occurred in the agrarian economies. fraction caters to the lower end of the retail Agrarian economies have borrowed segment. $1 billion from their agriculture projects to support critical market access Recommendations infrastructure—mainly through community- Recommendation 1: At the corporate based approaches—but data on location, level, the World Bank and IFC should quality, and connectivity and, ultimately, on clarify its approach to the RNFE, and as economic impacts, is lacking. part of it, how the World Bank Group engages across its institutions, GPs, and Skills and literacy. The delivery of basic partnerships to promote nonfarm rural education, literacy, and numeracy is economic development to reduce critical for the rural poor to access more poverty in the rural space. As part of this productive opportunities in the RNFE. approach, options should be differentiated However, staff report little dialogue by the state of rural structural between the Agriculture and Education GP transformation, and guided by lessons teams on how to best deliver relevant skills learned across the RNFE portfolio. related to the RNFE, coupled with a paucity of evidence on the effectiveness of skills Recommendation 2: To bridge the training. Where skills training is a identified gap, the World Bank and IFC component of identified RNFE projects, should more flexibly and relevantly they have not been well integrated and select and design projects in a manner effectively measured in terms of their tailored to the specific stage and nature outcomes. Several innovations related to of a country or area’s structural developing RNFE-related skills have been transformation and adapted to the needs supported by the World Bank and could be and dynamics of the target rural further studied, tested elsewhere, and more population. To encourage this, the World strategically applied. Bank Group should increase the pooling of knowledge and cross-fertilization across Rural finance. IEG’s recent financial GPs, regions, and units to build on and inclusion evaluation found that sustainable adapt ongoing approaches and to develop delivery of financial services to the rural new ones. poor faces persistent obstacles. Financial xiv OVERVIEW Recommendation 3: The World Bank and performance to help better inform Group should work to close knowledge the Systematic Country Diagnostic. gaps about what works to reduce rural poverty within the RNFE. The World RNFE diagnostics should include Bank should conduct evaluations (either information for household-based systematically, through a representative enterprises as well as micro, small, and sample, or through clusters) of poverty- and medium enterprises. Local capacity building growth-oriented projects to learn more and ownership (for example, through about the mechanisms by which they national statistical offices) are a critical part influence the development of the RNFE of this. They could be achieved by and their impact on poverty. extending existing enterprise surveys to strengthen coverage of secondary cities and Recommendation 4: IFC should include to include smaller enterprises in countries in its value chain analysis, and where existing surveys are limited in their monitoring and evaluation, a coverage. This could be complemented by consideration of poverty and gender household surveys building on the impacts, including income and experience of the Living Standards employment for the rural poor; either Measurement Study–Integrated Surveys on systematically, or on a sample or cluster Agriculture to document entrepreneurial basis including through a strategic use and work experience in rural enterprises. of its external evaluations. In its value chain projects, IFC should more Recommendation 6: The World Bank explicitly articulate the risks of market Group should strengthen and deepen power and their mitigants in its project gender analysis during project documentation. preparation of rural nonfarm projects and more consistently use the results of Recommendation 5: In countries where this analysis, to address gender-related the rural economy is a key part of the binding constraints to female labor force solution to ending poverty, the World participation in the RNFE. Project Bank Group should (in partnership with design should incorporate measures to donors and client countries) collect address these constraints, and select information on both formal and informal indicators to track progress made rural enterprises and their constraints toward gender-related economic outcomes. xv Management Response Management of the World Bank Group institutions welcomes the Independent Evaluation Group (IEG) report reviewing the World Bank Group’s contribution to poverty reduction in the rural nonfarm economy (RNFE) from FY04 to FY14. Management generally agrees with the review’s recommendations and thanks IEG for its collaborative engagement with staff over the course of the evaluation. As per capita incomes increase and structural transformation takes place, the share of the nonfarm economy in rural incomes tends to increase. Rural activity beyond the farm gate is initially strongly linked to agriculture—such as the storage, processing, distribution, and transportation of agricultural outputs and inputs that account for a large share of the manufacturing and services sectors in rural areas. Increased incomes from these activities across the broader food system tend to increase demand for rural non-agriculture-related activities such as construction and other services that can become an important source of incomes. Better understanding this rural dynamic can help inform policies and programs to facilitate rural jobs and income growth. Indeed, a recent World Bank publication, Shaping the Food System to Deliver Jobs, unpacks some of this dynamic and provides a framework for jobs and income growth in the food system that accounts for much rural economic activity. A challenge for the IEG evaluation was the criteria for selecting projects that affect RNFE, given the broad and somewhat fluid definitions of rural and nonfarm. As the report notes, “There is no global definition of ‘rural’ …Thus rural is everything that a country does not define as urban, and although it is measured, it is an amalgam of non-uniform criteria”; and “Rural nonfarm activity is defined both spatially, by activity that takes place in rural areas, and functionally, by a set of activities that do not constitute primary agricultural production.” Defining RNFE as activities in rural areas that do not constitute primary (farm) production, and applying associated project selection criteria, IEG evaluated a portfolio for 2004–14 that amounted, for the World Bank, to $35.4 billion, and for IFC, to $10.7 billion (investment projects) and $273 million (advisory projects). For the World Bank, these projects were mapped across multiple Global Practices (GPs): including Agriculture; Social, Urban, Rural & Resilience; Social Protection and Labor; Trade and Competitiveness; and Environment. Not included in the core portfolio evaluated were projects focusing on energy, health, education, and broader finance projects supporting activities in rural areas, although the report drew on other evaluations on these aspects. xvii MANAGEMENT RESPONSE World Bank Management Response CONTEXT Management welcomes and is in general agreement with the findings of the review. Nevertheless, we would like to emphasize several aspects related to the broader context that have implications for prioritization considerations in rural areas. Relative importance among rural economic activities. While the evaluation focuses on RNFE activities, it is important to recognize the centrality of farm activities for poor people in rural areas, which has implications for prioritizing overall support in rural areas. Of the worldwide poor, 80 percent live in rural areas, and about 80 percent of them work in agriculture, mostly on-farm. The importance of agriculture varies by Regions and by the country’s stage of structural transformation. For example, in Sub-Saharan Africa, agriculture accounts for about 70 percent of rural household income, rural nonfarm activities for about 20 percent, and transfers for about 10 percent. In Asia, about half of rural incomes are from agricultural activities, 37 percent from nonfarm activities, and 13 percent from transfers. In agriculturally dependent countries, it is hard to create nonfarm jobs and income sources in the RNFE without first growing the profitability of agricultural tradables, the income from which stimulates demand growth in rural and urban areas. Shifts in strategic directions. The evaluation noted the World Bank Group’s shift to focus more explicitly on agriculture relative to broader rural development—a shift that was driven by the 2008 World Development Report (WDR) and earlier IEG findings and recommendations. The 2008 WDR, Agriculture for Development, highlighted that “agriculture has served as a basis for growth and reduced poverty in many countries, but more countries could benefit if governments and donors were to reverse years of policy neglect and remedy their underinvestment and mis- investment in agriculture,” and it called for more and better investment in agriculture. The report World Bank Assistance in Sub-Saharan Africa: An IEG Review (2007) stated that “the central finding of the study is that the agriculture sector has been neglected by both governments and the donor community, including the World Bank. The World Bank’s strategy for agriculture has been increasingly subsumed within a broader rural focus, which has diminished its importance.” These findings initially led to the development of a World Bank Agriculture Action Plan (roadmap) for Africa, then for all Regions. The world food price spikes in 2008 reinforced the findings of the 2008 WDR. About 75 percent of support through the Agriculture Action Plans focused on raising agricultural productivity, and 25 percent on linking farmers to markets, strengthening value chains, and other xviii MANAGEMENT ACTION RECORD rural nonfarm income-generating activities (including physical infrastructure, value chain coordination, enabling environment, finance, and skills). This 25 percent portfolio share overlaps with the definition of the RNFE in the IEG evaluation. Moving forward, it will be important to continue to reflect the relative importance of farm and nonfarm rural activities in the composition of support. Demand for RNFE activities. The IEG report tends to focus more on supply-side constraints to RNFE activity. While these undoubtedly matter, it is important to recognize that the development of rural nonfarm enterprises is dependent on the demand for the goods and services they provide. Demand-side aspects include growing the profitability of tradable agriculture (mentioned above), improving the rural business climate, providing infrastructure, and encouraging competition and private sector participation. As rural non-agriculture-related activities are mostly non-tradable, they are by definition demand-constrained. To make these rural non- agriculture-related activities grow, it is necessary to bring new income from outside the local area that is widely distributed to poor consumers. Increased exports of crops and other agricultural products from the local area (to cities and across borders) can sustainably stimulate additional demand for nontradables in rural areas. Moreover, additional sources of demand for RNFE activities can be provided by linking rural enterprises to external sources of demand, through such means as the e-commerce platforms linking small entrepreneurs in China’s Taobao rural villages with national and global markets. Coordinating mechanisms. The evaluation indicates that there is no one GP or unit with coordinating responsibility for RNFE activities. We would note that since the 2004–14 evaluation period, with the 2014 introduction of the World Bank Group’s new operating model, Systematic Country Diagnostics (SCDs) and Country Partnership Frameworks (CPFs) provide the coordinating mechanism at the country level. The GPs, also established in 2014, promote the flow of knowledge across sectors, Regions, and the World Bank Group, and enable personnel from various sectors and Regions to work together on solutions, providing expertise from diverse technical areas to address multidimensional problems. COMMENTS ON RECOMMENDATIONS Management welcomes the report’s approach in formulating a limited number of focused recommendations, with some specific actions listed as possible options or suggestions for Management’s consideration. Recommendation 1: At the corporate level, the World Bank and IFC should clarify its approach to the Rural Nonfarm Economy, and as part of it, how the World Bank Group engages across its institutions, GPs, and partnerships to promote nonfarm xix MANAGEMENT RESPONSE economic development to reduce poverty in the rural space. Management agrees with the essence of the recommendation that aims to ensure an appropriately focused and coordinated set of activities to promote RNFE development. An overall framework to improve jobs and income in the RNFE can help guide World Bank support in this area. The modalities for operationalizing this are already reflected in the new operating model adopted by the World Bank Group in 2014 (the end of the evaluation period). The SCDs and CPFs provide the principal coordination mechanism for the implementation of World Bank and IFC country-level activities in both rural and urban areas. An overall framework to improve jobs and income in the RNFE can help guide and strengthen the SCDs and CPFs, including through engagement across the institution and GPs, and with partners. In this context, we highlight the continued need to reflect in World Bank support the relative importance of farm, rural nonfarm, and urban activities in the incomes and opportunities of the world’s 767 million poor people. In countries with high levels of rural poverty, SCDs need to explore the challenges and opportunities in rural space, with an understanding of current trends and patterns in poverty reduction, inclusion, and sustainability, including exploring critical contextual factors such as geography and the spatial distribution of poverty. The new operating model the World Bank Group put in place in 2014 was specifically created to facilitate cooperation across GPs/cross-cutting solution areas and across Regions. An example is the new Global Solutions Group on Rural Livelihoods and Jobs, which brings together staff from different parts of the World Bank Group (including the Trade & Competitiveness GP, the Urban, Rural & Social Development GP, the Health, Nutrition, and Population GP, and the IFC). The group is beginning to work on job diagnostics, measurement, rural structural transformation analytics, and studies on the nonfarm subsector, including the informal economy. Consistent with the World Bank Group’s new operating model, Management is increasing efforts to coordinate and carry out analytics and evaluations in this area. Recommendation 2: In order to bridge the identified gap, the World Bank and IFC should more flexibly and relevantly select and design projects in a manner tailored to the specific stage and nature of a country or area’s structural transformation and adapted to the needs and dynamics of the target rural population. Management agrees that project designs should be tailored to the specific stage and nature of a country’s or area’s structural transformation and adapted to the needs and dynamics of the target population. Pooling knowledge of lessons from specific contexts, including from this evaluation, can help inform future project designs. xx MANAGEMENT ACTION RECORD Recommendation 3: The World Bank Group should work to close knowledge gaps about what works to reduce rural poverty within the rural nonfarm economy. The World Bank should conduct evaluations (either systematically, through a representative sample, or through clusters) of poverty and growth oriented projects to learn more about the mechanisms by which they influence the development of the rural nonfarm economy and their impact on poverty. Management agrees to track income effects in more projects supporting activities in the RNFE than it did during 2004-14. This can yield information about which approaches work best in which contexts. The World Bank has a range of work ongoing in this area. For example, under the i2i Trust Fund and DIME-funded programs, 26 impact evaluations in the related agriculture sector, and 14 non-agriculture rural impact evaluations, are completed or under way. That said, to reach a number that would cover all “major intervention categories” in a representative sample of countries and sectors would be challenging. In addition, to learn more about the mechanisms and interventions through which structural transformation takes place, the Agriculture GP has initiated studies and evaluations that include enterprise surveys carried out in conjunction with household surveys and a review of enterprise data that are collected through national and local statistics and survey systems. The World Bank is trying to do more collection of survey data in rural areas, but the extent of more invariably depends upon the availability of funding. In a time of flat budgets, it will be important to give priority to countries where, for example, the RNFE is identified in the SCD as being a top-priority area. Recommendation 5: In countries where the rural economy is a key part of the solution to ending poverty, the World Bank Group should (in partnership with donors and client countries) collect information on both formal and informal rural enterprises and their constraints and performance to help better inform the Systematic Country Diagnostic. Increasing our knowledge of the constraints to and performance of formal and informal rural enterprises in client countries can better inform SCDs and subsequent programs of support. As the evaluation notes, while excellent work has been done on the higher-level diagnostics of RNFE, there is a knowledge gap on deeper granular insights to further guide policy and investment interventions. It will be necessary to prioritize data collection efforts in this area, taking into account the country context and other competing knowledge gaps. Analytical work using existing information on both formal and informal micro and medium-sized rural enterprises is ongoing to deepen our knowledge base on enterprise dynamics and on associated incomes and jobs. Over time, we hope to build a critical mass of knowledge and robust insights capable of better informing future SCDs and the design of new operations. For IDA18 one of the key themes of focus is Jobs, including those in the RNFE; therefore, the intensity of analytical work xxi MANAGEMENT RESPONSE on jobs diagnostics and measurement has significantly increased, and over time the results will become a significant part of SCDs and operations. Recommendation 6: The World Bank Group should strengthen and deepen gender analysis during project preparation of rural nonfarm projects and more consistently use the results of this analysis, to address gender-related binding constraints to female labor force participation in the RNFE. Project design should incorporate measures to address these constraints, and select indicators to track progress made toward gender-related economic outcomes. Management agrees with this recommendation. It is entirely consistent with the World Bank’s new gender strategy, which requires that Project Appraisal Documents (PADs) include: (a) an analysis to identify relevant gender gaps (as in access to services, markets, or assets) that the project can contribute to closing, (b) actions to address the gender gaps identified in the analysis, and (c) indicators to monitor the outcomes of actions taken to reduce the gender gap. As has been noted, World Bank Management is in general agreement with the evaluation’s recommendations. We note that most of the recommendations are entirely consistent with broader Bank requirements introduced in recent years: better analysis of the drivers of poverty, including from a geospatial perspective, within the SCD process; better design of solutions and a World Bank program in the CPF (including better integration/collaboration across the World Bank Group and across the development community); design of projects/interventions with results frameworks that track impact on incomes/livelihoods (consistent with project objectives an intended impacts); and much better analysis of gender-based barriers, along with actions to address and monitor them. IFC Management Response IFC Management would like to congratulate the IEG team for a thoughtful report on the World Bank Group’s contribution to the rural nonfarm economy (RNFE). IEG’s engagements and dialogues were welcome and appreciated. Before responding to the recommendations of the report, Management wishes to note a few points. First, as was shared with IEG from the early stages of engagement, IFC Management is of the view that farm and nonfarm impacts are fundamentally intertwined; therefore, IFC does not distinguish between the agricultural and the nonfarm rural economy. IFC’s Agribusiness Strategic Action Plan (ASAP) FY12–14, which was presented to CODE in August 2011 and continues to be the strategic framework for agribusiness today, incorporates both types of support and related activities, which xxii MANAGEMENT ACTION RECORD are overseen primarily by the Agribusiness group in the Manufacturing, Agribusiness, and Services (MAS) Department. The ASAP, which is aligned with the World Bank Group’s Agriculture Action Plan, focuses on (a) food security, (b) inclusive economic development, and (c) environmental and social sustainability as business drivers. It facilitates relevant cross-team collaboration from different IFC departments as well as the World Bank’s Agriculture GP and other relevant GPs. A revised strategy, now being developed, is expected to continue the main ASAP focus areas. Second, as the ASAP second pillar highlights, economic inclusion is central to IFC’s agribusiness strategy, which aims to support smallholder farmers, including women, in agri-value chains and to promote intentional engagement with global and regional value chain “anchor firms.” IFC seeks to engage with these anchor firms, including agricultural trading companies, because they are the main vehicle for setting standards, ensuring traceability, driving productivity increases, and rewarding quality differentials. IFC’s approach is to increase the inclusiveness and reach of agri-supply chains by working with both local and international value chain anchor firms where access to markets creates increased access to finance, inputs, and other opportunities. In many rural markets, such anchor firms may be the only organized, formal private sector operators. IFC seeks out partnerships with firms that function as supply chain managers, providing inputs, extension services, and technical assistance, and helping to ensure that the market is linked to global pricing and standards. Supply chain managers typically seek ways to improve farmers’ yields and quality of production, as it aligns with their incentives to provide consistent quality and quantities, and reinforces long-term relationships. For farmers who are able to respond to these standards and requirements and to utilize the inputs and services provided effectively, there are significant opportunities to sustain and increase their incomes through participation in the value chain. While IFC Management recognizes the positive experience with strengthening producer organizations and government support, such as Latin America’s productive partnerships in improving smallholder farmers’ access to markets and inputs that the IEG report noted, IFC considers it also critical to develop private- sector-oriented solutions that leverage the value chain “market power” of anchor firms—an approach that the report criticized. With this objective in mind, IFC collaborates with anchor firms where IFC’s development objectives are aligned with their commercial interests and where the only subsidy is the donor-funded portion of IFC Advisory Services. The resulting solutions often include strengthening cooperatives and other producer organizations, as in coffee in Nicaragua and more recently in cocoa in Côte d’Ivoire and Cameroon. The same objective drives some of IFC’s Advisory Services to improve the functioning of the supply chain and the xxiii MANAGEMENT RESPONSE system, which would then generate benefits for smallholder farmers and anchor firms alike. Evaluative evidence from IFC advisory engagements has so far validated the benefits to farmers from this approach of working through value chain anchor firms. IFC Management is pleased with the report’s finding that many IFC agribusiness projects have strong reach into and impact on rural areas, and that certain issues related to small farmers are being more positively addressed by IFC with new and evolving mechanisms. One example is the Global Agriculture and Food Security Program Private Sector Window (GAFSP PrSW), managed by IFC since 2009, which is an innovative vehicle to support smallholder farmers in the poorest countries, nearly all of which are agrarian economies, through both on-farm and nonfarm activities. The vehicle has been facilitating support outside IFC’s traditional tools and activities, leading to benefits beyond the financing instrument itself through technical assistance and linkages to the client company and related beneficiaries. Another tool developed in recent years is the Global Warehouse Finance Program (GWFP), which works with local banks to provide inventory financing to farmers. While the GWFP program is still in its early stages, it has already been very effective in improving farmers’ access to finance, especially where warehouse receipt financing did not exist previously, and especially where the instrument was introduced with the support of GAFSP PrSW. With respect to GWFP, IFC Management clarifies that the purpose of the program is to introduce warehouse receipt-based financial instruments into commercial banking systems where they do not currently exist. Between September 2010, when the program began, and November 2016, GWFP supported 19 transactions worth $552 million, most of which were committed and disbursed after the 2004–14 evaluation period. Warehouse receipt finance offers an important alternative way for farmers to store their product for a period before the sale, allowing them to take advantage of higher prices in off-harvest periods. The report suggests that IFC should influence participating banks to focus on poor clients to maximize the poverty impact, and should otherwise seek to influence banks to focus on particular crops relevant to small farmers. IFC’s focus at this stage is on establishing well- designed financial instruments to be in common use for as large a market as possible to achieve efficiency and reach to all appropriate crops and transaction sizes. This is the critical priority for a new financial instrument; once it is firmly embedded in the market, IFC can then seek to address any access and distributional inefficiencies. Regarding attribution difficulties on the benefits of IFC or private sector interventions for the rural poor, IFC Management agrees that this is an area that remains challenging. However, building on initiatives in this area, such as IFC’s xxiv MANAGEMENT ACTION RECORD initial comprehensive household income and benefits study conducted for Nicaraguan coffee farmer suppliers in 2014, IFC is expanding its efforts. While economic and household income studies are challenging, resource-intensive in both personnel and financing, and, even in the best cases, imperfect, several current initiatives and partnerships are designed to further help with greater evidence of the broader impacts of selected interventions. In several advisory projects IFC has successfully piloted the SWIFT poverty assessment tool developed by the World Bank. Income and poverty impact studies built into the GAFSP PrSW at both the overall and project levels and an IFC-sponsored evaluation of “Agri-Traders” investments and advisory services are examples of efforts examining more direct income and other farmer benefits. With this background, IFC is in broad agreement with the essence of the recommendations, except the premise of Recommendation 4. Recommendation 1: IFC agrees that it will be helpful to clarify the approach. In IFC, this is best done within the articulation of the Agribusiness strategy, which, as noted, brings in other parts of IFC. For implementation of World Bank and IFC country-level activities, IFC agrees with the World Bank colleagues that the SCDs and CPFs provide coordination mechanisms in both rural and urban areas. Recommendation 2: IFC Management does not disagree with this approach. It clarifies, however, that impact on rural areas is often not the primary impact IFC seeks in supporting projects, which the recommendation appears to suggest that it should be. Recommendation 4: Although IFC Management agrees with the substance of the recommendation, it does not agree with the premise of the recommendation on the distortions of market power in agricultural value chains. In IFC Management’s view, it is important to assess the impact of an IFC-supported project on the market, including on market structure and competition. IFC also considers it important to identify poverty and gender impacts both ex-ante and ex-post. In this respect, IFC has developed a new ex-ante framework for evaluating economic impact, Anticipated Impact Measurement and Monitoring (AIMM), which is being introduced in phases in FY18, with full deployment planned for FY19. In AIMM, the market-level impact is a key part of the framework; another dimension assessed will be inclusiveness, which will incorporate likely impacts on women and low-income populations. The AIMM assessments will be ex-ante assessments of pending projects, and subject to limitations and assumptions. With regard to ex-post assessments, assessments of poverty and gender impacts are typically undertaken as part of external evaluations, but without distinguishing rural and non-rural xxv MANAGEMENT RESPONSE domains, and it is not possible to obtain accurate poverty impact data in all cases. In projects where IFC has additional resources for monitoring and evaluation, such as GAFSP and some Advisory Services projects, IFC is increasingly incorporating these elements—for example, through the use of poverty scorecard metrics and gender differentiation. Recommendations 3, 5, and 6: These are oriented largely to the World Bank. IFC is prepared to support World Bank colleagues as appropriate in meeting these recommendations. xxvi Management Action Record Acceptance by IEG findings and conclusions IEG recommendations Management response management World Bank Group strategies have Recommendation 1: At the Agree World Bank Management agrees with the acknowledged the importance of the RNFE, corporate level, the World essence of the recommendation that aims to and the topic has been one of five pillars in Bank and IFC should clarify its ensure an appropriately focused and the Agricultural Action Plans (AAPs). The approach to the Rural Non- coordinated set of activities to promote Agriculture and Rural Development Sector Farm Economy, and as part of RNFE development. The modalities for Board provided oversight for the it, how the Bank Group operationalizing this are reflected in the development and implementation of the engages across its institutions, new operating model adopted by the World AAPs (FY10-12; FY13-15) – the most GPs, and partnerships to Bank Group in 2014 (at the end of the recent guiding documents in the RNFE promote non-farm economic evaluation period). Systematic Country space. The core RNFE portfolio identified development to reduce poverty Diagnostics (SCDs) and Country by IEG extends somewhat beyond the in the rural space. As part of Partnership Frameworks (CPFs) provide coverage in the AAPs. The AG GP oversees this approach, options should be the principal coordination mechanism for 40% of the core RNFE in this evaluation. differentiated by the state of rural implementation of World Bank and IFC Many units and multiple GPs have products structural transformation, and activities in both rural and urban areas. An in this space, and although at the country guided by lessons learned across overall framework to improve jobs and level, the SCD/CPF process provides a the RNFE portfolio. income in the RNFE can help guide and vehicle for coordination, there is currently strengthen the SCDs and CPFs, including no coordinating mechanism at the corporate through engagement across the institution level. For IFC, the Agribusiness strategy has and GPs, and with partners. In this context, been linked to the AAP. we highlight the continued need to reflect in World Bank support the relative The RNFE Pillar in the AAP identified importance of farm, rural non-farm, and priority areas of action, without necessarily urban activities in the incomes and identifying pathways to achieving these, or opportunities of the world’s 767 million the role of key players across the WBG. In poor people. In countries with high levels addition, there is no articulated partnership of rural poverty, the SCDs need to explore xxvii MANAGEMENT ACTION RECORD Acceptance by IEG findings and conclusions IEG recommendations Management response management plan for the RNFE while IEG observed at the challenges and opportunities in rural the country level untapped opportunities for space, with an understanding of current such partners. trends and patterns in poverty reduction, inclusion, and sustainability, including such critical contextual factors as geography and the spatial distribution of poverty. The WBG’s new operating model was specifically created to facilitate cooperation across GPs/Cross-Cutting Solution Areas and Regions. An example is the new Global Solutions Group on Rural Livelihoods and Jobs, which brings together staff from across the WBG to work on diagnostics, measurement, knowledge sharing, and operations. IFC Management agrees that it will be helpful to clarify the approach. In IFC, this is best done within the articulation of the Agribusiness strategy, which brings in other parts of IFC. For implementation of World Bank and IFC country-level activities, IFC agrees with the World Bank colleagues that the SCDs and CPFs provide coordination mechanisms in both rural and urban areas. xxviii MANAGEMENT ACTION RECORD Acceptance by IEG findings and conclusions IEG recommendations Management response management IEG’s portfolio analysis reveals a gap Recommendation 2: In order to Agree World Bank Management agrees that between RNFE projects that are poverty bridge the identified gap, the project designs should be tailored to the oriented - that often successfully deliver World Bank and IFC should specific stage and nature of a country’s or services – but without sustainably lifting the more flexibly and relevantly area’s structural transformation and adapted rural poor out of poverty and growth select and design projects in a to the needs and dynamics of the target oriented approaches that stimulate sectoral manner tailored to the specific population. Pooling knowledge of lessons growth along the value chain but that do not stage and nature of a country from specific contexts, including from this evidently benefit the rural poor. or area’s structural evaluation, can help inform future project transformation and adapted to designs. Too often, evidence is not collected to the needs and dynamics of the indicate income or employment benefits to IFC Management does not disagree with target rural population. the poor of WBG RNFE interventions. this approach. It clarifies, however, that To encourage this, the World impact on rural areas is often not the What limited evidence is available is the Bank Group should increase the primary impact IFC seeks in supporting basis of the gap described above. pooling of knowledge and cross- projects, which the recommendation For IFC, the choice of client and type of fertilization across GPs, regions, appears to suggest that it should be. investment critically effects its ability to and units to build on and adapt reach and provide benefits to the rural poor. ongoing approaches and to It is vital to target aid as closely as possible develop new ones. to the binding constraints faced by the poor in the rural economy. The portfolio review found that very few Recommendation 3: The World Agree World Bank Management agrees to track projects in the core RNFE portfolio are Bank Group should work to income effects in more projects supporting tracking income or employment effects for close knowledge gaps about activities in the RNFE than it did during the poor. In the absence of better what works to reduce rural 2004-2014. This can yield information on measurement of income and employment poverty within the rural non- which approaches work best in which effects, the WBG has little information on farm economy. The World Bank contexts. which approaches work best in which should conduct evaluations The World Bank has a range of work (either systematically, through a ongoing in this area. For example, 26 xxix MANAGEMENT ACTION RECORD Acceptance by IEG findings and conclusions IEG recommendations Management response management contexts and with what impact for representative sample, or through impact evaluations in the related agriculture addressing rural poverty. clusters) of poverty and growth sector and 14 non-agriculture rural impact oriented projects to learn more evaluations are completed or under way. Poverty oriented approaches are targeting about the mechanisms by which the rural poor, but IEG’s review of micro they influence the development evaluative data finds that evidence collected of the rural non-farm economy is limited mainly to access to and their impact on poverty. services/reduced vulnerability. Projects are not tracking the sustainability or profitability of the productive investments being made. Few value chain projects are measuring competitiveness or reporting on the relative benefits across the value chain. In the WBG, poverty sensitive value chain analysis was lacking at design, along with associated metrics for monitoring and evaluation. Such analysis should seek to understand labor market segmentation, market power, and the terms of exchange as they affect conditions of employment for poor men and women. In these projects, important secondary effects have also not been measured. There is a need to fill knowledge gaps, using more rigorous methods to understand the impact for the rural poor, including for women and men, of major intervention categories in varying country and sector conditions. Despite IFC’s stated objectives of reaching Recommendation 4: IFC Agree IFC Management agrees with the substance the poor through its agribusiness portfolio, should include in its value of the recommendation but does not agree xxx MANAGEMENT ACTION RECORD Acceptance by IEG findings and conclusions IEG recommendations Management response management IEG’s review of project documents and chain analysis, and M&E, a with the premise of the recommendation on micro evaluative evidence found that in consideration of poverty and the distortions of market power in most cases there was little in the project gender impacts, for the rural agricultural value chains. In IFC design that identified, targeted or tracked poor; either systematically, or Management’s view, it is important to benefits for the poor. In wholesale and retail on a sample or cluster basis assess the impact of an IFC-supported liked to rural areas, IFC’s investments seek including through a strategic project on the market, including on the to increase the availability of goods and use of its external evaluations. structure and competition. IFC also drive down costs for (rural) consumers. considers it important to identify poverty In its value chain projects, IFC However, none of the investments tracked and gender impacts both ex-ante and ex- should more explicitly consumer benefits and only a few created post. In this respect, IFC has developed a articulate the risks of market employment through local sourcing. new ex-ante framework for evaluating power and their mitigants in its economic impact, AIMM, which is being In spite of examples of where market power project documentation. introduced in phases in FY18, with full has adversely affected poor value chain deployment in FY19. In AIMM, the participants, the risks imposed by market market-level impact is a key part of the structure and its impact on the poor and framework; another dimension assessed related mitigants are rarely treated explicitly will be inclusiveness, which will in project documentation. incorporate likely impacts on women and low-income populations. These would be ex-ante assessments of pending projects, and subject to limitations and assumptions. With regard to ex-post assessments, assessments of poverty and gender impacts are typically undertaken as part of external evaluations, but without distinguishing rural and non-rural domains, and it is not possible to obtain accurate poverty impact data in all cases. In projects where IFC has additional resources for M&E, such as xxxi MANAGEMENT ACTION RECORD Acceptance by IEG findings and conclusions IEG recommendations Management response management GAFSP and some Advisory Services projects, IFC is increasingly incorporating these elements—for example, through the use of poverty scorecard metrics and gender differentiation. Critical to guiding integrated country Recommendation 5: In Agree Increasing our knowledge of the constraints approaches to the RNFE is the application of countries where the rural to and performance of formal and informal consistent diagnostics. The World Bank has economy is a key part of the rural enterprises in client countries can been a leader in researching and solution to ending poverty, the better inform SCDs and our subsequent documenting the rural non-farm sector and World Bank Group should (in programs of support. As the evaluation in analyzing its relationship to poverty. But partnership with donors and notes, while excellent work has been done IEG found through its review of RNFE client countries) collect on the higher-level diagnostics of RNFE, diagnostics and country case studies, that information on both formal there is a knowledge gap on deeper there is a wide gap on the diagnostic and and informal rural enterprises granular insights to further guide policy and analytic side that has been addressed and their constraints and investment interventions. It will be occasionally but not systematically. Given performance to help better necessary to prioritize data collection limited internal resources, past and ongoing inform the Systematic Country efforts in this area, taking into diagnostic initiatives have relied on Diagnostic consideration the country context and other partnerships with other donors and the competing knowledge gaps. RNFE diagnostics should include mobilization of external financing. information for household-based Analytical work using existing information IEG’s country case studies and a review of enterprises as well as micro, on both formal and informal micro and the RNFE of 28 SCDs found that in most small, and medium enterprises. medium-sized rural enterprises is also country programs reviewed rural services Local capacity building and ongoing to deepen our knowledge on were being delivered as part of sector ownership (for example through enterprise dynamics, and on associated programs but not as part of an integrated national statistical offices) is a incomes and jobs. strategic approach to developing the rural critical part of this. This could be non-farm economy as a vehicle to reduce achieved by extending existing rural poverty. enterprise surveys to strengthen coverage of secondary cities and xxxii MANAGEMENT ACTION RECORD Acceptance by IEG findings and conclusions IEG recommendations Management response management to include smaller enterprises in countries where existing surveys are limited in their coverage. This could be complemented by household surveys building on the experience of the Living Standards Measurement Study Integrated Surveys on Agriculture to document entrepreneurial and work experience in rural enterprises. IEG’s gender analysis of the RNFE portfolio Recommendation 6: The World Agree The World Bank’s new gender strategy found that sex disaggregated data Bank Group should strengthen requires that Project Appraisal Documents increasingly records women’s participation. and deepen gender analysis (PADs) include: (a) an analysis to identify However, few projects record women’s during project preparation of relevant gender gaps (as in access to access to economic opportunities, and none rural non-farm projects and services, markets or assets) that the project record distributional benefits by sex. While more consistently use the can contribute to closing; (b) actions to data was disaggregated for other groups (e.g. results of this analysis, to address the gender gaps identified in the youth), it was not disaggregated for sex. address gender-related binding analysis, and (c) indicators to monitor the Gender disaggregated measurement was constraints to female labor outcomes of actions to reduce the gender limited to female participation in the overall force participation in the gap. program. RNFE. Project design should incorporate measures to Women are also underrepresented in skills- address these constraints, and training programs and face “gendered” select indicators to track constraints to placement. progress made toward gender related economic outcomes. xxxiii 1. Introduction and Background Highlights  The rural nonfarm economy (RNFE), defined both spatially and functionally, is critical to poor household’s income strategies, enhancing resilience and sometimes providing a pathway out of poverty.  Empirical evidence shows that, although much RNFE activity is low productivity and informal, the rural nonfarm sector can, and often does, contribute to economic growth, rural employment, poverty reduction, and a more spatially balanced population distribution.  For the poor to access opportunities in the RNFE they will need to overcome many constraints, including transport connectivity, access to skills and education, and financial services, as well as social factors of exclusion linked to status, identity and gender, among others.  The opportunities and challenges of the RNFE are context-specific and can be understood through a “three worlds” lens that captures the stage of a country’s structural transformation.  This evaluation assesses the effectiveness of World Bank Group support to the development of the RNFE to reduce rural poverty using a constructed theory of change linking a diagnostic understanding of challenges to interventions, outcomes, and impacts.  In the wake of the global food crisis of 2008, the World Bank Group’s Agriculture Action Plans increased emphasis on agricultural productivity, agribusiness, and aspects of the RNFE. However, at present there is no clear locus for a spatial focus on rural economic development or an integrated view of the RNFE, across global practices or with regard to partnering. This evaluation asked a key question: “How successfully has the World Bank Group contributed to the creation of sustainable income-generating opportunities for the rural poor through the rural nonfarm economy (RNFE)? And, what attributable effects have World Bank Group efforts had on reducing poverty?” Definitions Rural nonfarm activity is defined both spatially, by activity that takes place in rural areas, and functionally, by a set of activities that do not constitute primary agricultural production. Rural nonfarm activities include value chain activities, such as agroprocessing, transport, distribution, marketing, and retail, as well as other economic activities in the rural space, such as tourism, manufacturing, construction, mining, and other self-employment activities (handicrafts, bakeries, mechanics, kiosks, and so on).1 There is no global definition of “rural”; instead, the World Bank relies on the definitions used by national statistical agencies. These definitions vary widely, sometimes applying a cutoff at a particular population level or density, sometimes using sectoral characteristics (for example, whether the population is primarily engaged in agriculture), and sometimes using legal or administrative definitions (for example, whether the settlement is incorporated as an urban unit). Thus rural is 1 CHAPTER 1 INTRODUCTION AND BACKGROUND everything that a country does not define as urban, and although it is measured, it is an amalgam of nonuniform criteria. Analytical Underpinnings Most of the world’s poor live in rural areas, and rural nonfarm activities are an important part of rural households’ complex income strategies. In 2013, an estimated 767 million people were living under the international poverty line of $1.90 a day, with 80 percent of the total poor living in rural areas (World Bank 2016b). Although migration, urbanization, and increased farming productivity can be key pathways out of poverty, the poverty-reducing effects of rapid modernization are highly contextual and policy dependent, especially where high inequality exists. In rural areas, farming accounts for a large share of most rural households’ income, but empirical evidence points to a large and growing rural nonfarm sector (Losch 2012; Haggblade, Hazell, and Reardon 2007; Davis 2006; Lanjouw 2001).2 Rural nonfarm activities account for 35 to 50 percent of rural income in developing countries, and for the landless and the very poor, sustainable income gains at the household level are associated with additional wages earned from nonfarm activities. Households relying only on farming tend to be among the poorest. But for the poor to benefit from opportunities in the RNFE—including those presented by mobility—they must overcome many policy and resource constraints. These include connectivity, access to basic literacy and numeracy, relevant skills, finance, and legal rights to land. Other constraints are associated with exclusion based on gender, age, or identity. This is evidenced in studies showing a positive correlation between increased access to rural services and the ability of the poor to benefit from the RNFE. For example, in China, nonfarm activity was found to reduce rural income inequality, disproportionately benefiting poor households (Zhu and Luo 2006). Rural infrastructure and basic education were critical. In India, although the most disadvantaged may not directly participate in the nonfarm sector, the sector raises rural labor demand and wages, with indirect effects on poverty (Lanjouw 2001). Much RNFE activity is low productivity and subsistence level through household or microenterprises, the latter often located in rural villages. These activities provide important, if intermittent, sources of income. With few assets and spare earnings, there is little investment or growth for such enterprises, but they provide important supplemental income for consumption. The relatively better off rural residents, with greater endowments of human and physical capital, are better able to profit substantially from nonfarm enterprises and wage employment. Research indicates that the better off are more equipped to take advantage of chances to link to value 2 CHAPTER 1 INTRODUCTION AND BACKGROUND chain opportunities reaching into the rural space, as traders, processors, distributors, retailers, and workers (Davis 2006). Nonetheless, the rural nonfarm sector can, and often does, contribute to economic growth, rural employment, poverty reduction, and a more spatially balanced population distribution (Lanjouw 2001). The distributional impacts of rural nonfarm opportunities can be significantly pro-poor, extending through linkages between the nonfarm and the farm sector. In recent years, there has been emerging evidence that, in some cases, rural diversification and secondary town development is leading to faster poverty reduction and more inclusive growth patterns than larger-scale urbanization (Christiaensen 2013; Christiaensen, Weerdt, and Todoc 2013; Dorosh and Thurlow 2013, 2014; Wenban-Smith and Ambrose 2014; Datt and others 2016). Mobility and access to transferable assets augment this. Evaluation Rationale This evaluation aims to deepen the evidence concerning the effectiveness of World Bank Group support to the development of a sustainable and inclusive RNFE. The RNFE is a vital pathway for many rural poor households to lift themselves out of poverty and is thus a key building block of the twin goals. The evaluation took on an area critical for realizing further gains in poverty in the coming decade. To date, none of the evaluations by the Independent Evaluation Group (IEG) have conducted a multisectoral assessment to learn about what works in this segment of the economy. Strategies and Analyses of the World Bank Group Related to the RNFE Prior to and during the evaluation period, the World Bank approved and implemented two successive rural development strategies. Rural Well-Being: From Vision to Action, launched in 1997, decisively influenced global thinking but had disappointing results in the field. The 2003 strategy, Reaching the Rural Poor, focused on the most disadvantaged and sought to address rural areas in their entirety by promoting broad-based rural growth and service provision, including the RNFE. It also recognized that lending for agriculture was then at its lowest level in the World Bank’s history, despite the integral role that agriculture plays for the rural poor directly, through farming, or indirectly, through value chain activities. Midway through the implementation of the World Bank’s 2003 rural strategy, IEG’s report on World Bank Assistance to Agriculture in Sub-Saharan Africa: An IEG Review stated that “the agriculture sector has been neglected by both governments and the donor community, including the World Bank” (World Bank 2007). This, followed by 3 CHAPTER 1 INTRODUCTION AND BACKGROUND similar findings in IEG’s global evaluation, Growth and Productivity in Agriculture and Agribusiness, initially led to the development of a World Bank agriculture action plan (roadmap) for Africa, then for all regions as reflected by the World Bank Group agriculture action plans (World Bank 2011). But as stated in these IEG agriculture evaluations, the broader aims of the World Bank’s rural development strategy, including an analysis of the poverty reducing potential of the RNFE were not evaluated. Since 2008, The World Bank Group’s approach in the agriculture sector and the RNFE is largely rooted in analysis conducted for the World Development Report (WDR) on agriculture, which recommended that when crafting policy, the World Bank Group should consider the specific growth pathways of client countries—with particular attention to their dependence on agriculture and the nature of rural poverty (World Bank 2008). The WDR 2008 introduced a “three worlds” lens of agrarian, transitional, and urbanized countries (figure 1.1). Although each country follows a somewhat different path of structural transformation and RNFE development, this lens facilitates observing some systematic differences in country context and in the World Bank Group portfolio, as well as the relationship of the RNFE to the farm, urban, and global economies. In larger countries, there are also regional differences in the state of structural transformation. The case studies illustrate several differences supported by findings at the portfolio level and in the literature. For example, in agrarian economies, RNFE income- generating opportunities are highly dependent on the performance of farming, and the ability of the RNFE to reduce rural poverty is directly linked to smallholder productivity. Demand, labor availability, and wages are each critically linked to agricultural cycles and productivity. In transitional economies, demand and labor markets in secondary towns and urban centers begin to feature more prominently. In industrial economies, RNFE may be driven far more by opportunities connected to urban or export markets.3 At the same time, rural nonfarm labor may transition from informal employment in household enterprises and self-employment to more structured and formal wage employment and formal entrepreneurship. Sectorally, there may be substantial diversification out of agriculture.4 However, as the case studies reveal, current poverty levels call for strategic investments in infrastructure, training and innovation, market functioning, and regional integration, the coherence of which needs to be ensured through appropriate development strategies. Evaluations of more than two decades of integrated rural development projects, demonstrates that RNFE approaches should not be embedded in a single project but that spatially integrated approaches are needed. 4 CHAPTER 1 INTRODUCTION AND BACKGROUND Subsequently, the WDR on economic geography recommended the need for a more nuanced understanding of the influence of country conditions and policies on the pace, pattern, and consequences of rural-urban transitions (World Bank 2009). The Global Monitoring Report 2013: Urban-Rural Dynamics and the Millennium Development Goals focused on spatial inequality, suggesting that spatial divides are mainly a function of country conditions, policies, and institutions which, combined, determine the way a country may choose to address or neglect drivers of rural poverty and the quality of growth (World Bank 2013). Figure 1.1. Three Worlds of Agriculture from the 2008 WDR Source: World Bank 2008. Agriculture Action Plans. Following two successive food crises, the World Bank Group launched its Agriculture Action Plans (FY10–12, FY13–15), which have explicitly recognized the importance of the RNFE, including the poverty reduction potential of promoting more effective local production and expenditure linkages. In the action plans, RNFE is one of the major thematic areas of assistance due to its increasing importance in many countries and because of its role in structural transformation and sustainable urbanization. 5 Specifically, the five RNFE business lines identified were  rural investment climate studies to inform policy dialogue and stimulate investment; 5 CHAPTER 1 INTRODUCTION AND BACKGROUND  improving rural livelihoods by expanding the South Asia approach of supporting self-help groups to increase women’s access to income, social, and financial services;  upgrading skills to expand job opportunities to promote nonfarm activities and enhancing rural education to improve productivity and vocational training for supply chain skills, especially for women;  investing in rural infrastructure to help lower transaction costs, increase connectivity, and raise nonfarm earnings, especially in lagging areas; and  promote youth employment by removing barriers and identifying entry points for youth to join the labor force by improving access to land, capital, and skills. The Agribusiness Strategic Action Plan of the International Finance Corporation (IFC), covering FY12–14 was designed to be aligned directly with the agriculture action plans. It has three pillars: (i) enhance Food Security, by increasing productivity and reducing loss in the global food system; (ii) Inclusive Economic Development, and (iii) Making Environmental and Social Sustainability a business driver. The Agribusiness Strategic Action Plan FY12–14 has been extended as the guiding framework for FY15 and beyond. IFC’s strategy (2017–19) recognizes that the global food system requires integrated solutions across the value chain from agricultural inputs to production to food retail. It commits IFC to continuing to integrate advisory and investment operations in agribusiness to enhance development impact beyond financing alone. In particular, it will focus on firms which work with smallholder supply chains, while noting that, in many markets, increased coordination with the World Bank Agriculture Global Practice (GP) and IFC infrastructure and investment climate reforms initiatives are critically needed to achieve impact. Interviews with World Bank headquarters and country level staff noted that a key challenge of implementing the RNFE pillar of the World Bank’s agriculture action plans is that many of the enabling conditions listed lie outside the control of the Agriculture GP, and that this issue has expanded since the reorganization due to the dispersion of rural-themed projects across GPs. IEG interviews with the Social, Urban, Resilience and Rural GP (SURR) indicate that its rural theme will be replaced with a focus on territorial approaches. Country-level discussions expressed concern about “siloized approaches” and a lack of incentives and reward for intersectoral collaboration to achieve a more integrated and strategic approach toward developing the RNFE. In the agriculture action plans, there is an articulated 6 CHAPTER 1 INTRODUCTION AND BACKGROUND partnership strategy for the agriculture sector, but not for the development of the RNFE to reduce poverty. One key partnership in the rural space is the International Fund for Agriculture Development (IFAD), with which the World Bank has a corporate Memorandum of Understanding. However, at the country level, several of the RNFE country studies pointed to missed opportunities to use this partnership to leverage more effective rural policy reform and to achieve more synergies in linking the rural poor to more productive rural nonfarm income-generating opportunities and to addressing binding constraints (box1.1). Box 1.1. Partnering to Develop the Rural Economy to Reduce Poverty: The Role of IFAD IFAD’s mission is to “enable the rural poor to overcome poverty,” with the aim to “empower rural poor women and men in developing countries to achieve higher incomes and improved food security” (IFAD 2012). These goals are well aligned with the World Bank Group’s mission and efforts to use the RNFE as a vehicle to reduce poverty. The RNFE country case missions revealed opportunities to deepen collaboration at the country level to achieve better complementarities. This was most evident where IFAD was simultaneously engaged in rural poverty reduction programs while the World Bank had moved toward a more competitive approach. For example, in northeast Brazil, the World Bank has shifted from community-based approaches toward value chain models while IFAD has retained a community development focus. In Ethiopia, where the World Bank and IFAD have cofinanced pastoral and livestock programs, IEG’s Project Performance Assessment Report of the Pastoral Community Development Projects highlighted the need for a clear engagement strategy for pastoral areas (World Bank 2016a). In Nicaragua, shared concerns were expressed about the need to strengthen the role of the local private sector and an ongoing IFAD pilot was discussed in this regard, but a common platform had not established to partner in this respect. Artisanal opportunities had been identified by UN partners in Morocco (for example, argan oil) but the absence of finance (the type that the World Bank could bring) has limited the poverty reducing effects of this value chain activity. IEG’s portfolio review also pointed out that at the project level, opportunities were being missed to achieve greater learning across the institutions’ differentiated approaches, especially in cofinanced projects. Between 2004 and 2014, there were 31 IFAD–World Bank cofinanced projects, valued at $441 million, mainly in IDA countries. Yet, opportunities for learning about what works through codissemination of the project level evaluations has not occurred—except for the Ethiopia pastoral evaluation, where the IFAD consultant was also the author of the assessment conducted by IEG. Source: IEG analysis and IFAD 2012. The Rural Nonfarm Income-Generating Portfolio The RNFE is not a sector but a prominent theme in the Agriculture Action Plan. As articulated in that plan, the development of the RNFE requires support across sectors (now GPs). As such, in the absence of an identified portfolio, this evaluation 7 CHAPTER 1 INTRODUCTION AND BACKGROUND used the theme code “rural nonfarm income generation” applied by the World Bank to 152 projects between 2004 and 2014. By deconstructing the rural nonfarm income- generation activities linked to the code, the portfolio review used these activities to identify projects with similar or identical characteristics. A second-order screening tool was applied to all projects with an agriculture code approved during the period. In parallel, thematic reviews of enabling activities were conducted of rural transport infrastructure, rural education, and rural finance (chapter 4). A gender analysis was also conducted across the entire portfolio. IEG found that the World Bank plays a larger role in generating rural nonfarm income than has been identified by its thematic codes. The evaluation identified 529 World Bank projects, fully valued at $35.4 billion that have directly supported rural nonfarm income during the period. Forty percent of this portfolio is mapped to the Agriculture GP. Other key GPs include SURR, Social Protection and Labor; Trade and Competitiveness; and the Environment GPs (table 1.1). For IFC, IEG identified 382 investment projects, valued at $10.7 billion, and 230 advisory projects, valued at $273 million, in commitment terms. These projects are mapped to IFC’s Agriculture, Food and Beverage, and Retail and Wholesale sectors (table 1.2). Agri-finance is included, whereas other activities that broadly support the extension of rural finance (microfinance, small and medium enterprise [SME] finance, and so on) are included in the enabling environment chapter 4. Broadly, the portfolio review revealed that RNFE interventions fall into one of two categories: (i) poverty-oriented approaches financed by the World Bank that target the rural poor and include productive components and (ii) growth-oriented approaches financed by the World Bank and IFC—mainly value chains—that seek to increase productivity and competitiveness but where links to the rural poor, including benefits, are not evident. The former include community-based approaches with a productive aim, rural livelihoods projects implemented in South Asia, and special protection projects with a productive component. The latter includes all of IFC’s interventions, as well as World Bank support for value chains (crop, animal, tourism) and spatial approaches (tables 1.1 and 1.2). IEG’s RNFE portfolio review also found that there has been increasing investment in growth- oriented approaches in relation to poverty-oriented approaches (figure 1.2). 8 CHAPTER 1 INTRODUCTION AND BACKGROUND Table 1.1. World Bank Approaches in the RNFE Key World Bank Global practice Total approaches in the Agriculture SURR SP & Labor T&C ENV MFM Other(s) Total (US$, RNFE (no.) (no.) (no.) (no.) (no.) (no.) (no.) (no.) billions) CBAs (productive aim) 40 64 0 0 0 0 2 106 8.3 Value chains (crop, animal, productive partnerships) 101 9 0 2 0 0 4 116 6.3 Productive inclusion and public works 0 3 41 0 0 0 0 44 4.7 Regional integration 0 7 0 0 0 0 0 7 0.4 Tourism development 3 7 0 7 17 0 0 34 0.8 Rural livelihoods 14 3 0 0 0 0 0 17 2.2 Agglomerated approaches 1 1 0 10 0 0 0 12 1.2 Other(s) a 57 3 0 12 19 0 22 113 5.9 Policy Reformsb 3 0 0 0 0 49 28 80 5.6 Total 220 97 41 31 36 49 56 529 35.4 Note: a. Policy Reforms were assessed at the country level and are discussed in the RNFE country case studies. b. Other individual projects do not form part of identified clustered approaches. CBA = community-based approach; SURR= Social, Urban, Rural and Resilience; ENV = Environment and Natural Resources; SP = Social Protection; T&C = Trade and Competitiveness. Table 1.2. IFC Approaches in the RNFE IFC advisory Total IFC investments projects Total (US$, Key IFC approaches in the RNFE (no.) (no.) (no.) billions) Agribusiness (agriculture sector) 132 130 262 3.3 Food and beverages 128 17 145 2.6 Agri-finance 47 25 72 2.2 Tourism development 19 18 37 0.3 Wholesale and retail trade 33 1 34 1.7 Non–sector-specific advisory 0 28 28 0.02 Chemicals 11 0 11 0.7 Other 12 11 23 0.2 Total 382 230 612 11.01 9 CHAPTER 1 INTRODUCTION AND BACKGROUND Figure 1.2. RNFE Poverty-Focused versus Growth-Oriented Approaches by Approval Year and Commitment Level Source: IEG 2016. The Evaluation Lens: Key World Bank Group RNFE Approaches across the Three Worlds The 2008 WDR’s “three world” typology was a useful starting point to identify discrete areas of needed attention. IEG found marked differences in the way that projects supported rural nonfarm income generation across the three worlds (figure 1.3). In agrarian areas, there was a focus on connectivity, resilience, welfare smoothing through the provision of public and private assets, and services. In transitioning and urbanized economies, there was a greater focus on factor markets. Specific patterns of investment, like the productive partnerships which depend on the vitality of intermediaries in the supply chain were designed in urbanized contexts and therefore may have limited adaptability. 10 CHAPTER 1 INTRODUCTION AND BACKGROUND Figure 1.3. Key RNFE World Bank Group Approaches Oriented by Proportion of Agrarian Activity (2004–14) Agrarian (n=265) Transition (n=291) Urbanized (n=229) Productive Inclusion Rural Livelihoods CBA (Productive Aim) Crop Value Chains Livestock Value Chains IFC Agri-finance Rural tourism (WB & IFC) IFC Agribusiness (Ag & Forestry) IFC Food & Beverages Productive Partnerships IFC Wholesale & Retail 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100% LOGICAL FRAMEWORK OF THE RNFE STORYLINE In the absence of an existing framework within the World Bank Group, IEG deduced a logical framework describing the World Bank Group’s RNFE engagement (figure 1.4). The framework links a diagnostic understanding of opportunities and constraints in the RNFE to a set of interventions designed to address them. The completeness and efficacy with which the World Bank Group carries out different steps varies dramatically, and the evaluation shows where work is to be done or paths to be changed. The way forward for a given economy depends on the initial country conditions and context, including the state of structural transformation. The tools for intervention range from strategic, analytic, and advisory to enabling conditions to specific investments. Figure 1.3 also emphasizes the binary nature of the portfolio, divided into major approaches between those focused on poverty and on growth. IEG found a few hybrid projects, most notably the pastoral livestock projects, however these are rare. A dynamic theory of change would allow for relevance, efficiency, and effectiveness to improve with learning. Such learning and course correction would depend on information being generated on interventions, outcomes and impacts, so that such learning is possible, as well as incentives to encourage this. 11 CHAPTER 1 INTRODUCTION AND BACKGROUND Figure 1.4. Logical Framework of the RNFE Storyline REPORT ORGANIZATION Based on this framework, chapter 2 examines key approaches pursued by the World Bank that have been designed in the agrarian and transitioning context- that are poverty oriented. These approaches include rural livelihoods, community-based approaches with a productive aim, and social safety net projects with a productive inclusion theme. Chapter 3 examines key approaches pursued in all three worlds that are growth oriented. These include different types of value chains, including crop, livestock, tourism, and so on. Chapter 4 examines the role of the enabling environment, critical to linking the rural poor to the productive opportunities in the rural economy. It presents the results of three thematic reviews of rural transport connectivity, rural education, rural skills in the agriculture sector, and rural finance. Chapter 4 also presents the findings of cross-cutting themes, including RNFE diagnostics. Chapter 5 presents the conclusions and recommendations of this report. References Christiaensen, Luc, Joachim De Weerdt, Yasuyuki Todoc. 2013. “Urbanization and Poverty Reduction: The Role of Rural Diversification and Secondary Towns.” Agricultural Economics 44: 447–459. Christiaensen, Luc. 2013. “Introduction: Rural Diversification, Secondary Towns and Poverty Reduction: Do Not Miss the Middle.” Agricultural Economics 44: 433–434. Datt, Gaurav, John Gibson, Rinku Murgai, and Martin Ravallion. 2016. “Big or Small? Which Type of Urban Growth Matters to Poverty Reduction in Rural India?” Paper presented at the World 12 CHAPTER 1 INTRODUCTION AND BACKGROUND Bank Annual Meeting, “Secondary Town, Jobs and Poverty Reduction: Refocusing the Urban Agenda,” Washington, DC. Davis, J. 2006. “Rural Non-Farm Livelihoods in Transition Economies: Emerging Issues and Policies.” Journal of Agricultural and Development Economics 3 (2): 180–224. Dorosh, Paul, and James Thurlow. 2013. “Agriculture and Small Towns in Africa.” Agricultural Economics 44: 449–459 ———. 2014. “Can Cities or Towns Drive African Development? Economy wide Analysis for Ethiopia and Uganda,” World Development 63: 113–123. Haggblade, Steven, Peter Hazell, and Thomas Reardon. 2007. Transforming the Rural Non-Farm Economy. Washington, DC: International Food Policy Institute. IFAD (International Fund for Agricultural Development). 2012. IFAD Goal and Mandate, Organizational Structure [PowerPoint slides]. Washington, DC: IFAD. Lanjouw, Peter. 2001. “Non-Farm Employment and Poverty in Rural El Salvador.” World Development 29 (3): 529–547 Losch, Bruno, Sandrine Fréguin-Gresh, and Eric Thomas White. 2012. Structural Transformation and Rural Change Revisited Challenges for Late Developing Countries in a Globalizing World. Washington, DC: World Bank and Agence Française de Développement. Wenban-Smith, H., and A. Ambroz. 2014. “Urbanisation in Tanzania.” IGC Working Paper E-40104- TZA-1/2/3, International Growth Center, London, UK. World Bank. 1997. Rural Well-Being: From Vision to Action. Washington, DC: World Bank. ———. 2003. Reaching the Rural Poor: A Renewed Strategy for Rural Development. Washington, DC: World Bank. ———. 2007. World Bank Assistance to Agriculture in Sub-Saharan Africa: An IEG Review. Washington, DC: World Bank. ———. 2008. World Development Report: Agriculture for Development. Washington, DC: World Bank. ———. 2009. World Development Report 2009: Reshaping Economic Geography. Washington, DC: World Bank. ———. 2011. Growth and Productivity in Agriculture and Agribusiness. Washington, DC: World Bank ———. 2013. Global Monitoring Report 2013: Rural-Urban Dynamics and the Millennium Development Goals. Washington, DC: World Bank. ———. 2016a. Project Performance Assessment Report: Ethiopia—Pastoral Community Development Project: Phases I and II. Washington, DC: World Bank. ———. 2016b. Poverty and Shared Prosperity 2016: Taking on Inequality. Washington, DC: World Bank. Zhu, N., and X. Luo. 2006. “Non-Farm Activity and Rural Income Inequality: A Case Study of Two Provinces in China.” Policy Research Working Paper 3811, World Bank, Washington, DC.                                                              1 Adapted from Haggblade, Hazell, and Reardon 2010. This evaluation excluded coverage of nonfarm activities relating directly to forestry, fishing, and mining due to recent or ongoing IEG work in these areas. 2 See Losch, Fréguin-Gresh, and White 2008; World Bank 2008. The Rural Investment Climate Analysis and Findings. Washington, DC: World Bank; and World Bank 2008. 13 CHAPTER 1 INTRODUCTION AND BACKGROUND                                                                                                                                                                                          3 See, for example, Wiggins, Steve, and Peter Hazell. 2008. Access to Rural Non-Farm Employment and Enterprise Development— Background Paper for the IFAD Rural Poverty Report 2011. Rome: IFAD. “In an initial stage, rural economies are often remote from urban centers, isolated by transport costs. The wealth of the rural ecoonmy thus depends on the richness of local resources. . . . Rural non-farm activity is thus likely to be closely linked to the prosperity of an economic driver, often agriculture, but possibly mining or tourism. At a later stage, as cities grow and transport costs to urban areas fall, there is more scope for interaction with the rest of the national economy and indeed with the global economy” (ii). 4 See, for example, Losch, Fréguin-Gresh, and White 2012. 5 The agriculture action plan 2013–15 thematic areas are as follows: (i) raise agricultural productivity and resilience; (ii) link farmers to markets and strengthen value chains to improve market access and trade through support to improve infrastructure, information technology, postharvest handling, and access to finance; and (iii) facilitate rural non-farm income through improving the rural investment climate and skills development. The action plans include the following cross-cutting areas: (i) reduce risk, vulnerability, and gender inequality through support to risk management mechanisms, greater transparency in food markets, and improving women’s access to services, resources, and opportunities; and (ii) enhance environmental services and sustainability. 14 2. Poverty-Targeted Approaches to Generating Income and Employment Highlights  The rural poor face a multitude of constraints that limit their opportunity to participate in and benefit from the RNFE. This chapter reviews three common approaches in the RNFE portfolio that focus on delivering benefits and services directly to the poor.  Rural livelihoods projects, valued at $2.2 billion, have achieved strong social outcomes, improved service delivery for the rural poor owing to increased agency, and access to credit that has generated household income gains capable of smoothing consumption and weathering shock. Notable income gains in the RNFE have been achieved in the dairy sector through collective procurement and market and the provision of market information (Andhra Pradesh). IEG found that, as the model is deepened and phased, it has the potential to increase its technical support for rural enterprise development to generate poverty reducing benefits for the rural poor.  Community-driven development projects with support for productive, income-generating assets have achieved their service delivery goals and have had positive impacts on agricultural production for the poor, but there is little reliable evidence on the poor being lifted out of poverty through income or employment gains, or relatedly, the profitability and sustainability of rural enterprises supported.  Where evidence is available, sustained income in the rural economy was achieved by a rigorous commitment to training and supporting facilitation teams, identifying and addressing key binding constraints (often credit) and by association providing strong social accountability tools. Evidence also points to the approach being more effective in “less transient” areas where citizens share a similar set of values or norms, or can hold each other to account through a set of project tools.  Social protection productive inclusion approaches, while new, have grafted earned income components onto social safety net projects where separate, complementary approaches to rural employment and entrepreneurship may have been more effective. The rural poor face a multitude of constraints that limit their opportunities to participate in and benefit from the RNFE. Among these are identity-based exclusion such as gender, a lack of access to networks (that is, social capital), relevant skills, and power asymmetries that require specific redress by development practitioners and governments to enable rural poor to access the RNFE as a critical and diversified source of household income. This chapter reviews three main modalities of project support that both target the poor and to aim to stimulate earned income in the RNFE. These include (i) community-driven development projects with an income, employment, or livelihood aim; (ii) the rural livelihoods approach in South Asia; and (iii) social safety net projects with a productive inclusion projects implemented by the social protection practice, that support the inclusion theme. These approaches have mainly been implemented in agrarian and transition economies (figure 2.1). 15 CHAPTER 2 POVERTY-TARGETED APPROACHES TO GENERATING INCOME Community-Driven Development Projects with an Income-Generating Focus Community-driven development projects linked to the agriculture sector stimulated savings, income, and productive asset formation in the rural economy. Although community-based approaches in general are highly heterogeneous, this evaluation includes only projects implemented in rural areas that had a productive focus. Community-driven approaches emphasize community control over planning decisions and investment resources, with the hypothesis that participation leads to a better use of resources in meeting community needs. Thus, they focus on enabling communities and local institutions to take the lead in identifying and managing community-level investments. Figure 2.1. Poverty-Oriented RNFE Portfolio Is Mostly in Agrarian and Transition Areas a. No. of projects and commitment volume b. Commitment in $, million Source: IEG portfolio analysis. Note: *Within transition economies, US $2.8 billion was committed to seven projects in Indonesia. CBA = community-based approach. IEG’s portfolio review identified 73 community-based projects (plus 32 additional financing), of which 44, valued at $8.3 billion, are closed and evaluated. The projects’ objectives sought to stimulate income and employment, reduce income poverty, enhance livelihoods, increase access to economic opportunities, productive assets, or to income-generating activities. Altogether, they financed 208,152 subprojects, of which 130,406 were described in the project documentation as rural nonfarm activities. Most subprojects were linked to agricultural processing activities, including for tractors, threshing machines, manioc and flour mills, slaughtering, dairy, small animal husbandry (chickens, goats) aquaculture, and apiculture. A small number of investments supported self-employment in grocery and retail, handicrafts, petty trade, sewing, and beauty. These were self-financed through rotating loans. In a few cases, projects financed rural enterprise development, business centers, and commercial facilities. 16 CHAPTER 2 POVERTY-TARGETED APPROACHES TO GENERATING INCOME Community-based approaches that combine agricultural and RNFE activities generally measure and report satisfactory results for agriculture production, leading to increased incomes, but do not adequately assess the profitability or sustainability of small rural enterprises set up with project financing (see appendix D). Of the 43 closed projects, 14 measured the profitability or sustainability of rural nonfarm investments, and of these, 5 reported very good results. Data quality was a concern across most closed projects (box 2.1). Box 2.1. RNFE-Related Measurement Challenges in Productive Community-Based Approaches A measurement flaw in community-based RNFE projects is the tendency to equate assets to income or to measure the incremental income effects shortly after the transfer of the asset. This is because disbursements take place late in this approach, since it is important to first lay a strong foundation. An illustrative comparison can be made between the positive results reported in northeast Brazil or the Kyrgyz Republic, where results were evaluated one year after disbursements, and the cautious results reported in Ethiopia or Haiti, where results were evaluated over a longer duration. Brazil reports incremental employment for “98% of the households that had an asset transfer and Kyrgyz reports excellent internal rates of returns for carpentry, bakeries, and retail (between 59 and 193 percent). But these results were collected within a year of project disbursement or in-kind assistance. On the other hand, data collected on similar rural enterprise investments several years after disbursements in Ethiopia and Haiti report that 73 and 75 percent, respectively, of small enterprises were not sustained in the case of the former or were under severe financial stress in the case of the latter. Source: IEG ICRRs. Poor performance was associated with binding constraints that had not been concomitantly addressed through support for critical enabling activities (see chapter 4). These constraints include lack of access to finance for recurrent capital costs; lack of diagnostics to address needed skills upgrading and technical gaps, including business acumen, business development, and marketing; and challenges linked to rural connectivity that hindered market integration and to down-turns (negative internal rates of return) during drought years for rural activities linked to agriculture. Lessons from Implementation Completion and Results Report Reviews (ICRRs) and Project Performance Assessment Reports (PPARs) in Brazil, Nigeria, Chad, Burundi, and Sri Lanka also attribute some of these challenges to the fact that project management units are housed in ministries of agriculture, which are able to provide agricultural rather than business development advice. Beneficiary interviews revealed that community participants perceive nonfarm investment to be riskier than crop expansion especially when access to finance is small and intermittent. 17 CHAPTER 2 POVERTY-TARGETED APPROACHES TO GENERATING INCOME Few community-based approaches with productive aims measure income or employment. Of the 69 reviewed, 60 percent had some form of poverty targeting (in many cases, area targeting), and 15 of these measured income and, in a few cases, employment at the community or household level. Of those measuring income, income increases for the poor were reported to range from 32 to 60 percent. Most of the income reported was derived from agricultural mechanization, livestock, and agroprocessing activities. However, for half of projects reporting on income or employment, a review of the evaluative evidence found that results lack validity owing to the small (less than 2 percent) and nonrandom methods used for subproject analysis. The remaining projects that did not measure income or employment outcomes report on access to economic activities or time saved or used perception surveys to measure satisfaction with service delivery etc. IEG’s gender analysis revealed that there was strong gender integration in community-based approaches, with 87 percent including sex-disaggregated indicators 77 percent including gender analysis. But only half reported having conducted consultations with both men and women to inform design, and only 14 percent included gender in the project development objective. Of the closed projects, 76 percent tracked sex-disaggregated activity; however, reporting was limited to female participation in decision-making bodies, associations, municipal councils, and in a few cases, access to economic opportunities (for example, women-led subprojects). No projects tracked sex-disaggregated economic benefits. Rural Livelihoods India’s state poverty reduction programs have organized 22 million rural poor women (and some men) into self-help groups and tiered self-governing structures. The World Bank has supported 80 percent of this membership through state-level projects valued at $2.2 billion. The approach is based on the theory that power and information asymmetries have undermined the poor’s ability to negotiate with market actors for economic gains and better service delivery. As such, World Bank support, along with local government and NGOs, seeks to create accountable and representative institutions of and for the poor to enable greater representation through collective voice. The model seeks to establish sustainable access to affordable finance including, where viable, banking linkages. Projects also support training and job placement, but this is not central to the approach. Impact studies show that World Bank–financed rural livelihood projects have achieved strong social outcomes but have not yet achieved substantial increases in income or asset formation for the rural poor.1 In the former state of Andhra Pradesh, Deininger and Liu (2009) find positive effects on empowerment and consumption 18 CHAPTER 2 POVERTY-TARGETED APPROACHES TO GENERATING INCOME for participants but not income or asset formation. The finding suggests that the program’s main impact was through consumption smoothing and diversification of income rather than exploitation of new income sources. A follow-on impact assessment of the program’s second phase found that the average annual income increase of participants over nonparticipants was $107 for the poorest and $263 for the poor (Prennushi and Gupta 2014). Like Deininger and Liu (2009), the assessment found that increased incomes were achieved through diversification, including farm diversification, and the addition of supplementary nonfarm activities (petty trading, handicrafts, sari making, and so on). By project close, the percentage of household income derived from nonfarm activities was 48 percent for participants and 37 percent for nonparticipants. For both the poor and poorest, rural nonfarm income generation was about 55 percent of household income. Datta (2015) found that World Bank–financed project beneficiary households in Bihar, India, were able to reduce their debt burden by leveraging cheap credit and that cheap credit was not used for productive investments, as evidenced by a more diverse asset base (Datta 2015). However, for Bihar, evidence on income or welfare is not available. Likewise in Orissa, debt held by moneylenders was reduced for 250,000 participating households, freeing up capital for more productive social and economic investments. Although there was increased spending on education, an impact evaluation found that there was no significant change in overall consumption compared with a control (ICR, 2015). Some rural livelihood projects also support training and job placement, including in the artisanal sector, but this involves only a small fraction of total participants. Of the 22 million women mobilized, 896,261 youths (men and women) were trained (in textiles, computers, auto industry, and so on), and of these, most were placed (see appendix C). Efforts to expand training and job placement will require better tracking and learning about what works for female versus male participants. Only one project had sex-disaggregated training data (Orissa: 1,409 female and 1,923 male). This was acknowledged by the Rural Livelihood teams in interviews, noting that women are underrepresented in skills training programs and also face “gendered” constraints. Upstream placement issues and difficulty in transitioning from rural to urban areas—including transport, safe housing, and support networks—affects their ability to participate. Women also face gendered choices in training provision, with an overemphasis on low-return segments such as tailoring and beauty. 19 CHAPTER 2 POVERTY-TARGETED APPROACHES TO GENERATING INCOME Social Protection Productive Inclusion Approaches Broadly, there have been two types of public works programs supported by the World Bank. The first approach provides a safety net, often through temporary employment, offering a source of income to the vulnerable who need it most. The second aims to build sustainable infrastructure. In this case, links to the development of the RNFE are generated through the creation of, for example, feeder roads, small-scale irrigation infrastructure, or maintenance. These programs can include skills building and training components, sometimes focusing on rural entrepreneurship and self-employment. Recently, a shift occurred as part of the World Bank’s new social protection strategy, Resilience, Equity, and Opportunity (World Bank 2012). Social safety nets are increasingly seeking to develop human capital, skills, and entry into labor markets. The strategy recognizes that complementary programs will be needed to foster productive employment and to have a multisectoral perspective. It also recognizes that support for rural employment must take into account the changing agricultural context and rural-to-urban migration. New “productive inclusion” approaches are being piloted in an effort to “graduate” less risky populations from social safety nets, mainly in agrarian economies. The implicit theory is that programs effective at reaching the rural poor with benefits and temporary employment are best placed to assist the same populations in enhancing skills and finding permanent employment. Interviews with the Social Protection and Labor GP staff and consultants indicate that this new approach is being implemented in parallel but separately from other productive approaches mapped to the Agriculture and SURR GPs. An analysis of this combination of traditional social safety nets with the new earned income objective (including a focus on nonfarm income generation, technical assistance, and finance) reveals that multiple teams working across GPs are grappling with similar rural development challenges. Yet, as evidenced through the RNFE roundtables and interviews, the efforts are segmented by organizational units without overarching coordination. IEG identified 31 (plus 13 additional financing) rural public works and productive inclusion projects, valued at $4.7 billion, of which 29 were closed and evaluated. Of these, a quarter were implemented in Ethiopia and assessed as part of the Ethiopia RNFE country case study. Using evidence from impact evaluations of closed productive inclusion projects, the RNFE Ethiopia country case study revealed the limits of layering productive expectations on an otherwise effective instrument—the social safety net (box 2.2). Rural public works and cash-for-work programs have been effective in increasing access to services, providing temporary labor that has facilitated access to increased 20 CHAPTER 2 POVERTY-TARGETED APPROACHES TO GENERATING INCOME income, which has mainly been used to smooth consumption and pay for critically needed services. Very few of these programs have been rigorously evaluated to determine outcomes or impacts in the rural economy. For those that have, evidence is mixed. For example, an evaluation of the Malawi Social Action Fund (Beegle, Gallasso, and Goldberg 2014) found that although employment was generated, the program did not improve food security, investment in farm inputs (fertilizer), or the purchase of durable goods. The program’s contribution to rural infrastructure rehabilitation (for example, irrigation works) and the knock-on effects in the rural economy were not evaluated. In Sierra Leone, on the other hand, a World Bank assessment of the cash-for-work program found that in rural areas, temporary work provided beneficiaries with cash to invest in existing enterprises, most notably by acquiring more livestock (Andrews and others 2012). Box 2.2. The Challenge of Layering Productive Expectations on Successful Safety Net Systems The World Bank’s Productive Safety Net Programme in Ethiopia has helped poor rural citizens respond to drought-induced shocks through temporary employment and infrastructure development. It has helped 7.6 million cope with chronic droughts and achieve food security while creating a range of community assets. The accomplishments have catalyzed a discussion around the use of public works and have influenced social safety nets in Africa. In an effort to graduate beneficiaries, the program piloted a Household Asset Building Program to promote income diversification for food-insecure households. Training, technical support, and financial products were provided to households that proposed a new or expanded business activity. The Household Asset Building Program has revealed the limits of layering productive expectations on an otherwise effective instrument—the social safety net. An impact evaluation of Household Asset Building Program found that 70 percent of the business plans came from the extension agents, not the households, and that the agents lacked nonfarm skills, so that more was achieved in agriculture and soil than in the area of rural income diversification. Loan sizes for the productive investments were small and allocated on a predetermined basis. Women focus groups indicated that the agents tended to work with male farmers, not with female-headed households. Source: IEG; Subbarao and others 2013. Gender in social safety nets. IEG undertook a thorough review of social safety nets and gender in 112 World Bank projects approved between 2003 and 2013. From the point of view of the rural nonfarm, the review found that public works programs in Africa had sex-disaggregated data because of gender quotas. Since then, an impact evaluation on Sierra Leone’s cash-for-work program, which used gender quotas, suggests the quotas may have hidden costs. For example, when males participated in the program as wage laborers, it freed up opportunities for women in self- 21 CHAPTER 2 POVERTY-TARGETED APPROACHES TO GENERATING INCOME employment but not the other way around. Tension between gender quotas and community interests were also identified. What Works: Lessons from IEG’s ICRRs and PPARs From the existing models, and where evidence was available, lessons can be derived from external evaluations, IEG’s ICRRs and PPARs on what works to connect the rural poor to more productive and sustained income-generating opportunities through community-based and rural livelihood approaches in the RNFE portfolio. Each example highlights the need for effective targeting, an assessment of key binding constraints, and the alignment of aid as close as possible to activities that lift these. In Sri Lanka, under Gemi Diriyia, the World Bank effectively addressed three key binding constraints: namely, access to finance, associated issues of accountability, and technical assistance. Efforts to train, grade, and hold facilitation teams to account ensured the effective functioning of savings and credit organizations and associated investments. These investments resulted in a 41 percent income increase for poor households, and five years after project close, IEG’s survey found that, on average, a half of project households still participate in the savings and lending schemes (2009 ICRR). In Nigeria, while IEG was not able to validate income gains reported under Fadama II due to weak construct validity in the external assessment, fieldwork conducted five years after project close found that for the majority of participants, RNFE activities were continuing to generate critical sources of income. Four key lessons were identified: (i) the community-based approach works better in “less transient” areas where citizens share a similar set of values or can hold each other to account through a set of project tools; (ii) rising land prices affect the success of rural enterprises; (iii) rural infrastructure services delivered near-term impacts on beneficiaries’ access to markets and transport costs, however the high level of subsidy may have induced construction of public goods that could not affordably be maintained (IFPRI 2008); (iv) environmental risks require attention (some cassava grinding activities were shut down by complaints about mill effluents). The World Bank has a long engagement in the Kyrgyz Republic, through its Village Investment Programs focused on enterprise development for the poor. An integrated approach, the Village Investment Programs provide training and investment for small business development alongside essential infrastructure. The rural poor, as confirmed by a rigorous external evaluation, gained access to complementary services such as water, electricity, roads, etc. Over the same period, 2,319 permanent jobs were created through income-generating subprojects (retail, 22 CHAPTER 2 POVERTY-TARGETED APPROACHES TO GENERATING INCOME auto repair, carpenter shops, and so on). Success was associated with investments in existing rural enterprises or in entrepreneurs that had established skill set. In Andhra Pradesh, India, the rural poor have been reached by the use of participatory approaches to identify them, including the disabled and most vulnerable. Feasibility of proposed Self-Help Group investments were assessed through a business plan approach. While the bulk of investment was made in the farm economy, lessons can be learned from the considerable strides made in dairy processing capacity that generated investment in livestock and resulted in increased household incomes. This was achieved through training for collective procurement and marketing, provision of market information, establishment of marketing centers, and by addressing infrastructure needs. Chapter synthesis. Poverty-targeted approaches have proven relatively effective in reaching the rural poor where they live, and have had success in such dimensions as social empowerment, income smoothing and rural service delivery in. However, while these approaches generated employment and income gains for the rural poor, the results were insufficient to sustainably lift large numbers of them out of poverty. Efforts to bridge this divide are asking instruments adept at reducing vulnerability – most notably productive inclusion projects - to achieve earned income goals that exceed the original purpose of their design. There is an opportunity to learn from RNFE projects where evidence exists, to blend or pilot new hybrid approaches designed to more effectively target and link the poor to more productive opportunities in the RNFE. For this, skills will need to be blended across different approaches and between different parts of the World Bank Group. References Andrews, Colin, Mirey Ovadiya, Christophe Ribes Ros, and Quentin Wodon. 2012. “Cash-for-Work in Sierra Leone: A Case Study on the Design and Implementation of a Safety Net in Response to a Crisis.” Discussion Paper 1216, World Bank, Washington, DC. Beegle, Kathleen G.; Galasso, Emanuela; Goldberg, Jessica Ann. 2014. Direct and indirect effects of Malawi’s public works program on food security. Policy Research Working Paper WPS 7505. Washington, DC: World Bank Group Datta, Upamanyu. 2015. “Socioeconomic Impacts of JEEViKA: A Large-Scale Self-Help Group Project in Bihar, India.” World Development 68: 1–18. Deininger, Klaus, and Yanyan Liu. 2009. “Economic and Social Impacts of Self-Help Groups in India.” World Bank Policy Research Working Paper 4884, World Bank, Washington, DC. Prennushi, G., and A. Gupta. 2014. “Women’s Empowerment and Socio-Economic Outcomes: Impacts of the Andhra Pradesh Rural Poverty Reduction Program.” Policy Research Working Paper 6841, World Bank, Washington, DC. 23 CHAPTER 2 POVERTY-TARGETED APPROACHES TO GENERATING INCOME World Bank. 2009. Sri Lanka. Washington, DC: World Bank Group ———. 2012. Resilience, Equity, and Opportunity: The World Bank’s Social Protection and Labor Strategy (2012–2022). Washington, DC: World Bank.                                                              1 Although rigorous evaluation of the self-help group model was historically lacking, there is an emerging body of such evidence conducted on World Bank–financed rural livelihood projects over the evaluation period (Deininger and Liu 2009; Prennushi and Gupta 2014; Datta 2015). 24 3. Growth-Oriented Approaches in the Rural Nonfarm Economy Highlights  Growth-oriented interventions in the RNFE portfolio mostly focused on crop, animal, and food value chains, but also value chain finance and tourism. Value chain projects have frequently achieved increased sales, revenues, and income, but reach to the rural poor is often not tracked. In these projects, there are likely spillover or secondary effects, but these require measurement.  In agrarian economies, World Bank financed value chain interventions have emphasized the role of the producer but placed little emphasis on other value chain actors. As a result, there are recorded increases of productivity, but distributional impacts are unclear, and in the absence of a definition or metrics associated with value chain competitiveness, evidence is lacking that growth, income, and employment for the poor can be sustained after project end. In transitioning and urbanized economies, value chain projects targeted multiple value chain segments and achieved good results with regard to enterprise revenue, but projects lack poverty targeting or reporting.  Where IFC’s investments in food processing projects have been associated had strong links to rural areas and smaller urban centers, they have generally generated positive rural employment outcomes and demonstrated links to the RNFE.  Despite IFC’s stated objectives of reaching the poor through its agribusiness portfolio, in most cases there was little in the project design that identified, targeted or tracked benefits for the poor. In wholesale and retail investments linked to rural areas, IFC’s clients seek to increase the availability of goods and drive down costs for (rural) consumers. However, none of the investments tracked consumer benefits (costs) and only a few included local sourcing.  In spite of examples of where market power has adversely affected poor value chain participants, the risks imposed by market structure and its impact on the poor and related mitigants are rarely treated explicitly in project documentation. This chapter addresses growth-oriented approaches to the RNFE, which have been dominated in recent years by efforts to create competitive and (sometimes) inclusive value chains. A value chain refers to a linked set of economic actors and activities ranging from primary producers to traders, processors, retailers, and consumers. Sustainable value chains must be competitive: they must be able to create and move a product from production to the consumer at a higher-quality and/or at a price that is equal to or better than what value chains in other countries produce. The challenge for development practitioners is to promote economic growth strategies that make entire industries and their associated value chains within the rural economy more competitive, while promoting inclusion, skills, and ensuring a broad distribution of benefits, including income, across all parts of the chain. 25 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY The World Bank Group has traditionally viewed chains as vehicles for competitiveness and growth, with benefits for employment generation. Value chains have been perceived as opportunities for developing economies to link to vast international distribution networks and consumer demand, through increased productivity and efficiency. Since the food crisis, crop and livestock value chains have received greater attention as ways to create dynamic linkages to the rural economy, with the potential to generate employment for farmers, rural workers, and entrepreneurs. As noted in chapter 1, World Bank Group postcrisis strategies embrace value chain approaches that put smallholder farmers and SMEs at the center of a strategy to reduce poverty. Over the evaluation period, the World Bank financed 150 value chain projects worth $6.3 billion in commitment terms. Included are 70 crop value chain projects ($3.6 billion), 21 livestock and horticultural projects ($1 billion), and 25 productive partnerships—a value chain model designed somewhat differently in the Latin American and the Caribbean region ($1.6 billion), and 34 rural tourism value chain projects ($821 million). Sixty of these projects were closed and evaluated. IFC financed 382 value chain–related investment projects, valued at $10.7 billion in the Agriculture, Food and Beverage, Wholesale and Retail, Value Chain Finance, and Tourism sectors. Another 230 advisory projects were linked to value chain support, valued at $273 million. Of these, 60 investments and 64 advisory services were mature and evaluated. World Bank financed value chain approaches in the RNFE have been designed in the context of all three worlds (see figure 3.1). IFC’s largest investments in agribusiness were in firms operating in transition and urbanized economies reflecting linkages that these firms have with international markets. Advisory services are more frequently situated in agrarian economies. 26 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY Figure 3.1. World Bank Group Growth RNFE Portfolio Is Mostly in Transitioning and Urbanized Economies a. By number of projects b. In US$, millions World Bank Crop Value Chain Approaches Although IEG’s Implementation Completion and Results Report Reviews reveal that 82 percent of crop value chain projects achieved their project objective, these projects did not effectively define or measure their intended competitiveness aims across the value chains they were supporting. This impedes the ability to track the backward and forward linkages between the farm sector, the nonfarm sector, and impacts on poverty. An analysis of the project-targeting mechanisms of the crop value chain portfolio (59 projects) reveal that areas with high agriculture potential were selected, but for most projects, beneficiary selection criteria was weak or not evident. Each of the crop value chain projects, closed and evaluated, achieved a positive result along one part of the chain, but none of the projects demonstrated that the chain as a whole was working more efficiently and could therefore catalyze sustained growth, income, and employment after project financing in the RNFE. In agrarian economies, especially in Africa, IEG’s RNFE portfolio revealed that World Bank–financed value chain interventions have emphasized the role of the producer as the main means of reducing poverty in the rural economy. Less focus has been placed on poor downstream participants in the value chain. The rural poor engage with value chains at many points: as aggregators, threshers, millers, retailers, marketers, transporters, and mechanics. Value chain projects in agrarian economies (for example, Burundi, Madagascar, Malawi, Mali, Senegal, Mozambique, and Sierra Leone) mainly targeted farmers and their metrics were limited to production (yield 27 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY increases) and income. Rwanda was an exception (many actors were supported) but the project did not have poverty targeting or tracking (box 3.1). This finding was triangulated through a series of agrarian country studies and project assessments in agrarian areas. In Mozambique, IEG’s PPAR on the World Bank’s support to the Zambezi Valley found that while agriculture productivity increased, the value chain approach did not tackle the underlying poverty drivers related to the composition and nature of the input and output marketing chains, which were highly unfavorable for actors upstream (World Bank 2016). IEG’s RNFE Morocco case study found that where poverty is mainly rural, integrating the poor into more productive value chain activities has significant poverty-reducing potential. In Rwanda, the World Bank Group has supported an agricultural modernization strategy that has generated increased revenue by supporting rural nonfarm activities across many parts of the targeted value chains. But emerging Box 3.1. Rwanda: A Rapidly Modernizing Agriculture Sector May Be Leading to Increased Inequality in the Farm and Nonfarm Economies In Rwanda, cooperatives supported by the World Bank Group have increased their revenue by 50 percent, and the increased revenue was attributable to support along the value chain, including for such modernization techniques as drying, threshing, shelling, storage, packaging, and marketing. However, the effects on poverty are unclear because, as identified by RNFE country case study, the poverty-reducing effects of rapid agricultural modernization—and the distributional benefits associated with the growth of the nonfarm economy—are highly contextual and policy dependent. Agricultural modernization and increased production are less likely to result in reduced poverty where high inequality exists and may even lead to exacerbated poverty or marginalization of disadvantaged groups (Negin and others 2009; Thorbecke 2013). In Rwanda, the World Bank Group has supported the government’s agricultural modernization program, which is rapidly transforming the sector away from subsistence. Although these efforts have been successful in raising yields, evidence suggests that only a relatively wealthy minority may be benefiting and that these policies may be exacerbating landlessness and inequality for the most poor. Source: Adapted from Dawson, Martin, and Sikor 2015. research suggests that greater attention is needed to the policy context in countries undergoing rapid structural transformation which may be in some cases exacerbating inequality for the landless and the very poor (box 3.1). In marked contrast to agrarian contexts, in transitioning and urbanized economies, IEG’s RNFE portfolio review revealed that value chain projects targeted multiple actors, from farmers to agroprocessors to rural enterprises. Nonetheless, results reporting was limited to a single actor, or results could not be distinguished by actor 28 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY (for example, where the term “beneficiaries” was used). Value chain projects in ECA (Armenia, Georgia, and Moldova) targeted multiple RNFE actors but reported on incomes only for enterprises or beneficiaries. The projects targeting agribusiness enterprises report increased sales and profits but lack evidence of increased efficiency (as opposed to, for example, global price fluctuations) and do not report on impacts along the value chain. Value chain projects supporting food safety and quality were located in transitioning and urbanized economies, but evidence is lacking that food safety– related enhancements resulted in increased competitiveness. As documented in IEG’s ICRRs, food quality and safety regulations were put in place (for example, in Kazakhstan) or laboratories were built (for example, in Romania), but there is little evidence of outcomes and their causal link to more competitive food industries. In other cases, ambition was reduced (for example, Georgia) where the objective of “developing the productivity and profitability of the private agriculture sector” was changed to “improving agricultural production and access to markets.” On the other hand, Croatia met the EU acquis conditions, including compliance with sanitary and phytosanitary standards, and this is likely to have increased competitiveness. PRODUCTIVE PARTNERSHIPS Productive partnerships are a value chain approach in the Latin American and the Caribbean Region designed and implemented differently than other value chain projects. Launched in 2002, productive partnerships consist of agribusiness contracts between a producer organization and one or more commercial partners, such as companies from processing industries or wholesalers. By subsidizing producer organizations and its members with training and technical assistance, the government helps farmers meet the quality and quantity goals of these contracts. Implemented mainly in urbanized economies, productive partnerships seek to help producer groups overcome market barriers and gain stability through assured prices while individual buyers receive consistent supplies of goods of a particular quality. The World Bank provided $1.6 billion for 25 projects (including additional financing) in 10 countries in Latin American and the Caribbean that include different types of contractual models. Like Rural Livelihoods in South Asia, it is the model of choice for the Agriculture GP in Latin American and the Caribbean with a steadily increasing level of commitments compared with the second most frequent model. By the end of the evaluation period, the model represented 75 percent of the RNFE Latin American and the Caribbean portfolio. Evaluations of productive partnerships show positive results with regard to production and sales. Outcomes vary across value chains, with stronger results 29 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY achieved for existing or mature cooperatives and for coffee and cocoa. Evidence from evaluations (Collion 2012; FAO 2013; CIAT 2015) indicates that productive partnerships are making an important contribution to the welfare of small-scale producers and the growth of the RNFE more broadly through processing and marketing activities. Yet, revenue and sales data are only available at the group level, limiting the ability to analyze the relative benefits achieved by individual cooperative members with different income levels. Nor does available data elucidate distribution of revenues between producers, middlemen, aggregators, and processors. To date, analysis has not generated clear lessons about benefits to the poor of different modalities, commodities, and geographical and sociological characteristics. The success of productive partnerships is also constrained by a lack of complementary support for the enabling environment, including infrastructure, land, and finance (see chapter 4). Interviews with World Bank staff point to the need for linkages with the formal financial sector or, as in Brazil, to better understand constraints producer groups face in borrowing for productive purposes. In Brazil, many cooperative members do not own land—it is a concession from the municipality—so lack of collateral is a constraining factor. The need for coordinated approaches to address multiple constraints was a finding of IEG’s Supporting Transformational Change for Poverty Reduction and Shared Prosperity learning product and the Industry Competitiveness and Jobs evaluation (World Bank 2016a, 2016d). Gender in crop value chains. Factors such as access to assets, gendered education differentials, and the nature and value of economic activities affect the way in which men and women participate and gain in value chains. In particular, the benefits of women’s participation in value chains are determined by their control of productive resources and household-level decisions. Where women do not participate in spending decisions, for example, a more gender-specific approach that targets underlying gender issues is required (FAO 2010). In the World Bank, 72 percent of value chain projects approved after 2008 include sex-disaggregated indicators, compared with 38 percent between 2004 and 2008. The percent of projects that reported conducting gender-sensitive consultations and that conducted a gender diagnostic rose slightly, but half the portfolio lacked gender-sensitive value chain diagnostics. Of the closed projects, half tracked gender outcomes, but of these, none reported on economic benefits (four measured access to economic activities). Reporting was mainly limited to participation in training or decision making as part of committees. 30 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY PASTORAL LIVELIHOODS AND LIVESTOCK VALUE CHAINS Over the evaluation period, most livestock value chain projects featured competitiveness aims: increased productivity, profitability, sustainability, and marketing. Half of these projects did not meet these aims as demonstrated by the 50 percent MS or higher rating of evaluated projects. Implemented in agrarian areas, including in several fragile and conflict-affected areas, they have been effective in reducing vulnerability, with a focus on small-scale herders. ICRRs for closed projects reveal that small-scale herders located in poor areas benefited from enhanced animal health, measured by increased survival rates, increased lactation, and access to water points, stock route improvements, and market rehabilitation. But associated welfare measures were applied only in two cases, and in these (Somalia and Yemen), gains were too small to contribute to sustainable poverty alleviation. Enhanced competitiveness could have been fostered by addressing such binding constraints as land, productivity, and marketing, in addition to institutional and political issues. IEG’s PPAR of the Pastoral Community Development Projects in Ethiopia, found that services provided reduced vulnerability and promoted critical savings, a more relevant approach would have included a focus on productive aspects, by targeting assistance to key points along the value chain, including veterinary services, water, herd and rangeland management, animal nutrition, market information, and advisory services adapted for mobility (World Bank 2016b). In the Kyrgyz Republic, attention was paid to legal, regulatory, and institutional issues required for the effective management of pasture land (World Bank 2015). Gender in pastoral value chains. In developing countries, women’s role in the livestock sector varies. Although a customary division of labor often exists, it also shifts due to economic conditions or labor availability (for example, migration). IEG’s gender analysis revealed that the role of women was analyzed in 65 percent of livestock projects during design but that only half include sex-disaggregated indicators and only one-third indicate that they consulted women and men during design. Sex-disaggregated indicators in the livestock sector measured women’s access to market services and their participation in training, but not the accrual of benefits in relation to men. Studies are needed to understand labor divisions, power dynamics and women’s capacity to participate and negotiate in the market. Projects should assess differences in ownership and access rights for livestock, land. 31 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY IFC’s Agriculture Value Chain Activities IEG rated IFC’s value chain investments as mostly successful or higher in 67 percent of cases in the agriculture sector, 60 percent of cases in food and beverages, and 60 percent of cases in retail and wholesale sectors. Although IFC’s value chain approaches in the RNFE have been designed in the context of transitioning and urbanized areas, IEG’s portfolio review found that in these areas, about half (47 percent) reach into rural or frontier areas. Examples include the expansion of a leading food company into Brazil’s northeast, the expansion of discount food retail stores in rural Mexico, increased sourcing of produce from smallholders in Indonesia, and support for rural enterprise development in one of the poorest areas of China. IFC’s RNFE reach into frontier and lagging areas has also been facilitated by its partnership with the Global Agricultural Food Security Program (box 3.2). Box 3.2. Global Partnerships Have Helped Extend IFC’s Value Chain Support to Frontier Areas The Global Agriculture and Food Security Program (GASFP) is a multidonor supported platform that arose out of the 2008 food crisis in response for the creation of an instrument to improve agricultural productivity, increase incomes, and ensure food and nutrition security in low-income countries. Hosted by the World Bank, and in partnership with the MDBs and Rome-based agencies, GAFSP has committed $1.3 billion in financing. GAFSP’s pillars of engagement are linked to the rural economy, by fostering a more sustainable, inclusive and productive farm economy. One of its pillars also includes a specific focus on improving rural nonfarm livelihoods. GAFSP has a public and private sector window, with the latter implemented by IFC. GAFSP has helped IFC take risks with an array of financing options that, when combined with the GAFSP grant, allow riskier investments in frontier, fragile, and conflict-affected areas. The GAFSP private sector portfolio displays characteristics that are distinct from the IFC RNFE portfolio: over three-quarters of the GAFSP private sector investments in the RNFE went to Sub-Saharan Africa, compared with 14 percent in the IFC RNFE portfolio and the average GAFSP-IFC related investment is $11 million compared with $28 million in the IFC RNFE without GAFSP. GAFSP has helped IFC extend its reach to smaller clients. Its use of GASFP-financed advisory services has helped enable this, including through risk diagnostics for potential investments in Côte d’Ivoire, Mozambique, Myanmar, and Mali. Source: World Bank 2016a. An examination of upstream and downstream linkages in the IFC value chain investment portfolio reveals that IFC interacts along several points of the chain, and that this integrated approach has been increasing over time. In the Food and Beverage sector, this integrated support tends to have strong links to rural areas and smaller urban centers and has had generally positive rural employment outcomes along the value chains within the RNFE. This has included support for both farmers and SMEs (in distribution, retail and marketing) along the value chain. Examples of these types 32 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY of investments include the expansion of dairy supply chains in rural Colombia, the wine sector in Moldova, rice value chains in India, and bread distribution in rural Nigeria (including a focus on women-owned bakeries). An emerging lesson is that, when targeted well, IFC’s investments in food and in agribusiness can exhibit important rural nonfarm benefits that have potential poverty reducing effects. On the other hand, in its agriculture sector, IFC has worked with some international clients where its value addition has been weaker and benefits to generating rural income and employment are not clear. Many of the evaluated projects in this group were committed between 2006 and 2008, a period when private sector fund’s flow to emerging markets was at its highest. IFC financing was often replaced by other commercial financial institutions with equivalent investments (although loans were usually of a shorter term), or IFC was prepaid shortly after the construction phase, and the risk profile changed. IEG’s review found that supporting corporations with substantial market power may disadvantage small producers in the value chain. In project board documents, systematic attention was not paid to identifying risks associated with market structure—the potential for the creation or increase of monopsony or monopoly power—or to its mitigants. Interviews with IFC staff indicate that this has been the case where there has been paucity of value chain players, so that, without intervention, “nothing will happen.” Yet the risk that margins for farmers or micro, small, and medium enterprises (MSMEs) get squeezed by more powerful actors is real and can have tangible consequences for the poor’s income opportunities. For example, in rural Nicaragua, in the context of a spreading rust outbreak that threatened the livelihoods of smallholders, IFC’s client (a major multinational coffee distributor) provided long-term finance, extension, access to rust-resistant hybrids and a ready buyer for rural coffee farmers. However, it also locked farmers into a package - once financed – that require them to accept the hybrid supplied and prices set by the company’s suppliers for the duration of the agreement. From a longer- term poverty perspective, value might have been added by complementary measures to lower entry barriers for the fragmented smallholder sector by providing independent access to finance, business development training; and for some, linking capable farmers to higher-priced markets. (Other examples are referred to in box 3.4). Gender in IFC value chain projects. IEG’s gender analysis of the 57 closed and evaluated IFC investment value chain projects found that 22 percent tracked female employment, due to a Development Outcome Tracking System indicator introduced during the second half of the evaluation period (all projects that tracked female employment were approved after 2008). Even so, after 2008, only 40 percent of all 33 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY projects in the RNFE portfolio tracked female employment. Of these projects, 11 recorded an increase in female employment in proportion to an overall increase in the rate of employment, overachieving the set targets in each case. In a small number of projects, there was a decline in employment, including female employment. Box 3.3. IFC Agri-Food Investments and Their Links to the Rural Nonfarm Economy Positive examples of investments in local companies with strong up- and/or downstream linkages to the rural economy, although most production facilities were urban:  An IFC investment in Russian fruit juice production was associated with 4,000 jobs, upstream employment, farmer income, and downstream benefits for distributors and retailers.  An investment in an Indonesian food company associated with thousands of direct jobs, substantial upstream linkages, new demand for local farm inputs (shallots) from 7,000 local farmers, and downstream links to 400,000 retailers (many SME) selling the product.  An investment in Ukrainian poultry generated thousands of direct and indirect jobs.  An investment in Colombian dairy linked to 2,885 milk suppliers and downstream clients. Less positive RNFE experiences involving large multinationals included:  A Central American investment in a coffee trading company associated with negative job growth and financially disadvantageous contracts with over 25,000 farmers.  An investment in a soft drink bottler in East Asia where its manual distribution centers did not work out and distribution chains were disrupted.  An IFC investment in a South American multinational for vertically integrated production and processing of sugarcane and sugar beets which, while associated with large numbers of jobs, was cited by the Ministry of Labor for trapping cane-cutters in onerous conditions. IFC’S FOOD DISTRIBUTION: WHOLESALE AND RETAIL IFC’s wholesale and retail investments are based on the logic that modern retailers invest in technologies and processes that enable them to achieve greater economies of scale, create employment, and drive down costs for consumers. They are designed to promote higher standards of quality for suppliers and invest in food safety and traceability. At the same time, IFC recognizes that the spread of modern supermarkets can lead to job losses at smaller shops. Yet the question of whether these anticipated benefits to workers and consumers in rural areas are realized is not answered through monitoring and evaluation. Of the 60 IFC Wholesale and Retail investments made during the evaluation period, 25 had backward linkages into the rural economy, of which 5 had been evaluated by IEG and included investments in 34 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY expanding supermarket chains and distribution to rural areas. None of these tracked local employment or consumer costs. IFC’S VALUE CHAIN–RELATED ADVISORY SERVICE ACTIVITIES IFC’s RNFE advisory services were mainly linked to its Sustainable Business Advisory (SBA). These services aimed to help develop markets in emerging economies to promote sustainable business practices among owners and firms, including individuals and small firms in the agribusiness and services sector.1 IFC declares its intention to use advisory services to achieve inclusion “to catalyze the development of markets that work for all members of society.” IFC advisory assisted clients, often large firms, to improve the efficiency of their supply chains by creating business opportunities for local suppliers, including local sourcing platforms and community investment strategies. These activities included training, support for supply chain linkages, and corporate governance. The overarching aim was to lower barriers that prevent the broad deployment of good business practices to enable profitable commercial outcomes while enhancing their environmental or social value. In agribusiness, SBA aimed to improve food security by increasing agriculture productivity and promoting sustainable agribusiness practices, often pursued by working through “lead” or “anchor” firms in supply chains. In its support to SMEs, SBA tried to improve the enabling environment, build capacity, and increase the affordability of financial services for SMEs for growth and job creation. SBA also supported Women in Business, to strengthen women’s role as leaders, entrepreneurs, and economic stakeholders. In general, IEG’s review of relevant advisory services found little in the project design to ensure poor value chain participants were identified or assisted. IEG found little attention to mechanisms that could leverage benefits for the poor. Without explicit attention to the ability of the poor to take advantage of strengthened supply chains, it is less likely that all members of society will benefit. IFC’s mature and evaluated SBA advisory services mainly focused on IFC investment clients - on how to improve quality and consistency of its inputs - and on how to reduce supply chain risks. This approach typically did not include rural producers, who are often the starting point of value chains. In such cases, SBA services could not help rural producers capture market opportunities, obtain fairer deals, and produce higher-quality products as a means to improve rural incomes and employment. Certification programs were quite common in the IFC SBA portfolio for RNFE, as well as support for standards and regulations. Yet this approach typically omitted rural producers, who are often the starting point of value chains. Thus, SBA could 35 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY not help rural producers capture market opportunities, obtain fairer deals, and produce higher-quality products as a means to improve rural incomes and employment. Despite IFC’s stated objectives of reaching the poor through its advisory services, there was little in the project design of the advisory programs to ensure that these groups were identified or helped. In almost all the cases, by design, IFC SBA intervened in the supply chain at a point close to the large company. For example, the design and focus of a cattle program in Brazil was to support 20 suppliers to an IFC investment client to meet the client’s new cattle purchasing procedure. In a dairy project in Uruguay, the program aimed to improve milk quality and productivity, but there was no effort to determine if the small milk producers benefited. Although IFC tried to help its clients, often large firms, improve the efficiency of their supply chains by creating business opportunities for local suppliers, including local sourcing platforms and community investment strategies, IEG found little attention in projects to mechanisms that could leverage benefits for the poor. VALUE CHAIN FINANCE According to the World Bank, a lack of food drying and storage in the immediate postharvest period are the main drivers of food loss in developing countries. The global food crises exposed the severity and consequences of food loss for the poor. Studies suggest that one-third of food produced for human consumption is lost or wasted, amounting to about 1.3 billion tons per year (van Otterdijk and Meybeck 2011). IFC’s Global Agri-Finance Advisory Program was designed to address this by increasing the availability of value chain finance, promoting risk-mitigation products, and building skills. The program involves collaboration across IFC’s investment, advisory, and regional units in support of global food security. A key area pursued in is warehouse receipt financing, which aims to provide short-term finance to farmers and producers and offers an opportunity to reduce postharvest losses. A well-functioning warehouse receipt system can provide broad benefits, including permitting stored goods to be used as collateral; improving quality, control, and inspection of commodities; enhancing marketing; and by helping to establish commodity exchanges. IFC clearly states its intention to use advisory services to achieve economic and social inclusion “to catalyze the development of markets that work for all members of society.” IFC advisory assisted clients, often large firms, to improve the efficiency of their supply chains by creating business opportunities for local suppliers, including local sourcing platforms and community investment strategies. Yet IEG’s 36 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY review of relevant advisory services found little in the project design to ensure poor value chain participants were identified or assisted. IEG found little attention to mechanisms that could leverage benefits for the poor. Without explicit attention to the ability of the poor to take advantage of strengthened supply chains, it is less likely that all members of society will benefit. Thus IFC’s Global Warehouse Finance Program (GWFP) is potentially highly relevant: market studies show that the availability of warehouse financing currently provides only between 0 and 7 percent of total financing needed in developing country markets. The GWFP was established to address that gap and build the capacity of local financial institutions to provide this type of financing. During the evaluation period, the program—which included 12 transactions valued at $272 million in Tanzania, Senegal, Mali, Paraguay, Vietnam, the Arab Republic of Egypt, Indonesia, and a regional project in Middle East and North Africa—has provided domestic banks with liquidity or risk coverage, backed by warehouse receipts, that have then made available loans or guarantees to farmers, cooperative unions, aggregators, exporters, or traders to meet their short-term financing needs.2 However, the program’s ability to help relatively less well-off farmers and value chain participants to enhance their productivity within the rural economy is unclear. Under the GWFP, it is not apparent to what extent IFC can influence client selection. The participating bank may also require cash up front, thereby restricting the amount of credit provided and the program reach. Reach indicators, such as the reach of the GWFP to farmers or SME-oriented clients reveal further limitations. The profile of the bank is the key determinant of additionality and the way reach is measured, rather than the profile of the applicants. If the transactions involve well- established clients that could have obtained credit from competing banks anyway, it is possible for the GWFP financing to never reach underserved markets. Use of an SME reach indicator is therefore not fully informative and needs be supplemented by indicators of the profile of the issuing banks and further information on clients. Recognizing that the GWFP is in its early stages, relies on a commercial approach (and is thus demand driven) and does not create trade transactions, IFC could increase its limited influence to increase the program’s impact on the rural poor by indicating its preferred sectors or by refusing to finance some sectors or products. Gender in IFC RNFE Advisory Services. Of the 63 evaluated advisory services, 40 percent had gender integration, mainly by including women in training activities. Between the first and second period of the evaluation, the incidence of gender integration doubled. However, most activities did not conduct a gender analysis, with exceptions in FCS contexts, such as in Aceh and PNG. It is worth noting that in 37 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY IFC, only the Agribusiness department projects actively monitored female employment starting in 2008. Rural Tourism Value Chains Rural tourism activities can occur across large and diversified value chains that have traditionally been labor intensive, and they have the potential to be widely inclusive of and environmentally sustainable. In developing countries, it can be an important driver of growth and poverty reduction, but this is dependent on whether tourism can generate employment, create linkages (between the farm and the nonfarm sector), and stimulate local economic development while minimizing adverse environmental and cultural impacts. IEG’s country case studies and portfolio review revealed that rural tourism has been relatively rare in the World Bank Group portfolio as a means to stimulate growth of the RNFE and more generally alleviate poverty. Several of the country case studies explored this topic and found that the sector can provide opportunities for rural poverty reduction by ensuring that a more equitable and profitable share of the benefits are enjoyed by those at the lower end of the value chain. Yet there has been a lack of country-level analysis and investment. The sector is a good example of the challenge of confronting inequities along the value chain and opportunities for promoting youth employment (box 3.5). Of the few rural tourism projects approved during the evaluation period, outputs have been tracked, but few have reported employment or welfare effects. Projects reporting employment effects (World Bank) or SME access and value chain linkage support (IFC) were located in transitioning and urbanized economies. In the World Bank, IEG identified 34 out of 6,263 projects that financed rural tourism activities, of which 13 were closed and evaluated. Of these, pro-poor rural employment and welfare effects were achieved in high capacity countries such as South Africa, where hundreds of jobs were created on the Cape Peninsula, and in Kazakhstan, where thousands of jobs were created around the country’s natural forest heritage. On the other hand, reporting on ecotourism investments in agrarian economies was limited to studies, training, and the development of tourism plans. In the few cases where productive activities were financed, no information is available on the profitability or sustainability of the rural enterprises (handicrafts, ecotourism, and so on). Cultural tourism projects were the least successful. Trade and Competitiveness is assuming a role in this area, in the regulatory environment, and in support for SMEs, but it is too soon to evaluate. 38 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY Box 3.4. Tapping Touristic Opportunities to Support Youth Employment in Morocco In Morocco, opportunities for tapping entrepreneurial youth potential have been missed with the World Bank’s decision to drop its tourism project, rather than refine it. This missed opportunity was cited by multiple ministries in interviews. A World Bank study shows the magnitude of exclusion facing Moroccan youth, where 51 percent of 15–29 year olds are out of school and work. With limited prospects of a formal job, youth, especially the less educated, are seeking opportunities for self-employment. Morocco’s rich geography as well as its handicrafts provides ample opportunity to add value to the sector to alleviate poverty. Handicrafts need to be produced at scale and with consistent quality but marketing, packaging, and production is lacking. This is where the youth potential can be tapped because they have the technical fluency to help rural industries with e-commerce but not information about the activities that are ongoing in rural areas (that is, the argan sector). In the identified RNFE portfolio, IFC financed 19 rural tourism investments, of which 5 were mature and evaluated. Of these, 4 out of 5 were rated unsuccessful due to poor financial performance, poor marketing, contractual delays, and challenges associated with environmental compliance, including in vulnerable habitats such as in the Seychelles.3 Of 142 Advisory Services projects supporting tourism, only 16 explicitly provided market entry or MSME supply linkage support to rural areas (an additional 36 provided support more broadly). Projects supporting SME market access reported generally successful achievements related to increased contracts signed, number of visitors, and revenues. However, employment was not tracked, even though some projects were designed to track this. Fewer projects sought to enhance supply linkages with SMEs in the rural economy, but services provided to Sri Lanka, for example, demonstrate the potential of forging more effective linkages between purveyors in rural areas and large hotel enterprises (anchor investments). In Sri Lanka, advisory services linked 100 SMEs to large hotels, creating jobs along the value chain that reached into the rural economy, including restaurants, guest houses, and diver operators. Ecotourism projects however did not generate similar benefits. Agglomeration Approaches within the Trade and Competitiveness GP The World Bank has committed $1.2 billion to projects that promote agglomeration benefits across firms, mostly in Africa, most of which are ongoing and have not been fully evaluated. These projects support spatially oriented approaches, such as special economic zones, growth poles, and industrial clusters. IEG hosted a discussion with the Center for Global Development based on their review of 20 agglomeration projects. The review showed weak implementation performance and coordination challenges reminiscent of historic integrated rural development 39 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY challenges. The RNFE case studies reinforce these findings pointing to an overestimation of intellectual clarity, a need to reduce technical complexity and to make projects more flexible to economic circumstances. Agglomeration may ease coordination failures and induce a critical mass of investment, but this does not always occur as revealed by IEG’s RNFE case study in Mozambique, with regard to the Nacala Corridor. Synthesis Findings on the World Bank Group’s Poverty- and Growth-Oriented Approaches in the RNFE This and the preceding portfolio chapter have demonstrated that the approaches currently being used within the RNFE are both binary and siloized. Projects targeting the rural poor, implemented mainly in agrarian and transitioning areas, have had considerable success in such dimensions as social empowerment, income smoothing, and service delivery. However, although there are detectable employment and income gains for the rural poor, the changes were insufficient to sustainably lift large numbers of them out of poverty. Conversely, value chain approaches have achieved targeted increases in production, revenues, or sales, but reach to the rural poor is not evident (projects lack poverty targeting). Across all three worlds of structural transformation, value chain projects yielded technical results that translated into increased production and processing, but pro- poor and gender-sensitive value chain analysis was lacking at design, along with associated metrics for monitoring during implementation and evaluation. Such analysis should seek to understand labor market segmentation, power, and the terms of exchange along the chain to improve the terms and conditions of employment for poor men and women. In these projects, there are likely secondary effects within the rural economy, through labor smoothing and job creation, but these effects have not been measured at the project level or through targeted assessments. References Dawson, Neil, Adrian Martin, and Thomas Sikor. 2015. “Green Revolution in Sub-Saharan Africa: Implications of Imposed Innovation for the Well-being of Rural Stallholders.” World Development 78: 204–218. Negin, Joel, Roseline Remans, Susan Krauti, and Jessica C. Fanzo. 2009. “Integrating a Broader Notion of Food Security and Gender Empowerment into the African Green Revolution.” Food Security 1 (3): 351–360. Thorbecke, Erik. 2013. “The Interrelationship Linking Growth, Inequality and Poverty in Sub-Saharan Africa.” Journal of African Economies 22 (suppl 1): i15–i48 40 CHAPTER 3 GROWTH-ORIENTED APPROACHES IN THE RURAL NONFARM ECONOMY World Bank. 2016a. Industry Competitiveness and Jobs: An Evaluation of World Bank Group Industry- Specific Support to Promote Industrial Competitiveness and Its Implications for Jobs. Washington, DC: World Bank. ———. 2016b. Project Performance Assessment Report: Ethiopia—Pastoral Community Development Project: Phases I and II. Washington, DC: World Bank. ———. 2016c. Project Performance Assessment Report: Mozambique: Market-Led Smallholder Development in the Zambezi Valley Project. Washington, DC: World Bank. http://documents.worldbank.org/curated/en/154361467987858426/pdf/104190-PPAR- P093165-P098040-SecM2016-0129-Box394878B-OUO-9.pdf ———. 2016d. Supporting Transformational Change for Poverty Reduction and Shared Prosperity: Lessons from World Bank Group Experience—An IEG Category II Learning Product. Washington, DC: World Bank.                                                              1 The Sustainable Business Advisory had its roots in an earlier IFC initiative launched in April 2006. In 2006, IFC started a Sustainable Business Innovator Facility: a global, donor-funded program to pilot profitable businesses that had environmental and social benefits. In late FY2010, building on lessons from the pilot projects funded by the Innovator Facility, IFC consolidated its advisory business and created a new business line—the Sustainable Business Advisory—with about 250 staff operating out of most of IFC’s offices. The Sustainable Business Advisory business line operated within the context of several World Bank Group strategies and initiatives, including the World Bank’s Sustainable Development Network, the Finance and Private Sector Development Network, and the Poverty Reduction and Economic Management Network. 2 Since the inception of the GWFP program in September 2010, GWFP has supported 19 transactions worth $552 million as of November 28, 2016. The majority of these projects have been committed and disbursed after the 2004–14 evaluation period. 3   This report notes the poor performance of IFC hotel investments in rural areas, which were predominantly leisure hotels. IFC’s tourism focus is primarily on business hotels in major cities, in part due to the higher risk profile of greenfield resort hotels. 41 4. Country Strategy, Analytics, and Enablers Highlights  As identified in the country case studies, some country programs reviewed are not pursuing an integrated strategic approach to developing the rural nonfarm economy as a vehicle to reduce rural poverty. Rural services have been delivered as part of sector programs but not as part of a spatial development approach to the rural economy that integrates an understanding of rural demographics, skills, mobility, remittance flows etc. Noted exceptions from the RNFE country case studies are Bangladesh and quite recently, in Indonesia.  Critical to guiding integrated country approaches to the RNFE is the application of consistent diagnostics. The World Bank has been a leader in researching and documenting the rural nonfarm sector and in analyzing its relationship to poverty. But there is a substantial gap on the diagnostic and analytic side that has been addressed occasionally but not systematically. Given limited internal resources, past and ongoing diagnostic initiatives have relied on partnerships with other donors and the mobilization of external financing.  Addressing binding constraints is key to linking the rural poor to the RNFE. World Bank– financed rural transport projects have not measured their contribution to local economic gains, in spite of intentions to achieve this in a third of all cases. Enhanced rural connectivity is being achieved through synergies between transport and agriculture—but mainly in transitioning economies. Basic literacy and skills are critical enablers in the RNFE; however, dialogue is lacking between agriculture and education experts, and although value chain projects include skills components, evidence of their effectiveness is lacking. Several rural education service delivery innovations could be tested elsewhere and more strategically applied. Sustainable delivery of financial services to the rural poor faces persistent obstacles. The delivery of sustainable, low-cost services requires further research, piloting, and scaling up of innovative models to reach underserved clients. World Bank support has extended a certain level of financial services to the poorest rural segments, but subsidization raises questions about sustainability, crowding out, and politicization. IFC investments often reach countries that have high exclusion rates, but only a fraction cater to the lower end of the retail segment. Country Strategies and Rural Dynamics IEG conducted ten country cases studies distributed across the three worlds and supplemented this with a review of early Systematic Country Diagnostics. The country case studies included Bangladesh, Brazil, Ethiopia, Indonesia, Morocco, Mozambique, Nicaragua, Rwanda, Tajikistan, and Ukraine. Overall, country strategies focused more closely on improving access for rural communities to new capital and markets for their goods and services, such as new roads and electricity network, than on mechanisms geared toward understanding migration and mobility, including commuting, or the more efficient management of remittances to rural areas. Across all country categories, IEG’s field missions observed that rural 42 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS poverty was often framed as an “urban problem” in country strategies and the analytical work that underpinned them. Rural poverty reduction was often seen as a means to stem unsustainable rural-to-urban migration. For example, in Ukraine, “off-farm job creation and improved public services in rural areas are needed to prevent increased rural poverty and large-scale urban migration, together with their associated social problems” (OECD and World Bank 2004, xviii). In Ukraine, off-farm job creation and improved public services in rural area are needed to prevent increased rural poverty and large-scale urban migration, together with their associated social problems (World Bank 2003). In Mozambique, the government is mindful of the high and growing risks associated with urban unemployment and poverty, driven by rural migration and high population growth, and the potential for social unrest (World Bank 2012b). As such, rural services were generally delivered in situ. There were few instances where country planning, including in country assistance strategies, country partnership strategies, and more recently the Systematic Country Diagnostics had performed a thorough diagnostic of migration (including seasonal) or other population movement patterns (for example, commuting) to better understand where and when assistance can best be delivered to serve the needs of the poor. This finding also applies to pastoral areas, where in situ rather than mobile services have been delivered. The same is true for remittances - for countries whose rural poor are highly dependent on them – and whose populations face a high risk of food insecurity due to shocks or currency devaluation. In Tajikistan, remittances have accounted for up to half of GDP and a quarter of rural poverty reduction. Until recently, most strategy and project documents in Tajikistan retained a primary focus on farming but the latest CAS includes an explicit discussion on the currency devaluation in the Russian Federation and its impact on rural poverty. The country strategies reviewed have only recently begun to refer to secondary city development to promote greater rural-urban connectivity, and this has not yet translated to investments in the field. By creating proximity to urban centers, secondary cities have the potential to foster the “high-end” RNFE and accelerate poverty reduction. Most of the countries covered in this evaluation maintain highly centralized functional and fiscal assignments and political decision making, with limited discretion granted to lower-level organs of government in service delivery. The country studies suggest that the exploration of secondary city development, initially through Analytical and Advisory Assistance, and then through lending is something worth considering in the fight against rural poverty. 43 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS In Morocco, there are two significant opportunities for households to move out of poverty: through remittances from family living abroad and by proximity to communities with relatively larger proportions of non-poor households. Out of a population 33.5 million, 4 million live abroad, and remittances account for roughly 6.5 percent of Morocco’s total gross domestic product (de Haas 2014). Morocco’s cities are the engine of the country’s growth and are consequently attractive for rural residents seeking access to capital and markets. Neither the country partnership strategy for 2010–13 nor the one 2014–17 make substantive mention of the development challenges Morocco faces with regard to rural-to-urban migration and rapid urban growth and resettlement (World Bank 2014). Interviews with Moroccan government counterparts confirm that this is a development challenge and that there is a need for better data to consider population change over time when planning major infrastructure development projects such as roadways and water pipelines. At the same time, both country partnership strategies reference the importance of labor mobility in enhancing growth and improving job quality, with a need to focus on progressively increasing formal sector employment that can allow for greater introduction of income protection mechanisms. With these social systems better in place, the country partnership strategy for 2010–13 in particular notes that Morocco is liable to have a more mobile labor force and “workers that are more likely to engage in higher risks higher return activities” (World Bank 2009b, 10). Better analytics could facilitate a more nuanced understanding of the binding constraints at the country level that limit the rural poor from participating in and benefiting from the RNFE based on consistent, timely, and systematic data. Yet consistent measurement and analytic frameworks have been largely missing from the RNFE space. The work has taken place sporadically. Where it occurred, such as in Latin American and the Caribbean in the mid-90s or more recently in South Asia, it has influenced the way that practitioners have framed rural policy questions. For example, data collected with World Bank support across 12 Latin American and the Caribbean countries, presented in World Development Report 2001, showed that the structure of the rural labor force had shifted, with some 50 percent of rural income in these countries being derived from RNFE activities. The work cautioned that “betting solely and predominantly on agriculture means condemning rural inhabitants to conditions of endemic poverty, marginalization, and stagnation” (World Bank 2001). As such, policy makers were encouraged to remove agricultural biases that characterized rural development programs. The World Bank has been a leader in helping document the characteristics and nature of the rural nonfarm sector and in analyzing its relationship to poverty reduction. In the late 1990s, the World Bank Development Economics Group (DEC) 44 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS began challenging the traditional view that the nonfarm was primarily a low- productivity sector that produced low-quality goods, and that rural nonfarm activities would decline as a country develops. It began to document the size and heterogeneity of the sector, and it pointed to evidence that in many emerging economies, the RNFE was expanding rather than declining (Lanjouw 2001). But the research also showed that the mechanisms through which nonfarm activities can influence poverty and inequality are varied and complex. Although the effects of nonfarm activities can be pro-poor, and significantly so, the benefits may be felt more indirectly via linkages between the nonfarm and the farm sector. The rural investment climate assessments were born in the World Bank in the mid- 2000s as a response to the urban bias of investment climate assessments (ICAs), a survey-based World Bank Group tool aimed at understanding constraints to private enterprises. The ICAs were based on enterprise surveys typically conducted in major cities, shedding virtually no light on the rural economy. The rural ICAs (RICAs) were launched by Agricultural and Rural Development in recognition of two facts: (i) nonfarm income, often derived from households or MSMEs, constituted a growing share of rural income and a pathway out of poverty, yet little was known about the nature or conditions of the activities; and (ii) rural enterprises faced a different set of conditions than urban enterprises, due to seasonality, lack of infrastructure, and remoteness. IEG examined the RICAs, considered the findings, and reviewed the related country assistance strategies to determine policy uptake. RICAs have provided a number of unique insights and have stood alone in providing a picture of the constraints to rural enterprise development. Once identified, these constraints have the potential to be key entry points for policy. In Tajikistan, RICA data was a public resource used by the World Bank in its strategy and projects, by other donors (with no comparable instrument), and by the government, where findings were accepted given its strong methods. In Nicaragua, the RICA was the basis for identifying constraints to rural entrepreneurs and was judged by the CMU to be “important and effective.” RICAs also provided cross- cutting lessons on developing the RNFE, as highlighted in The Rural Investment Climate: It Differs and It Matters (World Bank 2006) and The Rural Development Investment Climate: Analysis and Findings (World Bank 2008) and provided the basis of subsequent research on such issues as gender as well.1 Challenges to RICA implementation. Launched as pilots and funded by trust funds, RICAs faced implementation challenges due to their complexity, the number of instruments used, delays, costs, inconsistencies in design, and limited demand given these challenges. Although ICAs had constraints, RICAs required more planning because of the logistical needs of rural surveys and the application of 45 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS multiple tools (community, household, enterprise, and price surveys). They were longer in duration and required specific survey skills. In some cases, they exhibited flaws in implementation since their complexity was underestimated. Regional staff and country teams resisted standardization of the diagnostics, preferring surveys tailored to their own priorities. Although a second round of RICAs was more standardized, a funding shortage prevented replication, so the data generated was one-off. Where urban enterprise surveys were able to overcome resistance to standardization through a central funding mechanism and support from a World Bank Vice Presidency, the RICA team lacked this leverage. Not only did the Agriculture and Rural Development sector board show limited appetite after the pilots, but the Finance and Private Sector Department, which hosted the ICA, never embraced it, nor did DEC, the current home of enterprise surveys. The program lost steam, and only a trickle of RICAs followed. At the same time as RICA, a World Bank–hosted research partnership, RuralStruc,2 which focused on the structural dimensions of liberalization, helped to debunk myths about the poverty-reducing impacts of structural transformation in a globalized world. The research had the potential to widely inform the way the World Bank Group engages in the RNFE to reduce poverty through field-based surveys and data gathering, but it was underused. It found that nonfarm diversification mirrors economic transition, with low returns in the early stages and higher returns later on. By deploying teams of local experts and researchers across several countries and regions, the effort revealed that nonfarm activity was a common response to high levels of risk in agricultural activities, engaged in by 75 percent of households and that the sector is often characterized by high levels of self-employment, petty services, with few formal wage-earning opportunities. Nonagricultural wage employment was a limited option, mostly found in areas with resource endowments, infrastructure, and services. Self-employment was the main option for the poor, divided into “positive diversification”—a full-time activity with a significant contribution to household income—and “neutral diversification”—minor activities used as a coping strategy. It found that proximity to areas with high population density was insufficient to stimulate growth. Instead, what counted was the combination of infrastructure, goods, and services needed to foster rural-urban linkages. However, it was a one-off study, neither replicated nor expanded. IEG found no evidence of uptake in RuralStruc countries. The Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA), funded by the Gates Foundation and led by DEC, has improved the understanding of rural development in six pilot countries in Africa, particularly of agriculture and the linkages between farm and nonfarm activities. The undertaking is highly responsive to country needs and was identified in many of the Systematic 46 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS Country Diagnostics reviewed by this evaluation for subnational statistics or data obtained from different geographical or agro-ecological zones. The LSMS-ISA responds to the need to understand mobility and spatial dimensions of development within the rural-to-urban continuum. Its relevance is also underpinned by its focus on building capacity—in local line ministries and statistical offices—to generate data on the agricultural economy on a recurrent basis. In reference to the work, a director of DEC stated that “high-quality household data are crucial to improving our understanding of poverty and the role of agriculture in the livelihoods of the rural poor. But agriculture does not exist in a vacuum, which is why these surveys cut across sectors and will provide a holistic picture of rural incomes” (World Bank 2009a). But like others, this pilot, while more systematic and rigorous than the RICA, is an expensive undertaking, is reliant on trust funds, and includes only a very small subset of the World Bank’s client countries. The LSMS-ISA is yielding considerable insights on the RNFE at country level. Using the data, McCullough (2015) constructed net profits of nonfarm enterprises and calculated productivity and employment. The work finds important links between the farm and nonfarm: the relative productivity of farm and nonfarm labor is different depending on the country, and in some countries, farm work is as productive as nonfarm work. A low level of human capital constrains productivity in all activities. Most RNFE jobs in industry involve agricultural processing and hence are linked to farm productivity. In rural areas, manufacturing gains from agriculture productivity growth and rural manufacturers benefit from demand from rising farm incomes. Nagler and Naudé have conducted analysis of LSMS-ISA findings, yielding more insights into the “push” and “pull” factors identified by DEC and by RuralStruc (Nagler and Naudé 2014).3 These factors motivate participation, constraints, characteristics, and performance of rural enterprises. A new instrument, that is too early to evaluate, has emerged to examine the enabling environment for inclusive agricultural value chains in client countries. Enabling the Business of Agriculture includes indicators such as inputs, machinery,4 finance, transport, markets, information and communications technology, land, water, and livestock (World Bank 2016). It sets out to identify regulations that negatively affect agriculture and agribusiness to promote more inclusive growth of agribusiness. 47 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS The Rural Nonfarm Enabling Environment Rural analytics, the literature, and IEG’s RNFE country case studies show that enabling conditions for rural enterprise activity are critical to the poor’s ability to participate in and benefit from the RNFE. The poor can be differentially constrained by a lack of connectivity (infrastructure), resource endowments (land), finance, public goods and services (electricity, power, and water), and low levels of human capital and social capital (identity-based exclusion, including gender). Although the relative weights of these constraints differs by country and area, the literature suggests that these factors constrain the rural poor from exiting poverty. As established in the approach paper, this evaluation covers four main themes (rural roads, rural skills, rural finance and gender). It also reports the rural related findings of IEG’s Access to Electricity Evaluation (2015) but notes that work on water and sanitation (including rural water) and essential health services (including in rural areas) are ongoing evaluations. RURAL TRANSPORT INFRASTRUCTURE AND THE RNFE Enhancing rural accessibility is a major challenge in developing countries. About 900 million rural inhabitants are located more than 2 km from an all-season road.5 It is widely recognized that improved rural roads increase access to services, markets, and jobs, and therefore contribute to improved living standards (Roberts, Shyam, and Rastogi 2006). Several rigorous studies have shown that investments in rural transport infrastructure significantly improve the likelihood of the rural poor accessing nonfarm employment. In Peru, rural road building had positive effects on income and income diversification, which were gained from increased access to nonagricultural wages (Escobal and Ponce 2008). An International Food Policy Research Institute study on rural roads in China, India, Thailand, Uganda, and Vietnam reports employment effects, in the form of employment programs that were more accessible to the poor, prior to building roads. In India, national highway development produced a threefold increase in the share of income from nonagriculture activities for rural inhabitants, a twofold increase in the per capita trip rate for education, and a 50 percent increase in school enrollment (Fan 2009). Yet evaluative evidence on socioeconomic impacts of rural transport infrastructure is limited. Short-term effects are relatively clear: transport costs and travel time can be reduced by improved road conditions (Khandker, Bakht, and Koolwal 2009; Khandker and Koolwal 2011; Jacoby 2000). Yet, longer-term impacts, such as increased profitability of firms (or increased employment in the agricultural and non-agricultural sectors take time to materialize (Chandra and Thompson 2000; 48 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS Lokshin and Yemtsov 2005). They also depend on other conditions, such as the level of motorization (Escobal and Ponce 2008). Hence, although traditional economic rate of return analysis has been used to justify and report on infrastructure investments, only a handful of rigorous studies have been conducted to measure the socioeconomic impact of rural road improvements on living standards. IEG’s portfolio review reinforces the finding that most World Bank–financed rural transport projects do not measure economic outcomes, and few use adequate proxies, despite the fact one-third were intended to increase economic opportunities for the poor. Between 2004 and 2014, the World Bank approved financing for 232 rural transport infrastructure projects valued at $18.6 billion and implemented in 74 countries. These were mainly implemented under the Transport GP, but also include $1 billion of commitments under the Agriculture GP. Of the closed projects (n = 99), most reported outputs (number or kilometers of roads built or rehabilitated). Only half of all closed projects reported on road quality, and of these, only four describe the metrics used to assess this (for example, international road roughness index). One-quarter of the portfolio measured “access,” but only five projects indicate the standard used to assess this (that is, the Corporate Performance Indicator that defines access as 2 km away from an all-weather road). Of those that reported on access, most did not indicate what the increased access would yield in social or economic terms. The same applies for projects reporting time savings. Financing for rural transport infrastructure was highly concentrated in a few countries, mainly in transitioning economies, with the exception of Ethiopia. About a dozen countries received most of the funding with five countries (India, China, Ethiopia, Brazil, and Argentina) receiving half of the total. Although this is in line with total relative borrowing for countries like India and China, Ethiopia’s investment is noteworthy, representing 25 percent of its total International Development Association commitments over the evaluation period. Ethiopia has one of the lowest road densities in Africa. The lack of RNFE growth is associated with a lack of demand for services, partly attributable to low population density. As such, Ethiopia has borrowed $1.2 billion to double its road network for its federal trunk, link, and regional roads of high economic importance. As reported in the project’s Implementation Completion and Results Report Review, the investments have increased employment in rural road works and provided more affordable means of transport and services. However, IEG’s case study points to poor maintenance, unclear ownership, and lack of year-round access. 49 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS Agricultural finance has been tapped in transitioning countries to increase rural-to- urban and market connectivity. A total of $1 billion of agricultural lending was used for road rehabilitation in 39 countries, with six receiving 50 percent of the total finance (India, China, Democratic Republic of Congo, Brazil, Nigeria, and Malawi). India and China provide good examples of strategic blending of their transport and agricultural portfolios. In India, transport lending was used to improve trade- related infrastructure, whereas agriculture finance supported local road and bridge building, thereby facilitating market access for villages and promoting local economic development. An impact evaluation shows that the agricultural investments in roads have improved connectivity and market access, which in turn has helped to generate a surplus of higher value crops and associated income gains. Similarly, in China, transport lending has traditionally been large in size, focused on highways, and implemented at the provincial level. Recently, agricultural lending has been used to increase connectivity between provinces, counties, and villages. ICRRs reported that these investments have stimulated local development, improved access to markets, reduced travel time, and increased production due to improved access to buyers and information. Some agrarian countries with small International Development Association envelopes have relied solely on the agriculture sector to support rural transport infrastructure. In some cases, like Tajikistan, these countries receive most of their transport financing from other donors. However, in Malawi and Guatemala, smallholder producers suffer from weak input markets, low productivity, and lack of market linkages. As such, agricultural finance has been used to unblock connectivity constraints to increase competitiveness in agriculture areas. And in the Democratic Republic of Congo, where water transport is the only means of moving goods across two-thirds of the country, agricultural finance has provided critical connectivity between farms in Équateur, consumers in Kinshasa, and the port. Agricultural lending for rural road rehabilitation has also helped restore connectivity after natural disasters (for example, in Tajikistan, where agricultural finance was used to rehabilitate rural access roads destroyed by mudslides). Agriculture projects that use a community-based approach also include the upgrading of rural transport infrastructure, but none of the projects that referenced intended economic impacts measured this. In total, these included the construction or rehabilitation of 6,842 roads, 4,584 culverts, and 162 bridges; however, data on road quality, location, or links to economic outcomes are lacking (for example, access to markets, employment). The case studies also highlight instances in which rural connectivity was neglected. A large World Bank program for road rehabilitation in Nicaragua increased trade 50 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS along the Pacific Highway, but the corridors between Managua and the regional capitals, where most of the poor live (including indigenous communities) are unmaintained. Although connectivity between Managua and the regional capitals may be less of an imperative than local economic development around them, these roads need to paved and maintained. RNFE SKILLS, TRAINING, AND INNOVATIONS IN RURAL EDUCATION Evidence suggests that even relatively small gains in educational outcomes may yield considerably improved employment prospects in the nonfarm sector (Lanjouw and Lanjouw 2001; Lanjouw and Shariff 2004; de Janvry, Sadoulet, and Zhu 2005; Rahut and others 2015). Rural youth lack foundational skills necessary to compete for nonfarm employment. Most poor rural youth depend on smallholder farming and nonfarm work. New developments in agricultural production and marketing mean that rural job opportunities will be scarcer and will demand higher skills. As such, the RNFE is becoming an important source of jobs for rural youth who need skills upgrading. Many rural youths need to improve their literacy and numeracy as a first step to benefit from RNFE skills programs (World Bank 2012a). Skills development in the agriculture RNFE portfolio. Interviews revealed a need to strengthen the nexus between education, skills development, agribusiness and associated value chain activities as a tool to support the integration of the rural poor into the RNFE. Interviews pointed to a need to strengthen links especially at the country level, where dialogue is lacking between education, agriculture, and rural ministries. In the World Bank, the RNFE portfolio linked to the agriculture sector revealed that financing for dedicated skills development along the value chains was available in one out of every three projects. In the closed and evaluated projects, the results of these activities were not measured. In transitioning and urbanized economies (Armenia, Azerbaijan, Kazakhstan, Kyrgyz, and Georgia), value chain projects provided training to financial institutions to strengthen and diversify their rural lending product portfolios. However, there is no information on uptake of the financial products in the Implementation Completion and Results Reports. The rural livelihood portfolio was an exception, featuring a high frequency of projects in which training is coupled with job placement and rural income poverty is addressed through skills and youth employment components. Projects focus on demand-side interventions, providing poor youth with market-relevant training and linking them to job placement opportunities. An Employment Generation and Marketing Mission, set up by the Rural Development Department of the former state of Andhra Pradesh, grew out of pilots tested through the Andhra Pradesh Rural 51 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS Poverty Reduction Project, evaluated by IEG. The ongoing Tamil Nadu Empowerment and Poverty Reduction Project is the largest skills training program in India, with 250,000 youth trained and over 80 percent placed. Based on these, skills training is being integrated into other livelihoods projects elsewhere. In IFC, most of the advisory service projects (53 of 63 evaluated) included training activities. However, none measured their effectiveness. Training activities ranged from enterprise to accommodation management, to food safety skills, to business and even basic language training. Half of these projects were rated mostly successful or higher, and, regardless of their relative success, most projects only report the number of training events and the number of persons trained, by gender. A few projects used satisfaction surveys. Innovation in rural education service delivery in the education portfolio. Using the metasector and theme codes, IEG observed that 11 percent of the 390 education sector projects approved between 2004 and 2014 included an explicit focus on delivering education to rural areas. The projects served 29 countries through nationwide or sectoral support programs and support to rural areas. Of these, only 8 had a set of activities that specifically addressed constraints to education service delivery in rural areas. Although further work is needed to assess the effectiveness of the rural education services delivered in the context of the RNFE, several innovations introduced by the Education GP help the poor access basic rural education. These include innovative cost-reducing features like the use of new school building technology—for example, a light-gauge steel framework in Bhutan lowered the cost of transporting building materials in mountainous areas. In China, a series of rural education reform pilots used natural light to reduce heating costs, and morning snacks, hot meals, deworming medication, and micronutrients have been provided to motivate school attendance. Other efforts have been less successful, such as book rental schemes, which increased access to educational materials but were challenged by the use of lower-quality paper that increased wear and tear. School-based management was often implemented in rural education projects. In rural areas, projects have found that the lack of parent involvement in school activities is associated with poor delivery and quality of education services (budgeting, planning, and learning). This activity sought to improve the relationship between schools and communities and aimed to give communities increased decision- making powers over the local school. Another type of innovation was clustering, or “cluster schools,” which provide a network for teachers, and multigrade classrooms. 52 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS ACCESS TO ELECTRICITY An estimated 1.2 billion people—16 percent of the global population – do not have access to electricity (WEO, 2016) and another 1 billion suffer from inadequate or unreliable service. More than 95 percent of those without electricity are in Sub- Saharan Africa and South Asia, and they are predominantly in rural areas. IEG’s evaluation World Bank Group Support to Electricity Access, FY2000-2014, found that there are significant gaps in coverage to low-income countries, and that support for off-grid electrification was low and sporadic (World Bank 2015b). However, several good practices are highlighted where the World Bank helped to provide electricity, at scale, nationwide, in Vietnam, Lao People’s Democratic Republic, Indonesia, Bangladesh, Rwanda, and Kenya. These experiences share common features: adoption of a universal, least-cost roll-out plan using coordinated grid and off-grid delivery systems; attention toward sector financial sustainability including the commercial viability of service delivery providers; effective poverty targeting schemes; and government commitment. Although not yet independently evaluated, the World Bank Group’s Lighting Africa Program has supported delivery of last mile electricity services by analyzing existing and potential distribution channels and making available needed finance, including through financing facilities. IEG’s rural nonfarm case study of Bangladesh highlights lessons from the World Bank’s support there that extended access to electricity through off-grid Solar Home Systems, supplemented by progress on extending the electricity grid. An impact evaluation found that yearly per capita expenditure and yearly total income increased, with a particularly strong impact on yearly nonfarm income. However, the benefits of grid electrification were not equally distributed (Khandker, Barnes, and Samad 2012). RURAL FINANCIAL INCLUSION IEG’s evaluation Financial Inclusion: A Foothold on the Ladder toward Prosperity found that financial inclusion faces persistent obstacles in reaching the rural poor (World Bank 2015b).6 Financial inclusion has the potential to benefit the rural poor through an array of channels, ranging from payments to savings to insurance. Credit and savings services can help smooth consumption in the face of variable income flows. Insurance can protect against illnesses or job loss. Savings and credit may also help the poor make investments to improve their housing or launch or expand a micro- or small enterprise (Banerjee and Duflo 2007; Collins and others 2009; CFI 2009). Informal services, though convenient, can be unreliable, risky, and costly (Collins and others 2009; Roodman 2012). 53 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS Reliance on brick-and-mortar branching of traditional financial institutions has often not proven economical in rural areas. High transaction costs apply to the supply and demand side, where it is costly and time consuming for the poor to access financial services. There are additional risks at the lower end of the market, including customers’ lack of formal credit history, formal identification, financial literacy, and income volatility. The rural poor often depend heavily on informal schemes ranging from moneylenders to cooperatives and rotating savings, but these carry costs and risks because they operate outside the ambit of prudential and consumer protection regulation (Collins and others 2009; Roodman 2010). Among promising innovations are delivery models such as mobile, correspondent banking, agent-based, and branchless banking. IEG’s financial inclusion evaluation concluded that, to deliver sustainable, low-cost services, the World Bank Group and its partners need to research, pilot, and scale innovative business models to reach underserved rural clients (World Bank 2015). One example is a new (in 2016) initiative involving the World Bank, CGAP (the Consultative Group to Assist the Poor), IFC, and UK-AID, called Harnessing Innovation for Financial Inclusion, which is intended to scale up branchless banking and modernize government and retail payments, including remittances, to provide access to a broad range of financial services to those people who do not have any or adequate access. Although its focus is not explicitly rural, by aiming at the unbanked, it will disproportionately benefit the rural poor. IEG’s financial inclusion evaluation found that IFC investments often reach countries that have high exclusion rates, but only a fraction of its support caters to the very small retail segment of the microcredit market (World Bank 2015a). IFC typically supports fully licensed banks, but also nonbank microfinance institutions, which are highly relevant for the inclusion of the rural poor. In the countries where IFC operates, microloans represent about 5 to 10 percent of the loan portfolios of those banks that IFC supports with investments where microenterprises or poor households are a declared beneficiary. The majority of IFC-supported banks (90 percent) have mixed portfolios; the rest are up to 10 times larger and go to clients taking out significantly larger loans. This is not necessarily a bad thing as—at least SMEs are likely to benefit from such loans—and eventually microenterprises may benefit from the strengthening and deepening of the smaller end of the commercial finance market. But it argues for better segmentation and targeting of the microsegment. Within the microloan segment, IFC-supported banks issue loans slightly larger than their peers, indicating that they do not necessarily cater to the lowest end of the microcredit market. IEG’s evaluation found that monitoring and transparently reporting the extent to which IFC’s loans reach the poor and microenterprises is important going forward. 54 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS In the World Bank, support for rural financial access has taken the form of smaller elements in larger projects, a many of which are only partially focused on rural access to finance, and a number include sectors other than the financial sector. The majority fell under the former Finance and Private Sector Board, but many also fell under the former Agriculture and Rural Development. Vehicles for direct support to rural finance institutions, or smaller microfinance or informal financial institutions, are limited, and apex arrangements have been the typical approach—with mixed success. In the case of Ghana, IEG’s PPAR of the Rural Financial Services Project found that the World Bank was able to help establish regulatory guidelines for rural banks through support to an apex bank, but it had only partial success in establishing delegated supervision by the central bank to the apex bank. In Bangladesh, the Second Poverty Alleviation Microfinance project targeted both rural microfinance and urban microentrepreneurs through an apex funding and capacity building institution. According to IEG, the objective of achieving market-based funding was not achieved through the project, and the apex institution remained subsidized. Box 4.1. A Patient and Multifaceted Approach to Expanding Rural Finance in Tajikistan IEG’s RNFE Tajikistan case study showed a patient and multifaceted approach to expanding rural financial services. In Tajikistan, IFC worked with the World Bank and other donors in promoting rural finance. IFC supported the transformation and strengthening of microfinance enterprises through advisory and, sometimes, subsequent investments. It used advisory services to improve the country’s financial infrastructure and regulatory environment related to credit bureaus. It also supported the development of leasing finance through its Agri-Finance and Regulatory Reform project, which helped to improve the legislative framework for leasing. Some of its advisory work was delivered regionally to central Asia, including a financial literacy initiative and piloting of an innovative technology for microlending. It also worked with the World Bank and donors to promote higher-level policy and institutional reforms. The World Bank delivered substantial financial sector Analytical and Advisory Assistance. In spite of many setbacks, until Tajikistan’s recent economic crisis, access to rural finance for farm and nonfarm rural uses was growing rapidly. A key question raised in IEG’s examination of rural finance schemes, and more broadly about subsidized microfinance, is that of sustainability and the need for a consistent approach to subsidies. An IEG working paper based on multiple PPARs concluded that “when subsidies are political and entrenched they are hard to displace and it is insufficient for a project team alone to conduct dialogue on this theme; it requires higher-level policy dialogue support between senior World Bank staff and senior country officials” (World Bank 2015c). 55 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS The RNFE portfolio review found that access to rural finance—as a core project component—was concentrated in the Europe and Central Asia agriculture portfolio, where credit was directed toward farm and nonfarm enterprises. Evaluated projects in Europe and Central Asia sought to improve rural enterprise access to finance, markets, and know-how. In Moldova, where access to capital was a critical constraint, the World Bank helped extend access to formal finance to rural areas and restructure savings and credit associations to provide greater access to finance while providing oversight of the industry to ensure prudent management and sustainable growth. The Implementation Completion and Results Report Review found that a combination of advisory and financial services were effective in stimulating private sector–based growth. In Armenia, the World Bank provided support through a facility for small rural business including for rural financial services such as credit for working capital requirements, long-term credit for investment purposes, and leasing programs for processing equipment. In Kyrgyz, key constraints to agri-food enterprises’ access to capital were addressed through the formal banking sector using new risk-mitigation tools. References Chandra, A., and E. Thompson. 2000. “Does public infrastructure affect economic activity? Evidence from the rural interstate highway system.” Regional Science and Urban Economics (30): 457– 490. Collins, Daryl, Jonathan Morduch, Stuart Rutherford, and Orlanda Ruthven. 2009. Portfolios of the Poor: How the World’s Poor Live on $2 a Day. Princeton, NJ: Princeton University Press. Banerjee, Abhijit V., and Esther Duflo. 2007. “The Economic Lives of the Poor.” Journal of Economic Perspectives 21 (1): 141–168. de Haas, Hein. 2014. Morocco: Setting the Stage for Becoming a Migration Transition Country? Washington, DC: Migration Policy Institute. http://www.migrationpolicy.org/article/morocco- setting-stage-becoming-migration-transition-country. de Janvry, Alain, Elisabeth Sadoulet, and Nong Zhu. 2005. The Role of Non-Farm Incomes in Reducing Rural Poverty and Inequality in China. CUDARE Working Paper Series 1001, University of California at Berkeley, Berkeley, California. Escobal, J., and C. Ponce. 2008. “Dinámicas Provinciales de Pobreza en el Perú 1993–2005.” Working papers 011, Rimisp Latin American Center for Rural Development, Santiago, Chile. Jacoby, H. G. 2000. “Access to Markets and the Benefits of Rural Roads.” The Economic Journal 110: 713–737. Khandker, Shahidur R., Zaid Bakht, and Gayatri B. Koolwal. 2009. “The Poverty Impact of Rural Roads: Evidence from Bangladesh.” Economic Development and Cultural Change 57 (4): 685– 722. Khandker, Shahidur R., Douglas F. Barnes, and Hussain A. Samad. 2012. “The Welfare Impacts of Rural Electrification in Bangladesh.” Energy Journal 33 (1): 187–206. 56 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS Khandker, S., and G. Koolwal. 2011. “Estimating the Long-Term Impact of Rural Roads: A Dynamic Panel Approach.” Policy Research Working Paper 5867, World Bank, Washington, DC. Lanjouw, Jean O., and Peter Lanjouw. 2001. “The Rural Non-Farm Sector: Issues and Evidence from Developing Countries.” Agricultural Economics 25 (1): 1–23. Lanjouw, Peter. 2001. “Non-Farm Employment and Poverty in Rural El Salvador.” World Development 29 (3): 529–547. Lanjouw, Paul, and Abusaleh Shariff. 2004. “Rural Nonfarm Employment in India: Access, Incomes and Poverty Impact.” Economic and Political Weekly 39 (40): 4429–46. Lokshin, Michael, and Ruslan Yemtsov. 2005. “Has Rural Infrastructure Rehabilitation in Georgia Helped the Poor?” The World Bank Economic Review 19 (2): 311–333. McCullough, Ellen B. 2015. “Labor Productivity and Employment Gaps in Sub-Saharan Africa.” Policy Research Working Paper 7234, World Bank, Washington, DC. http://documents.worldbank.org/curated/en/184671467992010233/Labor-productivity- and-employment-gaps-in-Sub-Saharan-Africa. Nagler, P., and W. Naudé. 2014. “Non-Farm Enterprises in Rural Africa: New Empirical Evidence.” Policy Research Working Paper 7066, World Bank, Washington, DC. OECD (Organisation for Economica Co-operation and Development) and World Bank. 2004. Achieving Ukraine’s Agricultural Potential: Stimulating Agricultural Growth and Improving Rural Life. Washington, DC: World Bank. Roberts, Peter, K. C. Shyam, and Cordula Rastogi,. 2006. “Rural Access Index: A Key Development Indicator.” Transport Paper Series TP-10, World Bank, Washington, DC Rahut, Dil Bahadur, Pradyot Ranjan Jena, Akhter Ali, Bhagirath Behera, and Nar Bahadur Chhetri. 2015. “Rural Nonfarm Employment, Income, and Inequality: Evidence from Bhutan.” Asian Development Review 32 (2): 65–94. Roodman, David. 2012. Due Diligence: An Impertinent Inquiry into Microfinance. Washington, DC: Center for Global Development. World Bank. 2001. World Development Report 2000/2001: Attacking Poverty. Washington, DC: World Bank. ———. 2003. Ukraine—Country Assistance Strategy. Washington, DC: World Bank. ———. 2006. The Rural Investment Climate: It Differs and It Matters. Washington, DC: World Bank. ———. 2008. The Rural Development Investment Climate: Analysis and Findings. Washington, DC: World Bank. ———. 2009a. “Tackling Weaknesses in Agricultural Statistics in Africa: the LSMS-ISA Project.” Press Release, November 23. ———. 2009b. Morocco—Country Partnership Strategy for the Period FY10-13. Washington, DC: World Bank. ———. 2012a. Global Monitoring Report 2012: Food Prices, Nutrition, and the Millennium Development Goals. Washington, DC: World Bank. ———. 2012b. Mozambique—Country Partnership Strategy for the Period FY2012-FY2015. Washington, DC: World Bank. ———. 2014. “Morocco—Country Partnership Strategy Completion Report (CPSCR) Review for the Period FY2010–13.” Report No. 87336, World Bank, Washington, DC. 57 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS ———. 2015a. Financial Inclusion: A Foothold on the Ladder toward Prosperity. Washington, DC: World Bank. ———. 2015b. World Bank Group Support to Electricity Access, FY2000-2014. Washington, DC: World Bank. ———. 2015c. World Bank Lending for Financial Inclusion: Lessons from Reviews of Select Projects. Independent Evaluation Group Working Paper 2015/1, World Bank, Washington, DC. ———. 2016. Enabling the Business of Agriculture 2016. Washington, DC: World Bank.                                                              1 The Rural Investment Climate: Analysis and Findings shows the richness and potential of RICAs through a deep analysis of results from Nicaragua, Tanzania, and Sri Lanka. It sheds new light on how household characteristics shape decisions to set up an enterprise, responses of entrepreneurs to constraints, and differences among communities. At the household level, RNFE activity through self-employment is often simultaneous to wage employment and farm labor, fitting within a broader livelihood strategy of managing risks. Most enterprises are small, with over two-thirds employing household members. Higher community income is associated with higher density and larger enterprise size. Enterprises mostly sell locally; those that sell outside have higher productivity. Enterprise age and entrepreneurship are positively correlated with productivity. Key constraints are costs, availability, and procedures of finance; electricity and water access; cost and reliability; and road quality and access. Regulations are of low concern and credit does not have a strong effect on productivity. Social factors have a strong influence on choice and behavior. The data also allowed for an examination of gender differences in the RNFE, including the findings that non-farm entrepreneurship was found to be especially important for female heads of household and more compatible with women’s domestic responsibilities than wage or agricultural employment. 2See the the RuralStruc Program on the “Structural Dimensions of Liberalization,” an initiative between the World Bank Sustainable Development Department, the French government, and IFAD. 3There are “push” and “pull” factors in the RNFE. The need to cope with shocks, agricultural seasonality, and (larger) household size (and associated surplus labor) can push households into non-farm entrepreneurship, while market opportunities can pull them farther in. Proximity to markets and quality of infrastructure enhance such opportunities. Access to credit and markets, household wealth, and the education and age of the head of household each are positively associated with the likelihood of operating a non-farm enterprise. Rural enterprises, those headed by women, and those owned by young people are less productive than urban enterprises, those run by males, and those headed by older owners. In general, enterprises operated out of necessity rather than opportunity were less productive. Enterprises cease operations because of low profits, a lack of finance, or the effects of idiosyncratic shocks. Many enterprises operate only part of the year, potentially due to seasonal farm employment of the operators. 4In a joint initiative of the Agriculture GP and the Global Indicators Group in DEC, the World Bank mobilized a variety of donor support, including from the U.K. Department for International Development, the Danish International Development Agency, the 58 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS                                                                                                                                                                                          Government of the Netherlands, the Gates Foundation, and the U.S. Agency for International Development. 5 The World Bank and other international organizations have employed a “rural access index” using household surveys to determine road accessibility, defined as population living within 2 kilometers of an all-season road. Recent rural access index data with an updated methodology indicates that 13.5 million Kenyans and 14.5 million Mozambiquans are unconnected to an all-season road. See World Bank. 2015. “A New Measure of Rural Access to Transport: Using GIS Data to Inform Decisions and Attainments of the Sustainable Development Goals.” Connections – Transport and ICT Note 23, October 20. http://www.worldbank.org/en/topic/transport/brief/connections-note-23. 6Financial inclusion is about having access to formal financial services. Those without a bank account—or access to other formal financial services (such as a bank, credit union, cooperative, post office, or microfinance institution)—are among the financially excluded. In practice, there is a continuum of having no access to financial services, only informal services, a mix of informal and formal services, and the use of exclusively formal services. Even so, for those with access, the quality and cost of services varies tremendously. 59 5. Conclusions and Recommendations The World Bank Group can do more to assist the rural poor to realize the potential of the RNFE as a pathway out of poverty. Poverty, while declining, is increasingly concentrated in the rural space. RNFE income is part of the solution to reducing rural poverty. Yet for the poor to benefit from opportunities in the RNFE—including opportunities presented by mobility—they will need to overcome a host of connectivity, human, social, and financial constraints. Priorities will depend on the state of a country’s structural transformation and its development trajectory, and attention needs to be paid to the differentiated nature and characteristics of areas within each. Although the importance of the RNFE has been emphasized in World Bank Group strategies, the World Bank Group has not demonstrated a strategic way of engaging in the RNFE to alleviate poverty. Multiple GPs, global solution groups, and communities of practices are engaged in activities in this space, but there is no coordinating mechanism. Partnerships have strong potential but are underused in the RNFE space. This evaluation asked a key question: “How successfully has the World Bank Group contributed to the creation of sustainable income-generating opportunities for the rural poor within the RNFE?” And, what attributable effects has this had on reducing poverty?” The evaluation found that the World Bank Group has a bifurcated portfolio in this space, with a significant gap between poverty-oriented and growth-oriented interventions. In general, projects with rural nonfarm income- generating activities that have a poverty focus have been effective in reducing vulnerability and increasing access to services but not in supporting sustained income or employment gains that have lifted the rural poor out of poverty. These approaches include rural livelihoods, community-based approaches with a productive aim, and social safety nets with a productive inclusion theme. On the other hand, projects with a growth aim, namely value chains, have achieved increased sales, revenues, and increased income—but reach to the rural poor is often not evident. While there are likely spillover or secondary effects, these are not measured. Efforts to bridge this divide have asked projects adept at reducing vulnerability to achieve income and employment goals that they were not originally designed to deliver (for example, social safety nets). Another phenomenon observed was “discontinuous change”: a shift from one approach to another with different target groups but without a clear plan to fill the social or productive gap left by the change. 60 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS IFC’s RNFE portfolio in the agricultural and food sectors is concentrated in urbanized and transitioning economies. Nonetheless, a closer analysis showed many projects aim to benefit frontier or rural regions. Where IFC’s investments in food processing have had strong links to rural areas and smaller urban centers, they had significant positive development outcomes and demonstrated links to the RNFE. However, IFC often works with large, international clients where its value addition has been weaker and the benefits to the RNFE less clear. In many instances, there is little evidence generated on links or benefits to the rural poor. In addition, in some cases, corporations with substantial market power may disadvantage small producers in the value chain, suggesting a need for attention to market structure. In spite of examples of where market power has adversely affected poor value chain participants, the risks imposed by market structure and its impact on the poor and related mitigants are rarely treated explicitly in project documentation. Sex-disaggregated data across the RNFE portfolio increasingly records women’s participation in World Bank Group projects. However, few record women’s access to economic opportunities, and none record the distributional benefits by gender. Value chain activities require better upfront diagnostics of women’s roles, including their relative access to assets, markets, and services and their bargaining power with actors across the value chains. RNFE country case studies found that most of these had not pursued an integrated strategic approach to developing the rural nonfarm economy to reduce poverty. Bangladesh offers an important exception. Rural services have been delivered as part of sector programs but not as part of a spatially oriented approach to the rural economy (both farm and nonfarm). Such an approach would include an analysis of such dynamics as rural-to-urban migration, remittances, and (in many countries) increasing youth unemployment and aging populations. A broader review of RNFE content in existing Systematic Country Diagnostic for agrarian and transitioning countries found that there was good coverage of the topic, including an analysis of the way that different income groups participate in farm and nonfarm employment and associated binding constraints. Yet, specific conclusions were lacking on how to more effectively use the RNFE as a poverty reducing platform, including to inform forthcoming country partnership frameworks. Another finding at the country level is that there are untapped opportunities to use partners to pursue a more integrated approach. Critical to guiding integrated country approaches to the RNFE is the application of more consistent diagnostics of the rural private sector. The World Bank has been a leader in researching the RNFE and its relationship to poverty. Yet a gap exists on the diagnostic and analytics side that has been addressed occasionally but not 61 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS systematically. Pilot initiatives, financed by trust funds, have not been institutionalized. Where country-level diagnostics have been conducted, they have valuably informed strategies and programming. Several enabling factors influence the participation of the poor in the RNFE. Rural connectivity has been enhanced in transitioning countries that have strategically used both transport and agriculture finance, but this has not occurred in agrarian economies. Rural roads projects in a third of all cases aimed to link the poor to economic opportunities but did not track this. Dialogue is lacking between the Agriculture and Education GPs on how best to deliver market-relevant skills to rural areas and there is a paucity of evidence on the effectiveness of skills training components in value chain projects. Several innovations in the area of rural education service delivery could be studied, tested elsewhere, and strategically applied. IEG’s evaluation Financial Inclusion: A Foothold on the Ladder toward Prosperity. found that the World Bank has extended a level of financial services to the poorest segments of rural societies, but subsidization raises questions about sustainability, crowding out, and politicization. IFC investments reach countries with high exclusion rates—which often have substantial rural poverty—but only a fraction cater to the lower end of the retail segments, which are more difficult and expensive to reach and maintain. Recommendations Recommendation 1: At the corporate level, the World Bank and IFC should clarify their approach to the RNFE, and as part of it, how the World Bank Group engages across its institutions, GPs, and partnerships to promote nonfarm economic development to reduce poverty in the rural space. As part of this approach, options should be differentiated by the level of structural transformation and guided by portfolio lessons. Recommendation 2: To bridge the identified gap, the World Bank and IFC should more flexibly and relevantly select and design projects in a manner tailored to the specific stage and nature of a country or area’s structural transformation and adapted to the needs and dynamics of the target rural population. To encourage this, the World Bank Group should increase the pooling of knowledge and cross- fertilization across GPs, regions, and units to build on and adapt ongoing approaches and to develop new ones. Recommendation 3: The World Bank Group should work to close knowledge gaps about what works to reduce rural poverty within the RNFE. The World Bank 62 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS should conduct evaluations (either systematically, through a representative sample, or through clusters) of poverty and growth-oriented projects to learn more about mechanisms by which they influence the development of the RNFE and its impact on poverty Recommendation 4: IFC should include in its value chain analysis, and monitoring and evaluation, a consideration of poverty and gender impacts, including income and employment for the rural poor; either systematically, or on a sample or cluster basis including through a strategic use of its external evaluations. In its value chain projects, IFC should more explicitly articulate the risks of market power and their mitigants in its project documentation. Recommendation 5: In countries where the rural economy is a key part of the solution to ending poverty, the World Bank Group should (in partnership with donors and client countries) collect information on both formal and informal rural enterprises and their constraints and performance to help better inform the Systematic Country Diagnostic. RNFE diagnostics should include information for household-based enterprises as well as micro, small, and medium enterprises. Local capacity building and ownership is a critical part of this. This could be achieved by extending existing enterprise surveys to strengthen coverage of secondary cities and to include smaller enterprises in countries where existing surveys are limited in their coverage. This could be complemented by household surveys building on the experience of the LSMS-ISA on Agriculture to document entrepreneurial and work experience in rural enterprises. Recommendation 6: The World Bank Group should strengthen and deepen gender analysis during project preparation of rural nonfarm projects and more consistently use the results of this analysis, to address gender-related binding constraints to female labor force participation in the RNFE. Project design should incorporate measures to address these constraints, and select indicators to track progress made toward gender-related economic outcomes. Reference World Bank. 2015. Financial Inclusion: A Foothold on the Ladder toward Prosperity. Washington, DC: World Bank. 63 Bibliography Additional Resources Christiaensen, Luc. 2013. “Introduction: Rural Diversification, Secondary Towns and Poverty Reduction: Do Not Miss the Middle.” International Association of Agricultural Economists 44 (4- 5): 433–434. Davis, J. 2006. Rural Non-Farm Livelihoods in Transition Economies: Emerging Issues and Policies. Journal of Agricultural and Development Economics 3 (2): 180–224. Dorosh, Paul, James Thurlow. 2013. “Agriculture and small towns in Africa.” Agricultural Economics 44: 449–459. Dudwick, Nora, Katy Hull, Roy Katayama, Forhad Shilpi, and Kenneth Simler. 2011. From Farm to Firm: Rural Urban Transition in Developing Countries. Directions in Development. Washington, DC: World Bank. Ferreira, Francisco H. G., and Peter Lanjouw. 2001. “Rural Non-Farm Activities and Poverty in the Brazilian Northeast,” World Development 29 (3): 509–528. http://www.sciencedirect.com/science/article/pii/S0305750X0000111X Fox, Louise, and Thomas Pave Sohnesen. 2012. “Household Enterprises in Sub -Saharan Africa: Why They Matter for Growth, Jobs and Livelihoods.” Policy Research Working Paper 6184, World Bank, Washington, DC. Haggblade, Steven, Peter Hazell, and Thomas Reardon. 2007. Transforming the Rural Non-Farm Economy. Washington, DC: International Food Policy Research Institute. Haussmann, R., Cesar A. Hidalgo, Sebastian Bustos, Michele Coscia, Sarah Chung, Juan Jiminez, Alexander Simoes, and Muhammed A. Yildirim. 2013. The Atlas of Economic Complexity: Mapping Paths to Prosperity. Cambridge, MA: Center for International Development, Harvard University. IFAD (International Fund for Agricultural Development). 2010. Rural Poverty Report 2011. Rome, Italy: Quintily. IFAD (International Fund for Agricultural Development). 2012. “IFAD goal and mandate, Organizational Structure,” PowerPoint. https://www.ifad.org/documents/10180/4e6b5427- 7440-4f98-bac4-1f6ac2a86f28 ILO (International Labour Office). 2008. Report V: Skills for Improved Productivity, Employment Growth and Development. Geneva, Switzerland: ILO. Lampietti, Julian A., David G. Lugg, Philip Van der Celen, and Amelia Branczik. 2009. The Changing Face of Rural Space: Agriculture and Rural Development in the Western Balkans. Directions in Development: Agriculture and Rural Development. Washington, DC: World Bank. Lanjouw, Peter, Jamie Quizon, and Robert Sparrow. 2001. “Non-Agricultural Earnings in Peri-Urban Areas of Tanzania: Evidence from Household Survey Data.” Food Policy 26: 385–403. Lanjouw, Peter. 2001. “Nonfarm Employment and Poverty in Rural El Salvador.” World Development 29 (3): 529–547. http://www.sciencedirect.com/science/article/pii/S0305750X00001054. Lanjouw, Peter. 2009. “Does the Rural Non-Farm Economy contribute to Poverty Reduction?” In Transforming the Rural Non-Farm Economy: Opportunities and Threats in the Developing World, 65 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS edited by Thomas Reardon and Steven Haggblade, 55–79. Washington, DC: International Food Policy Research Institute. Losch, Bruno, Sandrine Fréguin-Gresh, and Eric Thomas White. 2012. Structural Transformation and Rural Change Revisited: Challenges for Late Developing Countries in a Globalizing World. African Development Forum Series. Washington, DC: World Bank. Morley, Jane. 2015. Outlook for 2015–2019. United Kingdom: Economist Intelligence Unit. Nagler, P., and W. Naudé. 2014. Patterns and Determinants of Non-Farm Entrepreneurship in Rural Africa: New Empirical Evidence. Bonn, Germany: IZA. Reardon, Thomas, J. Edward Taylor, Kostas Stamoulis, Peter Lanjouw, and Arsenio Balisacan. 2000. “Effects of Non-Farm Employment on Rural Income Inequality in Developing Countries: An Investment Perspective.” Journal of Agricultural Economics 51 (2): 266–288. Reardon, Thomas. 2001 “Rural Non-farm Employment and Incomes in Latin America: Overview and Policy Implications,” World Development 29 (3): 395–409. http://www.sciencedirect.com/science/article/pii/S0305750X00001121 Reka Sundaram-Stukel, K. D. 2006. “Fostering Growth of the Rural Non-Farm Sector in Africa: The case of Tanzania.” Paper presented at the American Agricultural Economics Association Annual Meeting, Long Beach, California, July 23–26. Start, D. 2011. “The Rise and Fall of the Rural Non-Farm Economy: Poverty Impacts and Policy Options.” Development Policy Review 19 (4): 491–505. Start, D. 2011. “The Rise and Fall of the Rural Non-Farm Economy: Poverty Impacts and Policy Options.” Development Policy Review 19 (4): 491–505. World Bank. 1997. Rural Development: From Vision to Action—A Sector Strategy. World Bank: Washington, DC. ———. 2003. Reaching the Rural Poor: A Renewed Strategy for Rural Development. Washington, DC: World Bank. ———. 2011. Assessing IFC’s Poverty Focus and Results. Washington, DC: World Bank. ———. 2012a. “IFC’s Agricultural Strategic Action Plan (ASAP)”, March 2012. World Bank, Washington, DC. ———. 2013a. Growing Africa: Unlocking the Potential of Agribusiness. Washington, DC: World Bank. ———. 2013b. Improving the Rural Investment Climate for Income Generation: Key to Rural Income Generation. Agriculture and Rural Development Discussion Paper 51, World Bank, Washington, DC. ———. 2013c. Non-Farm Diversification, Poverty, Economic Mobility, and Income Inequality: A Case Study in Village India. Washington, DC: World Bank. ———. 2013d. World Bank Group Agriculture Action Plan 2013–2015. Washington, DC: World Bank. https://hubs.worldbank.org/docs/imagebank/pages/docprofile.aspx?nodeid=17498732. ———. 2014. The Big Business of Small Enterprises: Evaluation of the World Bank Group Experience with Targeted Support to Small and Medium-Size Enterprises, 2006-12. Washington, DC: World Bank. ———. 2015. “Approach Paper: Growing the Rural Non-Farm Economy to Alleviate Poverty: An IEG Evaluation of World Bank Group Support 2004–2014.” Report 103190, World Bank, Washington, DC. ———. 2016a. Migration and Remittances Factbook 2016. Washington, DC: World Bank. 66 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS ———. 2016b. Poverty and Shared Prosperity 2016: Taking on Inequality. Washington, DC: World Bank. doi: 10.1596/978-1-4648-0958-3. Bangladesh Gautam, M., R. R. Faruqee, Md. Mansur Ahmed, F. J. Shilpi, S. R. Khandker, S. Amer Ahmed, P. Verissimo, A. Kar, and G. Chellaraj. 2016. “Dynamics of Rural Growth in Bangladesh: Sustaining Poverty Reduction.” Working Paper 103244, World Bank, Washington, DC. Khandker S., H. Samad, Z. Sadeque, M. Asaduzzaman, M. Yunus, and A. K. Enamul Haque. 2014. Surge in Solar-Powered Homes: Experience in Off-Grid Rural Bangladesh. Directions in Development. Washington, DC: World Bank. World Bank. 2005. Promoting the Rural Non-Farm Sector in Bangladesh. Washington, DC: World Bank. ———. 2008. “Harnessing Competitiveness for Stronger Inclusive Growth: Bangladesh Second Investment Climate Assessment.” Bangladesh Development Series Paper 25, World Bank, Washington, DC. ———. 2012. “Bangladesh: Toward Accelerated, Inclusive and Sustainable Growth--Opportunities and Challenges.” Report 67991, World Bank, Washington, DC. ———. 2013. “Bangladesh Poverty Assessment: Assessing a Decade of Progress in Reducing Poverty, 2000–2010.” Bangladesh Development Series Paper 31, World Bank, Washington, DC. ———. 2015. Dynamics of Rural Growth in Bangladesh: Sustaining Poverty Reduction. Washington, DC: World Bank. Brazil Binswanger, Hans, Fátima Amazonas, Túlio Barbosa, Alberto Costa, Naércio Memezes, Elaine Pazello, and Claudia Romano. 2009. Rural Poverty Reduction in Northeast Brazil: An Evaluation of Community-Driven Development. Washington, DC: World Bank. Bitoun, Jan, Lívia Izabel Bezerra de Miranda, Fernando Ramalho Gameleira Soares, Maria Rejane Souza de Britto Lyra, Jeremias Silva Cavalcanti. 2016. Tipologia Regionalizada dos Espaços Rurais Brasileiras. Sustainable Rural Development Series. Brasília, Brazil: Inter-American Institute for Agricultural Cooperation. CIPCI (Centro Internacional de Políticas para o Crescimento Inclusivo) / UNDP (United Nations Development Program). 2015. População Residente em Domicílios Agrícolas, Pluriativos Rurais Não Agrícolas e Urbanos Não Agrícolas: Atlas de Extrema Pobreza no Norte e Nordeste do Brasil em 2010. Brasília, Brazil: CIPCI and UNDP. da Silva, José Graziano, and Mauro Eduardo del Grossi. 2001. “Rural Nonfarm Employment in Brazil: Patterns and Evolution.” World Development 29 (3): 443–453. Ferreira, Francisco H. G., and Peter Lanjouw. 2001. “Rural Non-Farm Activities and Poverty in the Brazilian Northeast,” World Development 29 (3): 509–528. http://www.sciencedirect.com/science/article/pii/S0305750X0000111X Helfand, Steven M., Ajax R. B. Moreira, and Edward W. Bresneyan Junior. 2014. “Agricultura Familiar, Productividade e Pobreza no Brasil: Evidências do Censo Agropecuário 2006.” In Aspectos Multidimensionais da Agricultura Brasileira: Diferentes Visões do Censo Agropecuario 2006, edited by Sergio Schneider, Brancolina Ferreira, and Fabio Alves. Brasília, Brazil: IPEA. 67 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS IICA (Interamerican Institute for Agricultural Cooperation). 2013. Concepções da Ruralidade Contemporânea: As Singularidades Brasileiras. Sustainable Rural Development Series. Brasília, Brazil: IICA. Jonasson, E., and S. Helfand. 2008. Locational Determinants of Rural Non-agricultural Employment: Evidence from Brazil. Working Paper 2008/02, University of California, Riverside, Riverside, California. Kutcher, Gary, and Pasquale L. Scandizzo. 1981. The Agricultural Economy of Northeast Brazil. Washington, DC: World Bank. Reardon, Thomas, Júlio Berdegué, and Germán Escobar. 2001. “Rural Non-farm Employment and Incomes in Latin America: Overview and Policy Implications.” World Development 29 (3): 395– 404. Schneider, Sergio, Fabiano Escher, Luciana Scarton, and Marcelo Antonio Conterato. 2014. “Pluriatividade e Plurirendimentos nos Estabelecimentos Agropecuários do Brasil e das Regiões Sul e Nordeste.” In Aspectos Multidimensionais da Agricultura Brasileira: Diferentes Visões do Censo Agropecuario 2006, edited by Sergio Schneider, Brancolina Ferreira, and Fabio Alves. Brasília, Brazil: IPEA. Tendler, Judith. 1993. New Lessons from Old Projects: The Workings of Rural Development in Northeast Brazil. Operations Evaluation Department. Washington, DC: World Bank. Tendler, Judith. 1997. Good Government in the Tropics. Baltimore, Maryland: The Johns Hopkins University Press. Van Zyl, Johan, Loretta Sonn, and Alberto Costa. 2000. “Decentralized Rural Development, Enhanced Community Participation, and Local Government Performance: Evidence from Northeast Brazil.” Policy Research Working Paper 1498, World Bank, Washington, DC. World Bank. 2000. “Poverty Reduction, Growth, and Fiscal Stability in the State of Ceará.” State Economic Memorandum Report 19217-BR, World Bank, Washington, DC. ———. 2002a. Brazil: Equitable, Competitive, Sustainable – Contributions for Debate. Washington, DC: World Bank. ———. 2002b. Brazil—Country Assistance Strategy for 2003-2007. Washington, DC: World Bank. ———. 2003a. “Brazil—Strategies for Poverty Reduction in Ceará: The Challenge of Inclusive Modernization.” Report 24500-BR, World Bank, Washington, DC. ———. 2003c. Rural Poverty Alleviation in Brazil: Toward an Integrated Strategy. Washington, DC: World Bank. ———. 2008a. “Rural Poverty Reduction in Northeast Brazil: Achieving Results through Community- Driven Development.” En Breve 125, World Bank, Washington, DC. ———. 2008b. Brazil—Country Partnership Strategy for 2008–2011. Washington, DC: World Bank. ———. 2009a. Implementing Agriculture for Development: World Bank Group Agriculture Action Plan FY 2010-2012. Washington, DC: World Bank. ———. 2009b. Rural Poverty Reduction in Northeast Brazil: An Evaluation of Community-Driven Development. Washington, DC: World Bank. ———. 2012. Brazil—Country Partnership Strategy for 2012–2015. Washington, DC: World Bank. ———. 2016a. Brazil—Ceará Rural Poverty Reduction Project and Santa Catarina Natural Resource Management and Rural Poverty Reduction Project. Independent Evaluation Group, Project Performance Assessment Report 106455. Washington, DC: World Bank. 68 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS ———. 2016b. Brazil—Systematic Country Diagnostic: Retaking the Path to Inclusion, Growth, and Sustainability. Washington, DC: World Bank. Ethiopia Bezu, Sosina, and Christopher B. Barrett. 2010. “Employment Dynamics in The Rural Non-Farm Sector in Ethiopia. Do the Poor Have Time on Their Side?” The Journal of Development Studies 48 (9): 1223–40. Chavkin, Sasha. 2015. “Leaked Report Says World Bank Violated Its Own Rules in Ethiopia.” Huffington Post, June 24. http://www.huffingtonpost.com/2015/01/20/ethiopia-world- bank_n_6507568.html. Dercon, Stefan, John Hoddinott, and Tassew Woldehanna. 2011. “Growth and Chronic Poverty: Evidence from Rural Communities in Ethiopia.” CSAE Working Paper WPS/2011- 2018, Centre for the Study of African Economies, Oxford, UK. Human Rights Watch. 2015. “World Bank: Address Ethiopia Findings, Response to Inquiry Dismissive of Abuses.” All Africa, February 23. https://www.hrw.org/news/2015/02/23/world-bank-address-ethiopia-findingsIFAD Draft CPE (not publicly disclosed)? IFAD/FAO Engagement with Pastoral Development (2003- 2013) Joint Evaluation Synthesis (not publicly disclosed) IMF (International Monetary Fund). 2014. The Federal Democratic Republic of Ethiopia. Washington, DC: IMF. Lautze, Sue, Yacob Aklilu, Angela Raven-Roberts, Helen Young, Girma Kebede, And Jennifer Leaning. 2003. Risk and Vulnerability in Ethiopia: Learning from The Past, Responding to the Present, Preparing for the Future. Ethiopia: U.S Agency for International Aid. Levitt, Tom. 2012. “Special report Crisis or rebirth? The Future of Ethiopia’s Pastoralist Tribes.” The Ecologist, May 3. http://www.theecologist.org/News/news_analysis/1346262/crisis_or_rebirth_the_future_o f_ethiopias_pastoralist_tribes.html. Renkow, Mitch, and Roger Slade. 2013. An Assessment of IFPRI’S Work in Ethiopia 1995–2010: Ideology, Influence, and Idiosyncrasy. Washington, DC: International Food Policy Research Institute. World Bank. 2005. “Ethiopia Risk and Vulnerability Assessment.” Report 26275- ET, World Bank, Washington, DC. ———. 2012. Ethiopia—Country Assistance Strategy. Washington, DC: World Bank. ———. 2014. “Ethiopia—Regional Pastoral Livelihoods Resilience Project.” Project Appraisal Document Report 71634–AFR, World Bank, Washington, DC. ———. 2015. Ethiopia Poverty Assessment 2014. Washington, DC: World Bank. India Chadha, G. K. 2002. “Rural Non-Farm Employment in India: What Does Recent Experience Teach Us?” The Indian Journal of Labour Economics 45 (4): 663–94. Chakravarti, Ritadhi, Gautam Mathur, Alain De Janvry, Marie L Sadoulet Elisabeth. 2015. India— Agricultural Growth and Rural Non-Farm Employment. Washington, DC: World Bank. 2015. India - Livelihoods in Intermediate Towns: Social Dynamics of Non-Farm Economy. Washington, DC: World Bank 69 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS Chatterjee, Urmila, Rinku Murgai, and Martin Rama. 2015. “Job Opportunities Along the Rural- Urban Gradation and Female Labor Force Participation in India.” World Bank Policy Research Working Paper 7412, World Bank, Washington, DC. Datt, Gaurav, and Martin Ravallion. 2013. “Farm Productivity and Rural Poverty in India.” Journal of Development India 34 (4): 62–85. Drèze, Jean, Peter F. Lanjouw, and Naresh Sharma. 1997. “Credit in Rural India: A Case Study.” LSE STICERD Research Paper DEDPS/6, Suntory and Toyota International Centre for Economics and Related Disciplines, London. Drèze, Jean, Peter Lanjouw, and Nicholas Stern. 1992. “Economic Mobility and Agricultural Labour in Rural India: A Case Study.” Indian Economic Review 27: 25-54. Himanshu, Himanshu, Peter Lanjouw, Abhiroop Mukhopadhyay, and Rinku Murgai. 2011. “Non- Farm Diversification and Rural Poverty Decline: A Perspective from Indian Sample Survey and Village Study Data.” Working Paper 44, Asia Research Centre, London School of Economics and Political Science, London, UK. Jayaraman, Rajshri, and Peter Lanjouw. “The Evolution of Poverty and Inequality in Indian Villages.” World Bank Research Observer 14, 1: 1–30. Kijima, Yoko, and Peter F. Lanjouw. 2003. “Poverty in India during the 1990s: A Regional Perspective.” Policy Research Working Paper 3141, World Bank, Washington, DC. Kijima, Yoko, and Peter Lanjouw. 2005. “Economic Diversification and Poverty in Rural India.” Indian Journal of Labour Economics 48 (2): 349–374. Lanjouw, Peter Frederik. 1992. “Inequality, Poverty and Mobility: The Experience of a North Indian Village.” PhD diss., University of London, London School of Economics. Lanjouw, Peter, and Abusaleh Shariff. 2004. “Rural Non-Farm Employment in India: Access, Incomes and Poverty Impact.” Economic and Political Weekly 39 (40): 4429–46. Lanjouw, Peter, and Nicholas Stern. 1998. Economic Development in Palanpur over Five Decades. New York: Oxford University Press. Lanjouw, Peter, and Rinku Murgai. 2009. “Poverty Decline, Agricultural Wages, and Non-Farm Employment in Rural India: 1983–2004.” Agricultural Economics 40 (2): 243–263. Indonesia ADB (Asian Development Bank). 2016. Toward Mainstreaming and Sustaining CDD in Indonesia: Understanding Local Initiatives and the Transition from PNPM-Rural to the Village Law. Manila, Philippines: ADB. Barron, Patrick, and Rachael Diprose. 2011. Contesting Development: Participatory Projects and Local Conflict Dynamics in Indonesia. New Haven, Connecticut: Yale University Press. Friedberg, Erhard, and Mary E. Hilderbrand. 2016. Observing Policy-Making in Indonesia. New York: Springer. Gibson, John, and Susan Olivia. “The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia.” World Development 38 (5): 717–726. Kusago, Takayoshi. 2002. “Regional disparity in Accessibility to Non-Farm Economic Involvement among Rural Indonesian Households.” ASEAN Economic Bulletin 19 (3): 290–301. 70 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS Leinbach, Thomas R. 2004. “The Indonesian Rural Economy.” In The Indonesian Rural Economy: Mobility, Work and Enterprise, edited by Thomas R. Leinbach, 3-14. Singapore: Institute of Southeast Asian Studies. Olken, Benjamin A., Junko Onishi, and Susan Wong. 2011. “Indonesia’s PNPM Generasi Program: Final Impact Evaluation Report.” Report 72509, World Bank, Washington, DC. Morocco The Economist. 2016. “The Pluses and Minuses of Monarchy.” The Economist, June 11. http://www.economist.com/news/middle-east-and-africa/21700393-morocco-doing-well- its-king-still-needs-adapt-pluses-and-minuses?fsrc=rss%7Cmea Litvack, Jennie. 2007. “The Poverty Mapping Application in Morocco.” In More than a Pretty Picture: Using Poverty Maps to Design Better Policies and Interventions, edited by Tara Bedi, Aline Coudouel, and Kenneth Simler, 208–224. Washington, DC: World Bank. http://siteresources.worldbank.org/INTPGI/Resources/342674-1092157888460/493860- 1192739384563/10412-11_p208-224.PDF. Datta, Upamanyu. 2014a. “Morocco—Second Education Development Policy Loan.” Implementation Completion and Results Report Report ICRR00003129, World Bank, Washington, DC. http://www- wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/11/06/0004424 64_20141106152843/Rendered/PDF/ICR31290P120540C0disclosed011040140.PDF. Mauro, Craig. “Morocco: More than Just a Road.” Development 360. http://web.worldbank.org/archive/website00819C/WEB/PDF/DEV360MO.PDF. World Bank. 2015a. “Morocco—Second Education Development Policy Loan.” Implementation Completion and Results Review Report ICRR14694, World Bank, Washington, DC. de Haas, Hein. 2014. “Morocco: Setting the Stage for Becoming a Migration Transition Country?” Migration Policy Institute, Washington, DC. http://www.migrationpolicy.org/article/morocco-setting-stage-becoming-migration- transition-country. Food and Agriculture Organization (FAO). 2006. “Implementation Status of the 2020 Strategy for Rural Development: Kingdom of Morocco” Food and Agriculture Organization. http://www.fao.org/3/a-k1461e.PDFPDF Ghanem, Hafez. 2015. “Agriculture and rural development for inclusive growth and food security in Morocco.” Global Working Paper 10, Brookings Institution, Washington, DC. http://www.brookings.edu/research/papers/2015/02/agriculture-development-inclusive- growth-food-security-morocco-ghanem Hicks, Celeste. 2015. “Morocco’s Progress on Food Security Acknowledged by UN but Work Remains.” The Guardian, October 27. http://www.theguardian.com/global- development/2015/oct/27/morocco-food-security-un-special-rapporteur-hilal-elver-plan- maroc-vert Hoel, Arne. 2013. “Community-Driven Development: Results Profile.” World Bank. http://www.worldbank.org/en/results/2013/04/14/community-driven-development- results-profile. World Bank. 2014. “Morocco—Country Partnership Strategy Completion Report (CPSCR) Review for the Period FY2010–13.” Report 87336, World Bank, Washington, DC. 71 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS International Fund for Agricultural Development (IFAD). 2016. “Rural Poverty in the Kingdom of Morocco” Rural Poverty Portal: Accessed on 16 May, 2016, http://www.ruralpovertyportal.org/country/home/tags/morocco. Verme, Paolo. 2012. “Who Is Deprived? Who Feels Deprived? Labor Deprivation, Youth and Gender in Morocco.” Let’s Talk Development (blog), July 9, 2012. http://blogs.worldbank.org/developmenttalk/who-is-deprived-who-feels-deprived-labor- deprivation-youth-and-gender-in-morocco. World Bank. 2015. “Morocco—Mind the Gap: Empowering Women for a More Open, Inclusive and Prosperous Society.” Report 97778-MA, World Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/24004 World Bank. 2005. “Morocco—Second Rural Roads Project.” Project Information Document AB1684, World Bank, Washington, DC. http://documents.worldbank.org/curated/en/709711468061444752/pdf/MO0RR2010Proje1 tage010July020102005.pdf. World Bank. 2007. “Moving Out of Poverty in Morocco.” Social and Economic Development Group Draft Report 39992-MOR, World Bank, Washington, DC. World Bank. 2009. “Appraisal Stage: Morocco Urban and Rural Water Systems.” Project Information Document AB5044, World Bank, Washington, DC. World Bank. 2014a. Morocco—Country Partnership Strategy. World Bank, Washington, DC. World Bank. 2014b. “Morocco—Second Rural Roads Project.” Report 83755-MA, World Bank, Washington, DC. World Bank. 2015. “Morocco— Second Inclusive Green Growth Development Policy Loan.” Report 93902-MA, World Bank, Washington, DC. World Profile Group. 2015. “Morocco: Pioneering Economic Growth.” Foreign Affairs, November- December 2015. World Bank. 2012b. “Morocco—Program-for-Results Operation in Support of the National Initiative for Human Development Phase 2.” Technical Assessment 71173, World Bank, Washington, DC. Mozambique Alfani, F., Carlo Azzari, Marco d’Errico, Vasco Molini. 2012. “Poverty in Mozambique: New Evidence from Recent Household Surveys.” Policy Research Working Paper 6217, World Bank, Washington, DC. Anderson, Jamie, and Wajiha Ahmed. 2016. “Smallholder Diaries: Building the Evidence Base with Farming Families in Mozambique, Tanzania, and Pakistan.” Washington, DC: Consultative Group to Assist the Poor. Cunguara, Benedito, Augustine Langyintuo and Ika Darnhofer. 2011. “The Role of Nonfarm Income in Coping with the Effects of Drought in Southern Mozambique.” Agricultural Economics 42: 701–713. Cunguara, Benedito, Gorka Fagilde, James Garrett, Rafael Uaiene and Derek Headey. 2012. “Growth without Change? A Case Study of Economic Transformation in Mozambique.” Journal of African Development 14 (2). Danish Trade Union Council for International Cooperation. 2014. “Mozambique: Labour Market Profile.” 72 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS de Vletter, Fion. “Migration and development in Mozambique: Poverty, Inequality and survival.” Development Southern Africa 24, (1): 137–153. de Vletter, Fion. 2006. “Microfinance in Mozambique: Achievements.” Prospects and Challenges. Maputo, Mozambique: Mozambique Microfinance Facility. Deininger, Klaus, Fang Xia, Aurelio Mate, and Ellen Payongayong. 2015. “Quantifying Spillover Effect from Large Farm Establishments,” Policy Research Working Paper 7466, World Bank, Washington, DC. FAO (Food and Agriculture Organization)/World Food Programme. 2005. Crop and Food Supply Assessment Mission to Mozambique. Rome: FAO. Gallego, J., and Mariapia Mandola. 2010. “Labor Migration and Social Networks Participation in Southern Mozambique.” Department of Economics Working Paper 18, University of Milano- Bicocca, Milan, Italy. International Fertilizer Development Center. 2012. Mozambique Fertilizer Assessment. Muscle Shoals, Alabama: International Fertilizer Development Center. Jones, Sam, and Finn Tarp. 2016. “Understanding Mozambique’s Growth Experience through an Employment Lens.” Understanding the African Lions Series. Helsinki, Finland: United Nations University-WIDER. Kirshner, Joshua. 2014. “Mozambique’s Mining Boom: Labour and Development in Tete;” SA Labour Bulletin 38 (2). Mather, David, Benedito Cunguara and Duncan Boughton. 2008. “Household Income and Assets in Rural Mozambique, 2002–2005: Can Pro-Poor Growth be sustained?” Research Report 66, Directorate of Economics, Ministry of Agriculture, Republic of Mozambique. Mozambique, Ministério do Planeamento e Cooperação. 2006. “Plano de Acção para a Redução da Pobreza Absoluta 2006–2009 (PARPA II).” Maputo, Mozambique: Governo de Moçambique, Ministério do Planeamento e Cooperação. Raimundo, I. 2009. “International Migration Management and Development in Mozambique: What Strategies?” International Migration 47 (3): 93-122 Tostao, E., and B. W. Brorson. 2005, “Spatial Price Efficiency in Mozambique’s Post-Reform Maize Markets.” Agricultural Economics 33: 205-214. World Bank. 2007. “Mozambique—Country Partnership Strategy FY08–11.” Report 39395-MZ, World Bank, Washington, DC. ———. 2012. “Mozambique—Country Partnership Strategy FY12–15.” Report No. 66813-MZ, February 8, 2012.World Bank, Washington, DC. ———. 2015. “Mozambique—Second Agricultural Development Policy Operation.” Program Appraisal Document Report 84661-MZ, World Bank, Washington, DC. ———. 2016a. Accelerating Poverty Reduction in Mozambique: Challenges and Opportunities. Washington, DC World Bank. ———. 2016b. “Navigating Low Prices.” Mozambique Economic Update. Washington, DC: World Bank. ———. 2016c. Project Performance Assessment Report: Mozambique: Market-Led Smallholder Development in the Zambezi Valley Project. Washington, DC: World Bank. http://documents.worldbank.org/curated/en/154361467987858426/pdf/104190-PPAR- P093165-P098040-SecM2016-0129-Box394878B-OUO-9.pdf. 73 CHAPTER 4 COUNTRY STRATEGY ANALYTICS AND ENABLERS Ukraine Moorty, Lalita M. 2015. “Ukraine—Towards Stabilization and Sustained Growth.” Policy Note 89303, World Bank, Washington, DC. Nivyevskiy, Oleg, and Stephan Von Cramon-Taubadel. 2006. “Rural Non-Farm Employment in Ukraine.” In Agriculture in the Face of Changing Markets, Institutions and Policies: Challenges and Strategies Studies on the Agricultural and Food Sector in Central and Eastern Europe, vol. 33, edited by Jarmila Curtiss, Alfons Balmann, Kirsti Dautzenberg, and Kathrin Happe, 484–496. Frankfurt, Germany: IAMO. Piontkovsky, Serhiy, and Lina Nemchenko. 2016. “Moratorium on the Sale of Agricultural Land to Continue for another Year.” Baker and McKenzie, November 1. http://www.usubc.org/site/Baker-McKenzie/moratorium-on-the-sale-of-agricultural-land- to-continue-for-another-year. Vismantas, Marius. Policy Brief: Ukraine PSD Note peer review June 2013. The World Bank, Washington, DC. 6 June. 2013. World Bank and OECD. 2004. Achieving Ukraine’s Agricultural Potential: Stimulating Agricultural Growth and Improving Rural Life. Washington, DC: World Bank. World Bank. 2011a. “Ukraine—Development Policy Loans 2 and 3.” Implementation Completion and Results Report ICRR13753, World Bank, Washington, DC. ———. 2011b. “Ukraine—Access to Financial Services Project.” Implementation Completion and Results Report ICRR13527, World Bank, Washington, DC. 74 Appendix A. IFC and World Bank Project List Supplementary project appendixes are available upon request. 75 Appendix B. Community-Based Approaches with Productive RNFE Components APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results P073 BD: Banglade ‘10/ Agric To improve the Poverty Targeting Increase in HHs income by at # of subprojects: 791,427 income-generating activities in 3,262 villages 886 Social sh ‘15 ulture livelihoods, and Area least 50% for 50% of HHs; At least in three regions Investm /ARD quality of life Targeting. SIPP-2 ten major business partnership % of subprojects productive: 100% ent and resilience was to cover 3,262 established through Productive Activities: Dairy (22%), Livestock - beef (22%), Small stock Progra to climate villages in three public/private partnerships with and poultry (16%), Agricultural investments (vegetables, hybrid crops m variability, regions (Rangpur, communities; Number of direct and betel leaf cultivation, 10.7%), transport (motorized rickshaws and Project natural Jamalpur, and jobs created through project vans, 5%), Small business investments (tailoring and retailing, 19%), II hazards and Barisal) and 15 facilitation; Percent of the Fisheries (3.5%), Other (1.9%) other shocks of districts; within the hardcore poor and vulnerable What was evaluated: unclear the rural poor, villages, the have accessed resources under Method of evaluation: Impact Evaluation, third party monitoring, especially the targeted the project and started income- special studies left out poor households generating activities or Results: The livestock IGAs yield annual net returns ranging from 19% and vulnerable comprised the employment (dropped); At least for poultry operations to 33% for beef fattening and 48% for dairy from households poor, hardcore 40% of target HHs have benefited local cattle to 84 percent for dairy from crossbreed cattle. Transport and poor, and from value addition activities small business investments generated the highest average net incomes, vulnerable through economic federations followed by tailoring and cow rearing, hybrid crop cultivation and Koal households, based (dropped) rearing were the least income-generating activities. on a participatory Comments: The Implementation Completion and Results Report (ICR) identification of the states that it should be noted, however, that the numbers are considered poor exercise. reliable only for the cattle enterprises (local dairy, crossbreed dairy and beef fattening) due to the small sample size available for other activities. All the income have been averaged to a year given the different. The IE covered 480 villages (269 treatment, 211 control) in four districts. The surveys covered about 4,701 households living in these villages. Sampling was developed in two stages: (a) using secondary information to identify a sample of project and control villages and compiling a census to classify households into poor, hardcore poor, and vulnerable categories; and (b) drawing up a probability sample of households from these classified census lists. P113 TD- Chad ‘11/ SURR (i) Improved No Targeting Community microprojects # of subprojects: n/a 030 Local ‘15 /ARD access to basic completed (#); % of subprojects productive: n/a Dev infrastructure Productive Activities: n/a Prog and social What was evaluated: n/a Sup services in Method of evaluation: Neither detailed micro-project impact APL II targeted evaluations, nor beneficiary surveys, were available districts; and Results: Specific results were considerably below targets. A case in (ii) improved point is water supply microprojects. Only 15 percent of the estimated planning, number of wells/ boreholes was constructed. It is to be noted also that management no soil protection and conservation microprojects were implemented. and Also they were no livestock-related projects monitoring by Comments: The ICR states that: “Data limitations have only permitted 76 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results local to perform a least cost comparison scenario to assess project efficiency. communities The monitoring and evaluation (M&E)d data only covered overall and communes micro-project costs (see Annex 3), and was insufficiently detailed to do of any other type of analysis”. In the course of project implementation, decentralized neither income generation microprojects nor environmental investments. microprojects were undertaken. Therefore it was not possible to make any cost-benefit analysis for either type of activity. P104 VN - Vietnam ‘07/ SURR The credit Poverty and Area Commune, village and household Program is a DPI, does not include productive subproject but policy 097 Progra ‘07 /ARD would support Targeting. The selection criteria under P135-2 are changes. m 135 policy and criteria for pro-poor and effectively applied Phase 2 institutional identifying poor (# of provinces); Program Support actions to households varied resource allocation favors poorer Credit improve the considerably participating communes and results of P135- between provinces, villages (# of provinces); Poor 2 with complicating the upland households increase particular allocation of incomes and diversify livelihoods reference to: (i) resources among in a sustainable, market improved localities based on responsive manner (income poverty the number of poor increase); Revised indicator is targeting of households. As a “Crop income per household per program prior action for month.” resource DPC1, government allocation; (ii) issued Decision deepening and 393/2005/QD- scaling up of UBDT which community- introduced driven verifiable, poverty- approaches to based criteria for planning, selection of managing, commune and operating and villages included in maintaining P135-2. basic rural infrastructure; (iii) enhanced fiduciary transparency and accountability in program implementatio n through wider use of social audit approaches; and (iv) process monitoring and impact evaluation. 77 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results P094 TRANS Serbia ‘07/ SURR The Area Targeting. Rising profitability and # of subprojects: in municipalities 212 AG ‘13 /ARD Transitional Southern Serbia, competitiveness of Serbian % of subprojects productive: () REFOR Agriculture the poorest and agriculture; Establishment of local Productive Activities: M Reform Project least developed tourism association, bye-laws, What was evaluated: development region, is standards, marketing strategy; Method of evaluation: objective is to characterized by Results: enhance the mountainous Comments:. competitivenes geography, large s of Serbian expanses of pasture agriculture. and forest, small and fragmented arable areas, very limited commercial production, and high rates of outmigration P080 BR Brazil ‘04/ SURR To help State Poverty and Area Incremental employment # of subprojects: 626 830 Maranh ‘08 /ARD of Maranhao targeting generated from subproject % of subprojects productive: 48% (300) ao achieve the investments (Not known due to Productive Activities: Integrat goal of lack of evaluation study); Increase What was evaluated: N/A ed: reducing in social welfare of rural Method of evaluation: N/A Rural poverty by communities (not measured); Results: Efficiency of the community subprojects was not assessed. The Dev increasing its Number of communities four subproject case studies prepared for the mid-term review do not HDI from successfully graduated from the shed much light on the overall efficiency of the project. The largest 0.647 to 0.700 program and single category--productive subprojects--consisted of a series of “very by year 2007 successfully linked to other small-scale” initiatives that were apparently diffuse in their impact, financing (Not measured) lacked technical guidance, did not pay enough attention to market prospects and were targeted mostly for local sale or consumption and to complement income and subsistence Comments: actual impact of these investments on livelihoods was not measured. P093 HT Haiti ‘06/ Agric To scale up the Poverty targeting Number of communes # of subprojects: 1,687 640 CDD ‘13 ulture direct transfer (municipalities) successfully % of subprojects productive: 33% (553) Project /ARD of public managing direct transfer to CBOs Productive Activities: Livestock (28%), Grain mills (24%), Community (PROD resources to for community subprojects (SPs); stores (24%), Agroprocessing (10%), Animal traction (4%), fisheries EP) local Percentage of rural/peri-urban (2%), Chicken farms (2%), Agricultural production intensification community poor with access to basic social (10%), Other (4%) organizations and economic infrastructure (eg, What was evaluated: 16 subprojects in 2009 at MTR, 4 productive in poor rural water supply, feeder roads, subprojects at end of project (FAO/CP) (<1%) and peri-urban schools, health posts); CBOs Method of evaluation: Economic evaluation of subprojects conducted communities, officially constituted and by FAO/CP of ten subprojects chosen from the most representative by: participating in COPRODEPs; type of subprojects (i)improving Number of households Results: Of the 4 productive subprojects, one had a negative ERR, one at their access to expressing awareness of PRODEP 7% and two between 13 and 15%. A MTR study (2009) revealed that basic social and its objectives, activities and about 75% of productive SPs were under financial stress. Indicator: and economic means of access; Residents in Percentage change in household assets, per capita incomes among infrastructure project area with access to basic project beneficiaries; Dropped: This indicator was dropped by AF1 as and support social and economic majority (81%) of SPs (infrastructure and social) did not have a direct income- infrastructure impact on household income or assets. An estimated 75% of income- generating (eg, access to potable water, generating SPs showed varying financial issues at this stage 78 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results activities by irrigation, grain mills); Comments: Subprojects chosen for evaluation were not randomly financing %productive/income-generating selected and represented less than 1% of productive activities. small-scale subprojects are operational 3-6 investments months after completion; 3,500 proposed, CBOs officially constituted and implemented participating in COPRODEPs and managed (includes pre-existing and by community strengthened, as well as newly organizations; created CBOs); %population in and project area express awareness of (ii)improving PRODEP and its objectives, governance activities and means of access; and building percent of CBO members express social capital a positive change in terms of their of organizational capacity and communities ability to work together by increasing constructively; citizen participation and transparency in open decision- making processes P073 VIP Kyrgyz ‘04/ SURR To contribute Area targeting Employment and income # of subprojects: 4,344 973 Republic ‘08 /ARD to the generated by microprojects % of subprojects productive: 27% (1,164) alleviation of Productive Activities: Sewing workshops, Machinery repair workshops, rural poverty. Saw mills, Flour mills, Oil press, Fruit and vegetable processing, It seeks to Agricultural production, Veterinary services, Bakery and pasta achieve this by production pursuing three What was evaluated: 71 productive microprojects (6%) (Total evaluated: specific 185) objectives: (a) Method of evaluation: Randomized sample, BIA improving Results: Average IRR: 70%, ranging from 6% to over 100%. Some governance income-generating mini-projects are financially unsustainable; some and capacity at even do not cover recurrent costs (mainly sewing workshops, flour the local level; mills and machinery repair). A total number of 57 mini-projects (or (b) about 30% of the analyzed MPs) are found to be financially unviable. strengthening Comments: micro-project analysis undertaken between 2005-2007; IEG the provision has some queries about the efficiency analysis in the ICR . Some of these of, and access subprojects (for example, schools) do not lend themselves to financial to, essential rate of return analysis . Also, based on a a spreadsheet supplied to IEG infrastructure by the project team, it is apparent that 43 of the sample of 185 projects services; and had insufficient data to enable financial rate of return calculation (c) supporting private small- scale group enterprise development. 79 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results P102 Comm Niger ‘09/ SURR To improve Poverty and Area N/A # of subprojects: 6,315 354 unity ‘13 /ARD Rural Targeting % of subprojects productive: 81% (5,099) Action communes’ Productive Activities: Livestock, grocery shops, hand bag production Progra capacity to What was evaluated: Unclear: IE considers 6 districts out of 25 and 115 m design and over 656 villages, ICR mission: 12 Comm Org. interviews in 2 districts (APL-2) implement in a for the Economic analysis (5,530 COs and 19 districts) participatory Method of evaluation: Tribhuvan University IE manner Results: All selected subprojects are financially and economically viable Communal and generate FRRs ranging from 108% to 847% (ERR 18%-62%). Development Increased income is observed in both program and control areas Plans and between two periods, and the difference is higher in program area than Annual in control area. This is a positive sign, although it is important to keep Investment in mind that the follow-up survey was conducted in the same year that Plans and 64% of the beneficiaries received their funds and the majority of them therefore had not started repayment of interest or principal. Without adequate contributing to technical or veterinary support, a government audit reported that the enhance rural majority of the livestock perished in two districts, leaving several livelihoods. households indebted but without any additional income. A later IE finds that 66% of households covered under PAF in the newer districts achieved a minimum income increase of 15% and an average income increase of 82.5% in real terms. The percentage of PAF beneficiary households with food insufficiency for 3 months or less dropped from 13.8% in 2007 to about 5.5% in 2010 compared with a 6.8% reduction for nonbeneficiary households; percentage of PAF beneficiary households with food insufficiency of 6 months or less decreased from 40% in 2007 to 33% in 2010 compared with a 9% increase in non-PAF households over the same period. Employment (number working hours per week) in the project area increased by 18%, but this was lower than the 27% recorded in the control area. Comments: No clarity on Economic and financial analysis results due to the extremely low number of COs interviewed, the IE provides enough other data to make a judgment P081 MR- Mauritan ‘04/ SURR To improve the Poverty Targeting 2,500 subprojects (SP) # of subprojects: 1,588 in 391 municipalities 368 Com ia ‘11 /ARD living implemented and maintained by % of subprojects productive: 50% (785) Based conditions of community associations; income Productive Activities: ag mech (431 tractors), manioc mills (94) and a Rural project- range of ag processing Dev supported What was evaluated: 27 randomly selected projects (19 ag mech; 5 (FY04) - village manioc flour mills; and 3 honey processing) (PDRC) communities, Method of evaluation: Random sampling; use of proxy estimates from in terms of similar subproject sustainable Results: Negative or zero IRR for most subprojects under drought income conditions. Other evidence indicates that the project annually created increase, access an estimated seasonal 1,050 jobs. Even taking the impact of drought into to basic account and the modest scale of most investments, the project’s socioeconomic productive activities demonstrated capacity to increase income. services, and Comments: There is some inconsistency in the percentage of each type improved of subprojects; the IRR and ERR are negative, and the subprojects natural evaluated range from 4% to 5%. Estimated rates of return under resource 80 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results management nondrought conditions showed better results, but the data used for practices. these estimates were also based on unspecified secondary data. P074 LK: Sri Lanka ‘04/ SURR To enable the Area Targeting # of VOs functioning effectively; # of subprojects: 142,741 872 Comm ‘10 /ARD rural poor to % of subprojects implemented % of subprojects productive: 67% (95,853) unity improve their and maintained; % increase in Productive activities: food grains (21%), horticulture (27%) and Dev & livelihood and HH incomes of the poor; %f VOs commercial (28%) crops, animal husbandry (4%) and self-employment Livelih quality of life with sustainable savings and (grocery stores, brick making, sewing operations; 20%) ood credit system at the end of the What was evaluated: n/a “Gemi project; and an increase in private Method of evaluation: Impact Assessment, mission field visits, IEG sector investment in the Project Performance Assessment Report (PPAR). communities. Results: ERR at 30.5%, FRR at 32.5%. 78% of households that took a loan used the loan finance to initiate or expand an agricultural income- generating activity, with the remaining investing in nonfarm income- generating activities. 50% of the loans were taken for productive purposes, 50% to finance domestic expenses or to refinance debt. 5% of the productive group reported being able to afford diversification or expansion into commercial crop. Poor households experienced an incremental increase of 41 percent in incomes compared with control villages. The complementarity of subprojects and VSCO loans was found to contribute to this effect. Placing the VSCOs in the village center addressed distance and time as barriers to accessing rural finance. The VSCO allowed villagers – on a small group basis organized by geographic proximity – to start small (with small loans and small membership fees) and then to graduate to larger loans based on a proof of repayment. Comments: This included the costs of mobilization and management. The evidence for the analysis came from the project database, the impact assessment, data from the infrastructure unit of GDF, comparisons with other programs, secondary data sources, the ICR field missions findings, and supervision reports P087 LK: 2nd Sri Lanka ‘10/ Agric To enhance Area and Poverty Percentage of communities whose # of subprojects: 3,554, 135,475 VSCO loans 145 Comm ‘14 ulture incomes and Targeting Rural population benefits from % of subprojects productive: Infrastructure: 3,554; VSCO loans: 100% Devt & /ARD the quality of the program, % targeted Productive Activities: Loans: agriculture (70% of the total), animal Livelih life of poor households in focal villages have husbandry (7%), small industries (20%) and other (4%); Infrastructure: ood households in increased net income (farm and bridges, irrigation, culverts, water distribution, sanitation improvement Improv the poorest nonfarm) by at least 30%; % What was evaluated: 2,520 households in 9 districts (unclear over how eme divisions in the targeted households are members many households, likely 200,249) country. of CBOs/VDOs with satisfactory Method of evaluation: Impact Assessment rating; % vulnerable people are Results: Overall ERR at 22.4%, FRR at 23.7%. 39.9% incremental increase VDO members and % of them in income against the base year for 50% of the targeted households; obtain financing for livelihoods 1,010 VOs were formed. Linkages were established with the Bank of development; % village youth Ceylon and some 95 staff of that bank were placed in bank branches to and ex-combatants assisted; No. focus on project clients.1,034 VOs from Phase I were given continued of jobs created income, livelihood support; Phase II achieved 918 VSCOs with 19,200 small groups. The improvement. impact assessment found a 39.9% incremental increase in income against the base year for 50% of the targeted households. Comments: The ICR efficiency analysis was a generally thorough analysis based on a range of data, substantial coverage, and what seem reasonably conservative assumptions. However, the income data did 81 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results not directly differentiate the poverty cohorts so it is not clear what share the poor achieved. The impact study did not provide detailed analysis of ground-level interventions or impacts, the focus was on statistical analysis of a questionnaire. The ICR notes that the impact study data “could not be disaggregated or attributed to subcomponent investments and was largely unusable for cost-benefit analysis. VSCO loans analysis was based on estimated returns from agriculture Animal husbandry loans are assumed to go to dairy production exclusively. A lack of detailed data for small industries and others prevent inclusion in this analysis P040 ML- Mali ‘06/ Agric To improve the No Targeting % of the productive projects have # of subprojects: 1,411 653 Rural ‘13 ulture living generated average annual income % of subprojects productive: 70% (987) Com. /ARD conditions of per member superior to the daily Productive Activities: Agriculture (45%), Livestock (28%), Processing Dev. project- poverty line and trade (12%) Crafts (8%), Commercial facilities (8%) (PACR) supported What was evaluated: 27 microprojects (3%): village garden (5), dry crop rural (10), livestock (5), processing & trade and crafts (3) communities Method of evaluation: 2 assessments of impact; Independent Impact in terms of Study (2013) (i)access to Results: Estimated average ERR of 28.4%; very high ERR for each basic micro-project from 44% (Village Garden) to 186% (Crafts). 63% of the socioeconomic productive subprojects had generated average annual income per services and member superior to the basic poverty line. (ii)a Comments: Low sample project areas and no clarity on how the ERR sustainable were estimated bring forth reasons to question the results. The increase in economic and financial analysis was not carried out independently by incomes, the World Bank, It calculates ERRs for a very small, reportedly while “representative”, sample of subprojects implemented under component promoting 3. Lack of a baseline study on beneficiary livelihoods or incomes and improved the fact that incomes were only assessed on the basis of a sample of the natural various types of productive investments limits available evidence. resource management practices P084 Emerge Afghanis ‘04/ SURR To lay the Poverty Targeting Number of villages with # of subprojects: 16,496 329 ncy tan ‘07 /ARD foundations completed subprojects (with % of subprojects productive: 34% (roughly 5,542) Nationa for a certificate of completion) Productive Activities: unclear, sectors were: Transport (21.5%), l strengthening Livelihood (10.1%), Rural Development (1.9%), Agriculture (0.1%) Solidari of community What was evaluated: 45 subprojects (0.6%) across nine provinces and ty level representing namely irrigation, power, transport, and drinking water Project governance, supply and (ii) to Method of evaluation: Beneficiary Survey Results support Results: Estimated ERR: 23.6%, and ranges between 19%-30% for 4 community- mentioned sectors. However, these results are likely to be managed underestimated due to unaccounted spiller effects and convergence of subprojects ongoing and proposed rural infrastructure, agriculture, and micro comprising credit development projects reconstruction Comments: Analysis is extremely limited by major sampling issues and and lack of evidence: the small sample of project analyzed, the development nonproductive nature of 3 out of 4 sectors, the absence of specific that improve activities (as compared with sectors) and important assumptions ((ICR, 82 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results access of rural Annex 3, page 25). Thus, the claim that “benefits have also been derived communities economically by: creating livelihood opportunities and direct forms of to social and economic development through improved productive capacity and the productive provision of work in relation to certain NSP projects” (ICR, Annex 6, infrastructure page 34) cannot be confirmed. and services P081 Poverty Nepal ‘04/ SURR To improve Area and Poverty N/A # of subprojects: 6,315 968 Alleviat ‘09 /ARD access to Targeting % of subprojects productive: 81% (5,099) ion income- Productive Activities: Livestock, grocery shops, hand bag production Fund generation What was evaluated: Unclear: IE considers 6 districts out of 25 and 115 projects and over 656 villages, ICR mission: 12 Comm Org. interviews in 2 districts community for the Economic analysis (5,530 COs and 19 districts) infrastructure Method of evaluation: Tribhuvan University IE for the groups Results: All selected subprojects are financially and economically viable that have and generate FRRs ranging from 108% to 847% (ERR 18%-62%). tended to be Increased income is observed in both program and control areas excluded by between two periods, and the difference is higher in program area than reasons of in control area. This is a positive sign, although it is important to keep gender, in mind that the follow-up survey was conducted in the same year that ethnicity and 64% of the beneficiaries received their funds and the majority of them caste, as well had not started repayment of interest or principal. Without adequate as for the technical or veterinary support, a government audit reported that the poorest groups majority of the livestock perished in two districts, leaving several in rural households indebted but without any additional income. A later IE communities finds that 66% of households covered under PAF in the newer districts achieved a minimum income increase of 15% and an average income increase of 82.5% in real terms. The percentage of PAF beneficiary households with food insufficiency for 3 months or less dropped from 13.8% in 2007 to about 5.5% in 2010 compared with a 6.8% reduction for nonbeneficiary households; percentage of PAF beneficiary households with food insufficiency of 6 months or less decreased from 40% in 2007 to 33% in 2010 compared with a 9% increase in non-PAF households over the same period. Employment (number working hours per week) in the project area increased by 18%, but this was lower than the 27% recorded in the control area. Comments: No clarity on Economic and financial analysis results due to the extremely low number of COs interviewed, the IE provides enough other data to make a judgment P075 MW- Malawi ‘04/ Agric To increase the Poverty Targeting Income levels (“before-after”); (ii) # of subprojects: #N/A 247 Com ‘11 ulture incomes of increased and sustainable % of subprojects productive: #N/A Based /ARD about 15,000 agricultural productivity on Productive Activities: #N/A Rural poor rural participating farms Increase in What was evaluated: #N/A Land families by real incomes of participating Method of evaluation: #N/A Dev implementing families as compared with those Results: Direct community involvement through identification, (FY04) a of control groups and of such negotiation and acquisition of land and the preparation of farm decentralized, families prior to the project development proposals, approved by a district-level multistakeholder community- (Malawi Kwacha /month). entity, taking into account legal, technical, environmental, and poverty based and reduction criteria. These subprojects are carried out through the award voluntary of land acquisition and farm development grants to project beneficiaries approach to who are the poor, landless and food-insecure households from the pilot 83 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results land reform in districts. 4 pilot districts Comments: This project transferred land to its beneficiaries and in southern therefore does not provide productive activities per se Malawi. P089 Rural Solomon ‘08/ SURR To raise the Area and Poverty Percentage decrease in travel time # of subprojects: 360, AG extension activities: 1,084, Rural Enterprise 297 Develo Islands ‘15 /ARD living Targeting to access improved water supply Development (SEF): 65 recipients pment standards of sources; Percentage of villages % of subprojects productive: <1% (3), AG Ext: 60% (651), Rural Progra rural with satisfactory access to Enterprise Devl: 100% m households by infrastructure and/or services; Productive Activities: Market building, AG Ext: Cash Crop (53%), establishing Percentage of households who Livestock (34%), Resource Management (13%), Farmer Association improved have changed agricultural (<1%); SEF: Agriculture (30%), Transport and Shipping (19%), Tourism mechanisms practices, including varieties, as a (16%), Infrastructure (16%), Retail (4%), Energy (4%), Other (10%) for the result of agricultural advice What was evaluated: N/A delivery of Method of evaluation: N/A priority Results: ERR Education: 19%, Health: 12%, Solar Power: 39%, WASH: economic and 21%. social Comments: due to the lack of information or rigorous evaluation of past infrastructure activities, the absence of basic agricultural data on yields and farm and services by systems, the demand-driven nature of the investments and the the public and substantial nonquantifiable benefits. The analysis in this section the private assesses where possible the project effectiveness and efficiency for each sector of the components based on a mix of surrogate measures and anecdotal information including some limited ex post analyses conducted using RDP I Component 1 data during design of RDP 2. P082 GM- Gambia, ‘07/ SURR To rural Area Targeting At least 70 % of Subprojects # of subprojects: 1,315 969 CDDP The ‘12 /ARD communities, achieved and fully functional two % of subprojects productive: 79% (1,034) SIL in partnership years after completion. Productive Activities: Ag-related (farm mech, agroprocessing, (FY06) with Local horticulture, livestock; 96%, Fisheries (<1%), Trade (shops, market Government stalls; 4%) Authorities, What was evaluated: 143 randomly selected subprojects (11%) plan, Method of evaluation: Survey implement and Results: ERR 23%, assumed interest rate 20%; FRR 47%. Pro-poor maintain their impact of investments came from improved farm productivity and food priority social supply, diversification and increased access to services. Direct and and economic indirect employment generated investments. Comments: Positive ERR is somewhat balanced by a very high assumed interest rate (20%) which reduced real returns on investment. P081 GH- Ghana ‘05/ SURR Strengthen the Area and Job % of communities whose Rural # of subprojects: 3,656 482 Com ‘11 /ARD capacity of Targeting population benefits from the % of subprojects productive: 2% (77) Based rural program. Productive Activities: Market structure (64%), Slaughter house (20%), Rural communities water for agriculture (15%); Rural enterprises and learning centers Dev to enhance (N/A) (FY05) their quality of What was evaluated: 40 (52%) life by Method of evaluation: Beneficiary survey improving Results: ERR 42% for learning centers, 159% for new businesses started their by learning center trainees, and 65% for small rural entrepreneurs. The productive value of productive assets increased by 27% on average; The revenue of assets, rural beneficiary enterprises increased by 21% on average infrastructure Comments: Community-based approach is used only in Natural and access to Resource Management, and some infrastructure is built for community- 84 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results key support based services and rural enterprises and learning centers are financed services from (but not with a community-based approach). Due to the very small private and sample size (40 recipients equaling 3.3%), it is not possible to arrive at public sources. any conclusion regarding the distribution of the outcomes or to determine whether the benefits were equally distributed or were concentrated on a minority of rural enterprises. For what regards ERR and FRR on enterprises, information concerning financial performances was collected during interviews of approximately five hours with the managers of selected enterprises spread over two to three days P104 BR Brazil ‘09/ Agric Support efforts Area and Poverty Assets held by HH and share of # of subprojects: 487 752 Paraiba ‘14 ulture o reduce the Targeting socioeconomic and productive % of subprojects productive: 32% (156) 2nd /ARD incidence of investments Productive Activities: livestock (24%; goat, fish, chicken), Rural rural poverty, Beekeeping/honey (17%), ag mech (17%), irrigated ag (8%), rice (5%), Pov addressing clothing manufacturing (5%), handicraft (4%), mining (4%), other (12%) Reducti both its income What was evaluated: 17 productive subprojects (total SP evaluated was on and 7%) nonincome Method of evaluation: A borrower completion report and several small dimensions. studies were delivered Results: Average IRR for productive activities was 17.4% with high variations (from 0% to 33%). 40% increase in assets by the end of the project; 98% of the productive assets generated incremental employment by the end of the project. And third, for market linkages, about 32% of all productive subprojects had established commercial arrangements Comments: Few subprojects had more than one year of effective operation at the time of this evaluation, due to the aforementioned delays in project implementation, coupled with the impact of the drought on agricultural activities. The analysis focused on those subprojects that had completed at least one production/marketing cycle or had at least one year of implementation, thereby reducing the universe for the analysis to 208 subprojects (only 17 productive out of 57 projects in the subuniverse). P108 ET- Ethiopia ‘08/ Agric To increase the Poverty Targeting Income levels (“before-after”); (ii) # of subprojects: #N/A 932 Pastoral ‘13 ulture resilience of increased and sustainable % of subprojects productive: #N/A Comm /ARD Ethiopian agricultural productivity on Productive Activities: #N/A unity pastoralists to participating farms Increase in What was evaluated: #N/A Develpt external shocks real incomes of participating Method of evaluation: #N/A II and to families as compared with those Results: Direct community involvement through identification, (FY08) improve the of control groups and of such negotiation and acquisition of land and the preparation of farm livelihoods of families prior to the project development proposals, approved by a district-level multistakeholder targeted (Malawi Kwacha /month). entity, taking into account legal, technical, environmental, and poverty communities. reduction criteria. These subprojects are carried out through the award of land acquisition and farm development grants to project beneficiaries who are the poor, landless and food-insecure households from the pilot districts. Comments: This project transferred land to its beneficiaries and therefore does not provide productive activities per se P098 VIP 2 Kyrgyz ‘07/ SURR To alleviate Area and Poverty Number of financially viable # of subprojects: 4,619 949 Republic ‘14 /SD rural poverty Targeting microprojects ; Number of jobs % of subprojects productive: 19% (898) by created in beneficiary Productive Activities: Sewing Shops (16%), Autorepair (13%), 85 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results empowering communities Carpenter (10%), Veterinary stations (7%), Beauty salons (4%), Other communities Number of Jobs created in (49%) to improve beneficiaries communities What was evaluated: 133 projects (15%) access to social Method of evaluation: Randomized sample and economic Results: FIRR were 59% for carpentry/furniture shops, 20% for infrastructure confectionary shops, 128% for mini-bakeries, 74% for veterinary service services, and stations, and 193% for mini-shops. Income-generating activities on employment average yielded positive results, although some small businesses had opportunities. negative returns. Comments: ex post ERR only samples gathered data for 133 randomly selected microprojects by ARIS, although book-keeping is not a common practice in Kyrgyz Republic and data might not be precise; and the data was collected one year after the investment. There was also no specific indicator or target value to monitor the objective of “Private group-owned small-scale enterprise development” in the results framework. P074 KE-W Kenya ‘07/ Agric To empower Poverty and Area Income increase (%), men and # of subprojects: 2,876 106 Kenya ‘16 ulture local Targeting. Five women benefiting from the value- % of subprojects productive: unclear (likely 2,446) CDD/F /ARD communities counties of added livelihood SLD projects (#) Productive Activities: agricultural commodities, livestock and related lood of men and Western Kenya: support (Dairy cow and goat, poultry, feed etc.), tree planting Mitigati women to Vihiga, Busia, What was evaluated: unclear sample on engage in Bungoma, and Method of evaluation: project data, visit observations, stakeholder (FY07) sustainable Kakamega. workshops, farmer beneficiary interviews across 10 subcounties, no end and wealth Targeted line or impact survey creating communities were Results: ERR estimated at 20% over 20 years at discount rate of 10%, livelihood randomly selected FIRR only available for dairy goat, at 78%. The incremental net benefits activities and sublocations based at the crop and farm levels appear positive, even after labor costs are reduce their on poverty data, factored in. This is further complemented by the introduction of vulnerability and spread evenly livestock at the farm level. In general, the return on family labor per day to flooding. across is above the average daily wage in the project area across all crop administrative model. While the project has undoubtedly had some positive effect on constituencies the production parameters of the target communities and resulted in a number of key benefits for those supported, the results remain open to debate given the magnitude of change in levels of yield increase Comments: The analysis covers a limited number of farmers benefiting from CDD led investments in crop and livestock production based on a selection of commodities. P099 CN- China ‘10/ Agric to explore and Poverty targeting Directly benefiting poverty # of subprojects: 3,487 751 Sustain ‘15 ulture pilot more households in CDD and CDF % of subprojects productive: (unclear) able /ARD effective and activities as compared with % of Productive Activities: Terracing (37,425 tree planted), rural Dev. in innovative poverty households in the Project infrastructure (2,205, 260 km rural roads), Livestock raising (Pig, Cattle, Poor ways of villages (%); Goat, Apple, Mushroom) Rural providing Method of evaluation: External survey, cost-effectiveness for CDD Areas poverty projects, cost and benefit approach for CDF reduction Results: Estimated FRR 15% (target 12%); range for income-generating assistance to activities 16%-38%, the poverty rate in the Project villages declined by the poorest 23%, compared with a drop of 6% in the control villages. At the start of communities the Project the poverty rate in Project villages was 7% higher than the and control villages, while at the end of the Project it was 11% less than the households in control villages, incomes at the end of the Project were 54% higher 86 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results Henan while in in 2010 per capita incomes in Project villages were slightly Province, lower than in control villages Shaanxi Comments: There is not significant information on specific activities, for Province and example, how many income-generating/livestock activities were Chongqing carried out under the CDF Municipality (the Project Provinces) through community- driven development and participatory approaches. P105 PK: Pakistan ‘09/ Agric Targeted poor Those areas of ICR not available ICR not available 075 PPAF ‘16 ulture are Pakistan where III /ARD empowered market penetration with increased is currently very incomes, low and, therefore, improved complements other productive programs that are capacity and working to access to improve the services to outreach of achieve microfinance in sustainable Pakistan. livelihoods P086 LK: Sri Lanka ‘04/ Agric To help Area targeting. Number of households benefiting # of subprojects: 127,217 747 Comm ‘14 ulture conflict- Eight districts of from livelihood opportunities; % of subprojects productive: 98.6% (125,504) unity /ARD affected the Northern and Number of employment Productive Activities: Rural roads (1,765), livelihoods investments, Livelih communities Eastern Provinces: opportunities generated; including VDO loans and polynet investments (123,612) oods in in the North- (i) Ampara; (ii) Proportion of vulnerable people What was evaluated: Roads (442 out of 1,765), livelihoods investments Conflict East Province Batticaloa; (3) who obtain livelihood financing; and polynet investments (96 polynet) in 12 districts Ar and adjoining Jaffna; (4) Increased cropping intensity of Method of evaluation: Extensive randomized but representative field areas to restore Kilinochchi; (5) farm holdings; Increased survey (2014), Impact Evaluation livelihoods, Mannar; (6) agricultural productivity (yield); Results: Estimated EIRR: 14.7%, FIRR 14.6% for Livelihood support and enhance Mullaitivu; (7) Business linkages created with activities. Regarding Village Development Organizations loans, agricultural Trincomalee; and Cluster commercial enterprises; beneficiaries’ incomes are 30% higher than nonproject group. Mean and other (8) Vavuniya; as Increased quantity and sales of family income increased by 30%, while 37% of respondents saved some production well as four village products; Villages report money. 97% of beneficiaries stated their income and social status and incomes, districts adjoining stable or higher prices for major improved. For agricultural, fisheries and small industry investments, and build their these provinces village products net earnings exceeded total investment costs by the end of the first year capacity for (province in of operation in all cases, and averaged 300%, 434% and 348% of initial sustainable parentheses) investment respectively. For livestock and small business investments, social and which were judged returns averaged net earnings of 193% and 169% of investment costs economic to have been respectively in one year of operation. total of four different designs of reintegration significantly polynet houses were offered over the period from 2011 to 2014 affected by the following problems with the initial design which was high cost and conflict; (9) reportedly unstable in high winds; 96 surveyed polynet houses 87 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results Moneragala (Uva); averaged only 48 percent, and one surveyed district (Vavuniya) (10) Puttalam reported an average loss across the 12 samples (North West); (11) Comments: Net earnings stemming from VDO loans and livelihoods Anuradhapura investments stem from one year of operation only. (North Central); and (12) Polonnaruwa (North Central) P093 BR Brazil ‘06/ Agric To increase Poverty Targeting. 2,500 subprojects (SP) # of subprojects: 1,588 in 391 municipalities 787 Bahia ‘14 ulture social and No Area Targeting implemented and maintained by % of subprojects productive: 50% (785) State /ARD economic community associations; income Productive Activities: ag mech (431 tractors), manioc mills (94) and a Integ opportunities range of ag processing Proj for the rural What was evaluated: 27 randomly selected projects (19 ag mech; 5 Rur poor in Bahia manioc flour mills; and 3 honey processing) Pov by improving Method of evaluation: Random sampling; use of proxy estimates from their access to similar subproject basic Results: Negative or zero IRR for most subprojects under drought socioeconomic conditions. Other evidence indicates that the project annually created infrastructure, an estimated seasonal 1,050 jobs. Even taking the impact of drought into thus account and the modest scale of most investments, the project’s contributing to productive activities demonstrated capacity to increase income. the borrower’s Comments: There is some inconsistency in the percentage of each type objective of of subprojects; the IRR and ERR are negative, and the subprojects increasing the evaluated range from 4% to 5%. Estimated rates of return under HDI. nondrought conditions showed better results, but the data used for these estimates were also based on unspecified secondary data. P063 NG- Nigeria ‘04/ Agric To sustainably Conflict areas in 50 % of male and females have # of subprojects: 7,766 622 Fadama ‘09 ulture increase the North Eastern Sri increased their average real % of subprojects productive: 100% SIL 2 /ARD incomes of Lanka incomes by at least 20% Productive Activities: Crop production, nonfarm activities, livestock (FY04) Fadama users production What was evaluated: 25 economic enterprises (cost-benefit analysis and IRR) Method of evaluation: IFPRI baseline, External Assessment (2006) Results: ERR and FRR were reported to be 43% and 48% respectively. The return on investment for grains processing was 1.16 for 2 tons/8- hours capacity; and for groundnut oil extractor 1.74. Aquaculture and artisanal fisheries yielded an IRR of >61% Comments: There is no information provided in the analysis as to how many observations were used to generate the economic rates of return or the representativeness of the samples that were used to generate the data. IEG was not able to validate either reported result due to weaknesses in the construct of the impact assessment and due to the absence of evidence associated with the results reported in the completion report. The assessment did not measure change in income; it measured the change in value of the productive assets at the household level, before and after the launch of Fadama II. The project commissioned an external assessment in 2006, one year after the project began implementation. 88 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results P052 BR-MG Brazil ‘06/ SURR To assist the 407 municipalities, 1,860 subproject implemented # of subprojects: 1,730 256 Rural ‘10 /ARD State of Minas focuses on the 100 and maintained by community % of subprojects productive: 54% (934) Poverty Gerais to municipalities with associations Productive Activities: Reducti reduce high the lowest Human What was evaluated: 22 subprojects (2%) on levels of rural Development Method of evaluation: Financial and Economic analysis at completion; poverty Index Physical Performance Review and Qualitative Study of Perceptions development Results: 57% of beneficiaries reported an increase in incomes and 43 percent an increase in employment, (ICR, p. vi). A 2010 study found that “59 percent [of beneficiaries] acknowledged that subprojects brought opportunities for additional income and employment” (ICR, p. 20). Neither source quantifies the magnitude of the increases, nor is it clear how much of it is attributable to the project. No evidence was provided on the number of jobs and incremental income generated. Comments: Only 22 subprojects representing the dominant types of infrastructure and productive subprojects (water supply, farm mechanization and milk cooling units). However, these were not randomly sampled. The subprojects selected were those “considered by knowledgeable people to be moderately successful, that is, the sampled units were not limited exclusively to very successful subprojects” (ICR p. 32)—implying that unsuccessful projects were not included in the sample. Further, the share of successful and unsuccessful projects is not known. P096 MN- Mongoli ‘07/ SURR To enhance Fadama areas Incremental employment # of subprojects: 626 439 Sustain a ‘13 /ARD secure and generated from subproject % of subprojects productive: 48% (300) able sustain investments (Not known due to Productive Activities: N/A Livelih livelihoods in lack of evaluation study); Increase What was evaluated: N/A oods II communities in social welfare of rural Method of evaluation: N/A throughout communities (not measured); Results: Efficiency of the community subprojects was not assessed. The Mongolia Number of communities four subproject case studies prepared for the mid-term review do not successfully graduated from the shed much light on the overall efficiency of the project. The largest program and single category--productive subprojects--consisted of a series of “very successfully linked to other small-scale” initiatives that were apparently diffuse in their impact, financing (Not measured) lacked technical guidance, did not pay enough attention to market prospects and were targeted mostly for local sale or consumption and to complement income and subsistence Comments: Actual impact of these investments on livelihoods was not measured. Incremental employment generated unclear due to lack of evaluation P082 NWFP Pakistan ‘04/ SURR To promote Poverty and Area Household income improved # Of subprojects: 647; 1,431 schemes 621 Comm ‘09 /ARD the well-being Targeting % of subprojects productive: unclear unity of low income Productive Activities: Street pavements (548 schemes/38%), drainage Infrastr communities (463 schemes/32%), water supply (221 schemes/15%), roads (179 ucture of North West schemes/13%), and others (20 schemes/2%). II ( Frontier What was evaluated: 16 (1%) CIP2) Province Method of evaluation: Estimates/ data from PCSU financial (NWFP) by: (a) management section and interview with CCB representatives in supporting Islamabad and Peshawar investments in Results: ERRs ranged from 15.8% for street pavements to 19.2% for the community water schemes, significantly lower than the ex-ante analysis in the development project appraisal documents (PAD). 89 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results activities, basic Comments: Due to security constraints the ICR team was unable to services and collect data through field visits. The ex post economic analysis is based small-scale on the data provided by the PCSU Finance Section and similar data productive gathered from other projects such as the Pakistan Poverty Alleviation infrastructure; Fund Project, Azad Jammu & Kashmir CISP, and NWFP CIP-I. The ICR and (b) interviewed CCB representatives who attended at the two workshops strengthening held in Islamabad and Peshawar over a total of 16 schemes. The Project capacity at the was implemented in 9 regions of NFWP. However, more than 50% of new devolved the project funds were spent in only two regions, Bannu and Mardan. local The reasons for such higher shares of these two regions were: (a) government political influence at the province level; (b) readiness in both and administrative/technical capacity to implement such higher volumes of community work; and (c) ability of financial contributions. Metrics issue: there was levels, to plan no target value for improvements in household income nor direct and deliver measurement of improvements for target beneficiaries such services and infrastructure. P098 BF-APL Burkina ‘07/ SURR To support Poverty and Area At least 70 % of Subprojects # of subprojects: 1,315 378 2 Com Faso ‘13 /ARD capacity Targeting achieved and fully functional two % of subprojects productive: 79% (1,034) Based building and years after completion. Productive Activities: Ag-related (farm mech, agroprocessing, Rur investment horticulture, livestock; 96%, Fisheries (<1%), Trade (shops, market Dev II activities at the stalls; 4%) local level, What was evaluated: 143 randomly selected subprojects (11%) through the Method of evaluation: Survey newly created Results: ERR 23%, assumed interest rate 20%; FRR 47%. Pro-poor rural impact of investments came from improved farm productivity and food communes. supply, diversification and increased access to services. Direct and Phase 2 will indirect employment generated support the Comments: Positive ERR is somewhat balanced by a very high assumed 302 rural interest rate (20%) which reduced real returns on investment. communes with capacity building to enable them to take the lead on local development challenges, and a formula- based envelope will be made available for investment activities. Rural communes will provide onward 90 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results transfers to villages within their locality, based on a transparent selection process. P100 BR Brazil ‘06/ Agric See original Area Targeting No. of families benefited from # of subprojects: 2,932 subprojects 791 Ceará ‘09 ulture project: subproject (SP) investments % of subprojects productive: 18% (531) (AF Rural /ARD P050875 Productive Activities: Ag mech (70%), stone grinding, cashew nut P050 Pov. prod., hammock prod. and small irrigation schemes, honey, fruit prod. 875) Add’l and processing Financi What was evaluated: 18 ag mech subprojects in Ceará, unclear what ng other specific projects Method of evaluation: baseline study (FECAMP 2005); two physical performance studies (2004, 2009); the Ceará portion of the Binswanger (2006) quasi-experimental evaluation study, a final Evaluation Report (2009); Borrower Completion Report (SDA/COPPE, 2009) Results: while stone grinding and cashew nut production (IRR of >50 and 45%) are economically and financially sustainable, the same cannot be said with respect to hammock production (<1% IRR), which is clearly unsustainable as currently conducted, while small irrigation schemes barely reach an IRR of 10%. The average rate of return on tractors studied is 18%. Overall ERR of 13%. Average annual household income rising 40% in the period from August 2003 - July 2004 with income from agricultural production up 29%, from consumption of own production up 53%, and from work off-farm up 27%. Total generated employment in ag mechanization, rural electrification and other subprojects at 20,350 jobs. Comments: It is unclear how many subprojects were evaluated. The distribution of such subprojects also followed a different path than planned at appraisal with Area 3 municipalities (wealthier area) obtaining two to three times as many subprojects as the poorest municipalities in Area 1 P101 BR - Brazil ‘07/ Agric See original Area Targeting Number of families benefited # of subprojects: 1,902 subprojects 359 Piauí ‘10 ulture project: from subproject investments % of subprojects productive: 21% (400) (AF Rural /ARD P050881 Productive Activities: Tractor (36%), Beekeeping (20%), Small Animal P050 Pov Husband (17%), Agroprocessing centers (14%), Cashew Prod. 881) Add’l Processing (10%), Other (2%) Financi What was evaluated: 20 subprojects (1%), drawn from the four most ng common subproject types financed: water supply, rural electrification, tractors, and honey production at end; 40 subprojects (5 productive) at MTR Method of evaluation: Quasi-experimental survey by Binswanger (2009), four physical performance studies (PPS, 2004, 2009 and 2010) Results: For the cases studied that were at least moderately successful, the economic rates of return were as follows: [...] tractors (17-35 percent) and honey production (43-63 percent). Limited evidence in the ICR to suggest that the project significantly increased incomes and employment. Direct employment generated was estimated at only 2,550 91 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results jobs (0.02 jobs per beneficiary family) Comments: It is unclear how many subprojects there were in each category. A major issue is that evaluated subprojects were not randomly selected; the project team noted that the cases represented subprojects considered by knowledgeable people to be moderately successful. Although the sampled units were not limited exclusively to very successful subprojects, they seem to have excluded unsuccessful projects. P101 BR Brazil ‘08/ Agric See original Area and Poverty Evidence of improved living # of subprojects: 2,610 507 (AF)RG ‘10 ulture project: Targeting conditions at beneficiary % of subprojects productive: 44% (1,148) (AF N /ARD P066170 household level; Proportion of Productive Activities: Milk production, irrigated agriculture, fishing P066 RulPov productive investments; and crafts 170) Red generating full-time employment What was evaluated: 13 subprojects (1%) for beneficiary families; ERR for Method of Evaluation: The “baseline” study was not conducted until productive subprojects exceed 2010, seven years later. Quasi-experimental survey by Binswanger 12%; (2009), four physical performance studies (PPS, 2004, 2009 and 2010); a 2005 “Evaluation of Results” Results: ERR of 27 %; Other data that the ICR presents does not show significant income and employment gains. Data derive from only 12 subprojects implemented in Rio Grande do Norte, whose representativeness cannot be vouched for. There was no statistically significant difference between the treatment and the control group Comments: Weak reporting makes understanding impact and results difficult. IRR in ICR is not credible, given the small number of case studies, the nonrandom nature of their selection, and the incompleteness of the economic analysis for those subprojects included as case studies. The 13 subprojects chosen spanned the range of subproject types but only 6 were subjected to full economic and financial analysis. The project team provided the additional information that the subprojects were selected to be “typical,” but it is not clear whether this comprised only successful projects. The share of unsuccessful projects is not reported. The ICR notes that “Statistical extrapolations for the entire universe of subprojects were neither intended nor possible”. P110 BR (AF) Brazil ‘10/ Agric See original Poverty Targeting. 2,500 subprojects (SP) # of subprojects: 1,588 in 391 municipalities 617 Bahia ‘14 ulture project: No Area Targeting implemented and maintained by % of subprojects productive: 50% (785) (AF State /ARD P093787 community associations; income Productive Activities: ag mech (431 tractors), manioc mills (94) and a P093 Integ. range of ag processing 787) Pr What was evaluated: 27 randomly selected projects (19 ag mech; 5 Rural manioc flour mills; and 3 honey processing) Method of evaluation: Random sampling; use of proxy estimates from similar subproject Results: Negative or zero IRR for most subprojects under drought conditions. Other evidence indicates that the project annually created an estimated seasonal 1,050 jobs. Even taking the impact of drought into account and the modest scale of most investments, the project’s productive activities demonstrated capacity to increase income. Comments: There is some inconsistency in the percentage of each type of subprojects; the IRR and ERR are negative, and the subprojects 92 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results evaluated range from 4% to 5%. Estimated rates of return under nondrought conditions showed better results, but the data used for these estimates were also based on unspecified secondary data. P114 HT Haiti ‘09/ Agric See original Poverty Targeting Number of communes # of subprojects: 1,687 775 (AF) ‘13 ulture project: (municipalities) successfully % of subprojects productive: 33% (553) (AF Comm /ARD P093640 managing direct transfer to CBOs Productive Activities: Livestock (28%), Grain mills (24%), Community P093 unity- for community subprojects (SPs); stores (24%), Agroprocessing (10%), Animal traction (4%), fisheries 640) Driven Percentage of rural/peri-urban (2%), Chicken farms (2%), Agricultural production intensification Develo poor with access to basic social (10%), Other (4%) p and economic infrastructure; What was evaluated: 16 subprojects in 2009 at MTR, 4 productive Project CBOs officially constituted and subprojects at end of project (FAO/CP) (<1%) participating in COPRODEPs; Method of evaluation: Economic evaluation of subprojects conducted Number of households by FAO/CP of ten subprojects chosen from the most representative expressing awareness of PRODEP type of subprojects and its objectives, activities and Results: Of the 4 productive subprojects, one had a negative ERR, one at means of access; Residents in 7% and two between 13 and 15%. A MTR study (2009) revealed that project area with access to basic about 75% of productive SPs were under financial stress. Indicator: social and economic Percentage change in household assets, per capita incomes among infrastructure; project beneficiaries; Dropped: This indicator was dropped by AF1 as %productive/income-generating majority (81%) of SPs (infrastructure and social) did not have a direct subprojects are operational 3-6 impact on household income or assets. An estimated 75% of income- months after completion; generating SPs showed varying financial issues at this stage %population in project area Comments: Subprojects chosen for evaluation were not randomly express awareness of PRODEP selected and represented less than 1% of productive activities. and its objectives, activities and means of access; percent of CBO members express a positive change in terms of their organizational capacity and ability to work together constructively P118 HT Haiti ‘10/ Agric See original Poverty Targeting Number of communes # of subprojects: 1,687 139 (AF) ‘13 ulture project: (municipalities) successfully % of subprojects productive: 33% (553) (AF Rural /ARD P093640 managing direct transfer to CBOs Productive Activities: Livestock (28%), Grain mills (24%), Community P093 CDD for community subprojects (SPs); stores (24%), Agroprocessing(10%), Animal traction (4%), fisheries (2%), 640) (PROD Percentage of rural/peri-urban Chicken farms (2%), Agricultural production intensification (10%), EP) poor with access to basic social Other (4%) and economic infrastructure; What was evaluated: 16 subprojects in 2009 at MTR, 4 productive CBOs officially constituted and subprojects at end of project (FAO/CP) (<1%) participating in COPRODEPs; Method of evaluation: Economic evaluation of subprojects conducted Number of households by FAO/CP of ten subprojects chosen from the most representative expressing awareness of PRODEP type of subprojects and its objectives, activities and Results: Of the 4 productive subprojects, one had a negative ERR, one at means of access; Residents in 7% and two between 13 and 15%. A MTR study (2009) revealed that project area with access to basic about 75% of productive SPs were under financial stress. Indicator: social and economic Percentage change in household assets, per capita incomes among infrastructure; project beneficiaries; Dropped: This indicator was dropped by AF1 as %productive/income-generating majority (81%) of SPs (infrastructure and social) did not have a direct subprojects are operational 3-6 impact on household income or assets. An estimated 75% of income- 93 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results months after completion; generating SPs showed varying financial issues at this stage %population in project area Comments: Subprojects chosen for evaluation were not randomly express awareness of PRODEP selected and represented less than 1% of productive activities. and its objectives, activities and means of access; percent of CBO members express a positive change in terms of their organizational capacity and ability to work together constructively P119 LK: Sri Lanka ‘10/ Agric See original Area and Poverty Percentage of communities whose # of subprojects: 3,554, 135,475 VSCO loans 152 Comm ‘14 ulture project: Targeting Rural population benefits from % of subprojects productive: Infrastructure: 3,554; VSCO loans: 100% (AF unity /ARD P086747 the program, % targeted Productive Activities: Loans: agriculture (70% of the total), animal P087 Livelih households in focal villages have husbandry (7%), small industries (20%) and other (4%); Infrastructure: 145) oods in increased net income (farm and bridges, irrigation, culverts, water distribution, sanitation improvement Conflict nonfarm) by at least 30%; % What was evaluated: 2,520 households in 9 districts (unclear over how -AF targeted households are members many households, likely 200,249) of CBOs/VDOs with satisfactory Method of evaluation: Impact Assessment rating; % vulnerable people are Results: Overall ERR at 22.4%, FRR at 23.7%. 39.9% incremental increase VDO members and % of them in income against the base year for 50% of the targeted households; obtain financing for livelihoods 1,010 VOs were formed. Linkages were established with the Bank of development; % village youth Ceylon and some 95 staff of that bank were placed in bank branches to and ex-combatants assisted; No. focus on project clients.1,034 VOs from Phase I were given continued of jobs created income, livelihood support; Phase II achieved 918 VSCOs with 19,200 small groups. The improvement. impact assessment found a 39.9% incremental increase in income against the base year for 50% of the targeted households. Comments: The ICR efficiency analysis was a generally thorough analysis based on a range of data, substantial coverage, and what seem reasonably conservative assumptions. However, the income data did not directly differentiate the poverty cohorts so it is not clear what share the poor achieved. The impact study did not provide detailed analysis of ground-level interventions or impacts, the focus was on statistical analysis of a questionnaire. The ICR notes that the impact study data “could not be disaggregated or attributed to subcomponent investments and was largely unusable for cost-benefit analysis. VSCO loans analysis was based on estimated returns from agriculture Animal husbandry loans are assumed to go to dairy production exclusively. A lack of detailed data for small industries and others prevent inclusion in this analysis P094 Emerg Afghanis ‘05/ SURR See original Poverty Targeting Number of villages with # of subprojects: 16,496 735 Nationa tan ‘07 /ARD project: completed subprojects (with % of subprojects productive: 34% (roughly 5,542) (AF l P084329 certificate of completion) Productive Activities: unclear, sectors were: Transport (21.5%), P084 Solidari Livelihood (10.1%), Rural Development (1.9%), Agriculture (0.1%) 329) ty - What was evaluated: 45 subprojects (0.6%) across nine provinces and Supple representing namely irrigation, power, transport, and drinking water mental supply Method of evaluation: Beneficiary Survey Results Results: Estimated ERR: 23.6%, and ranges between 19%-30% for 4 mentioned sectors. However, these results are likely to be underestimated due to unaccounted spiller effects and convergence of 94 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results ongoing and proposed rural infrastructure, agriculture, and micro credit development projects Comments: Analysis is extremely limited by major sampling issues and lack of evidence: the small sample of project analyzed, the nonproductive nature of 3 out of 4 sectors, the absence of specific activities (as compared with sectors) and important assumptions ((ICR, Annex 3, page 25). Thus, the claim that “benefits have also been derived economically by: creating livelihood opportunities and direct forms of economic development through improved productive capacity and the provision of work in relation to certain NSP projects” (ICR, Annex 6, page 34) cannot be confirmed. P086 Emerg Afghanis ‘06/ SURR See original Poverty Targeting Number of villages with # of subprojects: 16,496 270 NSP (II tan ‘07 /ARD project: completed subprojects (with % of subprojects productive: 34% (roughly 5,542) (AF supple P084329 certificate of completion) Productive Activities: unclear, sectors were: Transport (21.5%), P084 mental) Livelihood (10.1%), Rural Development (1.9%), Agriculture (0.1%) 329) What was evaluated: 45 subprojects (0.6%) across nine provinces and representing namely irrigation, power, transport, and drinking water supply Method of evaluation: Beneficiary Survey Results Results: Estimated ERR: 23.6%, and ranges between 19%-30% for 4 mentioned sectors. However, these results are likely to be underestimated due to unaccounted spillover effects and convergence of ongoing and proposed rural infrastructure, agriculture, and micro credit development projects Comments: Analysis is extremely limited by major sampling issues and lack of evidence: the small sample of project analyzed, the nonproductive nature of 3 out of 4 sectors, the absence of specific activities (as compared with sectors) and important assumptions ((ICR, Annex 3, page 25). Thus, the claim that “benefits have also been derived economically by: creating livelihood opportunities and direct forms of economic development through improved productive capacity and the provision of work in relation to certain NSP projects” (ICR, Annex 6, page 34) cannot be confirmed. P121 ML:Ad Mali ‘11/ SURR See original No Targeting % of the productive projects have # of subprojects: 1,411 057 d Fin - ‘13 /ARD project: generated average annual income % of subprojects productive: 70% (987) (AF Rural P040653 per member superior to the daily Productive Activities: Agriculture (45%), Livestock (28%), Processing P040 Comm poverty line and trade (12%) Crafts (8%), Commercial facilities (8%) 653) unity What was evaluated: 27 microprojects (3%): village garden (5), dry crop Dev (10), livestock (5), processing & trade and crafts (3) Project Method of evaluation: 2 assessments of impact; Independent Impact Study (2013) Results: Estimated average ERR of 28.4%; very high ERR for each micro-project from 44% (Village Garden) to 186% (Crafts). 63% of the productive subprojects had generated average annual income per member superior to the basic poverty line. Comments: Low sample project areas and no clarity on how the ERR were estimated bring forth reasons to question the results. The economic and financial analysis was not carried out independently by the World Bank, It calculates ERRs for a very small, reportedly “representative”, sample of subprojects implemented under component 95 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results 3. Lack of a baseline study on beneficiary livelihoods or incomes and the fact that incomes were only assessed on the basis of a sample of the various types of productive investments limits available evidence. P080 NP Nepal ‘07/ SURR See original Area and Poverty n/a # of subprojects: 6,315 819 PAF ‘09 /ARD project: Targeting % of subprojects productive: 81% (5,099) (AF Supple P081968 Productive Activities: Livestock, grocery shops, hand bag production P081 mental What was evaluated: Unclear: IE considers 6 districts out of 25 and 115 968) over 656 villages, ICR mission: 12 Comm Org. interviews in 2 districts for the Economic analysis (5,530 COs and 19 districts) Method of evaluation: Tribhuvan University IE Results: All selected subprojects are financially and economically viable and generate FRRs ranging from 108% to 847% (ERR 18%-62%). Increased income is observed in both program and control areas between two periods, and the difference is higher in program area than in control area. This is a positive sign, although it is important to keep in mind that the follow-up survey was conducted in the same year that 64% of the beneficiaries received their funds and the majority of them had not started repayment of interest or principal. Without adequate technical or veterinary support, a government audit reported that the majority of the livestock perished in two districts, leaving several households indebted but without any additional income. A later IE finds that 66% of households covered under PAF in the newer districts achieved a minimum income increase of 15% and an average income increase of 82.5% in real terms. The percentage of PAF beneficiary households with food insufficiency for 3 months or less dropped from 13.8% in 2007 to about 5.5% in 2010 compared with a 6.8% reduction for nonbeneficiary households; percentage of PAF beneficiary households with food insufficiency of 6 months or less decreased from 40% in 2007 to 33% in 2010 compared with a 9% increase in non-PAF households over the same period. Employment (number working hours per week) in the project area increased by 18%, but this was lower than the 27% recorded in the control area. Comments: No clarity on Economic and financial analysis results due to the extremely low number of COs interviewed, the IE provides enough other data to make a judgment P121 Additio Solomon ‘11/ SURR See original Area and Poverty Percentage decrease in travel time # of subprojects: 360, AG extension activities: 1,084, Rural Enterprise 631 nal Islands ‘15 /ARD project: Targeting to access improved water supply Development (SEF): 65 recipients (AF Financi P089297 sources; Percentage of villages % of subprojects productive: <1% (3), AG Ext: 60% (651), Rural P089 ng- with satisfactory access to Enterprise Devl: 100% 297) Solomo infrastructure and/or services; Productive Activities: Market building, AG Ext: Cash Crop (53%), n Percentage of households who Livestock (34%), Resource Management (13%), Farmer Association Islands have changed agricultural (<1%); SEF: Agriculture (30%), Transport and Shipping (19%), Tourism RDP practices, including varieties, as a (16%), Infrastructure (16%), Retail (4%), Energy (4%), Other (10%) result of agricultural advice What was evaluated: N/A Method of evaluation: N/A Results: ERR Education: 19%, Health: 12%, Solar Power: 39%, WASH: 21%. Comments: due to the lack of information or rigorous evaluation of past activities, the absence of basic agricultural data on yields and farm systems, the demand-driven nature of the investments and the 96 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results substantial nonquantifiable benefits. The analysis in this section assesses where possible the project effectiveness and efficiency for each of the components based on a mix of surrogate measures and anecdotal information including some limited ex post analyses conducted using RDP I Component 1 data during design of RDP 2. P104 BD: Banglade ‘07/ SURR to develop Poverty and Area No. of hardcore poor and poor # of subprojects: 2,092 subproject, 110,000 microloans 483 SIPP sh ‘11 /ARD effective and targeting. Poor, benefiting from the project, No. of % of subprojects productive: 100% microloans (AF Additio efficient rural and socially youth employed or self- Productive Activities: Livelihood loans: goats, poultry or cattle rearing P053 nal financing and excluded employed, No. of employment (62%); small trade business, (19%); rickshaws (8%); Paddy Husking 578) Financi institutional households. Five days generated for the flood (5%), Agriculture and fisheries (6%) ng arrangements districts (Jamalpur, effected community in the target What was evaluated: Only benefits from IGAs were calculated for improving Gaibandha, villages through the provision of Method of evaluation: field interviews with 3,768 people, independent access to local Rangpur, Sirajganj, community infrastructure works final impact assessment infrastructure Barisal) Results: Estimated ERR: 24.7%. household incomes are estimated to and basic have increased by about $16/month, corresponding to a doubling of the services family income. 7,941 out of 10,660 youth who received training were through the employed. out of another 776 youth who accessed loans (59% of target), implementatio 450 youth were employed (34% of target). Out of 17,710 most n of vulnerable (hardcore poor) who have received one-time grant, 14,361 community- graduated to accessing loans from Village Community Organizations driven small- and started income-generating activities scale Comments: unclear number of project evaluated infrastructure works and social assistance programs P115 ADDIT Kyrgyz ‘10/ SURR See original Area and Poverty Number of financially viable # of subprojects: 4,619 524 IONAL Republic ‘14 /ARD project: Targeting microprojects ; Number of jobs % of subprojects productive: 19% (898) (AF FINAN P098949 created in beneficiary Productive Activities: Sewing Shops(16%), Autorepair(13%), P098 CING - communities Carpenter(10%), Veterinary stations (7%), Beauty salons(4%), 949) VIP 2 Number of Jobs created in Other(49%) beneficiaries communities What was evaluated: 133 projects (15%) Method of evaluation: Randomized sample Results: FIRR were 59% for carpentry/furniture shops, 20% for confectionary shops, 128% for mini-bakeries, 74% for veterinary service stations, and 193% for mini-shops. Income-generating activities on average yielded positive results, although some small businesses had negative returns. Comments: ex post ERR only samples gathered data for 133 randomly selected microprojects by ARIS, although book-keeping is not a common practice in Kyrgyz Republic and data might not be precise; and the data was collected one year after the investment. There was also no specific indicator or target value to monitor the objective of “Private group-owned small-scale enterprise development” in the results framework. P125 MN - Mongoli ‘11/ SURR See original Area and Poverty n/a # of subprojects: 6,239 ; 49,074 loans 504 2nd a ‘13 /ARD project: Targeting % of subprojects productive: 81%(5,066) (AF Sustain P096439 Productive Activities: Infrastructure, business centers, provision of able transport for doctors, trash collection, fodder and hay making, 97 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results P096 Livelih preservation of winter pasture, and vaccination of livestock 439) oods What was evaluated: 16 subprojects (0.3%) (AF) Method of evaluation: 3 Beneficiaries Impact Surveys, End of project survey Results: ERR done only for infrastructure component, average at 33%, ranging from 13% (Ultrasound machine) to 69% (bridge for small vehicles). Returns on investments from loans varied between around 20% for trading to around 50% for services manufacturing and husbandry. Key actions taken include preparation of fodder and hay making, preservation of winter pasture, and vaccination of livestock. For the MDF component, a total of 49,523 subborrowers (beneficiaries) in 284 slums benefited from the interventions and a cost-benefit analysis show that the MDF interventions were costs efficient with cost per beneficiary ranging from MNT968 ($0.58) in Khovsgol Aimag (22 slums benefited from the loan facilities) to MNT3, 388 ($2.25) in the city of Ulaanbaatar (9 districts benefited from loan facilities). Comments: The analysis focused only on 16 subprojects/interventions at some level with identifiable financial and economic benefits to the beneficiaries. Also the ICR does not provide any information on whether the 16 projects were randomly selected. It is not clear if there was cherry picking of profitable projects. In addition, the assumptions for benefit and cost streams were not provided. P125 LK: AF Sri Lanka ‘11/ Water See original Area and Poverty Percentage of communities whose # of subprojects: 3,554, 135,475 VSCO loans 855 Comm ‘14 /ARD project: Targeting Rural population benefits from % of subprojects productive: Infrastructure: 3,554; VSCO loans: 100% (AF unity P086747 the program, % targeted Productive Activities: Loans: agriculture (70% of the total), animal P087 Livelih households in focal villages have husbandry (7%), small industries (20%) and other (4%); Infrastructure: 145) oods in increased net income (farm and bridges, irrigation, culverts, water distribution, sanitation improvement Conflict nonfarm) by at least 30%; % What was evaluated: 2,520 households in 9 districts (unclear over how targeted households are members many households, likely 200,249) of CBOs/VDOs with satisfactory Method of evaluation: Impact Assessment rating; % vulnerable people are Results: Overall ERR at 22.4%, FRR at 23.7%. 39.9% incremental increase VDO members and % of them in income against the base year for 50% of the targeted households; obtain financing for livelihoods 1,010 VOs were formed. Linkages were established with the Bank of development; % village youth Ceylon and some 95 staff of that bank were placed in bank branches to and ex-combatants assisted; No. focus on project clients.1,034 VOs from Phase I were given continued of jobs created income, livelihood support; Phase II achieved 918 VSCOs with 19,200 small groups. The improvement. impact assessment found a 39.9% incremental increase in income against the base year for 50% of the targeted households. Comments: The ICR efficiency analysis was a generally thorough analysis based on a range of data, substantial coverage, and what seem reasonably conservative assumptions. However, the income data did not directly differentiate the poverty cohorts so it is not clear what share the poor achieved. The impact study did not provide detailed analysis of ground-level interventions or impacts, the focus was on statistical analysis of a questionnaire. The ICR notes that the impact study data “could not be disaggregated or attributed to subcomponent investments and was largely unusable for cost-benefit analysis. VSCO loans analysis was based on estimated returns from agriculture Animal husbandry loans are assumed to go to dairy production exclusively. A 98 APPENDIX B COMMUNITY-BASED APPROACHES WITH PRODUCTIVE RNFE COMPONENTS APP / Project Close GP / Development PID Name Country FY Sector Objective Targeting Metrics Results lack of detailed data for small industries and others prevent inclusion in this analysis P146 AF2 - SI Solomon ‘14/ SURR See original Area and Poverty Percentage decrease in travel time # of subprojects: 360, AG extension activities: 1,084, Rural Enterprise 021 Rural Islands ‘15 /ARD project: Targeting to access improved water supply Development (SEF): 65 recipients (AF Develo P089297 sources; Percentage of villages % of subprojects productive: <1% (3), AG Ext: 60% (651), Rural P089 pment with satisfactory access to Enterprise Development: 100% 297) Progra infrastructure and/or services; Productive Activities: Market building, AG Ext: Cash Crop (53%), m Percentage of households who Livestock (34%), Resource Management (13%), Farmer Association have changed agricultural (<1%); SEF: Agriculture (30%), Transport and Shipping (19%), Tourism practices, including varieties, as a (16%), Infrastructure (16%), Retail (4%), Energy (4%), Other (10%) result of agricultural advice What was evaluated: N/A Method of evaluation: N/A Results: ERR Education: 19%, Health: 12%, Solar Power: 39%, WASH: 21%. Comments: due to the lack of information or rigorous evaluation of past activities, the absence of basic agricultural data on yields and farm systems, the demand-driven nature of the investments and the substantial nonquantifiable benefits. The analysis in this section assesses where possible the project effectiveness and efficiency for each of the components based on a mix of surrogate measures and anecdotal information including some limited ex post analyses conducted using RDP I Component 1 data during design of RDP 2. P130 AF2 for Kyrgyz ‘13/ SURR See original Area and Poverty Number of financially viable # of subprojects: 4,619 667 VIP 2 Republic ‘14 /SD project: Targeting microprojects ; Number of jobs % of subprojects productive: 19% (898) (AF P098949 created in beneficiary Productive Activities: Sewing Shops(16%), Autorepair(13%), P098 communities Carpenter(10%), Veterinary stations(7%), Beauty salons(4%), 949) Number of Jobs created in Other(49%) beneficiaries communities What was evaluated: 133 projects (15%) Method of evaluation: Randomized sample Results: FIRR were 59% for carpentry/furniture shops, 20% for confectionary shops, 128% for mini-bakeries, 74% for veterinary service stations, and 193% for mini-shops. Income-generating activities on average yielded positive results, although some small businesses had negative returns. Comments: ex post ERR only samples gathered data for 133 randomly selected microprojects by ARIS, although book-keeping is not a common practice in Kyrgyz Republic and data might not be precise; and the data was collected one year after the investment. There was also no specific indicator or target value to monitor the objective of “Private group-owned small-scale enterprise development” in the results framework.   Note: AF = additional funding; ARD = Agricultural and Rural Development; ERR = economic rate of return; FAO = Food and Agriculture Organization; FY = fiscal year; IRR = internal rate of return; PAD = project appraisal document; VIP = Village Investment Program. 99 Appendix C. Crop Value Chains APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training Provide technical and financial assistance to promote the formation of viable farmer organizations (Fos) and agribusiness, including To foster post- providing full information privatization and required documents for growth in the registering enterprises, agricultural confirmation of the legal sector by status of newly privatized improving the agribusinesses, and other legal access of new and institutional support for RISP private new agribusiness enterprises, P088 Mol No area targeting Private farmers and rural Did not report on relevant economic Did not plan or report on relevant SUPP ‘04/’06 farmers and and establish a business 268 dova reported entrepreneurs. impacts skills/training LMT rural advisory and marketing businesses to support service infrastructure what they for postcreation, business need to development support to new, succeed - private, farmer organizations knowledge, and agricultural and rural markets, and entrepreneurs; access to finance. finance through three credit line facilities, including a general commercial credit line, a special credit line with a “matching grant”; and a microfinance credit line To assist the These include Government Region 10 of the (Bukidnon; a large Capacity building interventions Philippines to producer of targeted at Access to market, including strengthen the vegetables, fruits, farmers/growers/fishers PH: better market information and capacity of its corn and The Department of associations with the aim of Divers services in building market Department of livestock); Region Agriculture as well as the enabling these organizations to ified linkages between growers, Phili Agriculture to 7 (Cebu and participating members of expand their reach to more P075 Farm traders, processors and Did not report on relevant economic ppin ‘04/’09 provide Negros Oriental; the private sector and small-scale and medium-scale 184 Incom exporters country-wide; and impacts es market- primarily local government units producers, as well as, women e& market development oriented producing (LGUs) and men farmers shall be Mkt. investments to expand services to vegetables, fruits in the four focus areas undertaken to allow them to Devt markets for crop, livestock increase and agriculture); embark on more organized and and fishery products agricultural Region 6 (Iloilo synchronized production and competitivene and Panay Island: marketing of their commodities ss and rural with particular incomes attention to 100 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training aquaculture), and the Cordillera Administrative Region (CAR, a large producer of vegetables and fruits). a) Support capacity building of participating financial institutions (PFIs) to promote requisite lending skills and to facilitate the development and To support the widespread use of suitable development financial instruments and of Armenia’s Support for small rural methodologies; and (b) provide small and businesses and Targeted badly needed long-term capital medium-scale agroprocessors, through vulnerable people for on-lending to farmers and rural enhanced rural financial in mountainous farmer groups, agroprocessors, businesses by services, promotion of rural areas and and other agribusinesses Targeted income increase improving the business linkages to improve focusing on through qualifying PFIs. The RUR surpassed by 170%: a survey ability of market access and links strengthening the participatory capacity building ENT covering 52 of the 132 rural farmers and between producers and livestock sector Small and medium-scale and investments improved the P087 & Arm business entities participating in ‘06/’10 rural processors; training to competitiveness farmers and rural community planning skills and 011 AGRI enia the project with established links entrepreneurs promote lending skills, mainly to meet entrepreneurs organization potential. Regional C to farmers reports around 27% to access facilitate use of suitable the growing governors report a higher DEVT income increase. Baseline value markets and financial instruments and demand on the degree of mobilization and was not provided. by stimulating provide long-term capital, domestic market. organization in the communities market- assist emerging rural business No other which are now able to better oriented to introduce innovative justification was prioritize their development private and business mechanisms and provided needs and access financing public improve market linkages available through other investments in government and/or donor rural areas programs. They are also helping the communities in generating new cash earnings, which are used to cover other individual and shared priority investment needs. To support the Support for small rural Targeted a) Support capacity building of development businesses and vulnerable people participating financial of Armenia’s agroprocessors, through in mountainous Targeted income increase institutions (PFIs) to promote RUR small and enhanced rural financial areas and surpassed by 170%: a survey requisite lending skills and to P115 ENT medium-scale services, promotion of rural focusing on covering 52 of the 132 rural facilitate the development and 686 Small and medium-scale & Arm rural business linkages to improve strengthening the business entities participating in widespread use of suitable (AF ‘06/’10 farmers and rural AGRI enia businesses by market access and links livestock sector the project with established links financial instruments and P087 entrepreneurs C improving the between producers and competitiveness to farmers reports around 27% methodologies; and (b) provide 011) DEVT ability of processors; training to mainly to meet income increase. Baseline value badly needed long-term capital farmers and promote lending skills, the growing was not provided. for on-lending to farmers and rural facilitate use of suitable demand on the farmer groups, agroprocessors, entrepreneurs financial instruments and domestic market. and other agribusinesses 101 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training to access provide long-term capital, No other through qualifying PFIs. The markets and assist emerging rural business justification was participatory capacity building by stimulating to introduce innovative provided and investments improved the market- business mechanisms and community planning skills and oriented improve market linkages organization potential. Regional private and governors report a higher public degree of mobilization and investments in organization in the communities rural areas which are now able to better prioritize their development needs and access financing available through other government and/or donor programs. They are also helping the communities in generating new cash earnings, which are used to cover other individual and shared priority investment needs. to improve the livelihood of rural Removing bottlenecks and households in strengthening distribution and 1) Annual average income per Jiangxi ago-enterprises providing capita for farmers increased from Province farm inputs or processing and $332 to $508: The annual average through marketing in a competitive income per capita for project establishment market-economy farmers exceeded the target value of integrated, CN- environment; improving the by 11%, 2) % Farmer loaDid not economically Use of advanced technology was Jiangx agricultural report on relevant economic and Households benefiting supported, including eater use i marketing system by impactsgricultural enterprise loan environmental from agroprocessing and of plastic tunnels for intensive P065 Integr Chin renovating, upgrading and repayment rate (target 100%), ‘04/’10 ly sustainable, Jiangxi Province marketing activities and vegetable growing and over 463 ated a construction of agricultural achieved. 3) FRR of 35% for 16 and market- training and extension 188,000 days of farmer training Agric. product markets, and thereby enterprises including pepper driven outreach as well as training of staff at the Mode increasing farmers’ access to processing unit, orange agricultural township and village level. rn. markets; providing market processing unit, tea-seed oil unit, production development support to and vegetable processing unit, systems various entities, such as etc. Investment costs included focusing on strategic market studies, civil works (land preparation and productivity investments into testing and buildings), equipment, vehicles, and grading equipment; enterprise training and technical assistance agricultural specific training programs and output of high quality and value. To develop Agricultural supply chain A broad range of private The project was successful in Improved incomes for farmers the development Rural areas were sector operators in the building capacity of the RURA and enterprises from activities P078 Geor productivity , including efficient targeted but no country’s agriculture and participating financial L ‘05/’11 supported under the project. 544 gia and development of marketing justification was agribusiness sectors, institutions. It delivered DEVT Baseline value was 0 and actual profitability of supply chains for provided ranging from small and necessary training to credit figure was 28.3 % the private commodities that have a medium-size farmers, to officers in appraisal of rural 102 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training agriculture demonstrated market agricultural processors, investments and delivery of new sector potential, with the view to as well as other private, financial products expand profitable domestic supply chain-integrated and export market entities. opportunity, supply chain analysis, technical assistance, training, and studies, support agribusiness firms in identifying regulatory, technological, contractual, and investment constraints and assist in the development of marketing plans, supply chain linkages, contractual agreements, and investment proposals, including farmer linkages to agribusinesses and markets, support for the development of product certification, quality testing and labeling standards, and rural finance to processors and agribusiness enterprises involved in the marketing supply chains of marketed agricultural commodities 18 counties in Project farmers’ per capita Sichuan, Yunnan, incomes increased by 12% per and Guangxi. The year, which is greater than that of To improve two provinces nonproject villages (9%), the livelihood and one national average for rural areas security, and Autonomous (9.2%), and all nationally achieve a Region are in designated poor counties (10%). sustained China’s lagging CN - Enhance the management of participation western region, Project farmers’ per capita Poor food safety controls and of the rural and all 18 consumption increased at 8.7% Rural quality certification along the The project provided training poor in project counties are per year, which is greater than Com value chain; improve services to the adults in the P071 Chin design, nationally that of the national average (7.5%) munit ‘05/’11 agribusiness marketing by poor, farmers project villages with a focus on 094 a implementatio designated poor and of all nationally designated ies strengthening market functional literacy education n, and in the counties. All of poor counties (8.1%). Devel information systems, and and practical technical skills. monitoring the project opme developing market-oriented and villages in Decline in poverty incidence over nt infrastructure. evaluation Yunnan and the project implementation aspects within Guangxi are period: in Sichuan, Yunnan and the three designated key Guangxi provinces it declined project poor villages, and from about 35% to 6%, 62% to provinces two-thirds of the 32% and 80% to 31%, respectively. project villages in Although the poverty incidence Sichuan are targets set at appraisal were not designated key fully achieved, the reduction is 103 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training poor villages. considered significant. From 2006 Ethnic minority to 2010, the incidence of poverty people comprise declined from 15.9% to 9.3% in two-thirds of the project area, registering a total project’s primary reduction of 6.6 percentage target group, and points. This reduction in poverty include people of incidence outperformed the the Yi, Wa, Dai, national average of 1.8 percentage Lahu, Zhuang, points over the same period Miao, Molao, Dong, Maonan and other groups. Eleven of the project’s 18 counties are ethnic minority autonomous counties. P058 AG Kaza ‘05/’11 To enhance Support for the government’s No area targeting Small-scale farmers and Did not report on relevant economic Did not plan or report on relevant 015 POST khst the access to recently enacted crop reported rural SMEs impacts (Not in results framework skills/training PRIV an commercial insurance program, including - According to Eurasian Bank ASSIS financial training and investment in data, during the implementation T services by weather data infrastructure; of the credit line some 2,068 new (APL farmers and expand the use of jobs were created, which is #2) small/mediu nontraditional financial believed to contribute to m-size rural instruments in rural areas, employment generation and enterprises. including helping commercial increased incomes in rural areas) banks and leasing companies accelerate rural investment lending by expanding the use of nontraditional instruments like leasing of agricultural machinery, and the use of structured finance for selected supply chains, a credit facility for on-lending to agribusinesses, and other viable rural enterprises; Rural microfinance including support product innovation, facilitate access of MFIs to commercially sourced funds, benchmarking and filling some knowledge gaps, and provide on-lending resources to expand outreach, as a stopgap measure toward commercial funding sources P110 BI Buru ‘08/’11 To contribute PRASAB seeks to directly The Project will Smallholder farmers 26% net profit increase for 62% of Capacity building of producer 940 PRAS ndi to restoring improve food security by have a national beneficiaries organizations and local 104 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training (AF AB the productive revitalizing and diversifying coverage. communities would be based on P064 Suppl capacity and However, in training needs and resulting 558) ement livelihoods of agricultural production and practice the training plans, linked to the rural establishing sustainable land provinces where productive and sustainable land population in management. The project the Project will management subprojects, and Burundi responded to the priorities of operate will offered by contracted local through Burundi’s Interim poverty depend on a implementing agencies. economically reduction strategy paper, number of factors, and including: (i) raising such as the ecologically production and productivity number of sustainable and diversifying sources of producer investments income in rural areas; (ii) organizations Improving the quality of available for or services and their delivery to interested in farmers; Project activities; agricultural (iii) improving the potentials and institutional framework for opportunities; better access to markets and ongoing activities appropriate policy planning with which and implementation; and (iv) PRASAB promoting sustainable land operations could use and improving natural link; and other resource management. development Burundi’s full PRSP of August agencies 2007 continued to emphasize supporting these priorities. producer organizations or micro-Project investments in the province. P102 AR Arge ‘07/’11 to: (i) increase Technical assistance and National and 120,000 small and Annual incomes increases of There was unanimous 316 Prov ntina and diversify investments in agricultural provincial medium-sized beneficiaries ranged from $2,385 agreement that the training, (AF Ag agricultural competitiveness and/or targeting, based commercial farmers to $17,480 / year per family including in specific productive P006 Devt I production agricultural productive on province whose agricultural (Target: 25 to 50% increases) for activities, which accompanied 010) Add’l and exports investments subprojects, eligibility. No incomes would be 2,185 farmers; Expansion and the energy connection, was Financ through including public infrastructure poverty targeting increased and stabilized maintenance of markets for agro- valuable. Distinct sets of e intensifying and services (with livestock and products activities were developed, Ln742 land use, complementary private off- (achieved); 11 nontraditional grouped basically into internal 5-AR increasing farm investments) products differentiated by training, postgraduate training, productivity market; 108,5000 smallholder masters and specializations, per hectare, farmers family benefited (target external training and UEC- and 120,000) sponsored seminars aggregating introducing the gamut of PROSAP’s public new crops and and private stakeholders for modern project planning and review varieties; (ii) purpose increase and stabilize the agricultural 105 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training incomes of about 120,000 small and medium-sized commercial farms; (iii) improve the effectiveness of basic agricultural support services to increase the international competitivene ss of agricultural products, by introducing new and more productive technologies, increasing quality and improving sanitary conditions of products, and eradicating diseases that limit access to international markets; (iv) improve rural productive infrastructure to reduce production and marketing costs, through a significant reduction in the risk of losses (crops, livestock, equipment and facilities), as well as more efficient 106 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training use and better conservation and management of natural resources; (v) strengthen national and provincial institutional capacity to formulate and analyze sector development policy, as well as to identify, prepare and implement investment projects; and (vi) rationalize public investments and promote an expanded private sector role (for example, farmers’ organizations, NGOs, and service providers) in agricultural development P105 RW- Rwa ‘08/’12 To increase Strengthening commodity Marshland and Farmers (households) 67 cooperatives with business Trainings, including: (i) 176 Rural nda agricultural chain, including promoting hillside areas and famer organizations plans and supported by the organizational support and Sector production agricultural value addition, (cooperatives, water user project increased their revenues related training for farmer Supt and marketing and expanding access to associations) from sales by 50% against a target organizations; (ii) business APL2 in marshland markets, supporting rural of 20 cooperatives so this target planning and enterprise (FY08) and hillside entrepreneurs and assisting was achieved to a level of 335%. management training for areas targeted beneficiary cooperatives along The Impact Assessment Survey commercially oriented for the entire commodity chain, (2012) documented that 67 cooperatives development middle (processing), and cooperatives had achieved ;(iii) organizational and under the lower (marketing) stages; revenue increases exceeding 50% operational support for project in an specialized training, technical compared with their respective associations of Lead Farmers; environmental assistance, and advisory baseline; these included 18 and (iv) organizational support ly sustainable services to improve business cooperatives that increased for national commodity manner. planning and management revenues by more than 1,000%. associations capacity for commercially Additional evidence provided has 107 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training oriented cooperatives.; and shown that the cooperatives rural investments in public increased the marketed share goods and services (for from 35% in 2008 (2008 example, community grain FINSCOPE Survey) to 70% at drying and storage facilities, project closing. rural roads) Program level indicators: Change in the average level of household incomes among Programme direct beneficiary households: RW 48,840 to RW 232,000 (These cannot be compared because one was income and the other is consumption). However, it is possible to compare the figure for RSSP beneficiaries in sample with a comparator figure from the same EICV3 data set. The comparator figure is for all rural households outside Kigali (not benefiting from RSSP) where at least one household member has a main job on the family farm and is RWF 214,964. So it can be said that RSSP beneficiaries have experienced improvements in their absolute consumption figures and have higher consumption levels than their peers in Rwanda Change in the percentage of Programme direct beneficiary households under the poverty line: 65.7 percent to 39.9 percent (EICV3) * EICV3: National Integrated Household Living Conditions Survey To improve Direct beneficiaries were AGR Mac the delivery of expected to be STRE edon Access to market through the government institutions which NGT ia, establishment of an assistance to deliver services to HENI For Agriculture Information P101 the agriculture No area targeting farmers. Did not report on relevant economic Did not plan or report on relevant NG mer ‘07/’12 System and a Market 216 sector in a reported Farmers and users of impacts skills/training AND Yug Information System in a manner veterinary or ACCE osla manner compliant with EU consistent irrigations/drainage SSIO v requirements with the services were N Rep European indirect/secondary 108 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training PROJ ublic Union’s pre- beneficiaries of the ECT of accession project. Also, farmers requirements and agroprocessors who received IPARD support were direct beneficiaries. Livestock herders were also to benefit from the improved animal health. P049 AGRI Kaza ‘05/’12 To increase Empower communities to No area targeting Although the project did 1) Increased farmers’ income, Did not plan or report on relevant 721 C khst the help them increase their reported not target a specific particularly that of small- and skills/training COM an competitivene participation in the group of farmers, medium-size PETIT ss of the decentralization and local individual farmers farmers. - baseline: 0; actual: 3,200 IVEN agtlcultural communal development (usually small and farmers. (Target value was ESS sector in processes; and (ii) ensuring medium size, family revised to better reflect the Kazakhstan. sustainability of investments farms, and commercial project’s by strengthening farmers) were the main contribution); 2) Value of communities’ capacities in beneficiaries. agricultural exports, including programming, designing and livestock products, rises properly managing collective compared with 2005. target: $800 investments, as well as million; actual: $1,850 million undertaking income- generating and productive activities; including, grants to rural communes to co-finance microprojects proposed by them, with the purpose of reducing poverty by addressing their priority social and socioeconomic needs. P090 ADCP Azer ‘06/’12 To further Enhanced access to financial Project-supported Individual farmers, Incomes of participating farmers Did not plan or report on relevant 887 -II baija increase rural services and targeted business rural areas farmer groups, rural and rural entrepreneurs increased skills/training n productivity support; strengthen and microentrepreneurs, and by 20% through improved access and incomes broaden credit union outreach the small to medium to services and through vertical by enhancing expanding rural financial agroprocessors integration; Production marketed the access of services such as credit for for cash increased by 20% as a farmers and worlung capital requirements, result of increased quantity small and long-term credit for and improved quality of medium rural investment purposes, and production enterprises to leasing programs for rural business processing and agricultural and equipment; introducing agricultural innovative mechanisms that support encourage sustainable services linkages between developing including small-scale rural businesses financial, and agroprocessors with advisory and farmers, associations and veterinary groups; strengthen rural services and business, market information 109 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training by stimulating and promotion services market- offered through the rural oriented advisory system investments in rural areas P116 MA- Mor ‘11/’12 To increase Improve farmer access to rural areas with small farmers Improved socioeconomic impact Did not plan or report on relevant 557 First occo the agri-food superior breeding stock for Gini coefficient of of investments directed at small skills/training DPL sector’s cattle, pigs, sheep and poultry; 0.6 farmers target was set at 40 % and in productivity financing eligible farm actual achieve was 84 % suppo and enterprise investments to rt of diversification improve stock handling and the with the goal livestock housing and provide PMV of maintaining start-up working capital, higher rates of through a combination of agricultural demand-driven matching growth and grants and commercial loans; employment. provide technical advice on More breed selection and breeding specifically, management, nutrition, the objectives animal health and improved of the series husbandry practices; improve were to: (i) livestock nutrition by improve the fostering locally grown efficiency of feedstuffs and upgrading domestic pastures for cattle and sheep; markets; (ii) and improve meat quality and improve the hygiene initially through socioeconomic initiation of a new field impacts of slaughter service on Upolu investments and Savai’i, and later by directed to construction of an abattoir on small farmers; Upolu, all with associated cold (iii) improve chains. agricultural services; and (iv)improve the use and management of irrigation water and the planning of irrigation infrastructure P111 MG:R Mad ‘09/’12 This project Technical assistance and All of the 20 agro- The primary target 38% Average income increase The project provided extension 984 ural agas paper productive Investments ecological regions population was the same among beneficiaries and training services to rural (AF Dev car concerns to including rural infrastructure; of the country, for both phases. The OP communities and producer P051 SupPr provide an productive nonagricultural with particular intended to reach with at organizations, directly required 922) oj additional activities; and the provision of focus on the least one subproject an for the implementation of the Additi credit to the poorer areas estimated 180,000 demand-driven onal Republic of within each families, identified as income-generating subprojects. 110 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training Financ Madagascar advisory services and capacity region. poor smallholders living (training in management and ing for the Rural building support to POs. Geographic in remote, low-density marketing) Development targeting using a areas with no access to Support combination of (a) any subsidy for Project. The poverty indicators productive investments additional such as access to and with inadequate financing basic services in infrastructure and credit will education, health services. The AF targeted help finance and potable an incremental 70,000 the costs water; and (b) families with the same associated physical isolation profile, organized into with scaled- from roads and 6,000 producer up activities to markets organizations. enhance the impact of a well- performing ongoing project and contribute to an enhancement of its impact and development effectiveness. P077 COM Tajik ‘04/’12 To build the Small-scale processing Rural Common interest groups % of rural production Training to communities to 454 MTY istan productive facilities and developing of a communities in and individuals investments are successful support seed and seedling AGRI assets of rural distribution mechanism for selected mountain according to agreed economic, production, livestock breeding C& communities products such as milk and watersheds financial, social, and and animal health and WAT in selected milk products, fruits, meat, environmental standards and are husbandry improvements, and ERSH mountain including, grading & being sustained: 85% achieved market and enterprise analysis ED watersheds, in packaging of goods, (target 80%); #households and development. MGM ways that establishing of storage and/or participating in some part of the T sustainably marketing facilities; livestock rural production component: increase owners associations to 43,513 households (target 32,000); productivity organize buying or producing Total value of farm production and curtail fodder and feed, vaccination investments where Project is degradation f campaigns, building of operational: $3.85million (target: fragile lands enclosed pens, or fencing of $3.8 million) and parcels; and establishing ecosystems small-scale farm machinery leasing units by establishing member owned credit facilities following the nonbank financing organization model; and limited patching and rehabilitation of access and feeder roads to facilitate 111 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training transport and improve access to markets P090 RISP Mol ‘06/’13 To provide Rural advisory services, The project Private farms, emerging 1) Percentage of beneficiaries Technical assistance to rural 673 (APL dova long-term including strengthening and activities was farmer organizations, whose income has increased. entrepreneurs, and provide #2) support to consolidating the network of carried out cooperatives, and other Baseline: 0; actual: 90.8% operational support for local accelerate private rural advisory services throughout the private, rural development agencies (DAs), agricultural providers, rural business country as there entrepreneurs with the aim to create legally recovery and development, including was not specific registered, self and co-owned growth so that support to up-and-coming geographical sustainable rural businesses, Moldova’s businesses for the concentration. which would potentially agricultural identification of profitable become clients of financial and rural ventures institutions. sectors can and potential markets, play their full conceptualization of business role in ideas, development of providing the business plans, etc., and rural underpinning finance, including expand the s for future outreach of formal financial income sector to rural areas for growth and farmers and rural poverty entrepreneurs. reduction. P093 MZ- Moz ‘06/’13 To increase Agricultural Production and Zambezi Smallholders rural The average increase in Contracted studies, applied 165 Marke ambi the income of Marketing Development, valley/provinces farmers and community- household agricultural income for research, specialized training t Led que smallholder including technical support /districts (five based organizations the project’s treatment group was and awareness campaigns Small farmers in for stakeholders involved in districts of 36 percent higher than the would be undertaken in such holder selected marketing and processing of Chemba, average agricultural income areas as market opportunities Dev districts of the agricultural products Maringue, recorded for that group at the identification and development, (FY06) Zambezi Mopeia, reconstructed baseline. However, crop diversification, sustainable Valley region Morrumbala and for the control group, the average land and water management, of central Mutarara of the increase in household agricultural market information etc. Mozambique. Zambezi Valley income was 69 percent, compared Increased region of central with the average agricultural incomes will Mozambique) income recorded at the be achieved reconstructed baseline. While the not only by reported 36 percent increase direct support exceeds the PDO target of 30 to smallholder percent, no explanation is groups and provided by the data collected at other supply end-line as to why the treatment chain districts performed worse on participants, average than the control. It is also but also necessary to note that by through the achieving the PDO target, the strengthening project beneficiaries would have of local-level still been categorized as poor, capacity to since the 30 percent target undertake and increase would not be sufficient manage to propel the target beneficiaries service over the internationally agreed 112 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training delivery poverty line of $1.25 a day as of within the project close in 2013.” context of the government of Mozambique’ s decentralizati on policy. P049 AGRI Kyrg ‘05/’13 To assist the Build business capacity of the No area targeting The main beneficiaries Increase in sales of agribusinesses An extensive capacity building 724 BUSI yz borrower in parties involved in marketing reported were agro-food supported by the project from a program was offered to NESS Rep increasing and chains of agricultural processors, who received baseline value of enterprise data producer cooperatives. The & ublic enhancing the commodities and providing consultancy services (actual figure not provided) to 114 participating financial MAR business them the foundation to work provided by technical, % Increase in profit of enterprises institutions received training to KETI activities of together more effectively. marketing, and financial and organizations supported strengthen their capacity to NG the management specialists. increased by 107 % from a provide investment lending in Beneficiary Indirect beneficiaries baseline value of enterprise data agriculture and to offer new agribusinesses were agricultural (actual figures not provided) financial products tailored to the supporting producers supplying agriculture sector. The supply the Borrowers agro-food processors chain management economic involved in the project subcomponent sought to build growth the capacity of private sector participants in the marketing of Kyrgyz agri-food products. The project established an Agribusiness Competitiveness Center to provide clients—that is, beneficiaries—with co-paid technical assistance through contracting with international business consulting firms and teaming these with local consultants. The intention of the center was to build consultancy capacity for the agroprocessing sector that would be sustained beyond the implementation of the Project. P098 COTT Tajik ‘07/’13 To improve Promote foreign direct 18 cotton districts Rural population of Did not report on relevant economic Technical assistance, training 889 ON istan the livelihood investment in ginneries in in Khatlon. about 760,000 people impacts and information to rural SEC of cotton selected districts; provide living on 115,000 population of Khatlon oblast. RECO farmers and subcredits to selected private hectares of irrigated land Activities under Farmer Support V create the sector agricultural businesses in seven districts, and the Programs included: Regional conditions for to finance modern seed people providing goods Public Awareness; Community sustainable processing equipment and and services to farms in Outreach; and Farmer growth of provision of technical these districts. Extension. Indicator captured: cotton assistance, training; and 1)Number of Trainers trained to production in conduct a communication implement community outreach selected, low outreach to rural population. and farmer extension programs income areas in project districts of Tajikistan, 113 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training through debt resolution, an improved policy environment, and increased cotton output and profitability. P116 RISP Mol ‘06/’13 To provide Rural advisory services, The project Private farms, emerging 1) Percentage of beneficiaries Technical assistance to rural 321 (APL dova long-term including strengthening and activities was farmer organizations, whose income has increased. entrepreneurs, and provide (AF #2) support to consolidating the network of carried out cooperatives, and other Baseline: 0; actual: 90.8% operational support for local P090 accelerate private rural advisory services throughout the private, rural development agencies (DAs), 673) agricultural providers, rural business country as there entrepreneurs with the aim to create legally recovery and development, including was not specific registered, self and co-owned growth so that support to up-and-coming geographical sustainable rural businesses, Moldova’s businesses for the concentration. which would potentially agricultural identification of profitable become clients of financial and rural ventures institutions. sectors can and potential markets, play their full conceptualization of business role in ideas, development of providing the business plans, etc., and rural underpinning finance, including expand the s for future outreach of formal financial income sector to rural areas for growth and farmers and rural poverty entrepreneurs. reduction. P108 VN - Viet ‘09/’14 To strengthen Training and technical Eight provinces in Smallholder farmers and Did not report on relevant economic Training was provided to the 885 Agric nam the assistance to farmers, the central region: agribusinesses impacts management and technical ulture competitivene establishment of models that Lam Dong; Binh cadre of 21 cooperatives in Comp ss of improve postharvest and Thuan; Ninh business planning and etitive smallholder marketing activities; Thuan; Dak Lak; marketing and in the operation ness farmers, with productive linkages and Binh Dinh; Gia of rice drying and storage Projec a focus on scaling up successful value Lai; Nghe An; and facilities. t eight chains, including fostering the Thanh Hoa. provinces in competitiveness of central smallholder farmers and Vietnam, in agribusinesses by facilitating collaboration the establishment, with the development and operation of agribusiness private, demand-driven sector. productive partnerships between farmer organization and agribusiness enterprises, and a network of local service providers P083 SN- Sene ‘06/’14 To: “increase Test innovative partnership No area targeting 9,000 were small-scale Did not report on relevant economic Three centers of innovation and 609 Agr gal nontraditional business models adapted to reported farmers (mostly rice and impacts training for horticultural and 114 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training Marke agricultural small producers and SMEs in vegetable growers), some nontraditional crops in key ts & exports and key promising supply chains 500 were medium-scale regions were created using Agrib farm revenues for the domestic and regional farmers, and 36 were existing training infrastructure. us for project- markets; assist eligible small commercial enterprises The impact of these centers was Dev supported producers and SMEs not clear and no information (FY06) producers.” In interested in applying these was provided on the number of May 2010, the innovations to implement people who received project was well-defined Business training/capacity building formally development Projects support through these facilities. revised (subprojects); conduct related Several horticultural through a diagnostic assessments and communication materials were Level 1 studies; improvement of food published through project restructuring safety in the marketing of support including: good process. The animal products; phytosanitary practices, how to statement of modernization of the fight fruit flies and termites, and revised marketing channels for red quality characteristics of onions objectives as meat and of the marketing and bananas. articulated in channels for poultry and eggs. the 2010 Financing Agreement (FA, p. 5) was to: “improve competitivene ss of selected domestic supply chains, increase nontraditional agricultural exports and increase rice production in Project areas.” P088 MR- Mau ‘05/’14 To increase Rural Incentives and Capacity Target 20,000 small-scale Did not report on relevant economic Capacity building activities 828 Irrigat ritan the value- Building, including support to beneficiaries growers of irrigated impacts (training, workshops, etc) for ed ia added of agricultural supply chains, along the Senegal crops (rice and public providers of services to Agr irrigated targeting rice and River vegetables) organized in policy makers and agricultural Integr agriculture horticultural supply chain, cooperatives producers, producers’ Dev and related meeting the demands for organizations at the national APL 2 incomes and agricultural technical and and regional levels, private (FY05) employment managerial support services of engineering bureaus in the Senegal target beneficiaries at the farm River Valley level, and sustaining the through the improvement of the domestic judicious use rice sector by meeting the of the credit needs of the sector’s country’s participants, such as seed most precious fanners, producers, natural assets: processors, and providers of 115 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training water and agricultural custom services; arable land. Promotion of Agricultural Diversification, for commercial farmers and entrepreneurs engaged in horticultural, animal feed, and agro-forestry including introduction of new and processing techniques, quality control system of fruit and vegetables at the farm, packaging and port of entry/exit levels; (4) market information; (iv) quality control management at the processing center and points of export/import entry points P127 MA- Mor ‘13/’14 To increase Reducing marketing costs and Marginal areas of small farmers Direct project beneficiaries, Small Prior Action 2 promoted 822 Suppo occo the improving marketing services Souss-Massa-Draa farmers trained, Small farmers research and training in the rt of implementatio through the modernization of and Marrakech- who are satisfied with the project, country’s agriculture sector: the Plan n of land and fruit and vegetable markets Tensift-Al Haouz Targeted clients satisfied with amount of training provided Maroc biodiversity and slaughterhouses; Improve characterized by agricultural and rural advisory exceeded expected results by 20 Vert conservation the institutional and low and erratic services, Targeted clients who are percent, and the share of women DPL2 measures in regulatory framework rainfall, and with members of an association Key in training was 20 percent, selected governing fruit and vegetable limited access to achievements included (i) double the target of 10 percent. projects wholesale markets, and irrigation, small institutional framework directed to improve the institutional and farmers are not governing fruit and vegetable small farmers regulatory framework inclined to risk wholesale markets, upgrading of located in governing slaughterhouses their limited slaughterhouses, and a modern targeted financial fruit and vegetable wholesale marginal areas resources in the market that is operational, (ii) in the project purchase of both the share of new projects area. agricultural submitted by professionals in the inputs, resulting implementation of the investment in low program for Pillar II projects and productivity. the share of small farmers benefiting from Pillar II support increased, (iii) all public agricultural research financing and extension advisory services are currently awarded competitively and some of them contracted to the private sector, (iv) an effective food safety control system was established, and finally, (v) the PMV support was an effective incentive for farmers to establish a basis for groundwater management, and to establish a basis for groundwater 116 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training management and in convincing them to convert to drip irrigation. P116 SN- Sene ‘06/’14 To: “increase Test innovative partnership No area targeting 9,000 were small-scale Did not report on relevant economic Three centers of innovation and 301 Agr gal nontraditional business models adapted to reported farmers (mostly rice and impacts training for horticultural and (AF Marke agricultural small producers and SMEs in vegetable growers), some nontraditional crops in key P083 ts & exports and key promising supply chains 500 were medium-scale regions were created using 609) Agrib farm revenues for the domestic and regional farmers, and 36 were existing training infrastructure. us for project- markets; assist eligible small commercial enterprises The impact of these centers was Dev supported producers and SMEs not clear and no information (FY06) producers.” In interested in applying these was provided on the number of May 2010, the innovations to implement people who received project was well-defined Business training/capacity building formally development Projects support through these facilities. revised (subprojects); conduct related Several horticultural through a diagnostic assessments and communication materials were Level 1 studies; improvement of food published through project restructuring safety in the marketing of support including: good process. The animal products; phytosanitary practices, how to statement of modernization of the fight fruit flies and termites, and revised marketing channels for red quality characteristics of onions objectives as meat and of the marketing and bananas. articulated in channels for poultry and eggs. the 2010 Financing Agreement (FA, p. 5) was to: “improve competitivene ss of selected domestic supply chains, increase nontraditional agricultural exports and increase rice production in Project areas.” P081 ML:A Mali ‘06/’15 To foster Value-adding technologies to The project chose Project beneficiaries were According to the impact study (p. The project had significant social 704 gr improvements improve processing and four of the eight not explicitly stated in 43) the gross income of potato development impact resulting Comp in the marketing of selected high- regions of Mali the original PAD. The farmers increased from CFAF from the different core project et & performances value agricultural products; (Koulikoro, government completion 157,900 in 2009 to CFAF 1,262,100 activities. These included a Divers of supply agricultural supply chains, Sikasso, Segou, draft report helped in 2012 (a net increase of 700%); of number of trainings (hands-on ify chains for a including storage, postharvest and Mopti) and identify the following as shallot/onion producers’ gross workshops in a range of tasks (FY06) range of and agroprocessing Bamako District direct project income increased from CFAF from production to - agricultural, technologies and equipment, (in its rural areas) beneficiaries (including 475,300 in 2006 to CFAF 884,400 marketing/exporting were (PCD livestock, aimed at improving the for project women): producers (of in 2014 (an increase of 80%); and provided under the ACDP); A) fishery and quality and value of products, intervention. The mangoes, that of papaya farmers from clearly an improved capacity is gathering reinforcing private sector choice of these onions/shallots, CFAF 460,500 in 2011 to CFAF in operation under the value products, for capacities to respond to regions was potatoes, and papaya; 507,000 in 2014 (a modest increase chains that were supported 117 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training which Mali market opportunities and justified by the livestock; and fish); of 10%). The value of production under the ACDP. The skills has a strong improving the fact that these are processors (of mangoes, of these three crops increased training of 9 Malian nationals comparative competitiveness of areas of high onions/shallots, milk, from a baseline of 49,500 million for International Register of advantage agricultural products, market agricultural meat, and fish); CFAF to 278,000 million CFAF Certificated Auditors research and improvement of production traders/service compared with a revised target of certification and 16 Malian the information base on potential, possess providers; collectors (of 230,000 CFAF. One direct impact consultants in Global G.A.P. to supply chains, promotion of relatively well- mangoes); exporters; and is the number of jobs (about 5,248 provide support services to private investment and developed artisans. jobs) that businesses. Training 10 quality improvement in the provision support was directly created as a result of control auditors; and providing of private services quality and infrastructure, the ACDP and it was the rural valuable market intelligence on food safety management; and were also poor who directly benefited destination markets. access to finance for the home to some from the project. various private actors and manufacturing operators involved in the entities. The areas agricultural supply chains; selected for and market-oriented intervention by infrastructure, including the ACDP are export facilities, collection geographic centers, storage and regions with a processing facilities high concentration of poor. P112 Easter Afric ‘09/’15 To: (i)enhance Support multiplication of No area targeting Farmers, general The project supported the 1,932 staff trained (short- and 688 n a regional seeds and breeds, strengthen reported populations, agricultural establishment of 410 agro- long-term) Africa Regi specialization the enabling environment for populations business units in the four Agric on in agricultural regional seed and breed trade, program countries with a total ultura research; and improve the capacity of membership of 9,030 l (ii)enhance seed and breed producers and Produ collaboration traders; provide business ctivity in agriculture development services to seed training and entrepreneurs (existing and technology new companies) , advice on dissemination; appropriate technology and (including equipment), and an (iii)facilitate assistance to participate in increased regional meetings. transfer of agricultural technology, information, and knowledge across national boundaries P096 SL- Sierr ‘07/’15 To increase Finance an market 13 agricultural Smallholder farmers 1) % of target beneficiaries for the Technical assistance for product 105 Rural a production of information system and districts Other: traders, private selected value chain increase their development and adaptation, Dev & Leon selected support events such as (fairs, sector agroprocessors production by at least 20 percent: proactive marketing and Priv e agricultural workshops, training, demos, and farmer Achievement pre AF: compliance with quality and Sec commodities and field farm schools) ; assist organizations, threshers, Beneficiaries expected: 150,000, phytosanitary standards; 118 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training Dev by 20 percent in the strengthening of legally millers, polishers, achieved: 17,491, 11.6 percent assistance in the strengthening SIL and sales by registered farmer wholesales, retailers and productivity achievement (% of of legally registered farmer 10 percent organizations and their importers target): Cassava, 89.7%, Rice, organizations and their unions, through unions, agribusinesses, 83.4%, Cocoa 150% agribusinesses, marketing improvements marketing entities, and other Achievement post-AF: entities, and other rural in efficiencies rural businesses through Beneficiaries expected: 25,000 , businesses through capacity along the capacity building, policy Achieved: 56,000 , productivity building, policy regulations and value chain regulations and market achievement: (% of target): market information for targeted information Cassava: 103%, Rice: 233%, beneficiaries Cocoa: 198 2) 50% of target beneficiaries for the selected value chain increase their sales by at least 10% by the end of the project: Achievement pre- AF: Beneficiaries expected: 150,000; achieved: 16,000 (10.6%) Sale price achievement (% of target): Cassava: 58%; Rice: 58%; Cocoa: 170% (This achievement was made by only 10.6% of the expected beneficiaries) Achievement post-AF: Beneficiaries expected: 25,000; achieved: 56,000 (224%) Sale price achievement (% of target): Cassava: 128%; Rice: 150% (This target was fully achieved by more than double the expected number of participants. 3) Real farm gate prices increase by at least 10% for the selected value chains of the targeted beneficiaries: Achievement Pre-AF: Cassava: 58%, Rice: 150%, Cocoa 169% Achievement Post-AF: Cassava: Cassava: 128%; Rice: 150%; Cocoa: 200% P117 Easter Afric ‘09/’15 To: (i)enhance Support multiplication of No area targeting Farmers, general The project supported the 1,932 staff trained (short- and 593 n a regional seeds and breeds, strengthen reported populations, agricultural establishment of 410 agro- long-term) (AF Africa Regi specialization the enabling environment for populations business units in the four P112 Agric on in agricultural regional seed and breed trade, program countries with a total 688) ultura research; and improve the capacity of membership of 9,030 l (ii)enhance seed and breed producers and Produ collaboration traders; provide business ctivity in agriculture development services to seed training and entrepreneurs (existing and technology new companies) , advice on dissemination; appropriate technology 119 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training and (including equipment), and an (iii)facilitate assistance to participate in increased regional meetings. transfer of agricultural technology, information, and knowledge across national boundaries P109 Kenya Ken ‘09/’15 To increase improved linkages to both Selected (85) Smallholders farmers Incremental staple production in Agro-dealers participating in the 683 Agric ya agricultural markets and agribusiness, to districts identified operating on one acre or targeted areas (tons): Targets program were also beneficiaries Produ productivity generate greater impact for based on the less of land in areas with assumed incremental production of training programs, as well as ctivity and incomes agricultural productivity poverty index and medium to high of 36,450 in year one and 85,050 in of the increased business & of growth and improved risk potential for potential for increased year two; Farmers receiving generated by voucher Agrib participating management, including maize production production of maize improved seed through input redemption usines smallholder providing Farmer Grants vouchers (number): incremental s farmers in the (matching grants) to farmer number of farmers 244,364, 163% Project Area. groups (CIGs, PBGs, of the targeted increment, cooperatives, micro-small Number of active loans (farmers enterprises, etc.) to implement and dealers) from participating marketing and agribusiness commercial banks (number): microprojects; design and 32,994 (target 46,000) establish appropriate agribusiness funding instruments to be rolled out by financial institutions, and support the development of market-based weather risk products to be rolled out to farmers by insurance companies; P084 MW- Mala ‘06/’15 To raise Rural nonfarm activities 11 target districts Water users, farmers in 1) Increase in farm sales in Training in group dynamics, 148 Irrig, wi agricultural include: support of the (poor rural HHs) upper catchments, targeted rural households for leadership, setting objectives, Rural productivity, beneficiary communities, farmers who formed irrigated maize and rice - % decision making, preparing Lvlihd and net particularly those covered themselves into groups increase in local currency unit business plans, record keeping, s& incomes of under the irrigation schemes, and developed a (core indicator): 227.8 against 0 and project management for Agr poor rural to obtain complementary proposal for either baseline smallholder farmer groups. SIL households in services and goods for creating productive 2) Number of people trained, of (FY06) target districts optimizing their returns from assets or improving their which % female in extension of Malawi, in irrigated farming, to add knowledge and skills services, operations and a sustainable value through micro- through extension maintenance of schemes, manner, by processing, to improve the support, training and technical staff training, marketing providing an marketing of their produce, marketing. and agribusiness: Extension integrated and to build their technical 57,337 (44%), O&M 36,828 (43%), package of and business capacities. staff 1,704 (31%), marketing and support Support provided under this agribusiness 30,113 (45%) covering component would entirely be 120 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training irrigation, demand-driven for proposals agricultural/ formulated by the eligible irrigation beneficiary groups and advisory representative stakeholders services, and approved by the district marketing and assemblies under a process; postharvest Support for Marketing and support. Post-Harvest Assets, focused on addressing the marketing needs of the target group of farmers supported under the project and also making a start on a longer-tern development of marketing by supporting the MOA’S marketing unit within market information system. P131 MW- Mala ‘06/’15 To raise Rural nonfarm activities 11 target districts Water users, farmers in 1) Increase in farm sales in Training in group dynamics, 760 Irrig, wi agricultural include: support of the (poor rural HHs) upper catchments, targeted rural households for leadership, setting objectives, (AF Rural productivity, beneficiary communities, farmers who formed irrigated maize and rice - % decision making, preparing P084 Lvlihd and net particularly those covered themselves into groups increase in local currency unit business plans, record keeping, 148) s& incomes of under the irrigation schemes, and developed a (core indicator): 227.8 against 0 and project management for Agr poor rural to obtain complementary proposal for either baseline smallholder farmer groups. SIL households in services and goods for creating productive 2) Number of people trained, of (FY06) target districts optimizing their returns from assets or improving their which % female in extension of Malawi, in irrigated farming, to add knowledge and skills services, operations and a sustainable value through micro- through extension maintenance of schemes, manner, by processing, to improve the support, training and technical staff training, marketing providing an marketing of their produce, marketing. and agribusiness: Extension integrated and to build their technical 57,337 (44%), O&M 36,828 (43%), package of and business capacities. staff 1,704 (31%), marketing and support Support provided under this agribusiness 30,113 (45%) covering component would entirely be irrigation, demand-driven for proposals agricultural/ formulated by the eligible irrigation beneficiary groups and advisory representative stakeholders services, and approved by the district marketing and assemblies under a process; postharvest Support for Marketing and support. Post-Harvest Assets, focused on addressing the marketing needs of the target group of farmers supported under the project and also making a start on a longer-tern development of marketing by supporting the MOA’S marketing unit within market information system. 121 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training P121 MW- Mala ‘06/’15 To raise Rural nonfarm activities 11 target districts Water users, farmers in 1) Increase in farm sales in Training in group dynamics, 120 Irrig, wi agricultural include: support of the (poor rural HHs) upper catchments, targeted rural households for leadership, setting objectives, (AF Rural productivity, beneficiary communities, farmers who formed irrigated maize and rice - % decision making, preparing P084 Lvlihd and net particularly those covered themselves into groups increase in local currency unit business plans, record keeping, 148) s& incomes of under the irrigation schemes, and developed a (core indicator): 227.8 against 0 and project management for Agr poor rural to obtain complementary proposal for either baseline smallholder farmer groups. SIL households in services and goods for creating productive 2) Number of people trained, of (FY06) target districts optimizing their returns from assets or improving their which % female in extension of Malawi, in irrigated farming, to add knowledge and skills services, operations and a sustainable value through micro- through extension maintenance of schemes, manner, by processing, to improve the support, training and technical staff training, marketing providing an marketing of their produce, marketing. and agribusiness: Extension integrated and to build their technical 57,337 (44%), O&M 36,828 (43%), package of and business capacities. staff 1,704 (31%), marketing and support Support provided under this agribusiness 30,113 (45%) covering component would entirely be irrigation, demand-driven for proposals agricultural/ formulated by the eligible irrigation beneficiary groups and advisory representative stakeholders services, and approved by the district marketing and assemblies under a process; postharvest Support for Marketing and support. Post-Harvest Assets, focused on addressing the marketing needs of the target group of farmers supported under the project and also making a start on a longer-tern development of marketing by supporting the MOA’S marketing unit within market information system. P125 SL- Sierr ‘07/’15 To increase Finance an market 13 agricultural Smallholder farmers 1) % of target beneficiaries for the Technical assistance for product 256 Rural a production of information system and districts Other: traders, private selected value chain increase their development and adaptation, (AF Dev & Leon selected support events such as (fairs, sector agroprocessors production by at least 20 percent: proactive marketing and P096 Priv e agricultural workshops, training, demos, and farmer Achievement pre AF: compliance with quality and 105) Sec commodities and field farm schools) ; assist organizations, threshers, Beneficiaries expected: 150,000, phytosanitary standards; Dev by 20 percent in the strengthening of legally millers, polishers, achieved: 17,491, 11.6 percent assistance in the strengthening SIL and sales by registered farmer wholesales, retailers and productivity achievement (% of of legally registered farmer 10 percent organizations and their importers target): Cassava, 89.7%, Rice, organizations and their unions, through unions, agribusinesses, 83.4%, Cocoa 150% agribusinesses, marketing improvements marketing entities, and other Achievement post-AF: entities, and other rural in efficiencies rural businesses through Beneficiaries expected: 25,000 , businesses through capacity along the capacity building, policy Achieved: 56,000 , productivity building, policy regulations and value chain regulations and market achievement: (% of target): market information for targeted information Cassava: 103%, Rice: 233%, beneficiaries Cocoa: 198 2) 50% of target beneficiaries for the selected value chain increase 122 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training their sales by at least 10% by the end of the project: Achievement pre- AF: Beneficiaries expected: 150,000; achieved: 16,000 (10.6%) Sale price achievement (% of target): Cassava: 58%; Rice: 58%; Cocoa: 170% (This achievement was made by only 10.6% of the expected beneficiaries) Achievement post-AF: Beneficiaries expected: 25,000; achieved: 56,000 (224%) Sale price achievement (% of target): Cassava: 128%; Rice: 150% (This target was fully achieved by more than double the expected number of participants. 3) Real farm gate prices increase by at least 10% for the selected value chains of the targeted beneficiaries: Achievement Pre-AF: Cassava: 58%, Rice: 150%, Cocoa 169% Achievement Post-AF: Cassava: Cassava: 128%; Rice: 150%; Cocoa: 200% P149 South Sout ‘14/’15 To support Support a safety net program 6 of the 80 Food-insecure ICR not available Finance advisory services, 700 Sudan h adoption of that targets food-insecure but counties in households and agro- capacity building and technical (AF Emerg Suda improved able-bodied individuals to Southern Sudan pastoralist assistance to support P113 ency n technologies participate in high priority (Panriang, Tonga, agricultural productivity 586) Food for food public works in exchange for Tonj North), Crisis production food or cash, including which suffer from AF IV and storage, opening of access roads to agro-climatic and provide agriculturally productive vulnerability, and cash or food to areas, construction of grain production/surpl eligible storage facilities us areas (Morobo, beneficiaries Yambio and Raga) in South and markets, improve Sudan postharvest management of selected staple food crops all year round, among others. P107 Bi-Ag. Buru ‘10/’16 to increase Support for productive 10 rural provinces Producer organizations, Did not report on relevant economic Training for professional 343 Past. ndi small investments at various stages currently covered associations, and impacts associations/cooperatives in the Produ producers’ of the value chains (primary by PRASAB,” and cooperatives in the value chains and capacity ct. & productivity collection, storage, processing, subject to IDA’S targeted value chains. A building for partner public Marke and market and marketing, including prior approval total of about 2,630 institutions t access for postharvest activities (for other coffee- matching grants are Devel. targeted example, improved storage producing expected to be awarded commodities and small-scale processing provinces (where during project 123 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training in the project facilities, drying techniques, it will implementation, area price and marketing support the benefiting 90,000 information, small-scale ongoing households. packaging, and pasteurization privatization of units), capacity building and coffee-washing facilitation of access to market facilities). capacities along the entire value chain for first-priority commodities, and infrastructure development, including feeder road rehabilitation to improve links to market P113 LR- Libe ‘12/’16 The objective Smallholder tree crops National Smallholder tree crop No ICR available Strengthening of about ten 273 Small ria of the revitalization, including farmers and household existing FOs/cooperatives -after holder Smallholder marketing of major tree crops members an organizational and financial Tree Tree Crop (cocoa, coffee, oil palm and audit, as well as the Crop Revitalization rubber) in selected counties, establishment of about 30 Projec Support capacity building of smaller FOs starting from t Project is to smallholders and their grassroot level. Capacity increase organizations to enhance their building of FOs would aim at access to functions in marketing, improving their financial and finance, postharvest handling and institutional performance and inputs, processing promoting inclusion of deprived technologies groups, transparency and and markets accountability for smallholder tree crop farmers in Liberia, and to develop a long-term development program for the tree crops sector P106 AR Arge ‘09/’16 To increase Promotion of value added and The Project will Small and medium-size Did not report on relevant economic Promotion of soft skills related 684 PROS ntina the development of linkages focus on areas producers which have impacts to administrative and AP2 productivity between production and with larger had limited access to management capacities 2nd and sales markets including: public concentrations of value-added markets Prov volume of infrastructure and services small and and not benefited from Agric small and (transport, communication, medium-size the recent growth of the Dev medium-size and energy and to improve producers that agricultural sector producers commercial have the potential because of difficulties in development), along with to fully accessing production complementary private on- participate in services farm and off-farm investments modern, to strengthen, farm-to-market competitive, linkages 124 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training agribusiness systems. P095 DO Dom ‘10/’16 To improve Infrastructure development, Municipalities The target beneficiaries Did not report on relevant economic These events should include 863 Munic inica the technical including provision of support were selected to of this Project are rural impacts capacity building for ipal n and financial for slaughterhouses and be representative settlers where communities’ organizations and Devel Rep capacity of the public markets of their province historically clientelistic municipalities. The Project opme ublic Participating in terms of social and patronage politics should be supporting to link the nt Municipalities and economic have been predominant. demand and supply of public to program, characteristics, services provision. In doing it finance and and to overall should support municipalities deliver provide a institutional strengthening Minimum diversity of size through territorial planning, Municipality within the budget formulation and Services sample. implementation of participatory budgeting and conflict resolution. Supporting the community organizations for participatory planning budgeting and social control. P096 NG- Nige ‘09/’16 To strengthen Market facilitation, including Five states: Cross Small and medium No ICR available Training to develop the 648 Com ria agricultural market development, River, Enugu, commercial farms, HHs capacities of the Commodity merci production awareness and knowledge Kaduna, Kano, Interest Groups (CIGs) and al systems and sharing for commercial Lagos Commercial Agriculture Agric facilitate farmers, market price surveys, Development Associations ulture access to website and information (CADAs)s to plan and execute Devel market for kiosks, market/financial their projects opme targeted value linkages, promotion of nt chains among products for supply chain small and financing, use of crops as medium-scale collateral, quality control commercial measures and standards; food farmers in the safety, exchange programs, five agricultural trade fairs and participating shows, local and international states study tours; rural infrastructure, including construction of new roads, rehabilitation of existing ones and maintenance of roads to communities and selected agricultural activities RURA To increase Rural enterprise finance, All regions are Provide framers with the L the including broadening access dominated by finance, tools and skills ENTE productivity to financial services in rural rural populations necessary for them to ensure RPRIS Uzbe and financial areas, signing up additional and heavily their production, increase their P109 Newly independent Did not report on relevant economic E kista ‘08/’16 and commercial banks and concentrated on overall productivity, expand 126 farmers impacts SUPP n environmental engaging the microfinance agriculture. The their operations potentially into ORT sustainability sector in the component production of the processing and equip PROJ of agriculture activities, to promote access to regions follows a themselves to raise their ECT II and the agricultural finance for similar pattern efficiency. Provide training and 125 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training profitability of microentrepreneurs in rural with other regions advisory services to newly agribusiness areas, credit line for loans and of the country, independent farmers in various in the project leases for investments in with a strong farm management skills (for area agribusiness-related activities emphasis on the example, legal, accounting, and related technical main crops of business, technical aspects assistance, including credit cotton and wheat. including agronomy, water line for agricultural machinery In addition, the management, pesticide and food processing regions account handling, IPM etc.); and (ii) equipment, storage, for almost high increase availability of technical packaging, provision of production of information and advisory agricultural services, tree vegetables, services. crops, livestock, beekeeping, potatoes and fish farming, retail shops fodder, which is selling agricultural inputs and necessary to products, and other long-term support the investments, complementary almost 4.5 million training program for the PFIs cattle. and interested MFIs and leasing companies The scope of the project i s national in nature, but it is Promote investments in expected that environmentally sustainable there would be technologies in agribusinesses more subprojects operating at the various stages in states of To promote It will also provide beneficiaries MX of the production chain of relatively high The proposed project would the adoption with technical assistance for Sustai agricultural product; concentration of improve incomes of producers of implementation of their nable investment and production agricultural through reducing production P106 Mexi environmental Small and medium-sized proposed business plan, as well Rural ‘09/’16 support service, including activity (including costs while also increasing their 261 co ly sustainable producers as training to integrate Devel technical assistance for agribusiness) such participation in global markets technologies technologies promoted through opme implementation of their as: Jalisco, due to increased energy efficiency in the project in their farms and/or nt proposed business plan, as Coahuila, practices. agribusinesses agribusinesses. well as training to integrate Durango, technologies promoted Chihuahua, through the project in their Veracruz, Sonora, farms and/or agribusinesses Guanajuato, Michoacan, Yucatan and Nuevo Leon. Finance the expansion of the To restore and successful small -scale BJ: improve irrigation infrastructure Farmers, fish farmers, Agric productivity activities, including inland valley fishermen, ultura and value P115 Beni complementary studies, schemes and agribusinesses and Did not report on relevant economic Did not plan or report on relevant l ‘11/’16 addition for 886 n works, small equipment, and irrigated professional groups of impacts skills/training Divers selected value capacity building; support the perimeters farmers and agro- ificati chains in the building of value chain enterprises. on Recipient’s institutions through the territory organization of value chain 126 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training participants into a well- structured interprofessions and the organization of producers around structuring activities ( for example, rice milling, fingerlings and fish feed production) 1) Strengthening the capacities of private sector agencies, NGOs The project area and CBOs to support Rural nonfarm activities consists of 25 smallholder groups and include: (i) strengthen the Commas in 12 associations to prepare technical, institutional, Municipals in the development plans and managerial and marketing targeted investment proposals skills of smallholders and their To increase provinces, (subprojects) for finding under organizations, as well as of agricultural including Bie, component two; and services providers and other production Huambo and strengthening the managerial stakeholders (relevant through Malanje. The and business capacities of local government institutions and provision of selection of the microenterprises that support private and nongovernmental better services project area has farming activities (small AO- agricultural service providers) and been guided by processors, craftsmen and local Marke involved in agricultural investment the following traders). 2) Strengthening t- production and value chains, support to criteria: high capacities of relevant P093 Orient Ang to more effectively operate in Did not report on relevant economic ‘09/’16 rural agricultural 126,000 rural households government institutions and 699 ed ola a market-driven impacts smallholder potential, based introducing or strengthening Small environment and to prepare farmers in on favorable participatory processes that holder for the agricultural investment selected ecological and support project implementation; Agr support opportunities under comunas and climatic 3) assisting smallholder groups component ; and. (ii) municipals of conditions; high and associations to identify, Provide demand-based targeted population prepare and manage their support, in the form of Provinces of density; market productive agricultural matching grants, to rural Bie, Huambo access; existence investment activities to be communities and smallholder and Malanje. of some funded; 4) improving groups and associations, for supporting smallholders agricultural and village productive infrastructure; marketing skills and ability to infrastructure and agricultural and potential access extension services. - In production, processing and synergies with pad, the result framework marketing subproject. other operations. capture the number of farmers benefiting from the capacity building activities. P149 CAR Cent ‘14/’16 To protect and The proposed project will go 11 Prefectures Livelihood assistance to Did not report on relevant economic Training to the beneficiary 512 Emerg ral rebuild beyond the essential (Bangui, Ouham, about 722,000 people; impacts farmers and to 50 field . Food Afric livelihoods, agricultural input provision Ouham Pende, assistance to food- personnel of the Ministry of crisis an human and support Lobaye, Nana- insecure individuals Rural Development as well as & Ag. Rep capital, seeds suppliers and farming Mambéré, 150 young graduates relaun ublic particularly of women groups in Ombella M’Poko, ch children, and strengthening their capacity Basse Kotto, to relaunch for resilience in a broader Mbomou, Ouaka, the scope than just production. Nana-Gribizi and productivity This component will finance Kemo) 127 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training of the purchase of groundnut, maize, agriculture rice and vegetable seeds sector. (about 400 tons) for subsidized distribution to seeds producer groups (17,400 households), and 370 women groups (11,100 households) to restore domestic food production capacity. P105 MW - Mala ‘08/’16 To improve Training courses aimed at No area targeting smallholder farmers ICR not available Formal and informal training, 256 Agric wi the public and private sector reported technical assistance, equipment, Dev eflectiveness personnel involved in the and a strategic planning Prog of investments implementation of a national framework through annual Suppo aimed at food warehouse receipts initiative; work plans and budgets, with rt security and and the refurbishment of one enhanced monitoring and Projec sustainable warehouse to be leased for evaluation, financial t agricultural warehouse receipt operations management and procurement growt and human resources planning and management capabilities. training of 7,500 farmers in the safe use of insecticide in adapted grain storage structures; Inservice training urornams for SMS and field staff in alternative/participative extension methodologies and selected priority technical subjects reflected in the annual work plans P081 BF- Burk ‘06/’17 To increase Establish a supply chain Area Targeting 0 Active project None 567 Ag. ina the promotion fund that will Divers Faso competitivene provide matching grants to ificati ss of selected finance microprojects on & agricultural proposed by smallholders and Marke subsectors small-scale processors for t Dvt. that target specific categories of national, investments; product quality subregional improvement, and and agricultural diversification international while strengthening markets, producers’ linkages to thereby markets. contributing to shared agricultural growth of the Recipient’s territory P092 DRC Con ‘10/’17 To increase Increase the number of Northern 105,000 households of Active project Farmers groups will be 724 Ag go, agricultural farmers and farmers’ Équateur smallholder farmers in supported to develop the skills, 128 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training Rehab Dem productivity cooperatives participating to Province and Pool the targeted areas; links, and communication & ocrat and improve sustainable cocoa programs; Malebo. service providers active needed to evolve into stronger Recov ic marketing of speed up restructuring of in project areas; and larger farmer organizations ery Rep crops and cooperatives; rehabilitation of nongovernmental capable of joining together for SIL ublic animal and maintenance of feeder organizations (NGOs), marketing or for addressing key (FY10) of products by roads to improve cocoa small businesses, and issues affecting members’ smallholder marketing in project transporters, for welfare. farmers in intervention areas; improve example-producers who targeted areas. access to markets for can obtain improved smallholders in rubber and oil seed from project palm producing areas; participants, and support to domestic (iii)consumers. processing. P095 NE - Nige ‘09/’17 To increase Build public-private National targeting Agro-producers Active project No Training 210 Agro- r the value of partnerships to structure and Pastor selected invigorate coordination al products among the principal links in Expor marketed by the selected supply chains, t project- including coordination among Prom supported the principal links in the otion producers. selected supply chains (Le. Proj Livestock products, onion, cowpeas, sesame, souchet, and gum Arabi )by developing coordination mechanisms that will result in regular stakeholder meetings for each commodity;strengthen existing producer organizations, and facilitate the emergence of new one; application of a comprehensive value-chain approach to increase the quality of Niger’s produce and its competitiveness; financing subprojects on primary collection, and marketing on demand and as a function of business models that have proved to be profitable, and facilitating access to credit through technical assistance to financial institutions in order for them to develop financial products directed toward agricultural sector development. P101 CN- Chin ‘10/’17 To assist Jilin Support carrying out a Jilin Province Certification offices, Did not report on relevant economic Did not plan or report on relevant 716 Jilin a Province in program to strengthen the agricultural Commission, impacts skills/training 129 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training Food improving its capacity of the Agricultural government staff, Safety agricultural Committees, the Livestock farmers and agricultural product Bureaus and the Water processors quality and Resources Bureaus at the reducing provincial and local levels in agricultural Jilin Province in managing product safety and monitoring agricultural risks through: product safety and quality (i) introducing good agricultural practices, (ii) improving the implementatio n of agricultural product safety–related regulations, and (iii) strengthening the agricultural product safety monitoring system. P115 Samoa Sam ‘12/’17 To support Improve farmer access to Upolu and Savai’i 1,500 households Did not report on relevant economic Training would be imparted on 351 Agric oa fruit and superior breeding stock for islands wanting to adopt a more impacts topics such as group dynamics, ulture vegetable cattle, pigs, sheep and poultry; commercial approach to basic enterprise economics and Comp growers and financing eligible farm fruit and vegetable and marketing. etitive livestock enterprise investments to livestock production and ness producers to improve stock handling and marketing Enhan improve their livestock housing and provide c productivity start-up working capital, and take through a combination of greater demand-driven matching advantage of grants and commercial loans; market provide technical advice on opportunities. breed selection and breeding management, nutrition, animal health and improved husbandry practices; improve livestock nutrition by fostering locally grown feedstuffs and upgrading pastures for cattle and sheep; and improve meat quality and hygiene initially through initiation of a new field slaughter service on Upolu 130 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training and Savai’i, and later by construction of an abattoir on Upolu, all with associated cold chains. P119 CI: Côte ‘14/’17 To improve Provide block grants and National targeting The primary target Active project Training programs for about 308 Agric D’Iv smallholder capacity building to groups are small farmers 13,000 cocoa farmers (equivalent ulture oire access to communes to finance small- in selected cocoa, oil to 156,000 client-days of Sector technologies scale subprojects at the village palm, rubber, cashew training) on good agricultural Suppo and markets, level for productive and cotton producing practices (GAP), through rt and enhance infrastructure and livelihood areas appropriate delivery Projec governance of improvement activities that mechanisms such as Farmers t selected value are identified through Field Schools. chains participatory planning supported processes. under the project. P147 BF- Burk ‘06/’17 To increase Establish a supply chain Area Targeting 0 Active project None 978 Ag. ina the promotion fund that will (AF Divers Faso competitivene provide matching grants to P081 ificati ss of selected finance microprojects 567) on & agricultural proposed by smallholders and Marke subsectors small-scale processors for t Dvt. that target specific categories of national, investments; product quality subregional improvement, and and agricultural diversification international while strengthening markets, producers’ linkages to thereby markets. contributing to shared agricultural growth of the Recipient’s territory P087 NP Nep ‘09/’18 To improve Help agro-enterprises, The project area Smallholder farmers Did not report on relevant economic Did not plan or report on relevant 140 Agric al the commodity associations, comprises of 25 impacts skills/training ulture competitivene cooperatives and farmer terrain and hill Com ss of groups to actively engage in districts, which merci smallholder the development of are found in the alizati farmers and commodity value chains by four Development on & the partially financing demand- Regions of Nepal, Trade agribusiness driven investment proposals namely, Central, sector in through a competitive Western, Mid- selected matching grant; support western and far commodity investments in enterprise- western Regions. value chains based farmer institutions that The project in 25 districts are linked to other value chain targets districts with a higher 131 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training supported by participants and are actively potential for the project. engaged with the markets. agriculture commercialization , better economic infrastructure and with relatively better organized farmer groups that are already engaged in the production of high-value commodities and are accessing markets. P095 Mali - Mali ‘10/’18 To increase Capacity building for National targeting The project’s primary Active project The project will help restore in- 091 Agric the communities would be target will be country training capacities for ultura productivity provided for activities such as smallholder producers producers and agricultural l of smallholder participatory planning, needs- already connected to technicians. Produ agricultural assessment, beneficiary markets and ready to ctivity and consultation, subproject adopt improved (IDA) agribusiness preparation and technologies in the producers in implementation, financial selected product groups. the targeted management, community production procurement, operations and systems and maintenance, as well as project areas. monitoring and evaluation. Given the demand-driven nature of the Project, communities would have an open menu of social and economic investments, including but not limited to: rural infrastructure; basic services; vulnerability- reduction, food security and nutrition-enhancement activities; and management of natural resources. It is expected that each beneficiary community would have one subproject financed on the basis of an indicative ceiling of $1,000 per family. Said ceiling would be increased to $1,500 per family for a second subproject, in case this is identified by women and implemented in majority by them. The component would 132 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training finance Community Investment grants for eligible subprojects. P102 ZM- Zam ‘11/’18 To increase facilitate private and Project-targeting Households who own Active project The training program will 459 Irrigat bia yields per cooperative investment in provinces, giving irrigated land or who enable the establishment of ion hectare and productive equipment and priority to will be able to establish water user associations and Devel value of assets in and around irrigation Southern, Central microenterprises with producer organizations, and opme diverse schemes, and to stimulate the and Copper belt support increase the knowledge capacity nt products establishment of small-scale provinces of smallholder farmers to Projec marketed by enterprises negotiate with their commercial t(FY10 smallholders partners in the value chains ) benefiting from investments in irrigation in selected sites served by the project P119 LS - Leso ‘12/’18 To increase Support the introduction, Areas with higher (a) existing producer Active project none 432 Small tho marketed testing and demonstration of production groups that want to holder output among new business initiatives and potential that are improve the production Agric project technological innovations; already engaged and productivity of their ulture beneficiaries support to targeted farmer in market- crops, improve their Dev in Lesotho’s groups (including commodity- oriented market integration, Projec smallholder based farmer associations, production or increase their t agriculture district and local apex have good membership or join sector associations, registered farmer potential to forces with other groups; cooperatives, informal farmer become (b) broader community- organizations or producer commercially based groups that interest groups, market active. manage resources or intermediaries, agribusinesses, facilities which are input suppliers and other important for market- market participants) oriented production; and (c) poorer farmers who have an interest in joining a group or committed farmers with a common interest wishing to form new groups. P122 ACIP Azer ‘14/’18 To facilitate Provide development support Regions Individual Farmers Did not report on relevant economic The Project would support a 812 baija the access of for value chain participants to Farmer groups impacts capacity building program n agricultural assist them to establish small to medium which will include a producers to productive partnerships and agroprocessing comprehensive training on food markets by prepare subproject proposals enterprises safety standards for public strengthening for funding under the Project; sector staff and private sanitary and investment support for “comprise individual agribusinesses. phytosanitary agribusiness value chains farmers, farmer groups, services, expand availability of and the enhancing investment financing for small to medium 133 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training selected value agribusiness/food processing agroprocessing chains, and enterprises through subloans enterprises.” providing and leasing; support financial introduction of new financial services to products better tailored for agribusiness satisfying the specific needs of enterprises. agribusiness; implement capacity building program for the participating financial institutions (PFIs). The development objective of the Third Infrastructure for commodity Rural Sector chain development Support , including construction of Project rural commercial (RSSP3) are to: infrastructure such as i) increase the collection centers, storage agricultural facilities, input facilities Capacity Building for Value productivity (seeds, organic and inorganic Chain Development of organized fertilizers), processing subcomponent aims at building RW: farmers in the (agricultural products) and Female and male the capacity of farmers for value Third marshlands other value-adding activities); farmers, community chain development through Rural and hillsides agribusiness centers including Selected members receiving enhancing their understanding P126 Sector Rwa of ‘12/’18 half-bulk markets, drying marshlands and Project support in small Active Project of agribusiness principles. This 440 Suppo nda subwatershed areas, storage facilities (for adjacent hillsides groups for value chain subcomponent will build the rt s targeted for example, paddy, fertilizers); activities, either capacity of farmers for market- Projec development and capacity building to upstream or downstream oriented farming at three levels: t in an support the market the producer, cooperative and environmental integration in project areas the agribusiness center level ly sustainable involved in nonfarm activities including half-bulk markets. manner; and including business planning ii) strengthen development of farm the budgets/business planning, participation small enterprise management, of women and and marketing of output to men Marketing Committees beneficiaries in market- based value chains. NP:A To improve Help agro-enterprises, The project area gricult the commodity associations, comprises of 25 P128 ure competitivene cooperatives and farmer terrain and hill 304 Com Nep ss of groups to actively engage in districts, which Did not report on relevant economic Did not plan or report on relevant (AF ‘09/’18 Smallholder farmers merci al smallholder the development of are found in the impacts skills/training P087 alizati farmers and commodity value chains by four Development 140) on & the partially financing demand- Regions of Nepal, Trade agribusiness driven investment proposals namely, Central, 134 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training sector in through a competitive Western, Mid- selected matching grant; support western and far commodity investments in enterprise- western Regions. value chains based farmer institutions that The project in 25 districts are linked to other value chain targets districts supported by participants and are actively with a higher the project. engaged with the markets. potential for agriculture commercialization , better economic infrastructure and with relatively better organized farmer groups that are already engaged in the production of high-value commodities and are accessing markets. The development objective of Infrastructure for commodity the Third chain development Rural Sector , including construction of Support rural commercial Project infrastructure such as (RSSP3) are to: collection centers, storage i) increase the facilities, input facilities Capacity Building for Value agricultural (seeds, organic and inorganic Chain Development productivity fertilizers), processing subcomponent aims at building RW: of organized (agricultural products) and Female and male the capacity of farmers for value P147 Third farmers in the other value-adding activities); farmers, community chain development through 605 Rural marshlands agribusiness centers including Selected members receiving enhancing their understanding (AF Sector Rwa ‘12/’18 and hillsides half-bulk markets, drying marshlands and Project support in small Active Project of agribusiness principles. This P126 Suppo nda of areas, storage facilities (for adjacent hillsides groups for value chain subcomponent will build the 440) rt subwatershed example, paddy, fertilizers); activities, either capacity of farmers for market- 0 Projec s targeted for and capacity building to upstream or downstream oriented farming at three levels: t development support the market the producer, cooperative and in an integration in project areas the agribusiness center level environmental involved in nonfarm activities including half-bulk markets. ly sustainable including business planning manner; and development of farm ii) strengthen budgets/business planning, the small enterprise management, participation and marketing of output to of women and Marketing Committees men beneficiaries 135 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training in market- based value chains. Capacity building activities for smallholders and/or nucleus investors to establish or expand out-growers Increased schemes and the like, access to land, provision of specifically private sector targeted training and technical finance, input- advisory service; and output- The project Ghana rehabilitation and markets by targets Accra Targeted training and technical Com construction of agricultural Poor households, smallholder Plains and advisory services for P114 merci Gha storage infrastructure and agribusiness investors, ‘12/’19 farms from Savannah Active project smallholders and/ or nucleus 264 al na processing facilities, including smallholder private public Accelerated investors to establish or expand Agric the rehabilitation of state- farmers/out-growers, partnerships Development nucleus out-growers schemes ulture owned agricultural storage in commercial Authority Zone facilities, warehouses and rice agriculture in mills; and strengthen the Accra Plains capacity of eligible farmer’s and SADA organizations, input dealers, zone mechanization centers, processors and other agricultural service providers along the value chain Assist rural communities in selecting private operators for Technical assistance to ensure commercial agriculture on that land user rights are To develop village land; promote private allocated to private operators in Agrib inclusive investment in agribusiness, an inclusive and sustainable usines commercial including way, benefiting the broader s agriculture identifying and attracting Smallholders, medium- The Ngalam community. It also provides P124 Devel Sene and investment in commercial scale farmers, wage ‘14/’19 Valley and Lac de Active Project vocational training and applied 018 opme gal sustainable agriculture and agribusiness, workers, SMEs and large Guiers areas research to farmer associations, nt land preparing marketing operators SMEs and agriculture business Projec management documents; financing for associations. (Training in areas t in project SMEs and farmers to improve such as development of business areas SMEs productive capacity and plans, financial statements, competitiveness and to marketing and product design.) develop linkages with larger firms To improve Rehabilitate irrigation private GM:C productivity infrastructure to enhance the Central River actors operating in the omme and access to resilience of agricultural Regions (CRR - supply chains of the rcial Gam market of production systems to climate North and South) targeted commodities for P125 Agric Did not report on relevant economic Did not plan or report on relevant bia, ‘14/’19 targeted change-induced weather and the North domestic and export 024 ulture impacts skills/training The agricultural shocks in selected areas; Bank and West Markets, particularly, & commodities rehabilitate/build commercial Coast regions of high-quality rice milling Value for postharvest infrastructure to the country. and marketing as well as Chain smallholders facilitate processing and fruit processing 136 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training in the Project marketing of agricultural (particularly, pulping, Area products; support freezing and drying of strengthening of the technical, mango in coordination institutional, managerial and with GCP interventions marketing capacities of in the mango subsector) smallholders and their organizations, as well as other stakeholders involved in agricultural production and value chains, to more effectively operate in a market-driven environment; facilitate farmers’ access to market by creating and supporting commercial partnerships between farmers’ organizations and private agribusiness enterprises to foster the integration of a greater number of smallholder producers in performing and remunerative value chains, by developing and implementing public-private alliances in the project areas aimed at improving market linkages. Develop a number of commodity-based value chains and productive partnerships, including The main groups of activities on: access to beneficiaries are farmers markets: roads, market and rural communities, To support information and certification; employees, Priv inclusive value addition: processing. entrepreneurs, and Sec development Train organized groups and government agencies. Rehab of the cashew commercially oriented Guin These beneficiaries & agribusiness enterprises (agroprocessors P127 ea- include: cashew Did not plan or report on relevant Agrib ‘14/’19 sector and to and agribusiness enterprises) National targeting Active project 209 Bissa producers, cashew skills/training usines promote on a range of subjects, u processors, rice Dev- entrepreneurs including new technologies, producers and PSRA hip in other food safety and quality consumers, and young D sectors of the standards; development of entrepreneurs (especially economy. linkages with producer micro, small, and organizations, marketing, medium enterprises export requirements, (MSMEs). preparation of business plans and investment proposals for productive linkages etc. Credit Line for medium-term 137 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training investment loans/leases, and support to value chains. To improve outcomes in economic opportunity, health and education for target populations in urban and rural areas. These improved Social and Economic Inclusion outcomes will in Rural Areas be achieved BR , including integrating farmers The vocational training program through the MST and extractivists with the (up to 1 year) will include expansion of Acre main productive [value] techniques to improve and access to and P107 Social Brazi chains in Acre. In this context, diversify agro-forestry ‘09/’20 improvement State of Acre n/a Active Project 146 Econo l the focus is on sustainable production, communication in the quality mic production, with the strategies, leadership programs, of basic health Inclus consolidation of productive e and community organization and education ion chains within a strategy of and development strategies. services, and integrated territorial increased management technical expertise and improved organization in sustainable production methods and the development of selected productive sector. To increase Develop a number of Sughd and the Commercially oriented the commodity-based value Raions of producer associations, commercializa chains and productive Republican Farmers, AG tion of farm partnerships. Train organized Subordination. Agroprocessors, COM and groups and commercially “Khatlon has a agribusiness enterprises, MERC agribusiness oriented enterprises favorable resource agro-input dealers P132 IALIZ Tajik Did not plan or report on relevant ‘14/’21 products by (agroprocessors and base, particularly engaged in the value Active project 652 ATIO istan skills/training improving the agribusiness enterprises) on a land and water, chains and productive, N performance range of subjects, including and suitability for linkages, Participating PROJ of selected new technologies, food safety a wide range of financial institutions, ECT value chains and quality standards; crop and livestock public and academic and development of linkages with activities. Sughd institutions. (very small productive producer organizations, has a drier climate farmers, in groups or 138 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training partnerships marketing, export and more limited associations: up to 0.5 ha through requirements, preparation of access to per individual/ increased business plans and investment irrigation but is shareholder and access to proposals for productive well suited to commercial farmers: up finance and linkages etc. Credit Line for high-value fruit to 2 Ha per shareholder strengthened medium-term investment and vegetable if multiple owners and capacity of loans/leases, and support to production and 10 Ha if single owner project value chains. has better access farm) beneficiaries. to regional and international markets for export. Raions of Republican Subordination has a diverse range of fruit and vegetable crops grown mostly for the urban markets of Dushanbe and Kurgan-Tubye” Agricultural Support Services , including market-led agricultural technology transfer in the horticulture sector related to new production techniques, storage methods, postharvest handling, marketing and business management knowledge; creation of partnerships between Eight regions of To enhance Hortic producers, processors and Uzbekistan: Farmers, farmer groups, Enhance the capacity of farmers the ulture traders, the establishment of a Andijon, Jizzak, private enterprises, agro- to improve quality and productivity Devel Uzbe promotional association for Ferghana, firms, and productivity of their product, as P133 and opme kista ‘14/’21 fruits and vegetable, the Kashkadarya, agroprocessing Active project well as to identify and respond 703 profitability of nt n provision of support to Karakalpakstan, enterprises, involved in to market opportunities both horticulture Projec producer participation in Namangan, the country’s domestically and in export sector in the t national and international Samarkand, and horticultural subsector markets project area. trade events and the Tashkent assessment of the country’s export and domestic marketing policies ; access to credit, including provision through selected PFIs of Investment and Working Capital Sub-Loans and Lease Financings to Beneficiaries and technical assistance and Training to PFIs to increase 139 APPENDIX C CROP VALUE CHAINS APP / Project Cou Close Development PID Name ntry FY Objective Rural Nonfarm Activities Geotargeting Beneficiaries Targeted Economic Impacts Skills/Training their capacity in managing a range of innovatively structured finance products Note: EU = European Union; PDO = project development objective; ICR = Implementation Completion and Results Report. 140 Appendix D. Livestock and Pastoral Project APP/ Development Close PID Name Country Objective FY Rural Nonfarm Activities Targeting Metrics Results P098 AF: Afghanis To assist ‘06/ Livestock and marketing Type: Districts- Competitiveness/Productivity Increased productivity / Competitiveness 256 Hort. tan producer ‘11 initiatives, including developing were selected by 1.Model dairy processing unit 1. 7,000 poultry units established 3.68 million & households in livestock marketing initiatives, the government, established, involving 19,500 eggs produced (target 100,000) ; Model dairy Livest adopting eliminating imports of animals and where farmers and incremental 40,000 unit not established; Meat (n/a) ock improved animal products (milk and milk horticulture and liters/day by PY3; poultry 2. 62% adopted improved practices, and 23% Projec practices so as to products, frozen chicken and live livestock production expanded by 25,000 in process. AF: 57% fully adopted and 43% in t increase cattle and buffalo for slaughter) development units with incremental 100,000 process horticulture and and promoting export; productive could be eggs and 1,500 tons of meat livestock infrastructure, including milk addressed more annually by PY3 Reduced Vulnerability productivity and collection and processing facilities, intensively by 2.At least 60% of target producer 3. 3% point reduction in mortality rate, falling production in traditional exports earnings from mobilizing households adopt improved from 5% to 2%. AF: 4% point reduction in focus areas high-quality wool, camel hair, Farmer/producer poultry raising practices in mortality rate, falling from 5% to 1 %.( cashmere fiber and karakal skins, groups Focus Districts - after the AF the Indicator unclear. If reduction expected is technologies for improving the Beneficiaries: indicator was moved to change in percentage mortality rate, ROP harvesting, processing and Producer technology adopted achieved 60% and AF 80% of target. If marketing of these products households 3. 5% reduction in mortality reduction expected refers to change in among large ruminants. 10% mortality, ROP and AF exceeded targets) reduction in mortality among small ruminants 141 APPENDIX D LIVESTOCK AND PASTORAL VALUE CHAINS Project APP/ Development Close PID Name Country Objective FY Rural Nonfarm Activities Targeting Metrics Results P113 ET: Ethiopia To increase ‘11/ Agricultural Production and Type: Competiveness/Productivity n/a 032 Agric agricultural ‘16 Commercialization, including underinvested ultura productivity and establishment and Strengthening of areas with a good 1. Percentage increase in total l market access for Agricultural and Rural potential for real value of marketed Growt key crop and Development Partners Linkages agricultural agricultural (including h livestock Advisory Councils, farmer growth livestock) products per Progr products in organizations; (ii) Agribusiness participating household am targeted woredas support, including strengthening of with increased agribusinesses along value chains Beneficiaries: 2. Percentage real sales value participation of of selected commodities, private small- and increase of the key selected women and sector capacity building and medium-scale value chains commodities youth technical assistance, public sector farmers in the supported at the end of the capacity development for service selected woredas value chain provision; promotion of linkages to who crop an credit, including a credit guarantee average area of scheme, and sectoral analysis of somewhat less constraints and value-chain than 1 hectare analysis (ranging between ; small-scale Rural Infrastructure 0.25 and 2.3 Development and Management, hectares) particularly rural markets, including the construction, rehabilitation and/or improvement, and management of small-scale rural infrastructure, development and management of market centers , and the establishment of about 40 primary market centers, 20 secondary market centers, and about 8 terminal market centers P128 SO- Somalia To provide ‘12/ Targeted Cash-for-Work No Poverty and n/a n/a 143 Droug targeted ‘13 , including cash-for-work to about Area Targeting ht emergency 15,000 beneficiaries, thus Mana support to preserving livelihoods during the geme drought affected drought and providing crop or nt & populations in livestock inputs to about 35,000 Liveli Somalia including beneficiaries, thus facilitating a hood cash-for-work to rapid recovery immediately after (RE) preserve their the drought. livelihoods and the distribution of agricultural inputs, livestock feed or veterinary services to support the recovery of agriculture and livestock 142 APPENDIX D LIVESTOCK AND PASTORAL VALUE CHAINS Project APP/ Development Close PID Name Country Objective FY Rural Nonfarm Activities Targeting Metrics Results productive capacity P089 RY Yemen, To enable poor ‘07/ Marketing network, including seed Type: Five Vulnerability 259 Rainfe Republic producers: (a) ‘14 delivery and marketing network governorates d of improve their , rural incomes development, based on rural 1. Additional revenue per Reduced Vulnerability Agric production, including rain fed cereals and poverty and the beneficiary annually from (a) 1. $68 additional revenue per beneficiary ulture processing and legumes postharvest handling, importance of production (b) marketing and from production annually and marketing seed production and management, rain fed (c) processing 2. $81 additional revenue) per beneficiary Livest systems; (b) livestock raising, beekeeping and agriculture from marketing annually ock protect their marketing, livestock product Beneficiary Livestock Competiveness 3. $107 additional revenue per beneficiary assets: soil, WAT, processing (cheese, ghee), livestock owners 2. Handling capacity of Al- from processing annually rangeland, seeds postharvest handling and and local farmers Mokha quarantine station Increased Livestock Competiveness (output and animals; and marketing, coffee postharvest (Number, Custom) level) (c) get organized handling and marketing, 4. 2.4 million heads of animals/year handling for the purpose of handicraft production and capacity of Al-Mokha quarantine station (a) and (b) above marketing, slaughtering facilities (Target was 600,000. Achieved 400%) with running water; park and animal loading facilities; space distribution and organization; kiosk for vendors; and hygiene facilities P065 CN- China To promote ‘04/ Markets and processing Vulnerability Reduced Vulnerability 035 Gansu sustainable ‘10 investments including: livestock Type: No area 1. Improved productivity and & natural resource markets (3 in Gansu, 44 in targeting reported quality of livestock products 1. Cattle mortality reduced from 4% to 3.2%; Xinjia management by Xinjiang), shearing stations, wool 2.Increase in average net income the sheep mortality reduced from 7% to 4.5%; ng establishing storage facilities, milking and milk Beneficiaries: low of participating project cattle weight gain increased from Pastor improved collection stations. income groups townships compared with 505 g/head/day to 750 g/head/day; sheep al livestock improved access to markets for whose average nonproject townships increased weight gain from 165 g/head/day to Devel production and herders and traders, increased annual income is by end of project 280 g/head/day opme marketing numbers of available selling substantially nt systems that outlets, and improved below the would increase transparency of price; and access to country’s average the income of finance for rural enterprises, per capita income herders and including ($1,122) Benefits farmers in the (ii) loans to profitable rural would also accrue project areas enterprises and/or enterprise like to entrepreneurs activities for fixed asset associated with investments leading to increase livestock product profitability and value add of processing processing enterprise, shorter term industries in loans to trader enterprises for county, seasonal prefecture, and investment capital. provincial centers 143 APPENDIX D LIVESTOCK AND PASTORAL VALUE CHAINS Project APP/ Development Close PID Name Country Objective FY Rural Nonfarm Activities Targeting Metrics Results P096 AISP Kyrgyz To improve the ‘08/ Agricultural Market Information, Type: No area Service Delivery/Vulnerability 993 Republic Recipient’s ‘13 including the collection and targeting reported 1. Expanded access to farm and Improved access to services institutional and dissemination of essential Beneficiaries: livestock support services 1. 458 Farmer Unions provided services to infrastructure agricultural market information, Livestock owners farmers (baseline: 0) environment for for agricultural producers, traders, with small size 2.Increased livestock Reduced Vulnerability more productive, processors and policy makers family farms productivity profitable and 2. 89 lambs per 100 ewes surviving to age 4 sustainable months; 1960 liters/cow/lactation (Target livestock and related to milk yields exceeded by 18.5 % and crop production rate of lambs surviving to 4 months exceeded by pasture users by 80%) (baseline: 80 lambs per 100 ewes and smallholder surviving to age 4 months; 1,800 farmers, as well liters/cow/lactation) as to reduce the economic impact of the zoonotic disease burden in the human population (revised) Development of food production and integration of key value chain, including building innovative and sustainable market-based mechanism, establishing partnerships between producer To (i) rehabilitate organizations, input distributors, and reinforce wholesalers, food processors and productive marketers, financial institutions capacities among and other Type: All five TG:A targeted Productivity/ Vulnerability service provider; pilot inventory administrative gricult beneficiaries credit schemes (warrant age) for regions of Togo ural across Selected 1. Increase of crop and fisheries cereal producers (especially maize P118 Sector Value Chains, ‘11/ output, and of livestock Togo and sorghum) and in connection Beneficiaries: crop n/a 045 Suppo and (ii) foster an ‘16 population among project with contracting partners already farmers, animal rt enabling beneficiaries bearing expertise in this field; herders, fish Projec environment for support for innovative initiatives to producers and t the development diversify food crops and food fish merchants of the agricultural products for sector, in the domestic or subregional markets, Recipient’s including agro-industrial territory processing and marketing initiatives for products such as tubers, fruits, vegetable, innovative initiatives to expand market access for other crops (for example, fruits and vegetables) through a competitive grant scheme 144 APPENDIX D LIVESTOCK AND PASTORAL VALUE CHAINS Project APP/ Development Close PID Name Country Objective FY Rural Nonfarm Activities Targeting Metrics Results BJ:SU PPOR T TO APIC P116 ULTU No documents ‘12/ No documents Benin No documents available No documents available No documents available 598 RAL available ‘15 available PRO MOTI ON PRO Reduced Vulnerability Integrate the national livestock 1a. Number of sheep in targeted areas grew marketing information systems, from 31 at baseline to 64 compared with a train stakeholders on interpreting target of 46 and using information from the 1b. Number of goats grew from 7 at baseline system, support research on and to 10 compared with a target of 10 To improve develop selected livestock-related Vulnerability/Productivity Increased Productivity SD- livestock cross-border value chains, 1. Animals traded in the 1c. Number of animals traded annually in Type: No area North production and specifically in arid and semi-arid rehabilitated livestock markets, rehabilitated markets increased : i) 492,845 targeting reported P101 Sudan marketing in ‘08/ areas, including: on capacity by type of livestock sheep (target 388,852) over a baseline of Sudan Beneficiaries: 955 Livest selected rain fed ‘13 building, pastoralists and other 299,664, ii) 6,374 goats (target 1,213) over a Pastoral ock areas of Central actors (exporters, abattoirs) will be 2. Average herd size of small baseline of 912, iii) 80,525 cattle (target 14,161) communities (FY07) and Eastern trained on cooperative ruminants per household in over a baseline of 10,640, (iv) 26,919 camels Sudan management models, and targeted areas (number) (target 7,949) over a baseline of 5,972 camels marketing; vaccination campaigns; in 2009 fodder bulking and conservation, Reduced Vulnerability identify markets and develop value 2. Average herd size of small ruminants per chains for alternative products to household in targeted areas sheep 64 and goat livestock 10 compared with a target of 31 and 7 respectively Rural Nonfarm activities include trainings to strengthen capacity of Type: No area CAR- the institutions charged with To increase targeting reported Agro- agricultural development in CAR, productivity and Pastor such as public agencies, Vulnerability production of Beneficiaries: al Central nongovernmental organizations, P124 selected food ‘11/ producer Recov African and producer organizations and 1. Number of animals of selected n/a 278 crops and ‘16 organizations, ery Republic other community-based group, livestock species produced by livestock species community Projec including program and project direct project beneficiaries in the project groups that t planning, implementation, and areas receive (ERL) evaluation; and support producer productive assets organizations and community- based organizations 145 APPENDIX D LIVESTOCK AND PASTORAL VALUE CHAINS Project APP/ Development Close PID Name Country Objective FY Rural Nonfarm Activities Targeting Metrics Results Investment activities, including infrastructure to access and use remote pastures, such as spot road improvements, stock watering points, shelters, milk cooling devices, among others, machinery to produce and harvest fodder, Productivity/Competiveness including grass cutters, haying Type: The project machines, silage choppers, etc, 1. Increased livestock area covers Com support to village-level productivity measured by: (a) around 230,000 ha munit To improve agribusiness to develop new milk production, and (b) of conditional y productivity and business opportunities, improve increase in daily animal weight land, of which Agri. sustainability of marketing, promote food safety gain more around 2/3 P120 Res. pasture/livestock ‘11/ practices, and introduce and Armenia is pastures n/a 028 Mana livelihood ‘16 demonstrate new technologies that 2. Increased farm sales from gem. systems in could benefit communities focused livestock Beneficiaries: and selected on livestock production, communities Comp communities developing alternative income 3. Increased effectiveness of engaged in . opportunities such as honey communal pasture livestock production, medicinal herbs, agro- management, as measured by production tourism, or development of niche increased communal budgetary products or by-products; revenues from lease of pasture improving food quality and safety; improving processing, packaging and marketing; developing new products; and provision of services such as veterinary or artificial insemination services. Reduced Vulnerability Integrate the national livestock 1a. Number of sheep in targeted areas grew marketing information systems, from 31 at baseline to 64 compared with a train stakeholders on interpreting target of 46 and using information from the 1b. Number of goats grew from 7 at baseline system, support research on and to 10 compared with a target of 10 SD:Im To improve develop selected livestock-related Vulnerability/Productivity Increased Productivity provi livestock cross-border value chains, 1. Animals traded in the 1c. Number of animals traded annually in P123 ng Type: No area production and specifically in arid and semi-arid rehabilitated livestock markets, rehabilitated markets increased : i) 492,845 495 Livest targeting reported marketing in ‘11/ areas, including: on capacity by type of livestock sheep (target 388,852) over a baseline of (AF ock Sudan Beneficiaries: selected rain fed ‘13 building, pastoralists and other 299,664, ii) 6,374 goats (target 1,213) over a P101 Produ Pastoral areas of Central actors (exporters, abattoirs) will be 2. Average herd size of small baseline of 912, iii) 80,525 cattle (target 14,161) 955) ction communities and Eastern trained on cooperative ruminants per household in over a baseline of 10,640, (iv) 26,919 camels & Sudan management models, and targeted areas (number) (target 7,949) over a baseline of 5,972 camels Marke marketing; vaccination campaigns; in 2009 fodder bulking and conservation, Reduced Vulnerability identify markets and develop value 2. Average herd size of small ruminants per chains for alternative products to household in targeted areas sheep 64 and goat livestock 10 compared with a target of 31 and 7 respectively 146 APPENDIX D LIVESTOCK AND PASTORAL VALUE CHAINS Project APP/ Development Close PID Name Country Objective FY Rural Nonfarm Activities Targeting Metrics Results Reduced Vulnerability Integrate the national livestock 1a. Number of sheep in targeted areas grew marketing information systems, from 31 at baseline to 64 compared with a train stakeholders on interpreting target of 46 and using information from the 1b. Number of goats grew from 7 at baseline system, support research on and to 10 compared with a target of 10 To improve develop selected livestock-related Vulnerability/Productivity Increased Productivity livestock cross-border value chains, 1. Animals traded in the 1c. Number of animals traded annually in P132 SD- Type: No area production and specifically in arid and semi-arid rehabilitated livestock markets, rehabilitated markets increased : i) 492,845 798 North targeting reported marketing in ‘13/ areas, including: on capacity by type of livestock sheep (target 388,852) over a baseline of (AF Sudan Sudan Beneficiaries: selected rain fed ‘13 building, pastoralists and other 299,664, ii) 6,374 goats (target 1,213) over a P101 Livest Pastoral areas of Central actors (exporters, abattoirs) will be 2. Average herd size of small baseline of 912, iii) 80,525 cattle (target 14,161) 955) ock communities and Eastern trained on cooperative ruminants per household in over a baseline of 10,640, (iv) 26,919 camels Sudan management models, and targeted areas (number) (target 7,949) over a baseline of 5,972 camels marketing; vaccination campaigns; in 2009 fodder bulking and conservation, Reduced Vulnerability identify markets and develop value 2. Average herd size of small ruminants per chains for alternative products to household in targeted areas sheep 64 and goat livestock 10 compared with a target of 31 and 7 respectively   147 Appendix E. Productive Partnerships Achievements Lessons Beneficiaries and Employment Country Objective Partnerships Outcome and Impact Generation - Average credit to farming 11,714 families - An external impact evaluation To generate income, - 136 producer was, $1,681. found that, employment levels create employment organizations, of which 85 - In an independent impact assessment of 20 increased between 5 and 50 - Revolving funds were an effective tool for and promote social were still in existence partnerships 17 increased average income percent within 17 sampled PPs mature producer groups for accessing financing. cohesion of poor rural seven years after project by 12 to 32% Issues with control groups depending on the partnership Established relationships and trust in existing communities in an closed. prevented comparison with nonproject type. Colombia: groups led to the effective use of funds. Less economic and ENVal - According to the beneficiaries. - The Project Performance Productive mature partnerships however were unable to use sustainable manner Implementation - FAO, using a random stratified sample of Assessment Report (PPAR) Partnerships these funds effectively. through the Completion and Results 23 PPs reported that, on average, participant stated that “Beneficiaries Support - Productive partnerships are more likely to development and Report (ICR) Review “The incomes increased by 77 percent during the attested that support from the Project succeed when part of an integrated rural implementation of a logic of the project’s project period, but with significant variation project enabled them to hire (FY2002) development approach demand -driven, design was that it was depending on the commodity. additional labor, mostly for off- - PPs producing perennial crops were more S than productive intended that the project - But it is unclear whether the poor farm activities.” those producing annual crops such as berries and partnership scheme would work with poor benefited equally from the reported income - Lack of data limited the ability other such fruits. with the private producers who had some increases or whether partnerships that to know whether additional sector.F assets.” survived were equally comprised of rural employment had an impact on poor as the partnerships that failed. the rural poor - 725 partnership producer - The main indicator for competitiveness in organizations were the project was the cumulative value of established (no sales by all producer organizations information on target). 725 compared with the projected expectation of of 744 PPs formed (97%) Co$350 million. The actual achievement was were still operating when Evidence suggested that the Co$572 million, exceeding the target by 63% the project closed. project created employment. in current terms. - Budget cuts delayed Before the project the PPs To increase rural - The ICR Review prepared by IEG - A productive partnerships approach can not producer organization employed an average of 1.7 competitiveness and concluded that despite measures not being only be a cost-effective way to increase formation; this reduced persons at least half time. By build up rural in real terms “aggregate sales value beyond productivity, improve competitiveness, and link project achievement project completion this had Colombia: entrepreneurship in expectations does represent one important farmers to markets but it can work for - There was greater increased to an average of 2.8 Second Rural poor rural proxy indicator of successful competition.” disadvantaged farmers’ groups as well or better interest than expected in persons suggesting a 65 percent Productive communities in a Improvements in income were not part of than established, less poor, farmers’ groups. In perennial crops, leading to increase in employment in these Partnerships sustainable manner the project objective but impact evaluations this project there was notable and demonstrated delayed marketing and organizations. This is indirect (FY2008) through demand- found that incomes of project beneficiaries success with the disadvantaged groups both in sales until the slower evidence of competitiveness driven partnerships were 29% above the control group, with a terms of numbers of groups supported, which perennial crops’ first yield. since it implied business with the commercial statistical significance at the 5%.level. This, was well above the target and in terms of the 82% of producer growth, which could only have private sector the ICR Review claimed triangulates with quality of their achievement (ICR Review). organizations collected been sustained if there was the claim for improved producer annual fees to maintain some success in competing in organization competitiveness and suggested operations and the market. improved beneficiary competitiveness infrastructure. Thie compared with households in the control enhanced sustainability. group who, in some respects presumably, The ICR reported that s were competitors selling outside 80% of partnerships had partnership arrangements. been operating 24 months 148 APPENDIX E PRODUCTIVE PARTNERSHIPS Achievements Lessons Beneficiaries and Employment Country Objective Partnerships Outcome and Impact Generation or more, exceeding the 75% target. - Based on the project’s M&E system, the average increase in marketed produce reached 60% (in - According to the impact evaluation two years) compared with agricultural sales of alliance producers were To test a model to the target of 45% (over between 29 and 39% higher than those for a improve accessibility three years). control group in 2014 (ICR, p. 10). to markets for poor - On the other hand, the - The ICR also noted that, based on the - Use of self-selection instruments transparently rural producers in the project’s focus on the rural impact evaluation, average agricultural helps to: (i) ensure that the producers who join an Pilot Areas by: (a) poor was less than income of project beneficiaries (farmer - New wage-earning jobs initiative have the necessary resource promoting strategic satisfactory. However groups) at the project’s close was 28-37% created (308,506 man-days) in endowment, and the risk profile for engaging in productive alliances there was no control higher than for a control group. the project area was only 38% of the innovation processes; (ii) avoid over- between different group comparison for this - The ICR did not explicitly report on how the target of 809,590 man-days dimensioning of the investments. The project had economic players at improved outcome in much of the project benefits were captured (Impact Evaluation) the requirement that 30% of the alliance Bolivia: the local level; (b) terms of improved access by poor rural producers. - The ICR (page 18) stated that investment cost would be covered by participants Rural empowering rural to markets (ICR, page 11). - The Impact Evaluation also concluded that “90% of direct beneficiaries in cash and upfront in every tranche. Alliances producers through the “Producers who have larger areas of land identify themselves as belonging - To encourage the further growth of producer Project development of self- - According to the impact used for agricultural crops are on average to an indigenous group: 35% in organizations after alliance financing ends a new (FY2005) managed grassroot evaluation agricultural 8.2 percentage points more likely to be Quechua, 41% Aymara, 9% line of financing should be available to producers organizations; (c) sales of alliance producers beneficiaries of the project.” This was one Guarani and 5% other so as to graduate them from donor support and to increasing access to were between 29% and indication that this project was less likely to indigenous groups. Bolivia’s facilitate their access to credit. This requires productive assets and 39% higher than those for benefit poor farmers who typically have rural indigenous and small-scale developing capacities of producer organizations technology; and (d) a control group access to small areas of land used for farmers are over -represented to provide specific services to its members after promoting more - The project also agriculture. among the very poor”. the end of the Project, including the possibility of effective, responsive supported municipal - The ICR (p. 17) stated that: “The project implementing revolving funds for member credit. and accountable infrastructure investments has most likely also had a positive impact service organizations to improve market access, on the depth of poverty in the rural areas by at the local level. though the ICR noted that providing additional income to the poorest there was no indication quintiles of rural society.” But no specific that the municipal evidence were provided. infrastructure investments had a clear positive effect on overall market access. To assist the borrower - At project closing, the - The project achieved only 47% of its final - To reduce political interference, transparent and in: (i) improving the number of direct target on sales competitive staff selection procedures and competitiveness of beneficiaries was about - Project investments led to an increase in performance evaluations need to be included in Guatemala: rural productive 20,000, falling short of the the net sales of Rural Producer - Aggregate employment the agreements for project implementation. Project to supply chains with target of 30,000; yet 90% of Organizations (RPOs). For example, 19 generated by the project was - Political instability and interference, with the Support a strong indigenous partnership beneficiaries fruits and vegetables RPOs in the project projected to be equivalent to resulting staff changes, affected project Rural participation; and were indigenous people saw a total increase of 39% in their net sales. 3,000 person/years. implementation. Economic (ii) Strengthening the (target: 80%), and 34% Also, 7 coffee RPOs saw a total increase in - The number of indirect - In anticipation of such challenges, it is critical to Development institutional capacity were women. net sale of 24%; 3 basic grains RPOs beneficiaries of the partnerships include mitigation measures, to the extent Program (FY 2006) of the public entities - The success of the project achieved a 9% total increase in net sales; was estimated to be 108,690 possible, during project preparation. participating in the resulted in a request by and 3 wood processing RPOs achieved an - In similar projects supported by the World Bank Program for the the government to expand 11% total increase in net sales. The increase in Latin America, transparent and competitive adoption of a activities of the territorial of total sales of the rural productive supply staff selection procedures and performance 149 APPENDIX E PRODUCTIVE PARTNERSHIPS Achievements Lessons Beneficiaries and Employment Country Objective Partnerships Outcome and Impact Generation participatory participatory planning chain partnerships reached an estimated evaluations are included in the agreements for territorial process over all rural $16.31 million during the project period project implementation management model municipalities. (32% achievement rate against an original with indigenous target of $50 million; and 47% achievement involvement. rate against a revised target of $35 million). - The investments in 50 bridges contributed to supply chain competitiveness through maintaining market access and generating time savings that were expected to translate into broader gains to rural communities -Exogenous factors adversely affected the performance of five partnerships: disease outbreaks (rust in coffee and thrips in cardamon) combined with a drop in prices reduced their end-of-project sales value. After tropical storm Agatha, project activities focused on bridge repair on a nationwide scale. - 130 productive alliances - Beneficiary consultations found that being for small-scale producers a member of a productive alliance increased were formed (186% of incomes, improved quality of life, resulted target) in three provinces. in higher yields, offered new markets, and 4,577 small-scale gave better prices through collective producers benefited from bargaining. However, there is limited productive alliances. quantitative evidence provided in the ICR To contribute to - There was an increase of for some of these claims. increased 54% in new productive - There was a 22.3% increase in sales - To be used efficiently and sustainably, revolving productivity among alliance members (against receipts (90% of the target) by productive funds for producer associations need a minimum organized rural small- a 20% target). The extent alliance members. In a sample of 2,439 level of organizational strength and cohesiveness scale producers of the to which this is indicative producers, 43% using project support at association level. Panama: borrower’s territory of success is unclear since showed a net profit compared with 33% of - In this case, there was variability and it was clear Rural through their there was little upfront - There was no mention of any producers without project support that some producer organizations had reached a Productivity participation in investment was required employment impact or jobs in - Average net returns of the with-project minimum threshold and some had not and will Project productive alliances by members. However, the ICR. producers increased from $698 per year to continue to face sustainability problems. (FY2007) while ensuring the the World Bank project $1,180 a year, giving a 69% increase. The - Defining a minimum set of standards or sustainable use of team reported that, while most profitable crops reportedly were milk, milestones to achieve organizational thresholds natural resources and the costs of joining were plantain, fish, corn and beans, but for some may aid producer organization support decisions the conservation of not prohibitive and free of these enterprises the net returns, though and ensure better sustainability globally important resources were an positive, were modest. biodiversity. incentive, there was also a - According to the project team, the majority growing incentive for of production was individual but marketing potential members seeing was done increasingly through the the benefits “of changing associations. Collective production was their productive culture to often resisted, collective marketing and one stressing mutual processing was the main aim. benefits of collective action”. 150 Appendix F. Rural Livelihoods Outcomes PID Project Name Cmt ($m) Country State Project Development Objective No. of SHGs 171,618 Poverty/Income outcomes 1. Incremental increase in consumption: $ 16.8 per year representing an 11 percentage point increase over a control 2. Group savings: $ 113 million and created 155, 091 linkages to banks To improve opportunities for the 3. Income due to participation in saving and lending scheme increased from $ 220 to $ rural poor to meet priority social 589 (37% percent increase) Andhra Pradesh and economic needs in the six 4. Supported 36,000 income-generating activities, an estimated two-thirds of Community Andhra P045049 District Poverty 109.79 India poorest districts of Andhra Innovation Fund funds were used for agriculture and livestock and a substantial amount Pradesh Initiative project Pradesh. on dairying and other for nonfarm investments 5. Average annual incomes for trained youth: $ 1,000 Social Outcomes 1. 171, 618 SHGs enabled 2.3 million female beneficiaries 2. Social capital has helped to connect the poor to financial and economic knowledge and political capital, enabling the institutions of the poor to increase access to finance, markets, services, infrastructure, knowledge, voice and political participation 3. Increased political participation of women participating in SHGs No. of SHGs 1 million Poverty/Income outcomes 1. Financial capital available grew from $ 404 million to $ 7.9 billion 2. Income increased by $ 107 for the poorest participants over the nonparticipants and $ 263 for the poor 3. Percent of households below the poverty line dropped from 29.8 to 17.5 percent To enable the rural poor; compared with a control group of households who barely moved, from a baseline of 29.8 Andhra Pradesh particularly the poorest of the percent to 27.5 percent by project close Rural Poverty Andhra poor, in Andhra Pradesh improve 4. 1 million SHGs were formed reaching out to 11.3 million households. Out of which P071272 315.03 India their livelihoods and quality of 2.85 million were considered the poorest of the poor. 70 percent of participating Reduction Pradesh Project life. Households were either poor or the poorest of the poor Social outcomes 1. Enabled community discussions on drinking water, irrigation facilities, access to education, approach roads, and child labor were higher for participants than nonparticipants 2. Improvements in societal trends with regards to women’s ability to leave the home without permission, to disagree with their husband, and to participate in village meetings 151 APPENDIX F RURAL LIVELIHOODS Outcomes PID Project Name Cmt ($m) Country State Project Development Objective No. of SHGs 31,611 Poverty/Income 1. 41% incremental increase in income on average in comparison to the control villages with 42 percent difference 2. The incremental income increases for Scheduled Castes and Scheduled Tribes households were found to be higher at 75 percent and 74 percent, respectively 3. Households from the lower income categories saw appreciable income improvements, Second Madhya To improve the capacity and giving confidence that the increase in incomes was inclusive Pradesh District opportunities for the targeted Madhya 4. 20% of the project area beneficiaries and project area nonbeneficiaries moved to higher P102331 Poverty 93.26 India rural poor to achieve sustainable Pradesh annual income classes (INR 48,000-96,000 and INR 96,001-2, 00,000) compared with the Initiatives livelihoods. control group Project 5. 58 percent of project households got involved in regular monthly savings with an average saving per SHG of around INR 11,760 6. Commercial bank linkages allowed 24,472 SHGs to access credit amounting to INR 2,885.2 million for their members 7. 24,887 SHGs leveraged INR 549 million in the form of subsidies for livelihood support activities and community infrastructure No. of SHGs 47,197 Poverty/Income outcomes 1. 55% increase in real median household income 2. 16% increase in real median household expenditures 3. 183% increase in household savings during project period Improving opportunities for the 4. 575.33 million worth loans extended to project beneficiaries poor, and vulnerable groups, 5. Access to Community Innovation Fund and commercial bank finance has enabled the particularly women, in meeting poor to upgrade their assets, acquire new assets and diversify their livelihood sources Madhya their own social, and economic The value of assets at the household level has almost tripled Pradesh District development activities, through Madhya that is, from $1,032 to $2,974 on an average during the six-year period. The extent of P059242 Poverty 88.31 India the creation of income security Pradesh irrigated land owned by the poor has also increased. Initiatives opportunities for the rural poor, 6. Many women have taken up nonfarm activities including small manufacturing and Project empowering disadvantaged trading including garments, furniture and retail trading in consumption goods. Similarly, groups through the promotion of the project invested significantly in promoting increased value added at local level for village organizations various agribusiness activities through developing market linkages with public, cooperative and private sectors. These linkages have enabled increase in price realization by more than 30%. 7. Access to the market were improved by (i) meeting critical infrastructure gaps (for example, setting up bulk milk cooling centers); (ii) promoting wholesale trade by community groups in commodities produced and consumed by the poor; (iii) developing franchises and partnerships with private sector Chhattisgar No. of SHGs 20,689 Chhattisgarh To improve opportunities for the P076467 District Rural 43.45 India h poor and vulnerable, especially Poverty/Income outcomes Poverty Project women and tribal, to meet their 1. 30 percent increase in income for project beneficiaries 152 APPENDIX F RURAL LIVELIHOODS Outcomes PID Project Name Cmt ($m) Country State Project Development Objective own social and economic 2. Benefits from the project were: increase in parent’s ability to send children to school, development objectives. reduce indebtedness improved living standards. Social outcomes Empowered the disadvantaged people by strengthening social and political empowerment processes No. of SHGs 1.8 million Bihar Rural Bihar To enhance social and economic 1. Self-managed self-help groups established, covering at least 80% of the target P090764 Livelihoods 163 India empowerment of the rural poor in household Project Bihar. 2. At least 50% of those who have received Community Innovation Fund have increased income by at least 30% of the baseline 3. At least 50% of SHG members have reduced high cost debts from informal sources No. of SHGs 20,800 To improve rural livelihoods, North East 1. At least 60% of women SHG members achieve a minimum of 30% increased income in North East especially that of women, Rural real terms by end of project P102330 130 India unemployed youths and the most Livelihoods 2. At least 30% of project-benefited unemployed youths are employed disadvantaged, in the Project 3. At least 50% of the most disadvantaged households achieve a minimum of 30% participating North Eastern States improvement in livelihood indexes. 4. At least 70% of the SHGs supported by the project are institutionally sustainable No. of SHGs 30,458 To enhance economic 1. Increase in number of sources of household income reported in at least 70% of the opportunities and empowerment targeted households P102329 Rajasthan Rural Rajasthan of the rural poor, with a focus on 2. Reliance on informal credit sources drops by 90% among members of grade ‘A’ SHGs Livelihoods 122.84 India women and marginalized groups, 3. At least 70% of the 33,000 SHGs supported by the project are financially viable and Project in the 17 targeted districts of institutionally sustainable16 Rajasthan 4. At least 50% of grade ‘A’ SHG members routinely participate in Gram Sabha and other village meetings No. of SHGs 12,005 Increase the productivity, Maharashtra Maharashtr profitability and market access of P120836 Agric. 100 India 1. The share of wholesale and retail price received by the farmer a the farming community in Competitiveness 2. Changes in crop yields Maharashtra 3. Compliance with business standards by office of Director of Marketing No. of SHGs 440,987 To establish efficient and effective 1. Twelve State Rural Livelihood Missions formed and providing good quality technical institutional platforms of the rural assistance to institutions of the rural poor National Rural poor that enable them to increase 2. 70 % of the excluded Scheduled Casts, Scheduled Tribes, and Minorities households P104164 livelihood 549.70 India National HH income through sustainable directly access Community Investment Support through SHGs/federations Project livelihood enhancements and 3. Average income for identified poor households in project villages has increased by 50 improved access to financial and percent selected public services 4. At least 45 % increase in the number of identified poor households who have accessed services from formal financial institutions Developing To improve the livelihood No. of SHGs : 11 Artisan groups P145420 2.8 Pakistan National Artisanal opportunities for rural artisans. It 153 APPENDIX F RURAL LIVELIHOODS Outcomes PID Project Name Cmt ($m) Country State Project Development Objective Livelihoods in will demonstrate to policy makers 1. 20% percent increase in income of at least 50%of beneficiary artisan families Rural Pakistan the effectiveness of a crafts-based 2. 80% percent of Cluster enterprises (of a total target of 15) that are marketing through cluster approach to poverty their own brand alleviation and to improve living 3. 25% percent increase in the number of days of employment of beneficiary artisan conditions for weavers and families embroiderers (especially women 4. A total of 15 new cluster enterprises to be established and operational and girls) and their families in 5. 2 Common Facility Centers established targeted communities in Punjab and Sindh To enhance the opportunities and No. of SHGs not available NP: Making share of rural artisans (especially markets work the poorest, internally displaced 1. 10 Artisan Clusters linked to marketing outlets P128744 for conflict 2.65 Nepal National people, landless and the 2. 25 percent increase in the number of days of employment through the artisan activity affected in vulnerable) in the crafts and in the cluster Nepal cultural market. 3. 10 Artisan Clusters linked to commercial banks and private sector 154 Appendix G. IFC Value Chain Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The proposed financing is expected to have a strong development impact in several frontier countries through: (i) improved utilization of underperforming assets; (ii) sizable increase in microenterprise formation and generation of employment opportunities for lower income groups; (iii) transfer of best Food & Africa Direct: 9,000 management practices and production technology to frontier countries; and (iv) 1 Beverages - 2006 Agrarian 35 Downstream 1 Region Indirect: n/a intensive training and development of local managerial talent. The client intends Soft Drink to increase the number of Manual Distribution Centers in its Asian operations from 300 currently to 800 by 2008. Each manual distribution center is owned by an individual or family that employs between 3-5 people and supplies several hundred retail outlets. IFC financing to a leading agribusiness company to support a retail network Agriculture expansion program and upgrading of its pork and dairy processing operations. and Forestry - Direct: 4,367 The Company estimates it reaches about 430 micro, small, and medium 2 Zambia 2010 Agrarian 7 Downstream 1 Other Animal Indirect: 0 enterprises (MSMEs), mainly in its edible oils distribution chain. Its expanded Production activities will contribute to increased economic opportunities for small entrepreneurs in rural areas. Direct: 42% Project impacts relevant to rural areas will: (i) support and preserve employment Food & increase in of over 18,000 people, primarily in poor rural areas in Guatemala and Nicaragua; Beverages - 3 Guatemala 2008 Transition 20 Upstream agroprocessing 1 (ii) support farmer linkages and increase the amount of sugar bought from third- Sugar and jobs (about 7,600) party suppliers; (iii) support renewable energy through investment in Confectionary Indirect: n/a cogeneration, fuel ethanol, and the use of eucalyptus to replace heavy fuel oil. Direct: n/a Indirect: engaged with 80 MSMEs Food & At project completion, the company will be collecting milk from over 1, 800 including milk Beverages - village-level centers (from the current 350), thus reaching over 40,00 (14,000) 4 India 2009 Transition 15 Upstream bulk supplier and 1 Dairy currently rural households who will achieve more stable and reliable incomes transport Products due to the technical support and consistent demand for milk by the company. providers (upstream, downstream) 155 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: 4,362 agroprocessing The incidence of poverty is highest in rural India and IFC’s support of the client jobs will directly benefit rural households through improved agricultural Agriculture Indirect: 2,610 productivity, better and more stable farmer incomes, more business 5 India and Forestry - 2009 Transition 44 n/a distributors and 1 opportunities for small and medium enterprises (SMEs) that distribute the Other 2,700 contract Company’s products to rural areas and more jobs in the small town where the farmers Company’s operations are located. (upstream, downstream) Direct: 9,400 jobs in distribution/food industry (noodle) Indirect: The project also resulted in significant The output from the noodles also had a significant impact on the approximately upstream supply 400,000 retailers who sell these noodles, many of whom are small shops, and linkages through: street kiosks in rural and poor urban areas. The Project also purchased over (i) the Food & 33,000 tons of shallots per annum, and worked with local farmers to ensure establishment of 6 Indonesia Beverages - 2004 Transition 17 both 1 sufficient volume and quality, thus ensuring a reliable source of income from a flour Other Food their farming activities. The Project also had a sizable impact on local processing mill; employment, creating approximately 5,000 jobs, including 3,000 employees. The and (ii) the subsequent expansions of the project companies created an additional 4,400 jobs, purchase of fresh for approximately 9,400 jobs. shallots from approximately 7,000 smallholder farmers. Linkages with 400,000 retailers and SMEs who sell the products 156 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: Company employs 4,286 people between The Company currently has direct hires of 576 (of which 156 are women) and seasonal and also currently hires about 2,450 seasonal employees for the harvesting of cane on Agriculture permanent jobs, its own fields as well as those of its third party suppliers. The vast majority of and Forestry - 7 Nicaragua 2007 Transition 25 Upstream although it is 1 employment takes place in relatively poor rural areas of Nicaragua. The client’s Sugarcane unclear the operations, together with other companies owned by the shareholder family, and Beets increment employ a significant portion of the population in Chichigalpa (approximately Indirect: benefit 4,250 direct jobs alone), the rural town where the Company’s mill is located. 128 farmers (upstream) The Company purchases over $600,000 of local products each year, primarily Direct: 1,486 jobs food (beans, eggs and meat). These purchases have proven to be an important in palm oil source of support to the local SMEs. In addition, the Company has persuaded a plantations local bank to set up a branch in Kukra Hill, which will further stimulate the local Indirect: 83 economy by providing access to finance to both the poor and the farmers. The Agriculture farmers reached Company is also working with local women’s groups to sew company uniforms 8 Nicaragua and Forestry - 2009 Transition 25 Upstream 1 as supplier, other and make handicrafts with local materials for sale. These actions have all Palm Oil likely linkages in provided important sources of income for this traditionally poor and isolated the value chain area of the country. The Project is expected to support the purchases of fresh fruit (upstream and bunches from over 80 smallholders within five years. Through their association downstream) with the Company, smallholders will gain access to the export markets targeted by the Project, enabling them to realize a higher return to their land and labor. 157 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: local loss of jobs, but increase in female The project’s development impact includes continued direct benefits to rural employment populations and a demonstration impact on sustainability. The client’s Indirect: reached operations provide substantial benefits to rural areas of many developing Agriculture over 25,733 countries given the Company’s ability to (i) enhance the efficiency and Central and Forestry - farmers (roughly transparency of agribusiness logistics, and (ii) transfer knowledge on best 9 America 2010 Urbanized 15 Upstream 1 Coffee, Cocoa, 18,000 practices, that meet the high standards required by international buyers, for local Region Tea individual, 5,300 companies to emulate. The client will (i) expand its financing volume and (ii) organizations provide longer maturities to these farms, which were not available before, to and 1,700 implement capital improvements to become eligible for certification by intermediaries). sustainable coffee programs and to gain access to premium coffee markets. Project reached 2,304 SMEs (upstream) Direct: 681 increase in employment in With this investment, IFC supports the continued growth of one of Colombia’s the collection and leading agribusiness companies in terms of employment and linkages distribution of throughout the value chain. Farmers linkages: As a consequence of its UHT milk investment program, the client will increase its sourcing of milk, which will be Indirect: done through: (i) collecting milk supply from additional 500 dairy farmers for a Food & Significant total of 6,913 in 2013 (2,419 (35%) of whom are located in frontier regions); (ii) Beverages - 10 Colombia 2010 Urbanized 20 Both upstream and 1 increasing volumes from current suppliers; and (iii) catalyzing on the emergence Dairy downstream of new dairy farmers. The Company purchases through 297 upstream collection Products linkages with the intermediaries, which is expected to increase to 500 by 2013. Also, the Company development of supports indirect employment and micro enterprise development through over 2,885 raw forward linkages with nearly 698 exclusive small independent distributors which milk supplier in turn supply a wide network of 92,000 small retail outlets ranging from mom- and expansion of and-pop stores, and kiosks to coffee shops. business line and clients IFC’s investment will support the expansion of one of the better managed Agriculture Direct: 575 jobs in companies (tomato producer) in the poor rural Jalisco region that will provide and Forestry - 11 Mexico 2008 Urbanized 12 n/a tomato farming 1 about 2,400 seasonal workers with full-time employment at higher than Fruits and Indirect: n/a minimum wages, thereby decreasing seasonal migratory labor that often Vegetables separates working age families. 158 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The Project will have a strong development impact through the expansion of the client’s distribution network in rural areas of Mexico, thereby reaching out to a Wholesale targeted 4.7 million bottom-of-pyramid (BoP) households. Support to rural and Retail MSME retail stores: By expanding the assortment of products and offering Trade - Retail individual items, the Project will help stores reduce their working capital needs. No documents 12 Mexico (Including 2010 Urbanized 2 Downstream 1 It will also help stores reduce their costs with its door-to-door delivery service. available Supermarkets, This will help improve the competitiveness of more than 25,000 stores the client Grocery is expected to serve. Job creation and gender impact: The Project will create more Stores, etc.) than 900 direct jobs of which 15 percent will be for women. It will also help sustain the livelihoods of more than 25,000 MSME rural retail store owners, which are mostly women. Direct: direct 100 in 12 companies The borrower will use proceeds from the loan to fill the incremental working in the capital needs (purchase of farming inputs, etc.) of the Project so that the agricultural unfarmed land acquired and leased will be brought into agriculture production. service provider Key benefits relevant to rural areas are: (i) Development of agricultural service subsector companies and agricultural input supply chain in Paraguay. Historically this Agriculture Indirect: 700 jobs sector has not been developed in the country and the Company’s entry has led to and Forestry - in transport and 13 Paraguay 2009 Urbanized 10 Upstream 1 at least six independent services companies being established in Paraguay; (ii) Grains and logistics, as well Linkages with local businesses, and SME contractors in rural areas which Beans as in the provide various inputs to the Company; (iii) Geographically dispersed agricultural input operations could become anchors for the development of surrounding rural supply chain. communities. The Company has built alliances with leading national NGOs and Reached over 500 local community organizations to carry out development work with neighboring farmers in three rural communities. years (upstream, downstream) 159 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: unclear increase in employment. The company The Project will increase access to working capital finance for farmers in employs 262 Paraguay, one year after their operations were impacted by one of the most people severe droughts in decades. Farmers will also benefit from the client’s Agriculture Indirect: mixed commercialization services and technical expertise, with a team of 35 14 Paraguay and Forestry - 2010 Urbanized 15 Upstream 1 upstream agronomists visiting farms on a weekly basis. Geographically dispersed Other linkages with operations are anchors for the development of surrounding rural communities farmers (963 (more than 50% of the population in rural areas in Paraguay earn less than $2 a farmers reached, day). target 750) and MSMEs (150 vs. target of 314) The client is a producer and exporter of canned asparagus, artichokes, and peppers. Among others, the project relevant objectives are: the installation of an automated asparagus canning line and the construction of additional Direct: unclear warehousing capacity at a canning plant in southern city of Chincha, the increment. development of 700 ha of asparagus plantations with irrigation in the northern Company province of Viru. The company also procures from about 120 independent Agriculture employs 6,700 producers of peppers and artichokes (approximately 1,800 ha). The Company and Forestry - 15 Peru 2008 Urbanized 15 Upstream people 1 has been successful in encouraging small producers to stay on the land by Fruits and Indirect: 120-220 buying their products with formal contracts; in turn, this reduces migration to Vegetables supplying urban areas. This contracting mechanism provides small farmers with greater farmers access to training, finance, and information, allowing the development of viable (upstream) agricultural businesses. In Northern Peru, the Company will begin working with an association of pepper producers to develop 180 ha to supply its canning plant in Vim. The expansion will benefit the local economy, which remains particularly important in affected rural areas. 160 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The proposed investment is aligned with the World Bank Group-IFC priorities for Turkey as the Direct: Overall Agriculture Project is expected to have significant development impact through its reach in loss of 25 jobs, and Forestry - relatively rural regions of Turkey. The client, a locally-owned second-tier private and 48 female Diversified agribusiness company, active in the agricultural seed sector, with operations in workers 16 Turkey Edible 2009 Urbanized 10 Both 1 southern and western parts of Turkey. The Company’s activities support many (suggests Agricultural downstream SMEs, including a network of over 2,000 wholesalers and substitution of Crops distributors. The Company worked with 377 local farmers in 2008 and this figure employees) Production is expected to increase substantially by about 40% to nearly 525 by 2011. In Indirect: n/a addition, the Company provides farming inputs, machinery, advance payments and technical assistance to the farmers. 161 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: 17,000 jobs in the poultry industry (processing) Agriculture The Project will foster the development of small enterprises by expanding the Indirect: support and Forestry - Company’s network of independently owned retail franchises and 2,450 17 Ukraine 2005 Urbanized 80 Both over 2,000 1 Poultry additional jobs in a poorly developed area with a high unemployment rate and franchises Farming few alternative employment opportunities. operating in underserved areas (downstream) Direct: company employs 4,700 The proposed Project will contribute to the development of the grain sector in Food & people, unclear Central and Western Ukraine by increasing demand for local wheat purchased Beverages - increase from private farmers who supply the client. The IFC’s investment will support Grain Indirect: Local small local farmers by increasing demand for local produce. The Company relies 18 Ukraine Processing 2007 Urbanized 30 Both 1 supply linkages on a large number of small and medium enterprises, which provide transport (Milling, in the grain services to the client and retail in-store made products supplied by the Company Starch, Flour, sector from local under franchise agreements. The Company is located in Western Ukraine, one of Malt) farmers the poorest regions in the country. (upstream) As Ukraine is currently an importer of pork, the Project will substitute imports Food & with competitive local production, and continue to develop, professionalize and Beverages - consolidate the domestic pork production sector. As a mainly rural business, the Animal No documents client’s operations have a significant impact on the rural populations through the 19 Ukraine 2010 Urbanized 25 Upstream 1 Slaughtering available employment generated, as well as business opportunities created for micro, and small and medium-size enterprises, in addition to local farmers. The Group Processing sources goods and services from approximately 3,050 MSMEs. The Group also purchases cattle from approximately 100 small and medium-size farmers. Food & The Project will catalyze the development of many small and medium Beverages - Direct: n/a enterprises (SMEs) and individual companies supplying goods and services; in 20 India 2006 Agrarian 15 Both 2 Sugar and Indirect: n/a particular, it is expected that transport of cane from farms to the mills will Confectionary benefit about 400 transport contractors. 162 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: n/a Indirect: strengthened The Company plays a significant role in the local agricultural economy and linkages with provides a sustainable livelihood to over 2,000 farmers that supply rice to its SMEs in the malting operations. The client started a community program with rice growers in distribution 2002 to support local rice farmers that supply rice to the Company as raw Lao People’s Food & network of the material. The rice mills provide rice seeds and fertilizers on credit to farmers and 21 Democratic Beverages - 2007 Agrarian 9 Both 2 beer industry. then purchase the rice from them. According to the local government’s report, Republic Breweries Farmer outreach there are currently 2,660 farmer households in 115 villages involved in this program to program. The Project is expected to support another 1,500 farmer households. additional 1,5000 The client sales support a wide network of SMEs (4,374 currently) involved in the farmers distribution of its products. (upstream, downstream) Direct: 95 direct jobs in flour milling The client will distribute wheat flour to wholesalers, bakeries and markets in the Indirect: region. As the company pushes for volume sales in Rwanda, Burundi and DRC, Linkages to SMEs there will be a growing opportunity to develop emerging distributors to supply Agriculture upstream and more products. As the Government of Rwanda has been promoting the and Forestry - 22 Rwanda 2009 Agrarian 8 Both downstream the 2 production of wheat by providing essential inputs to farmers, there is an Grains and value chain opportunity to link these producers with the commercial market, which would Beans (producers, secure a commercial market for local producers, instill market discipline distributors, and regarding quality and specifications, while helping local flour mills to lessen mill’s by- their dependence on imports. products (that is wheat bran)) The client has developed a significant network of fruit and vegetable farmers who depend on the Group’s procurement for their living. The client is the Food & Direct: 1,607 jobs pioneer of contract growing in the country and the largest purchaser of Beverages - in agroprocessing pineapple, tomato, chilies, beans, and many other agricultural products. The Fruit and (fruit juice) client also procures milk from dairy farmers and setting up its own collection Vegetable Indirect: 8,500 centers to secure adequate supplies and quality. The Group generally provides Preservation fruit & vegetables 23 Bangladesh 2009 Transition 15 Both 2 stable and reliable incomes for farmers, supplies inputs as necessary and or Processing farmers, 685 technical assistance to improve agricultural practices and product quality. The (Canning, dairy farmers, Group’s operations directly support a network of SMEs that will benefit from the Freezing, 8,465 SMEs as continued expansion of the client. First the Group relies on about 1,900 exclusive Drying, Jams, suppliers distributors to sell its products throughout the country. Secondly it also relies etc.) (upstream) mostly on a large number of contract transporters to move raw materials and products within its operations. 163 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Food & Beverages - Direct: n/a The Project supports the continued expansion of a quickly growing private Fruit and Indirect: The company through the construction of three greenfield facilities in Baishui Vegetable client supports a (Shaanxi), Longkou (Shandong) and Xuzhou (Jiangsu); and the renovation of an Preservation high level of existing plant in Yantai (Shandong). The Company’s continued expansion will 24 China 2005 Transition 15 Both 2 or Processing demand for preserve and ensure a reliable market for apple farmers located around its (Canning, apples from local facilities. The development of apple production has been supported by the Freezing, farmers government and several World Bank projects in lesser developed provinces as a Drying, Jams, (upstream) way to generate better living conditions for thousands of farmers. etc.) Direct: between 352 and 670 jobs in the poultry business (egg production) Indirect: Substantial upstream linkages with more than 100,000 farmers in the local Agriculture developed Yanqing District, sourcing half of the corn produced in the district for its animal and Forestry - 25 China 2006 Transition 3 Both substantial 2 feed needs. From a downstream linkage perspective, the client is linked to Poultry upstream hundreds of small distributors and logistic service providers and generated Farming linkages with business opportunities for them. more than 100,000 farmers, 100 MSMEs, small distributors and logistic service providers Direct: n/a The client current corn purchases of 1.1 million tons/year, are estimated to Indirect: reach an originate from about 420,000 farmers based on assumed corn yield of 650 kg/mu Food & additional 30,000 (one ha = 15 mu) and the average landholding of 4 mu/farmer in the Province. Beverages - farmers; linkages Increasing the sourcing to 1.2 million tons would potentially reach an additional Grain with third party 30,000 farmers. The Company works with approximately 450-500 SME suppliers 26 China Processing 2010 Transition 25 Both 2 distributors, for that are mainly small private grain traders, who purchase corn from farmers to (Milling, its sales to small re-sell to processing companies such as the client. Furthermore, the Company Starch, Flour, end users in the uses independent third party distributors, for its sales to small end users in the Malt) chemical and chemical and food industries. Sales through distributors account for about 20- food industries 30% of the client’s total sales. 164 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: n/a Indirect: Likely Agriculture developed and Forestry - employment due The Project consisted of strengthening the capital structure of the Company East Asia Diversified to tapping into through an equity infusion of $65 million equivalent. This provided the basis for 27 and Pacific Edible 2004 Transition 8 n/a the agricultural 2 the Company to expand its operations in important IFC client countries, Region Agricultural value chains and including Cameroon, Côte d’Ivoire, Ghana, Nigeria, Indonesia and Vietnam. Crops linkages with Production private businesses (upstream) Direct: unclear increment of employment, In 2007, independent suppliers supplied almost 50% of the palm fruit processed total of 9,843 by the client, up from 40% in 2005. About 60% of independent producers are Food & (target 5,000) by smallholders with 10 hectares (ha) or less. The Company supplies the retail Beverages - 28 Honduras 2009 Transition 30 Both 2013. 2 markets of Honduras and throughout Central America through 10 distribution Palm Indirect: 2,500 centers and 150 trucks in Honduras and about 500 in the region. Through this Vegetable Oil small palm fruit distribution system, the Company supplies wholesalers, small retailers, and producers as supermarkets in a region where reliable distribution is still developing. suppliers (upstream) The project will 1) establish a new flour mill in a market dominated by a single Food & domestic supplier; 2) support the Group’s expansion in the instant noodle Beverages - market by securing a supply of high-quality flour. The Project will help to Direct: additional Grain support the expansion of the Group noodle business through: 1) enhanced 300 jobs in flour 29 Indonesia Processing 2007 Transition 30 Both 2 quality control; 2) greater reliability of supply; 3) potential cost savings mills (Milling, depending on the price formula agreed between the two companies. The Indirect: n/a Starch, Flour, proposed expansion of the noodle business will continue enhancing these Malt) development impacts through increased numbers of jobs generated and farmers reached, as well as increased competition within the instant noodle market. IFC’s investment will support the rehabilitation and expansion of a competitive private sector company, with significant benefits for the communities where it operates. The client is a major contributor to local employment. The Company Agriculture Direct: n/a has a regular staff of about 1,000 persons and provides full-time employment to and Forestry - Indirect: 26 SMEs about 600 contractors. Employees receive salaries above minimum wage and 30 Liberia Natural Fibers 2009 Transition 10 upstream in the transport 2 enjoy a range of benefits including housing, access to schools and health clinics, (Cotton, Sisal, sector and subsidized rations of rice. As the Company expands its planted areas, total Jute, etc.) (downstream) employment is expected to grow proportionately to exceed 2,000 by 2011. The Company also contributes to indirect employment as it purchases wet rubber from smallholders, resulting in positive impacts on the livelihood of farmworkers and their families. Based on normal technical ratios of 1 staff year 165 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents per 4 ha, one can estimate at 4,000 the Company’s contribution to employment and at 20,000 the population indirectly reached by its operation. Direct: n/a Agriculture Indirect: spillover and Forestry - effect of its Other The project supported the expansion of a competitive domestic player, increasing operations over Vegetable Oil the spillover effect of its operations over the supply value chain, now reaching the supply value Crops more than 5,900 farmers and 6,300 suppliers, mainly SMEs. The construction of 31 Argentina 2004 Urbanized 70 upstream chain, now 2 (Coconut, inland storage facilities improved the limited infrastructure in Argentina’s reaching more Rapeseed, Northern provinces, providing farmers with more flexibility on the timing of than 5,900 Peanut, their soybean sales and improving access to markets. farmers and 6,300 Sunflower, suppliers, mainly etc.) SMEs (upstream) Direct: unclear increment. Company Food & employs up to Beverages - 6,8000 people The project contributed to continuing the long-term viability of a strong private Fruit and Indirect: company in Argentina’s citrus sector and in the Province of Tucumán in Vegetable Significant particular, where successful private sector activities are limited. The client Preservation 32 Argentina 2005 Urbanized 20 Both economic 2 supports MSMEs throughout the region, including an estimated 680 enterprises or Processing benefits for ranging from transporters, planting and harvesting employers, and affiliated (Canning, farmers and service providers. The Company’s success has also benefited about 40 private Freezing, affiliated SMEs to growers supplying fresh fruit to the Company. Drying, Jams, the company in etc.) the citrus sector (upstream, downstream) Wholesale Currently, 180 out of the 345 the client’s retail chain suppliers sell locally and Retail produced goods. The Group’s expansion will increase the number of suppliers Direct: n/a 33 Belarus Trade - Retail 2008 Urbanized 26 Downstream 2 who can serve the Group’s retail supply chain and also give: existing producers Indirect: n/a (Including the opportunity to increase their current volume of sales. Products sourced Supermarkets, locally are expected to increase from $53 million to $164 million. 166 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Grocery Stores, etc.) Direct: 22,000 agri-related jobs in the sugar sector (production and Cane growing areas are usually in the countryside and less developed cities. By milling) turning around underperforming mills that were operationally and/or Agriculture Indirect: financially weak, the client ensured the continuity of operations, secured direct and Forestry - Employment in 34 Brazil 2005 Urbanized 70 Upstream 2 employment in the mills, indirect employment in local communities as well as a Sugarcane local guaranteed major source of income for local cane growers. In cane growing and Beets communities as areas, sugar mills are often one of the major employers and contribute well as a substantially to the local economy. guaranteed major source of income for local cane growers (upstream) Direct: unclear The client is a family-owned company based in Araras, state of São Paulo, where increment. it owns 20,600 hectares of sugar cane fields and an associated mill with a Company crushing capacity of 3.25 million metric tons (mt) of cane per year. The employs total investment program will increase the client’s total sugar cane crushing capacity Agriculture 4,900. from 5.5 to 10 million mt/year, with most of the expansion in sugar cane supply and Forestry - Indirect: 4,500 35 Brazil 2008 Urbanized 40 Upstream 2 coming from small and medium-size farmers. The Company will contribute to Sugarcane jobs and 180 cane economic development by sourcing cane from third-party farmers and leasing and Beets supplier as well land. By 2011, the Company is mills in Goias will buy cane from an additional 31 as leasing land ,500 hectares of third-party farms (up to a total of 46,500 hectares of third-party from local land farms), and 21,200 hectares of rented land (up to a total of 33,300 hectares of owners rented land). (upstream) 167 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: 1,137 agri production jobs Indirect: Impact assessment The project will help the client to (among other objectives): provide legal Agriculture established that contracts to all former employees of the acquired farm and increase employment and Forestry - the poor have 36 Peru 2006 Urbanized 15 n/a 2 overall for the benefit of the local economy. The generation of additional Fruits and benefited employment is particularly important in a country where more than 50% of the Vegetables indirectly population lives in poverty, mostly in rural areas. through nonwage income (farmers upstream) Food & Beverages - The project consists of: (i) the construction of a new distribution center and the Animal Direct: 6,500 expansion of storage facilities; (ii) upgrading the environmental standards of the 37 Ecuador 2004 Agrarian 20 Both 3 Slaughtering Indirect: 0 client’s farms and slaughterhouses, (iii) refinancing short-term debt; and (iv) and acquisition of a local company in the packaged meats sector. Processing The proposed project, with an estimated cost of $59.5 million equivalent, includes the expansion of the Company’s soybean crushing and refining Food & facilities, from a capacity of 2,500 tons per day (“tpd”) and 2,600 tpd respectively Beverages - Direct: n/a to about 4,000 tpd and 4,200 tpd through the installation of three new facilities, 38 India 2006 Agrarian 20 Upstream 3 Vegetable Indirect: n/a and upgrading of its existing facilities. The Company’s strategy is to locate Fats and Oils facilities either at ports near large population centers for the importation and refining of crude edible oils or close to large production areas of oilseeds, mainly soybean. Direct: loss of roughly 1,000 jobs Indirect: providing day- old chicks, Agriculture The project will help the client to: (i) increase cost competitiveness in producing poultry feed, Egypt, Arab and Forestry - day-old chicks and poultry feed through backward integration in the poultry 39 2010 Transition 25 Upstream logistical 3 Republic of Poultry feed business; (ii) substitute imports through production of soy bean meal and support, flock Farming monocalcium phosphate for feed ingredients. monitoring and veterinary advice to the nearly 1,500 small farmers (upstream) 168 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The proposed Project forms phase 1 to (i) refurbish, modernize and expand the Direct: 233 client’s facilities; (ii) develop a distribution system and brands for the client’s factory jobs Food & beer; and (iii) repay old debt. The Project will have extraordinary economic Indirect: Unclear 40 Belarus Beverages - 2004 Urbanized 10 n/a 3 benefits demonstrated by the estimated ERR of 27%. There will also be if sourcing of the Breweries additional social benefits with the re-hiring of 300 previously laid-off workers projection was and significant linkages with suppliers of inputs as well as distributors and local retailers. The project will support the continued growth of the client by helping the expansion of its plants and construction of the new plant in the Northeast, and the hiring of new employees across its units, primarily in the Northeast where Direct: 688 jobs in Food & unemployment is most prevalent. The investment program will allow the the baking 41 Brazil Beverages - 2007 Urbanized 30 Both 3 company to: (i) increase sales in the Northeast region, the largest biscuit and industry Other Food crackers market in Brazil, by producing locally with lower costs; (ii) increase Indirect: n/a production capacity in products in which demand is rapidly expanding; (iii) increase exports; and (iv) improve logistics and efficiencies, with resulting cost reductions Direct: 200 permanent The client operates a state-of-the-art sugar cane mill that will produce raw sugar Food & employees and for exports and fuel ethanol for the Brazilian market (the “Project”). The Beverages - 42 Brazil 2007 Urbanized 35 upstream 250 seasonal jobs 3 Company will source sugar cane from 22,000 hectares (ha) of land, of which Sugar and in operating the 11,000 ha will be developed by the Company, and the remainder sourced from Confectionary sugar mill third party suppliers which include some of the Company’s shareholders. Indirect: n/a The proposed project would allow the client to expand and optimize their operations through: the acquisition and installation of additional intake Food & equipment at their two Maputo plants, the acquisition and building of Beverages - warehouses and distribution center in Maputo, and the purchase of additional Grain Direct: 490 trailers for ship unloading and goods distribution. The project will eliminate 43 Mozambique Processing 2009 Agrarian 7 n/a 4 Indirect: 0 bottlenecks, improving productivity and strengthening raw material (Milling, procurement logistics by increasing intake capacity at the Mashava plant and Starch, Flour, Socimol to enable the client to discharge larger volumes of wheat thereby Malt) reducing vessel wharf’s waiting time. Furthermore, investments in additional distribution capacity will help the group increase its product offerings. The proposed Project will support the growth of a successful company through expansion and possible acquisitions. As a first step, the Company is expanding its production capacity by building a new plant in Zhangzhou, Fujian province; Agriculture Direct: n/a it is also exploring opportunities to acquire and refurbish existing production 44 China and Forestry - 2007 Transition 15 n/a 4 Indirect: n/a facilities. The full impact of the Project will depend on the nature, condition and Other location of the acquired assets. The production of certified organic fertilizers is important for the emergence of agricultural producers who will target the rapidly developing organic product markets in China and abroad. 169 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: decline of 27% from the baseline figure The Program comprises: (i) re-planting 4,950 hectares (ha) of oil palm trees at its (2,913 in 2006 vs. existing own plantation at Kwae and planting 3,500 ha on the newly acquired Agriculture 2,116 at own plantation at Okumaning; (ii) establishing a 100-ton-per-hour (tph) refinery 45 Ghana and Forestry - 2008 Transition 13 n/a evaluation and 4 and fractionation plant; and (iii) installing a 2.5-megawatt (MW) power Palm Oil target of 3,100) generator set consisting of a steam turbine and boiler as well as a water Indirect: unclear treatment plant. contribution to farmers from IEG Evaluation Direct: 4,700 retail jobs Indirect: Wholesale significant The Project is composed of: (i) the opening of approximately 40 traditional and Retail linkages with discount stores (10 per year), establishing new operations in the North, Trade - Retail suppliers from Northeast and Midwest regions of Brazil; (ii) the opening of approximately 20 46 Brazil (Including 2005 Urbanized 35 n/a increased 4 express stores (5 per year); (iii) supporting the fast-growing web-based retail Supermarkets, demand from e- operations; (iv) upgrading Market Information System; and (v) working capital Grocery commerce and 74 requirements for continuing growth. Stores, etc.) new stores in N, NE, and MW regions (upstream) 170 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Direct: 300 agro and meat processing jobs Indirect: A positive impact on the client agroprocessing Food & subsidiary’ s Beverages - local suppliers, Intended to bring the Companies’ underperforming operations up to Animal the contract international quality and environmental standards, expand production capacity, 47 Croatia 2006 Urbanized 51 n/a 4 Slaughtering farmers. Over the take advantage of synergies throughout the group, and turn into efficient and past five years, commercially-driven operations. Processing the client agroprocessing subsidiary collaborated with more than 200 local farmers for pig fattening (upstream) Direct: about 4,000 agroprocessing jobs (fruit juice) Indirect: Likely The client is one of three leading manufacturers of branded packed juices and developed juice drinks in Russia. The project consists of: (i) modernization and Food & employment, and rationalization of the client production facilities, (ii) construction of new capacity Russian 48 Beverages - 2004 Urbanized 35 n/a farmers’ income 4 in its core juice and nectars business, (iii) introduction of new glass and plastic Federation Soft Drink and downstream PET packaging, (iv) acquisition of a distribution terminal in the Moscow area value chain by and (v) diversification of the client product portfolio via acquisitions of new local sourcing businesses. and reach into 30,000+ distributors and retailers 171 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Wholesale Direct: 200 The project would contribute to augment the modern wholesale/distribution and Retail wholesale jobs and W&L services in Ukraine. Access to such services helps lower overhead costs Trade - Indirect: for both suppliers and retailers of fast-moving consumer goods in the country. Wholesale 49 Ukraine 2006 Urbanized 8 n/a developed the 4 The expansion will improve the flow of consumer goods to retailers, thus (Including network of local ultimately improving availability, prices and profitability in the sector. The Grocery and suppliers company employs 2400 workers and trains them in the latest logistics and Farm (upstream) distribution practices of major multinational consumer goods manufacturers. Products) Direct: 200 jobs in the palm oil Agriculture The client has requested IFC’s assistance in expanding its plant’s capacity to industry 50 Ukraine and Forestry - 2009 Urbanized 45 n/a 4 better serve the growing demand from its food manufacturer clients in Ukraine, (refinery) Palm Oil Russia and other CIS countries. Indirect: 282 MSMEs reached Wholesale and Retail Direct: 2000 retail Trade - Retail jobs in the coffee 51 India (Including 2007 Transition 15 n/a n/a n/a retail market Supermarkets, Indirect: n/a Grocery Stores, etc.) 172 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents IFC loan to a leading commodity supply chain operator in Eastern and Southern Africa, to expand its trading and processing businesses, including its purchases of agro-commodities from small farmers. The client will offer financially viable Agriculture outlets to small farmers’ production and help, reduce postharvest losses while Africa and Forestry - Direct: 3,620 improving product quality and (b) contribute to create a more efficient regional 52 2010 Agrarian 46 Upstream 1 Region Grains and Indirect: 0 market for agro-commodities in Eastern and Southern Africa; (ii) Some 1,000 Beans new jobs will be created; (iii) Significant revenues are expected to flow in rural communities as the result of increased commodity purchases and linkages with local businesses and SME contractors in rural areas will contribute to spur economic growth. 173 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The IFC loan will allow the Company to (i) increase the cultivated area from 1,500 ha to 5,000 ha by 2017, finalize the construction of a 122,000- ton per annum (p.a.) capacity maize mill with a storage capacity of 40,000 tons and provide Agriculture working capital for both operations. Demonstration effect that agribusinesses Congo, and Forestry - Direct: 97 (particularly primary production) in frontier/postconflict countries can be 53 Democratic 2014 Agrarian 18 n/a 1 Grains and Indirect: 0 successful: promoting local production of key staple food and value add, rather Republic of Beans than relying on food imports; promoting competition to the food importers which might decrease consumer prices and enhance food security; 180 full-time jobs and 50 part-time jobs (housekeeping, vegetable production, warehouse and other maintenance activities) at farm, and 200 third-party land clearing jobs. 174 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The Project will generate significant benefits for its investors and the Kenyan Agriculture economy. By expanding their flower farming activity to the Mt. Kenya region, and Forestry - Direct: 5,000 the Sponsors will mitigate production risks through geographical diversification, 54 Kenya Horticultural 2005 Agrarian 2 n/a 1 Indirect: 0 and will increase the product mix to include rose varieties which fetch higher Products market prices. The Project will create about 460 direct jobs, most of which will be (Flowers) held by women, in a rural area with few employment opportunities. The client will create unique growth opportunities for farmers and local communities by providing them with greater global market access and Agriculture generating employment in their projects and associated supply chains. The Direct: 6,789 55 Kenya and Forestry - 2013 Agrarian 10 Upstream 1 project is expected to directly benefit rural populations in Africa by providing Indirect: n/a Other access to markets and crop finance for local farmers; as well as increase local suppliers up to 36,500 farmers and increase local purchases from $491 million to $2.7 billion. The proposed project will allow the client to expand its operations and will have important development impacts. In particular: (i) the client will (a) offer larger financially viable outlets for some 60,000 small farmers and help reduce postharvest losses while improving product quality; and (b) contribute to the Agriculture Direct: 6,789 creation of more efficient regional markets for agro-commodities in Eastern and 56 Malawi and Forestry - 2013 Agrarian 10 Upstream 1 Indirect: n/a Southern Africa; (ii) employment creation; (iii) significant revenues are expected Other to accrue to rural communities as the result of increased commodity purchases and linkages with local businesses and small-sized contractors in rural areas will contribute to spur economic growth; and (iv) there will be incremental income tax for project host governments. IFC investment in an agricultural supply chain manager client present in Sub- Saharan Africa, the United Arab Emirates, India, the United States, Singapore and the United Kingdom. The Company is rapidly increasing its engagement Agriculture with smallholder farmers in many of its agro-commodities supply chains. IFC’s Direct: 6,789 57 Mozambique and Forestry - 2013 Agrarian 20 Upstream 1 support to the client will create unique growth opportunities for farmers and Indirect: n/a Other local communities by providing them with greater global market access and generating employment in their projects and associated supply chains. The Project is expected to directly benefit rural populations in Africa by providing access to markets and crop finance for local farmers The client will create unique growth opportunities for farmers and local communities by providing them with greater global market access and Agriculture generating employment in their projects and associated supply chains. The Direct: 6,789 58 Tanzania and Forestry - 2013 Agrarian 30 Upstream 1 project is expected to directly benefit rural populations in Africa by providing Indirect: n/a Other access to markets and crop finance for local farmers; as well as increase local suppliers up to 36,500 farmers and increase local purchases from $491 million to $2.7 billion. Food & The Project will create 150 direct jobs and enhance the livelihood of more than Beverages - Direct: 0 59 Uganda 2014 Agrarian 4 Upstream 1 10,000 farmers in remote rural areas through providing market access and Dairy Indirect: 0 technical support. Products Agriculture IFC investment in the only commercial scale copra processor and exporter of and Forestry - Direct: n/a crude coconut oil in Vanuatu, to expand and diversify its current product range 60 Vanuatu 2014 Agrarian 2 Upstream 1 Other Indirect: 0 into value-added products, such as biodiesel, refined, bleached, deodorized oil, Vegetable Oil organic oil and coconut meal for animal feed. The project aims, among other 175 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Crops things, to (i) improve long-term sustainability of copra supply, providing (Coconut, farmers with a stable market to sell their copra into, and (ii) provide access to Rapeseed, finance through advances to agents. This enables timely purchase of copra which Peanut, increases cash flow circulation in rural economy, currently impacting Sunflower, approximately 15,000 farmers. etc.) Food & IFC’s investment will support the continued growth of a leading agricultural Beverages - producer with substantial linkages extending to the farming community and to Animal Direct: 4,367 61 Zambia 2012 Agrarian 30 Upstream 1 rural areas. The Company’s program of investments will have significant impact Slaughtering Indirect: 0 on its supply chain which includes about 2,000 farmers and 750 micro, small, and and medium enterprises (MSMEs). Processing Food & Beverages - Fruit and Vegetable The client is a leading fruit juice, concentrate, and canned food producer in Preservation Direct: 230 Armenia, with significant benefits for the rural community. The Company 62 Armenia 2013 Transition 3 Upstream 1 or Processing Indirect: 0 procures fresh fruits and vegetables from the Armavir region of Armenia where (Canning, employment opportunities are scarce. Freezing, Drying, Jams, etc.) Food & The proposed Project will strengthen the Company’s dairy operations by (i) Beverages - Direct: 9,895 scaling up capacity; (ii) extending the range of value-added products; and (iii) 63 Bangladesh 2011 Transition 7 Upstream 1 Dairy Indirect: 0 helping secure the volume of milk necessary for this expansion by extending its Products milk collection network in rural areas. IFC has a major role in assisting the client in the design, strategy, capacity Agriculture building and implementation of this complex Project that involves strategic and Forestry - alliances with SOEs, technical partners, feed supply companies, 6,000 contract Animal Direct: 2,200 64 China 2004 Transition 22 Both 1 farmers and international and local supermarket chains. The introduction of pig Slaughtering Indirect: n/a stock with higher genetic potential and modern pig production techniques is and expected to bring significant benefits through lower costs and higher incomes for Processing about 6,000 rural households that will be involved in the grow-out operations. The project will positively impact thousands of farmers through linking them to Food & Direct: 2,200 a market option for their grapes which increases rural incomes, a key objective of 65 China Beverages - 2005 Transition 18 Upstream 1 Indirect: 0 the new Chinese Government and a crucial issue in ensuring that China’s Wineries development successes extend to the rural sector. Food & Beverages - Direct: 0 The project support one of the leading dairy producers in frontier regions of 66 China 2010 Transition 11 Both 1 Dairy Indirect: 0 China with both backward and forward linkages in the rural economy. Products The project will support the expansion of a sound private dairy company in the Food & frontier region of Shaanxi province. The company creates significant benefits to Beverages - Direct: 0 the communities where it operates as 1) a reliable market outlet for local farmers; 67 China 2010 Transition 4 Downstream 1 Dairy Indirect: n/a 2) an employer for a significant number of local and migrant workers, and 3) a Products provider of business opportunities for local MSMEs such as milk station owners, distributors and small retailers, among others. 176 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Project supports the expansion of a successful private pig farm company in the frontier region of Henan Province. As a result of its expansion, the Company will Agriculture generate significant benefits to the communities where it operates as: (i) a reliable and Forestry - Direct: 1,412 68 China 2011 Transition 10 Upstream 1 market outlet for local farmers; (ii) an employer for a significant number of rural Other Animal Indirect: 0 workers; and (iii) a provider of business opportunities for SMEs, such as Production backyard and small-scale hog farm owners, brokers/traders of agricultural products, among others. Agriculture The Project will result in sustainable employment of about 15,000 additional and Forestry - Direct: 1,075 farmers and result in providing extensive reach within the rural community. The 69 China 2012 Transition 20 Both 1 Fruits and Indirect: 0 Project will also create business opportunities for MSMEs such as traders, truck Vegetables owners and distribution. Agriculture The project supports the sustainable economic development and reaches more and Forestry - Direct: 2,500 than 25,000 MSMEs in the frontier regions in China, creates more than 500 direct 70 China 2013 Transition 35 upstream 1 Other Animal Indirect: 0 jobs and improves local livelihoods in rural/frontier Chinese provinces, and has Production a strong demonstration effect in Chinese animal raising sector. The client purchases from a wide network of over 50,000 local rural households for grains and other feed raw materials, which will increase as the Company’s Agriculture production is expected to expand further. The client sells breeder sows to and Forestry - Direct: 1,412 approximately 320 households across China. These farming households can then 71 China 2013 Transition 20 Upstream 1 Other Animal Indirect: 0 produce hogs on a small-scale and sell them to pork processors, providing a Production sustainable income stream. In addition, the client uses a network of approximately 100 MSMEs which act as suppliers and service providers, including veterinary, dietary, and genetics consultations. Agriculture About 24,000 rural households supply the Company with raw materials such as and Forestry - Direct: 1,412 72 China 2014 Transition 20 Upstream 1 corn, barley and silage. The Company sells its breeds to about 1,200 rural pig Other Animal Indirect: 0 farms for further fattening for sale to market. Production The group procures part of its raw milk requirements from more than 1,800 Agriculture independent farmers, the vast majority of whom are rural families with 1 to 4 and Forestry - Direct: 9,632 dairy cattle in areas where there are limited production alternatives. The group 73 Ecuador 2008 Transition 25 Upstream 1 Fruits and Indirect: 0 has been providing financial and technical assistance to these independent Vegetables producers to improve efficiencies, promote sanitary standards and disseminate best agricultural practices. The proposed project will support a key staple food supplier in Ecuador to increase food production and improve efficiency, thus helping improve food Food & supply and affordability for BoP. The client’s distribution channels reach the Beverages - remote areas of the country, providing BoP with easy access to food and support Grain Direct: 780 the livelihood of over 6,000 MSMEs. The client employs 631 employs full-time 74 Ecuador Processing 2010 Transition 8 both 1 Indirect: 0 employees including 104 women (16%) and provides comprehensive benefit (Milling, packages (private health plans, pensions, life insurance). The client supports a Starch, Flour, large number of downstream MSMEs: 3, 500 bakeries, over 2, 500 wholesalers Malt) and retailers, 30 pasta producers, 8 exclusive distributors and 13 franchise bakery shops. Food & The Company contributes to rural employment off-takes from third party Beverages - Direct: 9,632 75 Ecuador 2011 Transition 11 Upstream 1 banana growers and milk producers, and is a key player of Ecuador’s banana Fruit and Indirect: 0 export industry. Vegetable 177 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Preservation or Processing (Canning, Freezing, Drying, Jams, etc.) Food & The client services more than 85,000 small shops across Ecuador and buys milk Beverages - Direct: 3,773 from and provides technical assistance and financing to more than 2,400 farmers 76 Ecuador 2012 Transition 30 Both 1 Dairy Indirect: 0 in rural frontier regions. Its activities, therefore, have a considerable reach in the Products local economy and impact on the livelihood of local population. The proposed corporate facility will help the client finance a $103m expansion Food & program, which includes organic growth components through corporate capital Beverages - expenditure across business units in Ecuador, and a cross-border acquisition, Animal Direct: 6,500 most likely in Peru. The proposed investment in the Company is in line with 77 Ecuador 2013 Transition 25 Both 1 Slaughtering Indirect: 0 IFC’s corporate priorities, facilitating an investment in food security and and supporting farmers as well as other SMEs. The project also supports the Processing economic development of an inclusive business by preserving and creating jobs in rural frontier regions. The client estimates that it will raise the number of the retail outlets serviced Food & Egypt, Arab Direct: 570 from 6,600 to 10,000 in the lesser developed southern and northern regions of the 78 Beverages - 2006 Transition 14 Downstream 1 Republic of Indirect: 0 country (that is, outside Cairo and the Delta region), thereby generating indirect Soft Drink employment and economic activity in these regions. The Company supports a network of 40 independent distributors to market its Agriculture day-old chicks and feed products to end users. In addition, it markets directly to Egypt, Arab and Forestry - Direct: 1940 79 2008 Transition 25 Downstream 1 about 700 farmers. Altogether, the client estimates that about 2,400 farmers are Republic of Poultry Indirect: 0 reached directly and indirectly by its products, thus making a strong Farming contribution to better livelihoods for small rural entrepreneurs. Agriculture The Company spends approximately $30 million annually on cane purchased and Forestry - Direct: 18,000 80 Guatemala 2009 Transition 30 Upstream 1 from 230 suppliers, a significant contribution to rural development in Sugarcane Indirect: n/a Guatemala, Nicaragua and Honduras. and Beets IFC’s investment will help a key Central American exporter expand capacities Agriculture and achieve greater efficiencies. The Project will support among other: (i) one of and Forestry - Direct: 16,000 81 Guatemala 2009 Transition 5 Upstream 1 the most important employers in Nicaragua, Honduras (two IDA countries), and Sugarcane Indirect: n/a Guatemala’s rural areas; (ii) farmer linkages and an increase in sugarcane and Beets volumes bought from third parties. Agriculture The client operations are located in Guatemala’s rural areas. Linkages with and Forestry - Direct: 0 82 Guatemala 2009 Transition 6 Upstream 1 farmer are built through increased purchases of raw material from local third Sugarcane Indirect: n/a parties. and Beets Agriculture For the current harvest season, the Company has approximately 19,320 direct and Forestry - Direct: 0 83 Honduras 2009 Transition 4 Upstream 1 and indirect employees. Many of these employees are from relatively poor rural Sugarcane Indirect: n/a areas of Guatemala, Nicaragua, and Honduras. and Beets The project is expected to generate employment in rural coffee growing areas in Agriculture Direct: n/a 84 Honduras 2014 Transition 3 Upstream 1 Honduras and Nicaragua as milling capacity increases, and the clients are able to and Forestry - Indirect: n/a expand their networks of upstream collectors, logistics operators and other 178 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Coffee, Cocoa, service providers. Its on-lending program will provide essential financing to Tea approximately 400 farmers, supporting increased productivity through plantation renovations and improvements, and through investments in infrastructure and equipment. The Company currently works with approximately 10,500 contract poultry farmers, who benefit significantly from the Company’s support in terms of guaranteed prices and offtake as well as hands-on technical assistance in the Agriculture actual poultry rearing operations. The project is to help the Company expand its and Forestry - Direct: 3,500 85 India 2007 Transition 11 Upstream 1 breeder farms, hatchery and feed mill capacity as part of its growth strategy (the Poultry Indirect: 0 “Project”). The Project will also have significant benefits for employment by the Farming Company and the creation of economic opportunities for thousands of rural and urban entrepreneurs who will raise chickens for the Company through an out- grower contract system, and those who will distribute its product in the cities. Food & The Project is located in the rural areas of Central UP, and will directly purchase Beverages - Direct: 402 86 India 2007 Transition 40 Upstream 1 raw materials from approximately 20,000 cane farmers, providing higher and Sugar and Indirect: 0 more stable income for farmers. Confectionary Agriculture The project helps fulfill IFC’s mandate of investing in areas which are Direct: 3,823 87 India and Forestry - 2008 Transition 30 n/a 1 underserved by private finance and with a high developmental impact- in this Indirect: 0 Other case, the rural areas of India where poverty is extensive. Food & The Project will create additional backward linkages with farmers as it is Beverages - expected to increase procurement of paddy from about 230,000 mt to 440,000 mt Grain Direct: 361 in four years. The Company will work with an additional 30 MSME distributors 88 India Processing 2012 Transition 18 Both 1 Indirect: 0 over the period of three years for selling branded rice in India. The Project will (Milling, directly generate 34 new rural jobs and about 100 seasonal employees in Starch, Flour, Haryana and Punjab in three years. Malt) The proposed corporate investment program is expected to help this medium- Food & sized dairy company to develop best practices to increase yield that would be Beverages - Direct: 89 India 2014 Transition 15 Upstream 1 disseminated down to farmers who form a critical link in the Company’s supply Dairy Indirect: 0 chain. The locations of both processing facilities are in rural parts of India and Products have a good catchment area for milk supply. Agriculture The Approved Projects are expected to have direct benefits to rural populations and Forestry - Direct: 7,678 in developing countries in Africa and Asia. The client sources from local farmer 90 India 2014 Transition 25 Upstream 1 Sugarcane Indirect: 0 and offers access to market and crop advances for local farmers in many and Beets emerging countries. The Approved Projects are expected to have direct benefits to rural populations in developing countries in Africa and Asia. The client sources from local farmers and offers access to market and crop advances for local farmers in many Agriculture emerging countries. The proposed IFC investment is expected to result in an Direct: 7,678 91 India and Forestry - 2014 Transition 25 Both 1 increased upcountry sourcing from farmers for value addition. The Company Indirect: 0 Other sources agro-commodities from more than 200,000 village-level agents who in turn purchase from more than 3.5 million farmers globally. Project supports local MSMEs that provide goods and services or participate in the marketing of the client’s products. Agriculture Direct: 0 The project will increase production, strengthen the competitiveness of the 92 Indonesia 2006 Transition 45 Upstream 1 and Forestry - Indirect: n/a Company and therefore the viability of the outgrowing model. From its 179 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Animal inception in 1995, the client has been a major contributor to the local economy. It Aquaculture has led to the development of a major export-oriented economic activity in a remote rural area, creating directly more than 2,500 full-time jobs at various skills levels, as well as 6,500 jobs under contracts. The Project will also increase the volume of fresh produce bought from suppliers Food & and farmers by increasing the production of noodles. The client currently buys Direct: 6,400 93 Indonesia Beverages - 2007 Transition 15 Upstream 1 from approximately 5,600 smallholder farmers. As a result of the increase in Indirect: 0 Other Food output, the Project may purchase additional produce from an additional 1,000 farmers located in poor rural areas. The project is intended to provide working capital for the Company to purchase sufficient quantities of palm oil from Indonesian plantations to fully meet its operational needs. The Company and its holding develop the land for these small landholders, and also commit to purchasing all of the product from these Agriculture Direct: 20,000 small landholders at market-based rates. The Company also purchases the 94 Indonesia and Forestry - 2007 Transition 50 Upstream 1 Indirect: n/a majority of the palm oil it processes from independent farmers, and is a key Palm Oil contributor to the economy of the palm oil sector in Indonesia. Through merchandising of all of the holding’s palm oil and soy products, the Company supports 20,123 employees, many of whose employees are in relatively poor areas of Indonesia. The Project will also increase the volume of fresh produce bought from suppliers Food & and farmers on account of increasing production of noodles. The client currently Direct: 8,260 95 Indonesia Beverages - 2008 Transition 13 Both 1 buys from approximately 6,500 smallholder farmers. As a result of the increase in Indirect: n/a Other Food output, the Project will likely purchase additional produce from an additional 500 farmers located in poor rural areas. The Project will increase the volume of fresh produce bought from suppliers and Food & farmers on account of increasing production of noodles. The client currently Direct: 500 96 Indonesia Beverages - 2008 Transition 5 Both 1 buys from approximately 6,500 smallholder farmers. As a result of the increase in Indirect: 0 Other Food output, the Project will likely purchase additional produce from an additional 500 farmers located in poor rural areas. The Project will increase the volume of fresh produce bought from suppliers and Food & farmers on account of increasing production of noodles. The client currently Direct: 300 97 Indonesia Beverages - 2008 Transition 9 Upstream 1 buys from approximately 6,500 smallholder farmers. As a result of the increase in Indirect: 0 Soft Drink output, the Project will likely purchase additional produce from an additional 500 farmers located in poor rural areas. The Project will increase the volume of fresh produce bought from suppliers and Food & farmers on account of increasing production of noodles. The client currently Direct: 6,400 98 Indonesia Beverages - 2008 Transition 4 Both 1 buys from approximately 6,500 smallholder farmers. As a result of the increase in Indirect: 0 Other Food output, the Project will likely purchase additional produce from an additional 500 farmers located in poor rural areas Food & Beverages - The Project will increase the volume of fresh produce bought from suppliers and Grain farmers on account of increasing production of noodles. The client currently Direct: 200 99 Indonesia Processing 2008 Transition 15 Both 1 buys from approximately 6,500 smallholder farmers. As a result of the increase in Indirect: n/a (Milling, output, the Project will likely purchase additional produce from an additional Starch, Flour, 500 farmers located in poor rural area. Malt) 180 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The Project will enhance the development of MSMEs in both Nigeria and Indonesia through ongoing purchases of goods and services. In Indonesia, the client’s products are sold through approximately 500,000 vendors operating Food & Direct: 0 roadside stalls that are MSMEs. Similarly, in Nigeria, the detergents are 100 Indonesia Beverages - 2013 Transition 14 Downstream 1 Indirect: n/a distributed primarily through 350,000 MSMEs. The bulk of distribution occurs Soft Drink through small shops, family-owned businesses, kiosks and street hawkers. Many of these sales outlets are in rural areas and poor urban areas, and provide an important source of income. Many of sales outlets are in rural areas and poor urban areas, and provide an Food & important source of income. The project will have a positive impact on the base Direct: 300 101 Indonesia Beverages - 2013 Transition 12 Downstream 1 of the pyramid as the Group’s products are designed to cater specifically to the Indirect: 0 Soft Drink demand from lower income segments of the population in Indonesia and Nigeria. In Indonesia, the client’s products are sold through approximately 500,000 vendors operating roadside stalls that are MSMEs. Similarly, in Nigeria, the detergents are distributed primarily through 350,000 MSMEs. The bulk of Food & Direct: 656 distribution occurs through small shops, family-owned businesses, kiosks and 102 Indonesia Beverages - 2013 Transition 5 both 1 Indirect: n/a street hawkers. Many of these sales outlets are in rural areas and poor urban Soft Drink areas, and provide an important source of income. The client also provides marketing and operational support to these vendors, such as proper display of products and better inventory management. The project will enhance the development of MSMEs in both Nigeria and Indonesia through ongoing purchases of goods and services. In Indonesia, the Food & client’s products are sold through approximately 500,000 vendors operating Direct: 268 103 Indonesia Beverages - 2013 Transition 14 Downstream 1 roadside stalls that are MSMEs. The bulk of distribution occurs through small Indirect: n/a Soft Drink shops, family-owned businesses, kiosks and street hawkers. Many of these sales outlets are in rural areas and poor urban areas and provide an important source of income. The project is expected to create additional employment opportunities and higher incomes both directly and indirectly at the supply, manufacturing, distribution and retail levels. The Company’s growth will benefit local suppliers Food & Direct: 0 of raw materials to the Group for manufacture of its products and also the 104 Indonesia Beverages - 2014 Transition 30 Both 1 Indirect: n/a hundreds of thousands of small shop and kiosk owners where the Company’s Other Food products are sold. The project also serves the BoP, as the Company’s product range includes many quality food products, sold at affordable prices and consumed by lower income segments of the population. The Company’s activities support the incomes of downstream SMEs. In particular, the Company relies on a network of distributors - three in Moldova Food & and 30 in Romania), and retailers (705 in Moldova) that will benefit from the Direct: 672 105 Moldova Beverages - 2008 Transition 10 Both 1 Company’s continued expansion. The Project will benefit local farmer suppliers Indirect: 0 Wineries who are tied to the production of vineyard grapes through (i) additional incomes to farmers/viticulture enterprises; and (ii) access to demanding international markets. Agriculture Through its raw milk procurement from herders at a premium price in and Forestry - Direct: 312 comparison to other dairy processors, the client supports income generation of 106 Mongolia 2011 Transition 2 Both 1 Other Animal Indirect: 0 approximately $500 per annum per herder for approximately 2,500 herders; this Production supplier base will increase to at least 4,000 herders after implementation of the 181 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Project. The Company provides additional economic opportunities in rural Mongolia by sourcing milk through 19 milk collection stations, by selling products through more than 100 distributors, and through linkages associated with construction of the Project. The client already supports the economic activity of about 3,845 registered Agriculture poultry farmers, including some contract out-growers, and a large number of and Forestry - Direct: 1,719 107 Morocco 2014 Transition 24 Upstream 1 dairy and cattle farmers; and plays an important role in the generation of Poultry Indirect: 0 employment Farming in mostly rural areas. Agriculture IFC’s investment will support the Company’s efforts to continue to expand and Forestry - Direct: 0 production capacity, lower costs and remain competitive in the global market. 108 Nicaragua 2008 Transition 50 Upstream 1 Sugarcane Indirect: n/a This will support and preserve employment of over 18,000 people, primarily in and Beets poor rural areas in Guatemala and Nicaragua. Agriculture For the current harvest season, the Company has approximately 19,320 direct and Forestry - Direct: 0 109 Nicaragua 2009 Transition 5 Upstream 1 and indirect employees. Many of these employees are from relatively poor rural Sugarcane Indirect: n/a areas of Guatemala, Nicaragua, and Honduras. and Beets The project’s development impact includes continued direct benefits to rural populations and a demonstration impact on sustainability. The client will (i) expand its financing volume and (ii) provide longer maturities to these farms, Agriculture which were not available before, to implement capital improvements to become and Forestry - Direct: 2,856 110 Nicaragua 2010 Transition 9 Upstream 1 eligible for certification by sustainable coffee programs and to gain access to Coffee, Cocoa, Indirect: 4,620 premium coffee markets. By undertaking capital investments in their farms (such Tea as wet milling, water treatment, composting, reforestation and improvement in worker conditions), these coffee growers are expected to gain access to a premium coffee market by becoming certifiable by specialty coffee programs. 182 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The Project is expected to have a strong development impact given that it will (i) Food & support the development of the sugar sector in Nicaragua (an IDA country), Beverages - Direct: 3,747 which is an important motor of rural economic development and source of 111 Nicaragua 2013 Transition 15 Upstream 1 Sugar and Indirect: 0 exports; (ii) help generate 1,467 new direct positions (220 of which will be for Confectionary female employees) in rural areas of the country, where employment opportunities are scarce. The client’s suppliers represent approximately 33 percent of Nicaragua’s total coffee growers, of which approximately 89 percent are small producers (<20 Direct: n/a hectares). Availability of long-term financing to micro, small and medium Agriculture Indirect: 150 enterprise (MSME) coffee producers is limited in Nicaragua. The client’s long- and Forestry - MSMEs and term farmer financing program may have a demonstration effect and encourage 112 Nicaragua 2014 Transition 5 Upstream 1 Coffee, Cocoa, 1,500 people per additional financing for other exporters. The proposed Project will benefit at Tea year in rural least 150 MSME farmers in Nicaragua, which in turn employ approximately areas 1,500 people per year in rural areas, and allow them to renovate or expand coffee plantations, acquire technology and machinery, improve agricultural productivity and their income. IFC’s investment will support the continued growth of a leading agricultural producer with substantial linkages extending to the farming community and to Agriculture rural areas. The Company’s program of investments will have significant impact and Forestry - Direct: 4,367 on its supply chain which includes about 2,000 farmers and 750 micro, small, and 113 Nigeria 2010 Transition 3 Upstream 1 Other Animal Indirect: 0 medium enterprises (MSMEs). It will also increase the local production of meat Production products and proteins available to the population. Finally, it will contribute to the creation of over 700 new jobs within the Company and significantly more throughout the distribution chain. Agriculture The Company currently employs about 200 employees and the Project is Direct: 0 114 Nigeria and Forestry - 2014 Transition 6 Upstream 1 expected to create approximately 220 new jobs by 2017, particularly in rural Indirect: 0 Other areas. Food & Beverages - Grain Direct: 7,678 Linkages with rural areas are built through increased demand for raw materials 115 Nigeria Processing 2014 Transition 23 Upstream 1 Indirect: 0 and advances for local farmers. (Milling, Starch, Flour, Malt) The projects contribute to the creation of formal, nonfarming jobs in rural areas Food & where most of the world’s poor live. The Approved Projects are expected to have Direct: 7,678 116 Nigeria Beverages - 2014 Transition 23 Upstream 1 direct benefits to rural populations in developing countries in Africa and Asia. Indirect: 0 Other Food The client sources from local farmers and offers access to market and crop advances for local farmers in many emerging countries. The projects contribute to the creation of formal, nonfarming jobs in rural areas Food & where most of the world’s poor live. The Approved Projects are expected to have Direct: 7,678 117 Nigeria Beverages - 2014 Transition 23 Upstream 1 direct benefits to rural populations in developing countries in Africa and Asia. Indirect: 0 Other Food The client sources from local farmers and offers access to market and crop advances for local farmers in many emerging countries. The Project will increase the Company’s demand for labor and support the Agriculture Direct: 0 118 Senegal 2007 Transition 3 Upstream 1 development of rural areas in northern Senegal and semi-urban areas in the and Forestry - Indirect: 0 Dakar region. About 300 seasonal and daily jobs, including 120 jobs for women, 183 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Fruits and are expected to be created. The increased exports of French beans will benefit the Vegetables 40 out-growers currently selling their produce with extension services, and financial and marketing support from the Company. Food & The proposed investment fits with World Bank Group and IFC’s strategy to Direct: 367 119 Senegal Beverages - 2012 Transition 16 both 1 support the agribusiness sector. It also has significant reach to MSMEs (both Indirect: 0 Other Food suppliers and distributors) in the West Africa region, including in rural areas. The client relies on a network of more than 40 suppliers of goods and services Food & (inputs, equipment, transport, etc.) and 12 distribution teams that will Direct: 0 120 Uzbekistan Beverages - 2012 Transition 4 Both 1 directly benefit from the expansion. Reach through distributors to retail outlets, Indirect: 0 Soft Drink mainly MSMEs and many of whom are in rural areas, is expected to increase from 5,550 to 8,000 by 2014. The project is expected to create inclusive growth through coffee procurement Food & Direct: 151 linkages and employment in rural areas. The Project will help increase skilled 121 Vietnam Beverages - 2012 Transition 18 Upstream 1 Indirect: 0 employment opportunities by creating 140 new jobs, including 65 women Other Food employees in the rural areas of Dak Lak province in Vietnam. In Argentina, most of the client’s facilities are located in the interior of the Food & Direct: 700 country, including frontier provinces where the client’s operations are anchors 122 Argentina Beverages - 2008 Urbanized 50 Both 1 Indirect: n/a for the development of its surrounding communities. The Company is proactive Other Food in establishing linkages with local SMEs and promoting the generation of 184 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents associated activities to its production operations. The client purchases key raw materials from small and medium farmers, including tomatoes, peaches, peas and sugarcane. The farmers receive technical support and in some cases inputs such as fertilizers and seeds. The Company has supported the development of more than 160 SMEs in Argentina to work as exclusive distributors. The client also partners with 130 semi-exclusive distributors in Brazil. Agriculture A large network of farmers and intermediaries in rural areas, including frontier and Forestry - regions, continues to grow and prosper, supported by the client’s operations. The Other proposed investment supports the further expansion and diversification of a Vegetable Oil competitive domestic player, making a contribution to local economic Crops Direct: 2015 development, through: (j) job creation, as the Group expands in Argentina; (ii) 123 Argentina 2009 Urbanized 30 Upstream 1 (Coconut, Indirect: 0 linkages with local farmers and intermediaries in rural areas, who provide raw Rapeseed, materials to the Group among other objectives. The project includes the Peanut, construction of storage facilities to expand its sourcing in marginal rural areas Sunflower, located in the frontier provinces of Jujuy, Chaco, and Formosa, which will benefit etc.) farmers located in areas with poor infrastructure. IFC investment in a client whose facilities are located in the interior of the Food & Direct: 700 country, including frontier provinces such as Catamarca, Entre Rios and 124 Argentina Beverages - 2009 Urbanized 20 n/a 1 Indirect: n/a Tucuman, where the client’s operations are anchors for the development of its Other Food surrounding communities. Agriculture and Forestry - Direct: 1,250 In Tucuman, the Group creates substantial economic opportunities for local 125 Argentina 2012 Urbanized 5 Upstream 1 Fruits and Indirect: 0 residents in rural areas where few alternatives are available. Vegetables Food & Beverages - The project supports the continued development of a successful company that Animal Direct: 22,000 has a broad impact on local rural communities through its employment of more 126 Brazil 2007 Urbanized 90 Upstream 1 Slaughtering Indirect: 0 than 15,000 staff and its backward linkages to a network of about 8,500 farmers and in six states. Processing Agriculture and Forestry - Direct: 2,565 The client investment program is in less developed frontier regions of the 127 Brazil Natural Fibers 2008 Urbanized 40 n/a 1 Indirect: 0 country. (Cotton, Sisal, Jute, etc.) Food & The Project will support the expansion of a leading food company into the Direct: 2,965 128 Brazil Beverages - 2009 Urbanized 25 Both 1 economically poor northeast region of Brazil. The plant will be established in the Indirect: 517 Other Food state of Alagoas, which has some of the lowest development indicators of Brazil. Food & Direct: 5,070 The client sources raw milk from 1,133 small-scale farmers, most of which are 129 Brazil Beverages - 2012 Urbanized 50 Both 1 Indirect: 49,570 located in rural areas where employment opportunities are scarce. Other Food Food & Beverages - The Project will enhance rural development as the Company will need to expand Animal Direct: 4,327 130 Brazil 2014 Urbanized 20 Upstream 1 its current network of integrated farmers who breed chicken and pork, which Slaughtering Indirect: 73,987 provides them with a stable source of income. and Processing 185 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The client is planning to expand its network of discount grocery stores in Bulgaria, Croatia and Serbia. The key development impacts include (i) supporting the development of local suppliers in food supply chain through Wholesale improvements in food quality and safety as well as in operating standards; (ii) and Retail improving access for local low-to-middle income customers in frontier regions Trade - Retail and small Direct: 0 131 Bulgaria (Including 2013 Urbanized 66 Upstream 1 cities of the Target Countries to a more affordable diverse selection of high- Indirect: n/a Supermarkets, quality Grocery food products; (iii) creating significant local direct and indirect Stores, etc.) employment with a majority of the new jobs to be occupied by women; and (iv) contributing to the improvement of green building standards through the implementation of energy efficiency measures which meet or exceed IFC’s Green Building standard. 186 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The client is having a significant developmental impact by providing agri-input sales on credit to farmers operating in rural areas, including frontier regions and Agriculture less developed agricultural regions, which are usually underserved by local Direct: 0 132 Chile and Forestry - 2014 Urbanized 63 Upstream 1 financial institutions. The client currently reaches more than 33,000 farmers Indirect: 0 Other through its network of stores strategically located across all of Chile’s agricultural regions, including more than 21,000 farmers in the frontier regions of Coquimbo, Maule, O’Higgins, and Araucania. The investment is expected to have a positive economic impact on livelihoods in Agriculture Colombian rural communities. The client supports a network of SMEs that and Forestry - Direct: 614 133 Colombia 2007 Urbanized 20 Both 1 provide goods and services to the Company. As the Company expands its cafes Coffee, Cocoa, Indirect: 0 and retail sales operations, its support of the SMEs is expected to increase Tea substantially. Food & Beverages - The Project will create additional direct and indirect employment in rural areas Animal Direct: 2,150 where there are limited employment opportunities; furthermore, there will be 134 Croatia 2008 Urbanized 63 Upstream 1 Slaughtering Indirect: 0 benefits for out-grower dairy and pig farmers and farmers of feedstock materials and (grains) for animal feed. Processing Food & Beverages - Eastern Grain IFC funds will benefit several frontier regions as four of the eight regions directly Direct: 29 135 Europe Processing 2011 Urbanized 67 Both 1 impacted by the Project are categorized as frontier (one frontier region in Indirect: 0 Region (Milling, Kazakhstan, three in Ukraine). Starch, Flour, Malt) Agriculture A portion of the Group’s expansion in grain storage capacity will benefit small and Forestry - farmers in Serbia and Ukraine who would otherwise have to sell their crops at Eastern Diversified harvest, when prices are the lowest, at times partially losing some of their Direct: 2,624 136 Europe Edible 2014 Urbanized 34 Upstream 1 produced quantities due to lack of storage availability. The Project includes Indirect: 5,026 Region Agricultural expansion of the Group’s planted area and storage capacity in the region of Crops Vinnitsa, a rural frontier region highly dependent on agriculture for income and Production employment. Food & Beverages - The project will help increase efficiency along the supply chain, provide an outlet Grain for farmers to sell their grain, and increase availability of wheat and barley based Direct: 29 137 Kazakhstan Processing 2011 Urbanized 13 Upstream 1 products. This in turn will directly benefit farmers, consumers, and SMEs along Indirect: 0 (Milling, the supply chain, particularly reaching out to the BoP and to frontier regions Starch, Flour, where access to finance is limited. Malt) The project’s development impact includes continued direct benefits to rural populations and a demonstration impact on sustainability. The client will (i) Agriculture expand its financing volume and (ii) provide longer maturities to these farms, Latin and Forestry - Direct: 2,856 which were not available before, to implement capital improvements to become 138 America 2006 Urbanized 25 Upstream 1 Coffee, Cocoa, Indirect: 4,620 eligible for certification by sustainable coffee programs and to gain access to Region Tea premium coffee markets. As the Central American coffee industry matures and starts facing increasing competition from Brazil and Vietnam, the only solution to differentiate and increase profitability for these farmers is to be able offer 187 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents value-added coffee (for example, sustainable, traceable, or organic) under recognized labels which allow the farmers to enter a premium market. The Project consists of: (i) the construction of 72 new stores; (ii) refurbishing and improving of 206 existing stores; (iii) the construction of 48 distribution centers Wholesale and one warehouse; and (iv) environmental and social and health and safety and Retail improvements at selected facilities. The Project is expected to make basic Trade - Retail Direct: 22,800 household items accessible to the lower income groups of the population. To 139 Mexico (Including 2006 Urbanized 35 Downstream 1 Indirect: n/a achieve this, the client’s offer of credit is essential as its customers would Supermarkets, typically otherwise not be able to acquire these goods. Its expansion plans Grocery include growing its retail outlets in second-tier cities in Mexico (those with Stores, etc.) approximately 100,000 inhabitants) and into the Southeast area (the region in the country with the highest poverty rate). The Company has linkages with local businesses, and SME contractors in rural areas which provide various inputs to the Company. The Company’s Agriculture engagement with the local community is strong and begins during the and Forestry - Direct: 132 140 Paraguay 2010 Urbanized 5 Upstream 1 assessment stage. The Company is proactive and works with several Grains and Indirect: n/a nongovernmental organizations (NGOs), and local community organizations to Beans develop and implement technical assistance programs to small farmers in the area they are operating. The client is one of Paraguay’s leading crop input distributors and agronomic services companies. The Company assists more than 1,400 farmers, providing technical support, agricultural inputs and preharvest financing. The project Agriculture Direct: 241 consists of providing a loan to allow the Company to advance inputs to its 141 Paraguay and Forestry - 2012 Urbanized 15 Upstream 1 Indirect: 0 network of farmers and is expected to have a significant development impact by Other (i) reaching farmers operating in frontier regions (likely to include a significant share in BoP), (ii) supporting the dissemination of agricultural best practices and inputs to farmers. The client is having a significant developmental impact by supporting a more productive farming business model in Paraguay, which is expected in turn to make significant contribution to Paraguay’s rural economic development, as well Agriculture as to global food security. The client’s innovative approach to establish trust- and Forestry - Direct: 132 142 Paraguay 2012 Urbanized 7 Upstream 1 based relationships with the local peasant communities. The client’s initiatives Grains and Indirect: n/a help rural families to improve their farming practices, triggering a virtuous circle Beans of development. The client has contributed to the development of a new class of agricultural service companies and SMEs agri-contractors in frontier rural areas that provide various services and inputs to the Company. The client is a major employer with over 15,000 suppliers, many in remote, rural Food & Direct: 952 locations not served by its competitors, and plays a central role in developing 143 Peru Beverages - 2004 Urbanized 25 Upstream 1 Indirect: n/a Peru’s local dairy industry with the objective of increasing domestic raw milk Other Food supply. The Company procures part of its requirements from third parties who benefit Agriculture from canning operations. It procures from about 120 independent producers of and Forestry - Direct: 4,550 peppers and artichokes (approximately 1,800 ha). The Company has been 144 Peru 2012 Urbanized 0 Upstream 1 Fruits and Indirect: 0 successful in encouraging small producers to stay on the land by buying their Vegetables products with formal contracts; in turn, this reduces migration to urban areas. This contracting mechanism provides small farmers with greater access to 188 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents training, finance, and information, allowing the development of viable agricultural businesses. Wholesale The client’s presence as a deep discount retailer in the least developed areas of and Retail target countries, where most of its competitors have chosen not to be present, is Trade - Retail expected to stimulate competition in the sector and provide lower income Direct: 0 145 Poland (Including 2004 Urbanized 49 Upstream 1 consumers with a retail option. The retail infrastructure in these undeveloped Indirect: n/a Supermarkets, areas is poor and the client’s entry will help develop linkages with local Grocery suppliers, contributing to the increased development and efficiency of the supply Stores, etc.) chain. The proposed Project fits into this strategy as it will: (i) capitalize on Russia’s competitive advantages in feed grain production; (ii) increase value-added local production by efficiently converting grain to meat; (iii) increase local pork Agriculture production; (iv) introduce high European standards of livestock production to Russian and Forestry - Direct: 658 146 2011 Urbanized 25 upstream 1 Russia; and (v) create jobs in the rural area of Pskov region, a frontier region with Federation Other Animal Indirect: 0 per capita income of about 60% below the national average. The Project will also Production contribute to economic growth in the frontier Pskov region by revitalizing disused farm land, developing pig and crop production, creating direct and indirect jobs in rural areas, and supporting local communities. This project presents a strong fit with IFC’s strategy in the region. It supports a Food & Direct: 958 South-South investment to rebuild a rundown operation in a rural area in Serbia 147 Serbia Beverages - 2009 Urbanized 56 Upstream 1 Indirect: 7,022 which offers little opportunities for economic growth outside of agriculture and Other Food food processing. The proposed project supports the continued regional growth of an emerging Food & Direct: 57 market player and also develops a local supply chain (raw material, packages, 148 Serbia Beverages - 2009 Urbanized 0 Both 1 Indirect: n/a transport, etc.) from regional farmers in fruit and vegetable production in rural Soft Drink areas. Agriculture The project supports the continued growth of a successful South African family and Forestry - Direct: 1,160 company, which will create economic opportunities in rural areas of SA and 149 South Africa 2006 Urbanized 7 Downstream 1 Fruits and Indirect: n/a Egypt. It has linkages with local farmers through management and provision of Vegetables packing and cold storage facilities. The client is promoting a sustainable agribusiness model focused on increasing productivity and providing access to finance to farmers in South Africa. The Agriculture Company’s main development impacts include contributing to rural economic and Forestry - Direct: 0 150 South Africa 2012 Urbanized 59 Upstream 1 development by integrating farmers into the food supply chain and granting Grains and Indirect: 10,424 them access to markets. The client currently provides direct (own payroll) and Beans indirect employment for local residents in rural areas thus creating substantial economic opportunities where work opportunities are scarce. 189 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents By investing in agriculture and forestry industries in Africa and South America, the Project will promote sustainable development in rural communities by Agriculture increasing employment and sustainable resource management. The Project Direct: 8,042 151 South Africa and Forestry - 2013 Urbanized 35 Both 1 includes improvements in housing for company employees in South Africa and Indirect: 0 Other is expected to provide approximately 1,270 additional jobs. The Project will result in expanded output of processed hardwood for the housing sector, and increase the production of more value-added products and improve their international competitiveness. 190 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The client sources its products from about 5,000 farmers, the vast majority being MSMEs. In addition, over 120 farmers operate through contract farming Agriculture arrangements whereby the Company provides the farmers with seeds and and Forestry - prefinancing and purchases their goods at the harvest season. The number of Diversified Direct: 807 contract farmers is expected to increase to 200 by 2015. In addition, the Company 152 Turkey Edible 2012 Urbanized 30 Upstream 1 Indirect: 0 works with an estimated 150 wholesalers and resellers of its products. The Agricultural Project will increase the Company’s impact on MSMEs along the supply chain. Crops Furthermore, through its vital role with its contract farmers, the company Production contributes to significant indirect employment growth, which is especially needed in rural areas. Agriculture and Forestry - Direct: 2450 The Company’s integration into a coherent, well-managed Company will allow 153 Ukraine 2004 Urbanized 30 n/a 1 Poultry Indirect: 42,720 the preservation of 3,100 jobs, including 2,900 in rural areas. Farming Agriculture IFC’s financing will contribute to the development of a large-scale modern and Forestry - farming operation which will improve land productivity and have a Diversified Direct: 1,002 demonstration impact on other neighboring farms. The client’s land and 154 Ukraine Edible 2010 Urbanized 50 Downstream 1 Indirect: 0 operations are located in Western Ukraine in the Ternopil, Ivano-Frankivsk, Agricultural Lviv, Chernivtsi and Khmelnitsky regions. These four regions are among the Crops poorest regions in the country. Production The client is one of the largest investors in the agribusiness sector in Ukraine, Agriculture supporting viable economic activity and creating jobs in, among other regions, and Forestry - Direct: 10,179 155 Ukraine 2013 Urbanized 40 Upstream 1 Khmel’nytskyi and Vinnytsia, which are classified as frontier regions. As of Sugarcane Indirect: 0 December 2011, the client had 8,600 employees. The Company is expected to add and Beets 3,400 jobs in the next four years. Agriculture The client is one of the largest investors in the agribusiness sector in Ukraine, and Forestry - Direct: 0 supporting viable economic activity and creating jobs in some of the poorest 156 Ukraine 2013 Urbanized 30 n/a 1 Grains and Indirect: 0 frontier rural regions of Ukraine (Vinnitsa, Khmelnytskyy, Zhitomyr, Sumy, Beans Chernigov). Agriculture and Forestry - Direct: 2,424 Relevant impacts of the project to RNFE are job creation in Ivano-Frankivsk, a 157 Ukraine 2013 Urbanized 21 Upstream 1 Other Animal Indirect: 0 rural frontier region of Ukraine. Production Agriculture The Project promotes inclusive economic growth via linkages with local micro, and Forestry - Direct: 1,038 158 Ukraine 2013 Urbanized 16 Upstream 1 small and medium enterprises (MSMEs) and employment preservation and Fruits and Indirect: 0 generation in rural areas of the Mykolayiv and Kherson regions Vegetables The Project will allow the Company to increase its cultivated area by 120,000 hectares in a relatively less developed rural area. The Company currently employs 24,800 staff, including 9,880 women, and 18,970 employees in its Agriculture agricultural operations. The Company supports a network of 2,600 MSMEs, and Forestry - Direct: 2450 159 Ukraine 2013 Urbanized 50 both 1 individual franchisees who sell the Company’s products. This is forecast to Poultry Indirect: 42,720 increase to 3,000 with the implementation of the poultry capacity expansion Farming project, with each of the franchisees employing an average of two persons. Most of these MSMEs operate in rural locations that are underserved in terms of provision of retail service. 191 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Agriculture The proposed investment is to assist a large-scale primary agricultural producer and Forestry - operating in Central and Northern Ukraine, in expanding the scope of its Diversified agricultural operations. The proposed investment will: (i) support a viable Direct: 3,000 160 Ukraine Edible 2014 Urbanized 30 Upstream 1 economic activity and help secure employment in frontier rural areas of Indirect: 0 Agricultural Chernigiv, Sumy and Poltava regions; (ii) contribute to food security by Crops increasing production of grains and oil crops; and (iii) contribute to private Production sector development through promotion of best practice in farming. The client currently employs 29,514 people, including 11,413 women, especially Agriculture in rural areas. It is often the only or leading employer in the many rural and Forestry - Direct: 2450 161 Ukraine 2014 Urbanized 100 Downstream 1 communities where it operates and offers substantial opportunities to its staff to Poultry Indirect: 42,720 improve their skills, be exposed to international best practices, and progress Farming within the organization. The project will accommodate an increase in milk supply of 275 million liters by Food & 2012, representing additional revenues for the cooperative’s members. Given the Beverages - Direct: 1,500 cooperative’s structure, the project is therefore expected to have a significant 162 Uruguay 2007 Urbanized 30 Upstream 1 Dairy Indirect: 0 impact on economic livelihood in surrounding rural communities. The Products cooperative is owned by about 2,300 dairy farmers, employs 1,450 workers, and operates eight plants that process about 900 million liters of raw milk per year. The client is an Argentine firm that owns and operates 5,500 ha of citrus Agriculture plantations in the Tucuman province, in northern Argentina, one of the poorest and Forestry - Direct: 205 163 Uruguay 2009 Urbanized 10 Upstream 1 in the country. The Project is expected to sustain and generate additional rural Fruits and Indirect: 10,877 employment in Uruguay, and raise local labor skill level through transferring the Vegetables Sponsor’s best practices in food safety, environment, worker safety and welfare. Food & The Project will accommodate an increase in milk supply of 1.1 million liters per Beverages - Direct: 1,500 day, representing additional revenues for the cooperative’s members. Given the 164 Uruguay 2013 Urbanized 30 Upstream 1 Dairy Indirect: 0 cooperative’s structure, the project is therefore expected to have a significant Products impact on economic livelihood in surrounding rural communities. Agriculture and Forestry - IFC investment in a leading agribusiness company with a proven record in Diversified Africa Direct: 7,678 reaching out to challenging agricultural regions, which will provide unique 165 Edible 2004 Agrarian 30 Upstream 2 Region Indirect: 0 growth opportunities to local communities and SMEs in developing countries Agricultural through better global market access for their production. Crops Production The Project will support the Company’s efforts to promote higher efficiency, quality, and best practice biosecurity standards in the poultry industry in Côte Agriculture d’Ivoire. The client operates in a postconflict country with significant linkages to Côte and Forestry - Direct: 584 farmers and MSMEs, providing employment opportunities for an estimated 166 2012 Agrarian 3 Upstream 2 D’Ivoire Poultry Indirect: 0 50,000 persons. The Company sources maize locally reaching c. 25,000 small Farming farmers, and sells it feed and day-old chicks to c. 1,600 poultry meat and egg farmers, supporting c. 16,000 jobs. The Company indirectly contribute the growth of small service-oriented businesses (transporters, restaurants, etc.). Agriculture and Forestry - Direct: 650 The Program establishes a risk sharing facility to reduce financial risks of loans 167 Ethiopia 2011 Agrarian 9 Upstream 2 Coffee, Cocoa, Indirect: 0 provided to coffee farmer cooperatives in Ethiopia. Tea 192 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The Company will operate with about 3,000 employees, almost doubling its current labor force, resulting in an annual injection of $2.4 million into the local economy through wages and benefits paid. Creation of jobs in rural areas is an Food & answer to the development challenge of Ethiopia, generating opportunities for Direct: 1928 168 Ethiopia Beverages - 2014 Agrarian 3 Upstream 2 subsistence farmers and low skill workers to move into higher value added Indirect: 0 Soft Drink positions. The out-grower program is a crucial element in achieving a strong development impact as it seeks to deliver transformative and sustainable benefits to the livelihoods of local communities. The Company expects to reach 1,000 small-scale passion fruit farmers by 2018, from 70 farmers at present. The client is one of the largest Georgian wine-makers and exporters, concentrates exclusively on wine production and procures grapes from more than 300 Food & Georgian farmers, located in Kakheti region of Georgia. The proposed IFC loan Direct: 95 169 Georgia Beverages - 2012 Agrarian 2 Upstream 2 will be will be used for: (i) construction of primary facilities for grape collecting Indirect: 0 Wineries and crushing, in Kvareli region of Georgia; (ii) working capital requirement and (iii) additional capital expenditures to increase capacity of wine holding refrigeration tanks (collectively the “Project”). IFC’s financing will support a leading mushroom producer in Georgia, with significant benefits for the local community. The Company procures wheat straw Agriculture (one of the main raw materials for mushroom compost production) from the Direct: 170 170 Georgia and Forestry - 2013 Agrarian 2 upstream 2 Kakheti region of Georgia. The company’s headquarters and production facilities Indirect: 0 Other are located in the city of Rustavi, which has one of the highest unemployment rates among in Georgia, and the investment program will create significant permanent and seasonal employment opportunities for the local population. The project will lead to increased supply market efficiency through the client’s Agriculture procurement of rice from nearly 200,000 farmers. In the absence of an efficient and Forestry - Direct: 736 171 India 2005 Agrarian 9 Upstream 2 domestic marketing system for cereals, the client has been instrumental in Grains and Indirect: 0 working with the government agencies to increase transparency in the market Beans place. The client is a Kenyan holding company that services the needs of 562,000 smallholder tea farmers who are suppliers as well as shareholders of 54 separate Food & tea companies that own between them 65 tea factories. The Project will: (i) reach Direct: 1,481 172 Kenya Beverages - 2013 Agrarian 12 Upstream 2 562,000 farmers and further strengthen the client, which serves as a good model Indirect: 0 Other Food for smallholder supporting enterprises; (ii) improve productivity throughout the tea value chain to ensure greatest returns to tea farmers who are also shareholders. Food & The Company promotes the growth of agribusiness by providing training on Direct: 0 173 Kenya Beverages - 2014 Agrarian 23 Upstream 2 best farming practices to its smallholder farmer suppliers. The Company Indirect: n/a Other Food guarantees purchases of all these farmers’ produce at a competitive rate. The client is expected to reach at least an incremental small-scale banana and mango farmers over the next seven years, thereby improving sustainable income Food & Direct: 0 stream along these value chains. Strong development impact is expected from 174 Malawi Beverages - 2014 Agrarian 5 Upstream 2 Indirect: 0 the Project as the Company’s supply chain integration model is expected to Soft Drink provide stable prices that de-link local market cyclicality and improves access to export markets and commercial finance for smallholders. Food & As it continues to expand, the Group will catalyze the development of SMEs Direct: 724 175 Mali Beverages - 2009 Agrarian 12 Both 2 directly related to its operations. The client’s development benefits SMEs at Indirect: 0 Grain several levels: (i) the wheat imported through Dakar and Conakry is transported 193 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Processing to the mill by about 65 individually-owned transport companies; (ii) flour and (Milling, water products are sold by about 33 nonexclusive distributors; and (iii) livestock Starch, Flour, producers will have easier access to formulated animal feed to optimize the Malt) performance of their businesses. Increased local production of preforms and caps is expected to encourage the Food & Direct: 300 growth of SMEs in manufacturing sectors including bottle blowers and food 176 Mali Beverages - 2010 Agrarian 6 Both 2 Indirect: 0 processors as the client accepts small orders and extends favorable payment and Soft Drink delivery terms. Food & The client intends to build a new wheat mill including grain storage silos in Beverages - Beira, the capital of Sofala Province and the second largest city in Mozambique. Grain Direct: 490 The client is interested in participating in supply chain and distributor chain 177 Mozambique Processing 2004 Agrarian 1 Both 2 Indirect: 0 linkages, which with the assistance of IFC can help the growth of small and (Milling, micro enterprises. This will involve the provision of technical assistance for the Starch, Flour, local micro and small bakeries, which will use their products. Malt) The development of flour milling traditionally has a significant impact on the development of local MSMEs that provide goods and services to the mill Food & (transport, packaging materials, ingredients, distribution, general services) or Beverages - purchase from the mill (wholesalers, retailers, bakeries, animal feed Grain Direct: 66 manufacturers). The construction of new flour mill in Mozambique will provide 178 Mozambique Processing 2010 Agrarian 8 Downstream 2 Indirect: n/a direct and indirect benefits to the agricultural commodity sector as a whole given (Milling, its strong emphasis on improving grain logistics in the region. In particular, Starch, Flour, volume increases through the ports and roads in Mozambique and Rwanda will Malt) challenge competitors to improve their own logistic arrangements for the ultimate benefit of consumers in the region. The client is one of the first organized sector poultry feed manufacturers in Nepal. Today, the company employs more than 400 people and works through a Agriculture network of 110 dealers plus another 500 subdealers across the country with an Direct: n/a 179 Nepal and Forestry - 2014 Agrarian 2 Upstream 2 outreach of 8000+ farmers in 65 districts of Nepal. On successful completion, the Indirect: 0 Other project is likely to help increase the efficiency of the food supply chain leading to improved productivity at the farm gate level thereby translating into higher income for the growers. Agriculture The proposed investment will meet the much needed working capital financing Papua New and Forestry - Direct: n/a 180 2012 Agrarian 3 Upstream 2 of the client to support the Company’s parchment purchases from smallholders Guinea Coffee, Cocoa, Indirect: n/a coffee growers. Tea Agriculture This is a pilot project with farmer-owners owning the company and allowing and Forestry - them to finance crop inputs at affordable prices, sell their cotton in greater Direct: 20 181 Tajikistan Natural Fibers 2004 Agrarian 1 Upstream 2 quantities and on better terms and capitalize profits. This project achieves an Indirect: 0 (Cotton, Sisal, effective reach by local and international Company’s management to over 2,000 Jute, etc.) farmers, or 10,000 individuals including their families. IFC involvement with the client is expected to have strong development impact, Food & as its support would facilitate local production in a country in which over 80% of Beverages - Direct: 11 the food is imported. The client would become a model production site through 182 Tajikistan 2011 Agrarian 1 Both 2 Sugar and Indirect: 0 support from IFC on food safety, HACCP and environmental standards, and Confectionary would be able to disseminate best practices through its distribution network and through purchasing fruit and nuts locally from farmers. 194 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The Company will procure 20 percent of its raw materials locally, thus support Agriculture local farmers in the country. The investment program will create additional and Forestry - Direct: 0 183 Tajikistan 2014 Agrarian 2 Upstream 2 direct and indirect employment opportunity. The Project will benefit local farmer Other Animal Indirect: 0 suppliers by providing additional income. Approximately 100 farmers are Production expected to become suppliers to the Company within the next 2-3 years. Agriculture and Forestry - The client engages in sourcing, primary processing, transporting, warehousing Diversified and distributing a broad range of agri-commodities. It supplies raw and Direct: 7,678 184 Vietnam Edible 2004 Agrarian 20 Upstream 2 processed agricultural commodities, grown mainly by community and small and Indirect: 0 Agricultural medium enterprise (SME) producers in emerging countries, to well-established Crops regional and international clients. Production The client group has pioneered contract farming in Bangladesh, providing Food & Direct: 9,895 farmers with the best quality seeds and technical support to enable them to 185 Bangladesh Beverages - 2012 Transition 10 Upstream 2 Indirect: 0 maximize yield. The client then buys back the produce directly from the farmers Other Food at a fair price, cutting out middle men. Food & The client is a fully integrated poultry and pork processor. The company’s Beverages - operations provide further benefits through its extensive supply chain linkages Animal Direct: 6,500 186 Ecuador 2009 Transition 20 upstream 2 to the local economy. The company and its sister companies employ over 6,500 Slaughtering Indirect: 0 people in Ecuador; its operations support the activities of about 15,000 local and suppliers of products and services. Processing The proposed investment will support diversification into food production and Agriculture processing by a successful private enterprise which has developed until now Egypt, Arab and Forestry - Direct: 1940 within the poultry sector. From 50 to 100 farmers will be associated with the 187 2005 Transition 15 Upstream 2 Republic of Poultry Indirect: 0 client through the contractual out-grower scheme. The project will assist the Farming farmers in improving their productivity and stabilizing the return to their invested capital and time. Agriculture and Forestry - The client is anticipated to involve 200 smallholder farmers from whom it will Diversified source vegetables grown on pre-agreed price/volume contracts and that meet Direct: 332 188 Ghana Edible 2012 Transition 7 Upstream 2 quality specifications. The client’s Group has extensive experience of working Indirect: 0 Agricultural with smallholder farmers in Kenya and will provide technical advice, training, Crops seeds, and a reliable market to contracted farmers. Production The Project will purchase sugarcane from around 130,000 small farmers. Food & Growing sugarcane is financially more profitable than alternative crops such as Beverages - Direct: 3,784 189 India 2007 Transition 50 Upstream 2 wheat and paddy so that farmers are expected to earn an additional $839 per Sugar and Indirect: 0 hectare (ha). Part of these benefits come from subsidies provided by the Confectionary Company for seeds, fertilizer and water. The adoption of Marketing Information System is expected to result in reduced risk from weather, lower cost of farmer inputs and an increase in farm yields due Agriculture Direct: 3,823 to better utilization of inputs. The client is expected to play a key role in not only 190 India and Forestry - 2013 Transition 60 Upstream 2 Indirect: 0 supplying some of the high-quality inputs for food/beverages sector but also in Other setting the benchmark for other players. The client and a partner company recently announced a program to educate mango farmers in the next 3 years 195 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents about ultra-high density plantation practice, which can double the output, reduce water and pesticide intake. The project is intended to enable the client to scale up its offtake of CPO from palm oil plantations in Indonesia. Not only will this facilitate an increase in exports in Indonesian palm oil, it will also have a positive effect on other players Agriculture Direct: 20,000 along the supply chain, such as farmers who will benefit from increased local 191 Indonesia and Forestry - 2004 Transition 33 Upstream 2 Indirect: n/a demand and access to international markets, as well as local businesses involved Palm Oil in services. Furthermore, IFC’s involvement in this transaction will be perceived as an endorsement of the Indonesian palm oil industry and will be a good illustration of IFC’s support for good sponsors in a socially sensitive sector. The Project is to assist the client to complete the setting up of 12 instant noodle production lines in Surabaya and 14 lines in Jakarta, with the Surabaya plant also Food & Direct: 8,260 producing powder and energy drinks, chili and soy sauce (the “Project”). The 192 Indonesia Beverages - 2004 Transition 18 Upstream 2 Indirect: n/a project will increase produce purchased from local farmers, as the client Other Food subsidiary buys locally produced fresh produce for the seasonings in their instant noodles. The client is undertaking a $176 million project (i) to expand its beverage product lines, (ii) to expand fruit flavored beverage in plastic cups, (iii) to commission a greenfield coffee mix production, and (iv) to increase the capacity of existing Food & detergent business. Expected development impacts are (i) demonstration effect Direct: 6,400 193 Indonesia Beverages - 2006 Transition 20 both 2 of strong attention to food safety and quality standards to other producers, (ii) Indirect: 0 Other Food providing quality products to people at the BoP, (iii) increased value addition in the local economy through the coffee project and (iv) higher reach to MSME through the client’s extensive distribution network (iv) creation of additional 2,100 jobs. The Group procures agricultural commodities from about 10,400 farmers, the majority of whom are represented through cooperatives. The Group intends to Food & increase the number of farmers reached to around 24,000 farmers by FY2016, Beverages - Direct: 1970 194 Moldova 2013 Transition 30 Upstream 2 mainly by broadening relations its existing network of procurement points Vegetable Indirect: 0 throughout the country and expanding arrangements with farmers through the Fats and Oils provision of seeds, fertilizers, and prefinancing in exchange for the purchase of their goods at harvest season. Expansion of raw milk procurement is expected to provide 2,500 existing and 1,500 new herders and farmers involved in milk supply chain with increased and Agriculture more sustainable income. At the same time the project will provide them with and Forestry - Direct: 312 195 Mongolia 2013 Transition 0 Upstream 2 more information about quality milk standards through newly established MCPs Other Animal Indirect: 0 and MCU as well as new milking parlors that will offer a controlled environment Production for cow milking; and (iii) Self-sustainability of Mongolia for domestic milk product supply will be improved and import dependency will be reduced. The Company’s expansion will yield benefits for MSMEs that provide inputs and Food & services to the Company. The client’s bakery operation has developed a Direct: 1,446 196 Nigeria Beverages - 2011 Transition 20 Both 2 network of over 2,000 distributors, which is expected to expand as the capacity of Indirect: 0 Other Food the bakeries increases. These MSMEs are largely owned by women and are involved in the distribution of bread. Food & The project will enhance the development of MSMEs in both Nigeria and Direct: 0 197 Nigeria Beverages - 2014 Transition 11 Downstream 2 Indonesia through ongoing purchases of goods and services. In Indonesia, the Indirect: n/a Other Food client’s products are sold through approximately 500,00 vendors operating 196 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents roadside stalls that are MSMEs. Similarly, in Nigeria, the detergents are distributed primarily through 350,000 MSMEs. The bulk of distribution occurs through small shops, family-owned businesses, kiosks and street hawkers. These vendors earn a significant return on the client’s products and are expected to benefit substantially from the increased supply of the Group’s products for which demand is currently outstripping supply. Food & Beverages - The Project will procure approximately 36,000 MT of paddy by third year Grain Direct: 123 through backward linkages with farmers. The Company will procure from 1 ,200 198 Pakistan Processing 2012 Transition 5 Upstream 2 Indirect: 2,303 farmers who will benefit from better terms and direct access to an export- (Milling, oriented supply chain. Starch, Flour, Malt) Wholesale The Project will support the opening of 34 hypermarkets mainly in small and and Retail remote towns in Bulgaria and Romania, thereby contributing to the development Trade - Retail of modern retail infrastructure in these regions. As the Group sources between Direct: 0 199 Romania (Including 2010 Transition 53 Upstream 2 70-80 percent of its products locally, both project companies will help strengthen Indirect: n/a Supermarkets, linkages with local suppliers (farmers and local SMEs), contributing to the Grocery increased development and efficiency of the supply chain in the respective Stores, etc.) countries. As the client expands its operations and requires more goods and services, it is expected to create business opportunities for SMEs. These opportunities may Food & Direct: 300 include spare parts, office supplies, computer services, security, food, and 200 Senegal Beverages - 2010 Transition 1 Downstream 2 Indirect: 0 transport. In addition, increased production of beverages is expected to result in Soft Drink the creation of many SME beverage distributors (in addition to the 78 with which the Group currently works). The operations of the client are estimated to benefit indirectly 4,000 farms (20,000 Food & households). The impact is particularly important in the poor provinces of Chaco Beverages - Direct: 3,000 201 Argentina 2005 Urbanized 35 Upstream 2 and Formosa where the Company’s cotton operations benefit approximately Vegetable Indirect: 0 1,500 farms which have few alternatives to growing cotton, given the climatic Fats and Oils conditions of those Northern provinces. Food & The client is increasing its upcountry origination, largely in the poorer northern Beverages - Direct: 0 202 Argentina 2009 Urbanized 40 Both 2 region of the country, as well as directly from farmer networks in Brazil, Vegetable Indirect: 0 Uruguay and Paraguay. Fats and Oils Wholesale The project is to assist a Belorussian leading retailer and wholesaler of DIY and and Retail home improvement goods, to complete the construction of the first modern DIY Trade - Retail Direct: 0 and home improvement hypermarket in Minsk (the “Project”). By providing an 203 Belarus (Including 2010 Urbanized 7 Upstream 2 Indirect: n/a efficient distribution channel, the Project will contribute to the development of Supermarkets, small local suppliers. In addition, by fostering competitiveness among local Grocery producers, the Project will improve the quality of local suppliers. Stores, etc.) The Project has significant development impacts through the following social Agriculture and environmental sustainability initiatives: (i)strengthening and extending and Forestry - Direct: 80 204 Brazil 2005 Urbanized 30 Upstream 2 sustainable environmental management practices to third party farmers who Grains and Indirect: n/a receive prefinancing from the client thereby impacting more than one million Beans hectares of soybean farming land; (ii)establishing a “certification” program that 197 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents could provide the impetus for the development and adoption by farmers of industry best practices; and (iii) facilitating a stakeholder dialogue on issues related to soybean cultivation. The Project consists of: (i) construction of two new milk processing facilities at Goiania and Uberlandia; and (ii) expansion and modernization of two existing Food & plants at Sete Lagoas and Para de Minas to expand and de-bottleneck existing Beverages - Direct: 60 205 Brazil 2006 Urbanized 15 Upstream 2 capacity. The client currently collects milk from an average of 7,000 suppliers, Dairy Indirect: 0 including about 50 producer associations formed by family farms that join to Products share equipment, such as refrigerated milk tanks, in this way, smaller farmers can gain access to the milk market. The Company provides technical assistance and prefinancing to farmers linked to its operations. It sources part of its cane requirements from some 20,732 ha of cane farming lands under supply contracts arrangements with third parties. The Agriculture Company has a major impact on the economic activity through its extensive and Forestry - Direct: 0 linkages to SMEs. It maintains contracts with 31 workers’ cooperatives that 206 Colombia 2009 Urbanized 30 Both 2 Sugarcane Indirect: 16,800 provide employment for about 3,200 unskilled workers for cane cutting, and and Beets 1,000 for fieldwork. In addition, the Company outsources its transport needs to 11 transport enterprises under long-term contracts and maintains a network of 330 nonexclusive wholesalers which in tum service an estimated 265,000 retail shops. Increased business opportunities for small and mid-sized pig-raising farms. The Agriculture client currently supplies about 15 percent of its swine needs from about nine and Forestry - Direct: 2,394 207 Mexico 2013 Urbanized 40 Upstream 2 third party pig-raising farms. The Company’s long-term plans include Other Animal Indirect: 0 developing contracts with growers to increase the proportion of pigs supplied by Production out-growers to about 30 percent of its requirements. The client, one of the leading agro-industrial meat producers in Russia, has requested IFC’s assistance in financing its corporate-wide expansion aimed at satisfying rapidly growing domestic demand via doubling production of meat, Agriculture grain and milk by 2010. The project involves: expansion of poultry breeder, Russian and Forestry - Direct: 4,110 208 2008 Urbanized 80 Upstream 2 broiler farms and hatcheries; start-up of a new poultry production complex in Federation Poultry Indirect: 0 Northern Russia; expansion of growing pig farms; construction of a pork Farming slaughter house and processing plant; expansion of dairy farms; expansion of crop land for grain growing; acquisition of agricultural machinery and equipment; expansion of feed mill capacity, and working capital increase and refinancing of the existing debt. Provision of long-term financing to support the expansion of the client, a leading Agriculture agribusiness conglomerate in Serbia focused on primary agriculture and and Forestry - vertically integrated meat processing. The Project fits well with IFC’s Diversified Agricultural Strategic Action Plan objectives as it will promote (i) food security Direct: 2,624 209 Serbia Edible 2012 Urbanized 56 Upstream 2 by increasing Serbia’s food production and exports; (ii) inclusive economic Indirect: 5,026 Agricultural development by expanding the Group’s reach to small farmers through Crops increased domestic purchases of meat and agricultural products as well as its Production integration in the agribusiness value chain both upstream and downstream; and, lastly, (iii) E&S sustainability by strengthening the Group’s E&S practices. 198 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Given the strong linkages of the client with farmers, the expanded production Food & Direct: 605 will provide local farmers with additional income. There are approximately 210 Serbia Beverages - 2012 Urbanized 16 Upstream 2 Indirect: 0 10,000 farmers that currently supply the client in the Racina district in Serbia and Soft Drink 4,000 farmers in Povardarie in FYR Macedonia. Agriculture and Forestry - The proposed project provides long-term financing to support the permanent Other working capital base and enhance the sustainability of the client’s Group Vegetable Oil companies. Domestically, the Group procures agricultural commodities from Crops Direct: 1,705 211 Serbia 2013 Urbanized 75 Upstream 2 about 400 farmers associations which, in turn, supply the Group from over (Coconut, Indirect: 0 25,000 farmers. Purchases of domestic agricultural commodities from micro, Rapeseed, small, and medium enterprises (MSMEs) are projected to increase from 87 Peanut, percent to 92 percent of total purchases during the projected period. Sunflower, etc.) Food & The project will contribute to the development of the fruit sector in southern Direct: 3,700 212 Ukraine Beverages - 2004 Urbanized 20 Upstream 2 Ukraine by creating consistent demand for local fruits purchased from private Indirect: 0 Soft Drink small farmer The project is to strengthen the financial viability of the company as it continues to develop its distribution infrastructure to better serve Ukrainian farmers. Agriculture Capital investments made by the company in the past two years have been Direct: 2,600 213 Ukraine and Forestry - 2006 Urbanized 10 Upstream 2 financed with medium-term (2-3 years) loans given the constraints of the Indirect: 0 Other Ukrainian financial markets. IFC’s role in this project will be to provide long- term financing, still unavailable in the market and to inject liquidity in a local company, which provides valuable service to the Ukrainian farming community. The project will continue contributing to the development of the fruit sector in Food & Direct: 3,700 Southern Ukraine by increasing demand for local fruits purchased from private 214 Ukraine Beverages - 2007 Urbanized 20 Upstream 2 Indirect: 0 small farmers. IFC’s investment will, by increasing demand for local produce, Soft Drink support small local farmers who supply the client. Additional financial resources will allow the client to provide a better service to the farmers in its catchment area, such as transport and storage services. More Agriculture choices and better service will translate into better and more reliable income and Forestry - Direct: 29 215 Ukraine 2009 Urbanized 13 Both 2 streams for local farmers. The project is expected to reach 400 farmers. The client Grains and Indirect: 0 hires local contractors to transport grains from farms and collection centers to Beans storage facilities. The number of transport trips and contracts are likely to increase significantly. The project involves providing an annual revolving working capital facility to a Agriculture leading Ukrainian primary agricultural producer with a proven track record of and Forestry - growing wheat, barley, sugar beet, rapeseed, potatoes, and other crops. Project Diversified active in Ternopil, Ivano-Frankivsk, Lviv, Chernivtsi and Khmelnitsky regions, Direct: 1,002 216 Ukraine Edible 2014 Urbanized 65 Upstream 2 which are among the poorest regions in the country. The client sells its products Indirect: 0 Agricultural to a diversified base of final customers and traders. Among them, there currently Crops are about 50 MSME distributors of mainly potatoes and corn, for final sales on Production the domestic market and 110 transporters to deliver the grains and crops to the port for export. Agriculture IFC investment in a leading agribusiness company with a proven record in Africa Direct: 7,678 217 and Forestry - 2004 Agrarian 8 n/a 3 reaching out to challenging agricultural regions to strengthen the client’s capital Region Indirect: 0 Diversified structure and help it expand existing new operations. 199 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Edible Agricultural Crops Production Increased local production of preforms and caps is expected to encourage the Food & Côte Direct: 300 growth of SMEs in manufacturing sectors including bottle blowers and food 218 Beverages - 2010 Agrarian 10 Both 3 D’Ivoire Indirect: 0 processors as the client accepts small orders and extends favorable payment and Soft Drink delivery terms. Agriculture The proposed investment will support (i) a regional player’s south-South and Forestry - Direct: 66 expansion, and (ii) the development of the port of Nacala in Mozambique. It will 219 Mozambique 2009 Agrarian 7 Downstream 3 Grains and Indirect: n/a also significantly reduce wheat handling and transport costs to Malawi and Beans northern Mozambique and allow more wheat supply to these areas. Food & Beverages - Grain To support the continued expansion of a successful Mozambican company, by Direct: 490 220 Mozambique Processing 2012 Agrarian 25 n/a 3 increasing its production capacities, logistics, storage and distribution systems to Indirect: 0 (Milling, meet growing demand. Starch, Flour, Malt) Food & Beverages - The investment will generate approximately 100 new permanent jobs in Nacala, Grain Direct: 29 Mozambique and 40 in Kigali Rwanda. The development of flour milling 221 Rwanda Processing 2010 Agrarian 3 Upstream 3 Indirect: n/a traditionally has a significant impact on the development of local MSMEs that (Milling, provide goods and services to the mill or purchase from the mill. Starch, Flour, Malt) Agriculture The Project is to support the expansion and upgrade of the client’s tuna Solomon Direct: n/a 222 and Forestry - 2014 Agrarian 10 n/a 3 processing plant and increase capacity from 90 metric tonnes per day currently Islands Indirect: 0 Fishing to 150 metric tonnes per day. The Project will create an additional 50 permanent and 100 part-time jobs, Food & generating a multiplier effect on the region’s economy. Further, as the client Direct: 436 223 Tanzania Beverages - 2005 Agrarian 10 Downstream 3 distributes its products through a network of 26 stockists and wholesalers, and Indirect: 0 Soft Drink 9,500 retail outlets which will directly benefit from the close to 50% increase in sales due to the Project in 2009 compared with 2004. Food & The client intends to transfer and deploy its innovative manual distribution Direct: 9,000 224 Vietnam Beverages - 2006 Agrarian 35 Downstream 3 center system in Asia, which will support micro-entrepreneurial activity, Indirect: n/a Soft Drink resulting in sizable SME development and job creation for low income groups. Wholesale West Africa remains a deficit market for several key commodities such as rice and Retail and sugar. The Project will ensure a steady supply, consistent quality, and better Trade - food safety of the products in which the client trades for regional consumers as a Wholesale Direct: 0 225 Ghana 2008 Transition 20 Both 3 result of the Group’s branding and packaging-for-retail strategy. The client’s (Including Indirect: n/a purchase of Grocery and local products (fast-moving consumer goods, cocoa, etc.) stimulates local supply Farm and processing by national suppliers and farmers. Products) 200 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Agriculture IFC chose to invest and support the creation of an employee share plan to sustain and Forestry - Direct: 31,318 employment at the client’s tea plantations in 2009. An important component of 226 India 2009 Transition 7 n/a 3 Coffee, Cocoa, Indirect: 146,834 IFC’s engagement has been to empower employees by making them stronger Tea stakeholders. The project involves the establishment of the client’s ready-to-drink plant in Food & Jakarta. The launch of the client’s product, which focuses on providing a better Direct: 300 227 Indonesia Beverages - 2006 Transition 7 Downstream 3 product quality at a more affordable price, is expected to lead to a general Indirect: 0 Soft Drink improvement in product quality and a decrease in the price of similar ready-to- drink products targeting low income consumers. The Company is one of the largest employers in the This region in Senegal with currently 216 full-time employees, of whom 20 percent are female, and an Food & Direct: 0 additional 140 daily workers. The Project is expected to create 73 permanent 228 Senegal Beverages - 2014 Transition 7 Upstream 3 Indirect: n/a positions as well as 386 daily jobs in an area where employment opportunities Soft Drink are scarce. The client locally sources fresh raw milk for its UHT milk product line and is helping to set up sustainable local raw milk collection centers. Agriculture A regional bank in the Fergana Valley, a densely populated region with and Forestry - Direct: 0 significant poverty, is now transforming into a nationwide financial institution, 229 Uzbekistan 2007 Transition 3 n/a 3 Grains and Indirect: n/a offering not only SME loans but also microloans, consumer loans and leasing Beans products. Wholesale The Project will establish 34 new stores principally in smaller cities (less than and Retail 100,000 inhabitants), create more than 13,000 new jobs (direct and indirect), and Trade - Retail Direct: 0 build and strengthen local supply chains. The client, since 2004, relies on a 230 Bulgaria (Including 2010 Urbanized 23 Upstream 3 Indirect: n/a network of over 2,000 suppliers in Bulgaria and Romania, 80 percent of which Supermarkets, are local, including small and medium-enterprises engaged in food transport and Grocery individual farmers. Stores, etc.) The proposed project is a €105 million investment plan for 2008-2011 that will (a) increase the client’s fresh and processed meat production capacity from 40,000 to 100,000 metric tons (mt) per annum (p.a.), (b) expand both the client’s own Agriculture livestock production and its ability to further develop contract farming in the and Forestry - Direct: 2,085 231 Croatia 2008 Urbanized 0 Upstream 3 region for cattle and swine to increase its supply of fresh meat, (c) expand the Other Animal Indirect: n/a client’s other productions such as cheese, flour, feed and cropping equipment, Production (d) increase the client’s contract farming operations for growing crops from 30,000 ha to 50,000 ha, and (e) finance the working capital and other intangible investments needed to support the proposed growth (the “Project”). The client is planning to expand its network of discount grocery stores in Wholesale Bulgaria, Croatia and Serbia. The relevant key development impacts include (i) and Retail supporting the development of local suppliers in its food supply chain through Trade - Retail Direct: 0 improvements in food quality and safety as well as in operating standards; (ii) 232 Croatia (Including 2013 Urbanized 38 n/a 3 Indirect: n/a improving access for local low-to-middle income customers in frontier regions Supermarkets, and small cities of the Target Countries to a more affordable diverse selection of Grocery high-quality food products; (iii) creating significant local direct and indirect Stores, etc.) employment with a majority of the new jobs to be occupied by women. Latin Agriculture IFC investment in a client specialized in lending to companies which produce or Direct: 0 233 America and Forestry - 2013 Urbanized 50 Downstream 3 process agricultural commodities in Latin America, or companies that trade with Indirect: n/a Region Other them. This financial intermediary lends directly to companies in agribusiness 201 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents value chains, which play a crucial role as the source of working capital to their smaller suppliers. The company is a diversified agribusiness concern engaged in the production of table eggs, broilers, pork and horticulture in Lagos de Moreno, a central Mexican Agriculture State of Jalisco. The parent project involves a $28.9million investment program and Forestry - Direct: 1,150 234 Mexico 2005 Urbanized 0 Upstream 3 (revised down from $33.2million) to (i) upgrade layer farms; (ii) construct stage- Poultry Indirect: n/a specialized pig farms; (iii) construct a hatchery and upgrade broiler farms; (iv) Farming construct a feed mill; (v) construct a hog slaughter house and cutting room and (vi) working capital. Wholesale and Retail The Project will supplement the availability of credit for suppliers, and support Trade - Retail Direct: 0 jobs in companies that are facing working capital constraints. Together with the 235 Mexico (Including 2012 Urbanized 604 Upstream 3 Indirect: n/a other financiers, IFC will help SME supplier’s access to more diversified sources Supermarkets, of lower-cost financing. Grocery Stores, etc.) The Project involves the: (i) acquisition; (ii) revival of the brewery’s existing brands and development of new brands; (iii) refurbishment and expansion of the brewery to increase its annual production capacity from 0.72 million hectoliters (“HL”) to 1.5 million HL by 2008; (iv) restructuring of existing debt; and (v) Food & provision of working capital. The Project will support economic development in Russian Direct: 526 236 Beverages - 2006 Urbanized 20 Downstream 3 the town of Trudovoye by preserving jobs previously lost when the Company Federation Indirect: n/a Breweries ceased operations in April 2005. Upon project completion, the Company will supply 1,500 retail outlets. As a result, the Project will further support indirect employment creation and micro enterprise development through forward linkages in beverage distribution and retailing sectors. Wholesale The proposed transaction is a €250m debt and equity facility to finance (i) and Retail supermarket expansion in Russia, (ii) expansion in Vietnam, a new market and Trade - Retail (iv) opening or expanding retail operations in countries in Eastern Europe, Asia, Russian Direct: 0 237 (Including 2014 Urbanized 43 Upstream 3 and Africa. The Company’s target is explicitly the lower bracket of the middle Federation Indirect: n/a Supermarkets, income class in urban areas. The Company’s projects will create significant local Grocery direct employment (with a significant portion of female employment) and in Stores, etc.) addition also indirect employment in the retail value chain. The client is one of the leading retail companies in South-Eastern Europe. The Wholesale company sells a wide range of consumer products including fast-moving and Retail consumer goods, clothing, furniture and household appliances. The Southern Trade - Retail Direct: 0 development impact of the client’s expansion program includes: stimulating 238 Europe (Including 2007 Urbanized 51 Downstream 3 Indirect: n/a competition in the retail sector in South-Eastern Europe; developing linkages Region Supermarkets, with local suppliers thus contributing to the increased development and Grocery efficiency of the retail supply chain; and expanding and strengthening the retail Stores, etc.) infrastructure in the region. The client is seeking financing from IFC to upgrade its poultry processing Food & operations and associated facilities in Turkey including slaughterhouses, further Beverages - Direct: 2,180 239 Turkey 2007 Urbanized 35 upstream 3 processing plants, feed mills and cold storage facilities in Bandirma and Izmir. In Animal Indirect: 0 Romania, Banvit is building a hatchery, parent stock farms, feed mill and sales Slaughtering centers to support its poultry operations. 202 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents and Processing The Company is undertaking a greenfield project for the production of croissants Food & in Turkey. The croissant manufacturing plant, currently at the last stages of Direct: 142 240 Turkey Beverages - 2014 Urbanized 15 n/a 3 construction, will operate with two production lines, with a total capacity of 410 Indirect: n/a Other Food pieces of packaged products per minute producing two types of croissants: cocoa cream and vanilla cream croissants. Agriculture The client is a family-owned private Company which is engaged in sourcing, and Forestry - processing, storage and trading of conventional and organic grains (wheat, Diversified Direct: 807 barley and corn), pulses (lentils, chickpeas, peas, beans, rice and bulgur), oil 241 Turkey Edible 2014 Urbanized 30 Upstream 3 Indirect: 0 seeds (sunflower, sesame, canola and soybean) and nuts (pistachio, almonds, Agricultural walnut and peanuts) across Europe, Africa, the Middle East, CIS countries, Crops Indian subcontinent and North America. Production Wholesale The client will provide an outlet for local production and foster competitiveness and Retail of the local industry, thus improving the quality of the local supply. Trade - Retail Direct: 780 Furthermore, the client has recently opened five stores and moving forward, 242 Ukraine (Including 2009 Urbanized 20 Both 3 Indirect: n/a intends to operate up to 56 owned stores and up to four leased distribution Supermarkets, centers throughout Ukraine by 2010. The stores will be located in 25 cities in 20 Grocery regions in Ukraine, of which 7 are classified as frontier regions according to IFC. Stores, etc.) Wholesale The client sources a majority of its products from approx. 1500-1600 local and Retail suppliers (300-400 of which are SMEs). A significant portion of the product sold Trade - Retail in the client’s stores are produced locally by manufacturers, processors and Direct: 4,773 243 Ukraine (Including 2013 Urbanized 30 Upstream 3 growers who could benefit from working with a global retailer with strict quality Indirect: n/a Supermarkets, standards, which will lead them to improve their food safety and product quality Grocery standards. The project will generate approx. 1,500 direct jobs during construction Stores, etc.) and up to 600 direct jobs during operation. Wholesale The company operates 4 supermarkets with a warehouse facility in Burkina Faso, and Retail a supermarket and retail/office building in Ghana, and a supermarket in Niger. Trade - Retail Direct: 0 The Project entails: (i) the modernization and expansion of the main supermarket 244 Burkina Faso (Including 2008 Agrarian 1 n/a 4 Indirect: n/a by building and equipping two additional floors of 2,250 m2 in total on the Supermarkets, current supermarket site; (ii) the construction of two other buildings of 1,050 m2, Grocery at the centralized purchasing warehouse; and (iii) the expansion of the Stores, etc.) supermarket by 900 m2, as well as, the acquisition of some equipment. The proposed transaction involves a long-term loan and a Stand-by facility to (i) Agriculture a company recently created to construct and manage a wheat terminal in Nacala, and Forestry - Direct: 135 Mozambique; (ii) an existing flour mill near Blantyre, Malawi, to help refinance 245 Malawi 2008 Agrarian 5 n/a 4 Grains and Indirect: n/a some short-term supplier credit; and (iii) another company within the client Beans group in Tanzania to refinance some short and medium-term financial debt that is maturing between 2008 and 2009. Wholesale The project consists of: (i) the modernization and expansion of their retailing and and Retail Direct: n/a warehousing facilities in Burkina Faso; (ii) the construction of a 13,000 square 246 Niger Trade - Retail 2008 Agrarian 1 n/a 4 Indirect: n/a meters (“sq.m.”) retail/office building and a supermarket in Ghana; and (iii) the (Including expansion of their supermarket in Niger. Supermarkets, 203 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Grocery Stores, etc.) Wholesale and Retail Trade - The proposed investment is an IFC A loan of up to $1.7 million to the largest Wholesale Direct: 314 food distributor in Tajikistan. This working capital facility will significantly 247 Tajikistan 2012 Agrarian 2 n/a 4 (Including Indirect: n/a lower the client’s financing costs, enabling it to increase efficiencies, spur further Grocery and growth and provide more competitive pricing to the consumer. Farm Products) Wholesale and Retail The project consists of: the modernization and expansion of the client’s retailing Trade - Retail Direct: 0 and warehousing facilities in Burkina Faso; the construction of a retail/office 248 Ghana (Including 2008 Transition 5 n/a 4 Indirect: n/a building and of a supermarket in Ghana; and the expansion of its current Supermarkets, activities in Niger. The project is expected to offer better consumer choices and Grocery higher quality of goods sold. Stores, etc.) Food & The Company plans to build a new plant with production capacity of 600 tons Beverages - Direct: 204 249 India 2008 Transition 6 n/a 4 per day (tpd) in Khopoli, Maharashtra and shut down its old plant with 250 tpd Vegetable Indirect: 0 capacity in Mumbai (“the Project”). Fats and Oils Wholesale and Retail Trade - Retail The company is expanding a format of discount grocery stores through a long- Direct: 3,224 250 Romania (Including 2012 Transition 67 n/a 4 term expansion plan in Romania, where it currently operates around 118 stores Indirect: n/a Supermarkets, and two distribution centers. Grocery Stores, etc.) The client is one of the leading producers and distributors of candies, chocolates Food & Direct: 700 and cookies in South America. The project entails providing a corporate loan to 251 Argentina Beverages - 2006 Urbanized 70 n/a 4 Indirect: n/a lengthen the maturities of its debt and to finance its capital expenditures Other Food program. Food & The Sponsor plans to complete its obligations under the Agreement in two Direct: 0 252 Belarus Beverages - 2006 Urbanized 2 n/a 4 phases. The Sponsor’s plans to: (i) refurbish, modernize and expand facilities; (ii) Indirect: n/a Breweries develop a distribution system and brands for beer; and (iii).repay old debt. Wholesale and Retail The Project will be focused on underserved regional retail markets. The Belarus Trade - Retail Direct: 3,200 retail market remains fragmented with the 5 largest food retailers having an 253 Belarus (Including 2013 Urbanized 20 n/a 4 Indirect: n/a estimated market share of around 15% nationwide and most modern shops are Supermarkets, located in the capital. Grocery Stores, etc.) Wholesale The proposed EUR450 million expansion project is to establish about 100 and Retail Direct: 0 254 Croatia 2004 Urbanized 49 n/a 4 discount stores, 55 hypermarkets and three distribution centers in Poland, Trade - Retail Indirect: n/a Croatia, Romania, and Bulgaria. All these countries have significant population (Including 204 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents Supermarkets, with adequate purchasing power to make the Group’s discount business model Grocery successful. Stores, etc.) The proposed Project consists of a total investment of up to $383 million in Food & support of improvements to the client’s financial risk profile. The Group is a Beverages - Direct: 4,247 255 Croatia 2013 Urbanized 21 n/a 4 leading producer of food and personal care products as well as a leading Sugar and Indirect: n/a distributor of consumer goods in South-Eastern Europe. The Group also owns a Confectionary private chain of pharmacies in Croatia. The Company requested further IFC support as the Company expands into the juice sector in Belarus and software sector in Russia. IFC’s investment and Eastern Food & Direct: 60 participation in this transaction will facilitate the establishment of the first 256 Europe Beverages - 2007 Urbanized 38 n/a 4 Indirect: 0 commercial juice company in Belarus via the privatization of underperforming Region Soft Drink assets; and support the development of a fast-growing IT services company in Russia. Agriculture The IFC Project will help (i) improve the operation’s biosecurity to reduce the and Forestry - Direct: 803 257 Kazakhstan 2010 Urbanized 2 n/a 4 risk of disease; (ii) accelerate the retailing of the branded chilled production; and Poultry Indirect: n/a (iii) reduce feed costs. Farming Agriculture The project finances to a local greenhouse tomato producer for the construction and Forestry - Direct: 2,188 258 Mexico 2011 Urbanized 5 n/a 4 and operation of the additional 30 hectares of greenhouses for the production of Fruits and Indirect: 0 tomatoes and the installation of a water recycling facility. Vegetables Agriculture The proposed project consists of a credit enhancement by IFC of a $25 million and Forestry - Direct: 2,100 bond issue and a $5 million equivalent commercial paper program. The proceeds 259 Peru 2005 Urbanized 8 n/a 4 Fruits and Indirect: 0 will finance its subsidiaries’ maintenance and other capital expenditures as well Vegetables as refinance outstanding short-term and long-term debt. Food & The proposed project will expand the client’s production capacity and reduce Beverages - Direct: 1,473 operational costs, further strengthening the Company’s international 260 Peru 2007 Urbanized 18 n/a 4 Sugar and Indirect: 0 competitiveness. The project will result in additional job positions in an area Confectionary where the Company remains the principal source of employment. Agriculture and Forestry - Other Vegetable Oil The client has requested IFC’s assistance in financing the completion o f a deep Russian Crops Direct: 550 water port and supporting infrastructure, including warehouses and soybean 261 2008 Urbanized 100 n/a 4 Federation (Coconut, Indirect: 0 and rapeseed processing plants, located in the town of Svetliy, the Kaliningrad Rapeseed, Region, and provision of incremental working capital. Peanut, Sunflower, etc.) Food & The Project is the construction and operation of a green field meat processing Beverages - plant in Kaliningrad, Russia with an installed capacity of 53,000 tons per year Russian Animal Direct: 200 262 2008 Urbanized 15 n/a 4 (tpy). The benefits to consumers and producers included better product quality, Federation Slaughtering Indirect: n/a better service, and declining prices of FPPs including those supplied by fast-food and chains. Processing 205 APPENDIX G IFC VALUE CHAIN Primary Sector - Value Chain Employment by Tertiary APP Cmt Linkages (B, project or client RNFE # Country Sector FY World ($m) D, U) (Direct/Indirect) Classf.1 Reach to Rural Poor and Frontier Areas Identified in Project Documents The client is a Serbian subsidiary of a group headquartered in Croatia, which is Food & the 2nd largest regional food and beverage producer and the #1 distributor of Beverages - Direct: 0 263 Serbia 2013 Urbanized 15 n/ 4 fast-moving consumer goods in the western Balkans. The Project involves the Sugar and Indirect: n/a refinancing of an existing loan in the outstanding amount of EUR 61.36 million Confectionary and financing of energy efficiency improvements of up to EUR 10 million. Food & The proceeds of the loan provided by IFC to the client shall be used for one or Beverages - Direct: 0 more of the following purposes: 1) acquisition of a company in the consumer 264 South Africa 2010 Urbanized 5 n/a 4 Vegetable Indirect: 0 goods space; 2) regular capital expenditure: and 3) repayment of the unsecured Fats and Oils loan from the parent. The Company concentrates on two main areas: (i) fruit juice and concentrates; and (ii) processed food, including tomato and pepper pastes, ketchup, Food & Direct: 920 mayonnaise, canned and stewed products, ready dishes, pickles, jams and 265 Turkey Beverages - 2011 Urbanized 16 n/a 4 Indirect: 0 marmalades. The proposed corporate loan will be used for refinancing part of Soft Drink the Company’s existing short-term debt, working capital requirement and additional/maintenance capital expenditures (collectively the Project). The project is expected to have the following development impacts. It will support the growth of a private productive enterprise; provide a refined tropical Food & oils to the food processing industry; enhance competition in the fats and oils Beverages - Direct: 245 market; establish an infrastructure investment supporting the trade and refining 266 Ukraine 2007 Urbanized 18 n/a 4 Palm Indirect: 324 of tropical oil into its markets; bring additional tax revenues for the Government Vegetable Oil of Ukraine with import duties and corporate income tax; and offer further leverage to improve the company’s environmental and social management capabilities. Wholesale and Retail Trade - Retail The proposed IFC investment will contribute to the stable functioning of a Direct: 2400 267 Ukraine (Including 2009 Urbanized 12 n/a 4 modern distribution, warehousing and logistics services provider in Ukraine in Indirect: n/a Supermarkets, difficult financial market conditions. Grocery Stores, etc.) Agriculture and Forestry - The Project involves providing a long-term financing to a leading Ukrainian Diversified primary agricultural producer with a proven track record of growing wheat, Direct: 1,002 268 Ukraine Edible 2012 Urbanized 5 n/a 4 barley, sugar beet, rapeseed, potatoes, and other crops. The long-term loan will Indirect: 0 Agricultural provide financing to improve the operational processes and resource efficiencies Crops at the sugar plant companies. Production Agriculture The IFC’s financing package, which also includes an equity investment of up and Forestry - Direct: 2,424 ~€23 million to the client, will be to support the Group’s expansions into 269 Ukraine 2014 Urbanized 47 n/a 4 Other Animal Indirect: 0 Ukraine, Poland and a potential acquisition in Russia. The €36 million loan Production proceeds will be used exclusively for the expansions in Ukraine. Note: APP =Approval; Cmt = commitment; FY = fiscal year; SME = small and medium enterprise; U =Unsatisfactory. 206                                                              1 Legend: 1. IFC direct Investment in rural areas (RNFE) with an explicit aim of generating rural employment, target poor/frontier regions, benefiting sm farmers/distributors/suppliers living in rural areas, base of the pyramid; 2. IFC investment may not be located in rural area, but project explicitly aims to farmers/farmers/suppliers/distributors in the value chain; 3. IFC investment may not be located in rural areas but project indicates backward and forwa the rural economy. 4. Urban based investment where the links to the rural economy are likely, but not explicitly referenced or described in project docum Appendix H. Methodology Theory of Change The rural poor are often engaged in “last resort” nonfarm activities that are not associated with high levels of labor productivity, whereas the nonpoor are engaged in nonfarm activities with higher levels of labor productivity. Significant correlates of these high-productivity occupations include human capital (education and skills), physical capital (roads, power, and electricity), and access to finance social capital. There are also large gender disparities in the rural nonfarm labor market. Targeted development assistance, designed to strengthen the human, physical, financial, and social capital of the poor, can increase the likelihood that the poor can gain access to a wider variety or opportunities in the rural nonfarm economy (RNFE), including more productive opportunities or an expanded, more diversified set of activities that can help households to sustainably increase their overall standard of living. To achieve these gains, rural nonfarm enterprises and services must be sustainable and competitive which, in turn, requires investments that integrate the different parts of the rural economy. Public sector investment in basic services plays an important role in providing the enabling environment for these enterprises to grow and remain profitable. Private sector development assistance can help identify gaps and to reduce risk to incentivize scalable investment. In the absence of an existing framework within the World Bank Group, IEG deduced a logical framework describing the World Bank Group’s RNFE engagement (figure H.1). The framework links a diagnostic understanding of opportunities and constraints in the RNFE to a set of World Bank Group interventions designed to address them. Clearly, the completeness and efficacy with which the World Bank Group carries out different steps varies dramatically, and the evaluation shows where there is work to be done or paths to be changed. The way forward for a given economy depends on the initial country conditions and context, including the state of structural transformation (that is, which of the three world’s one is in). The tools for intervention range from strategic, analytic, and advisory work to work on broad enabling conditions to specific investments. Figure H.1 also emphasizes the binary nature of the portfolio, divided in major approaches between those focused on poverty and those focused on growth. Furthermore, a dynamic theory of change would allow for relevance, efficiency, and effectiveness to improve with learning from each round of experience. Such learning and course correction would depend on sufficient information being generated on interventions and their outcomes and 208 APPENDIX H METHODOLOGY impacts, so that such learning is possible. It would also depend on incentives for World Bank Group staff to use such learning. Figure H.1. Logical Framework Describing World Bank Group Support for the RNFE     Key Evaluative Questions The overarching question of this thematic evaluation is, “How successfully has the World Bank Group contributed to the creation of sustainable income-generating opportunities for the rural poor within the RNFE and what attributable effects have World Bank Group efforts had on reducing poverty? To answer this question, the relevance, effectiveness, efficiency, and sustainability of the World Bank Group interventions at all levels—strategy, project, portfolio, program, country, and aggregate—were assessed. Table A.1 shows the set of questions to be explored as well as the sources, methods, and expected constraints of the analysis. 209 APPENDIX H METHODOLOGY Table H.2. Key Evaluation Questions Data Analysis and Key Questions Information sources collection methods Data limitations Overarching Questions: How successfully has the World Bank Group contributed to the creation of sustainable income- generating opportunities for the rural poor within the rural nonfarm economy and what attributable effects have World Bank Group efforts had on reducing poverty? Relevance: Are World Bank Group interventions relevantly responding to client needs to help alleviate poverty by developing the rural nonfarm economy in a sustainable and inclusive way? Is the World Bank Group strategically collaborating with partners to help develop the rural nonfarm economy for the benefit of the poor? How relevantly are World Bank  Corporate The strategy level:  The rural nonfarm sector is a Group interventions Strategies; GP, VP Review of Strategies; Multisectoral theme that requires diagnosing and addressing the Strategies and dialogue with key collaboration across GP (AG, supply and demand-side Action Plans; CASs, members of the GPs SURR, Transport, Macro, Water, constraints related to the SCDs and CPFs; and VPs + Staff; Poverty SP etc.). Rural nonfarm development of a sustainable, AAA; investment Interviews of key aims are part of the Ag Action Plan profitable and inclusive (pro- Climate; project partners (IFAD, FAO, but require multisectoral poor) rural nonfarm economy? appraisal and CGIAR, IFIs, and collaboration for implementation. supervision Bilateral) + country  At the global and country documents + clients. Portfolio review.  At the country level, rural nonfarm level, how is the World Bank evaluations. data is weak, not consistent across positioning itself Structured  The country level: CAS/ countries. Definition of “Rural” strategically? At the country Interviews, Focus SCD /CPF Review for differs; households only report level, how relevant are Groups, Country countries selected for income from primary employment; project designs to country cluster visits + desk and field Review + Variations in country conditions will contexts and national reports; portfolio structured interviews of make conclusions limited and poverty reduction planning review of rural- country teams. Portfolio contingent. needs with regard to the themed projects in review of AAA, lending, development of the RNFE? the World Bank; Advisory, TA etc. field portfolio review of visits protocols will  At the household level IFC investments in triangulate feedback (project design, targeting, the rural nonfarm from multiple measurement) how economy + MIGA government agencies. relevantly is the World Bank Feedback from project Group addressing the  Survey of teams and beneficiaries. differentiated needs of the collaboration with Focus groups with marginalized, vulnerable, IFAD thematic TTLs and women, youth etc.? Country Teams. Effectiveness: How effectively have World Bank Group interventions contributed to the development of a sustainable and inclusive rural nonfarm economy? How have these efforts contributed to alleviating rural poverty?  How effectively has the  ISRs, ICRs, ICRRs,  portfolio review  Many projects will not have World Bank Group PPARs, XPSR  country case studies recorded impacts; IFC projects, supported employment EvNotes, PCRs,  interviews Macro (PRSCs and DPLs) will have creation, increased incomes PES, PERs, Review  focus groups system effects that will need to be and enhanced welfare for of GAFSP. Country  partnership review measured differently than direct the poor within the rural studies, country World Bank investments in the rural nonfarm economy? missions. Interviews, space. external evaluation  How has this assistance materials. been targeted toward and how has it impacted the 210 APPENDIX H METHODOLOGY Data Analysis and Key Questions Information sources collection methods Data limitations marginalized, vulnerable, women, youth etc.? Efficiency How efficiently have the World Bank Group agencies worked together to help develop a sustainable and inclusive rural nonfarm economy?  How has the World Bank Mainly from country  Effectiveness data in the  Information on the cost and benefits Group helped clients to case studies that ICRRs and PPARs. for the poor (or cost and benefit of reduce the transaction costs include a review of the Interviews with country attaining specific distributional associated with integrating portfolio of the three teams, TTLs, and impacts) will be lacking. the rural poor into the agencies. government  Coordination efforts tend to be nonfarm economy? At the counterparts poorly documented in project country level, how have the documents and micro evaluation World Bank, IFC and MIGA documents, according to IEG worked together to increase experience. opportunities for the rural poor to benefit from the nonfarm economy? Environmental and Social Sustainability: Is the World Bank Group’s support for the RNFE environmentally and socially sustainable?  What are the Key E&S  Safeguards and  Extraction of E&S  IEGFP only validates 25% of all issues that emerge in the performance Lessons from the projects; quality of E&S issues in review of the core rural standards data Safeguards and ICRRs, PPARs. non- farm portfolio and how performance standards effectively were these data as part of the issues addressed? How did portfolio review of World E&S affect decision- Bank, IFC and MIGA. making, risk-taking and Interviews with E&S investment choices in the Specialists that have portfolio? supported RNFE activities. Country mission protocols, pairing with E&S IEGFP country visits. Note: AAA = Analytical and Advisory Assistance; CAS = country assistance strategy; CPF = Country Partnership Framework; E&S = environmental and social; DPL = development policy loan; EvNote = Evaluation Note; FAO = Food and Agriculture Organization; GAFSP = Global Agriculture and Food Security Program; GP = global practice; ICR = Implementation Completion and Results Report; ICRR = Implementation Completion and Results Report Review; IFAD = International Fund for Agricultural Development; IFC = International Finance Corporation; IFI = International Financing Institution; ISR = Implementation Status and Results Report; Project Completion Report; PER = Public Expenditure Review; PES = Project Evaluation Summary; PPAR = Project Performance Assessment Report; PRSC =Poverty Reduction Support Credit; RNFE = rural nonfarm economy; SCD = Systematic Country Diagnostic; VP = vice presidency; XPSR = Expanded Project Supervision Report Country-Level Analysis: Assessing the Direct and Enabling Support of the World Bank Group and Partnership Efforts The breadth of the World Bank Group portfolio selection for country case studies was guided by an assessment of the specific country conditions, with regard to the stage of development of both the country and areas of the country that may be lagging. 211 APPENDIX H METHODOLOGY Contribution analysis. A central challenge in evaluating the World Bank Group’s effectiveness in promoting the development of the RNFE is that the World Bank Group is never the only cause of observed outcomes and impacts. Instead, activities contribute to observed outcomes that are also influenced by local and global policies, events, and activities, both positive and negative. At the country level, country case studies used contribution analysis (the plausible association of interventions or programs to observed outcomes) while accounting for the various other factors that may have positively or negatively influenced the contributions. Such analysis was used to understand how World Bank Group has partnered with other actors and institutions (including domestic institutions in the public and private sectors and other donors), leveraged its investments, and created synergies within the international aid community to help develop an inclusive RNFE with the aim of reducing poverty. The approach paper for this evaluation laid out a theory of change that has guided the different levels of inquiry within the macroevaluation. Country case studies tested this proposed theory against each country’s unique strategy and portfolio assessments in addition to weighing in on the theory’s applicability across different country and regional characteristics. Country cases to assess multiple theories— nuanced to fit particular historical, political, social, and cultural circumstances—are needed to guide World Bank Group support for poverty reduction as part of a countries’ rural transformation. Country Case Selection and Methodology As stated in the guidance note “The Use of Country Case Studies in IEG Macro- Evaluations,” country case studies can provide more contextually specific evidence on factors of success and failure—a richer, more “textured” sense of how things work in practice—by assessing a number of activities and circumstances operating in tandem over time. Country case studies provide important details on patterns within countries and across similar or contrasting country typologies. Case study selection traditionally reflects a range of regions or income categories of countries, but it can be strategically aligned with the initial understanding of the key conditions influencing country strategy and outcomes in the focal area of the evaluation. A multiple-country case study design can enable richer and more robust learning if countries can be differentiated by a set of parameters relevant to the anticipated effective development impact. These parameters are not only characteristics of the countries but also determine how to respond to World Bank Group interventions and should allow readers to draw lessons as a function of these parameters. 212 APPENDIX H METHODOLOGY This evaluation conducted 10 country case studies (including 9 field assessments). Country selection was guided by a stratification of countries along the different stages of agrarian transformation, as identified by countries’ current position the “three worlds” (figure A.2) used by the World Development Report 2008. This allowed the evaluation to draw on comparative cases. Data on labor movement and agriculture’s contribution to gross domestic product was taken from the World Development Indicators, among other sources. Country selection was also guided by a stratified approach across the World Bank Group’s regions, weighted with regard to the number of countries in each region and the variety of RNFE interventions, including across World Bank Group institutions—a factor considered to support the analysis of World Bank Group coordination, synergy, and sequencing. Figure A.2. Movement across the Three Worlds of Agricultural Transformation Source: WDR, 2008 Core and Enabling Portfolio Identification The World Bank has a larger role in generating rural nonfarm income-g opportunities than has been identified by its sector and thematic codes. The RNFE is not a sector but a prominent theme in the World Bank’s agriculture action plan. As articulated in that plan, the development of the RNFE requires support across the World Bank’s GPs. In the absence of an identified portfolio, the evaluation used the theme code “rural nonfarm income generation,” which was applied by the World Bank to 152 projects between 2004 and 2014. By deconstructing the activities (using component analysis) linked to the code, the evaluation identified 529 World Bank projects, valued at $35 billion, which have directly supported rural nonfarm income- generating activities during the same period. A second-order screening tool 213 APPENDIX H METHODOLOGY involved examining all projects with an agriculture code approved during the evaluation period. In parallel, the evaluation identified several areas of enabling activities through literature review and past evaluations. Several thematic reviews of enabling activities were conducted by identifying “rural” activities across three key areas: rural transport infrastructure, education and skills, and access to finance. Enabling Activity Identification Methodology Based on the portfolio methodology used in IEG’s evaluation, Improving Institutional Capability and Financial Viability to Sustain Transport (2012) IEG filtered and identified projects approved between 2004 and 2014 that were within the Transport sector board, were rural themed, and that had a “Rural and Inter-Urban Roads and Highways” code or a “Roads and Highways” code (n = 162). It then filtered and identified projects within the Agricultural and Rural Development sector board that included a “Rural,” an “Inter-Urban Roads and Highways” (TI), or a “Roads and Highways” (TA) sector code (n = 70). Projects identified from the Transport sector board and the Agricultural and Rural Development sector board constituted a portfolio of 232 projects, of which 139 were closed at the time of this evaluation. IEG reviewed project appraisal documents (PADs) of all 232 projects along with the Implementation Completion and Results Reports (ICRs) and ICR Reviews of closed and evaluated projects in this portfolio. Available Project Performance Assessment Reports (PPARs) for certain projects also served as reference. Key lines of inquiry included (i) type of road; (ii) whether the project reported on road quality; (iii) whether the roads addressed connectivity issues (village to village, village to province, province to province, village or province to a secondary city, and so on); (iv) links to economic or social aims; (v) data and measurement; (vi) the existence of any complementarity of services; and (vii) specific links to RNFE or income-generating activities. A second screening process consisted of a thorough review of rural-themed projects mapped to the Education sector board. IEG filtered and identified 390 projects approved IDA/IBRD financing between 2004 and 2014 within the Education sector board. Of these 390 projects, 42 projects were rural theme coded. IEG reviewed their PADs, ICRs, and ICR Reviews, with a focus on innovative solutions to education delivery in rural space. IEG further screened all projects in the Agriculture and Rural Development sector board, examined the delivered skills and training activities, and assessed the indicators reported in the result framework analyses in the ICRs to see the causal links between the interventions and achieved outcomes. International Finance Corporation Portfolio Identification 214 APPENDIX H METHODOLOGY From 6,347 International Finance Corporation (IFC) projects approved during the evaluation period, IEG identified 1,481 projects in sectors contributing to the RNFE based on commitments made in the World Bank Group agriculture action plan and the IFC agricultural strategy action plans. IEG then reviewed all the 1,481 projects and identified 612 that directly contributed to generating income opportunities in the RNFE (see figure A.3). Figure A.3. Rural Nonfarm Income and Enabling Portfolio Identification Methods   Approaches to the RNFE and Three Worlds Analysis Selected approaches were identified by IEG to categorize the World Bank project intervention types based on component and sector analysis. IEG identified 14 approaches to project design (see figure A.4.).Then, the approach analysis was combined with a three world’s analysis. The three world’s variable (agrarian, transition, urbanized) was created by categorizing each country’s economy based on the share of employment in agriculture over total employment. As a result, some countries switch across time from one category to the other. In the case of Brazil and India, the three world’s categorization was decided state by state instead of being based on the national average. Note: For IFC, IEG used primary, secondary, and tertiary sector coding to determine the approaches. 215 APPENDIX H METHODOLOGY Figure A.4. Rural Nonfarm Income World Bank Models Analysis Cross-Cutting Tools: Gender Analysis IEG conducted a gender analysis of the RNFE portfolio for World Bank and IFC (box A.1). It consisted of a thorough review of the key operational documents of 529 projects, of which 300 were closed and evaluated A comparative analysis was conducted across the different RNFE approaches and a time variable was used to diagnose change over time (using the first and second half of the evaluation period). For IFC, IEG conducted a detailed review of IFC board documents and XPSRs for the 120 closed and evaluated projects. Keywords such as “gender,” “women,” “female,” or “vulnerable groups” were used to identify projects that addressed or incorporated gender-related activities at design stage. In addition to this, the closed and evaluated projects were also assessed to determine whether the Development Outcome Tracking System (DOTs) indicators measured and reported on women’s engagement in economic or noneconomic activities, as well as data provided in the XPSRs and PCRs. 216 APPENDIX H METHODOLOGY Box A.1. Gender Assessment Criteria for the RNFE Portfolio Five criteria were applied to assess gender integration and gender effects in the RNFE Portfolio: Gender in project development objectives: Project development objectives were screened for keywords such as “women,” “female,” or “vulnerable groups” to assess the frequency of reference to gender in development objectives. Sex-disaggregated indicators: The results frameworks in PADs were examined to see whether the project included a sex-disaggregated indicator. Consultation with both men and women: PADs were reviewed to ascertain whether they reported that both men and women were consulted to inform the design of the project. Upfront gender analysis: PADs were reviewed to determine whether an overall gender diagnosis was conducted to understand the relationships between men and women; their roles; their access to services, markets, or assets; and limitations and opportunities to address these aspects. For closed projects that incorporated sex related indicators at design, results reporting was assessed: Results reported was assessed to determine the related benefits reported to have been accrued by women and men. Attention was paid to the results chain with regard to reporting on social and economic outcomes, including process related ones 217 Appendix I. Analytical and Advisory Assistance and Economic and Sector Work Related to the RNFE Supplementary analytical and advisory assistance and economic and sector work appendix available upon request. 218 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS Appendix J. RNFE Analysis in Strategic Country Diagnostics Use of Household Survey Conclusions in SCD on Report and Research to Assess Strategies or Number how the RNFE and can Investments for Name of Contribute to Poverty Stimulating Growth in Report Country Date Coverage of RNFE Reduction the RNFE Agrarian Countries 103421 Systematic Afghanistan February The SCD makes no According to the 2011-12 No explicit conclusions Country 1, 2016 direct reference to the National Risk and on potential strategies or Diagnostic RNFE but does Vulnerability Assessment potential investments for conclude that, to reduce (NRVA), 47.8% of day stimulating growth in poverty in lagging laborers and 37.4% of the RNFE regions “job creation agricultural self-employed will need to come from workers were poor. On the the agricultural and other hand, only 22.7% of nonagricultural sectors” nonagricultural self- employed workers, 26% of private salaried workers, and 23.4% of public salaried workers were poor. . 103098- Priorities for Cameroon June 20, The SCD noted that The second Survey on No conclusions on CM Ending 2016 Cameron’s growth Employment and the strategies or investments Poverty and strategy was rooted in Informal Sector (EEIS 2) to stimulate the growth Boosting structural showed that more than of the RNFE. Shared transformation has a lot 40% of nonfarm informal The SCD did, however, Prosperity of potential for rapid sector units do not have note that “increased poverty reduction. In any dedicated space in agroprocessing is more this transformation which to carry out their likely to be pro-poor process agricultural and activities with about a than the growth process livestock output grow third operating simply out observed to date.” by expanding the area of their private homes. under cultivation and through productivity According to gains, powered by the Christiaensen and Todo adoption of new regions with higher technologies. (lower)”urban poverty rates tend to have higher (lower) rural poverty rates. This association hints at a potential linkage between urbanization and rural poverty reduction. Positive spillover effects from increased urbanization could come from increased demand for local agricultural products; urban to rural remittances; downward pressure on the rural land/population ratio; upward pressure on agricultural wages; increased opportunities for rural nonfarm employment or lower transport-induced transaction costs” (Christiaensen and Todo - 2014) . 219 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS 96537- Priorities for Chad September The SCD acknowledges The SCD stated that There were no TD Ending 2015 that “Among active household surveys conclusions concerning Poverty and workers, 79% of the showed that “Employment strategies or investments Boosting poor rely on crops of heads of household in for stimulating growth in Shared and/or livestock as the public service or in the RNFE Prosperity their main source of nonagricultural activities income, and it is is correlated with lower estimated that another poverty incidence.” 14% work in the . nonagricultural informal sector.” 98178 From Crisis to Côte June 30, The SCD noted that Based on household The SCD noted that the Sustained D’Ivoire 2015 nonagricultural self- surveys the SCD noted country “strategy should Growth: employment in rural that “Wage jobs, and in aim at raising Priorities for areas (estimated at particular nonagricultural productivity and Ending 16.3% of total rural wage jobs, are earnings across all Poverty and employment) concentrated among the sectors of employment, Boosting particularly among the wealthier households” including in agricultural Shared poor and women, is which are “generally and nonagricultural self- Prosperity often low productivity individuals who employment, to raise work. completed secondary standards of living for The SCD also stated education or higher.” the poor, women and that there have been With respect to wage individuals living in shortcomings in income, the SCD stated rural areas.” strategic policies for that “About 13.9% of In an assessment of “building business in households in the bottom constraints facing Côte nonagriculture sectors quintile and 25.5% of D’Ivoire the SCD noted with higher value- households in the top that “reducing the added that can support quintile are engaged in financial financing gap” structural nonagricultural self- would generate the transformation.” It went employment. This complementary benefit on to assert that suggests that of “developing financial “development of agro- nonagricultural self- infrastructure in rural business and non-agro- employment is an area areas that will also business sectors, that provides catalyze better access to including value-adding opportunities and finance for manufacturing” was an pathways out of poverty.” nonagriculture firms and important pathway for The SCD also pointed out hence support self- strengthening the that in Côte D’Ivoire employment.” RNFE. “Most nonagricultural self-employment takes place in microenterprises owned and operated by the household, making the sector very different from the SME sector, which mostly relies on wage workers.” 100592 Priorities for Ethiopia March 30, The SCD covers many The SCD found (based on No conclusions on Ending 2016 aspects of the an analysis of household strategies or investments Extreme challenges facing surveys) that “minimal to stimulate the RNFE Poverty and farmers who want to education levels, lack of Promoting obtain employment in marketable skills in urban Shared the RNFE. It noted labor markets and Prosperity “relatively rapid isolation along with high reduction in the unemployment rates in incidence of poverty urban areas (24% in Addis from 55% in 2000 to Ababa) are important 33% in 2011.” factors that constrain the access of rural labor to employment in the RNFE” (Naudé and Wagler 2014). 106725- Turning Guinea- June 2016 The SCD stated that According to the SCD The SCD stated that GB Challenges Bissau “Faster economic household surveys show there are many entry into growth alone will not that “The poor and points for change with Opportunities be enough to bring extreme poor are (also) potential positive impact for Poverty about poverty reduction less likely to work in on nonfarm income Reduction and in Guinea-Bissau. The nonagricultural sectors, generation. Inclusive modest economic which command higher However, there were no Growth growth recorded in the returns.” explicit conclusions on 2000s (assuming its strategies or investments 220 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS distribution is neutral) Surveys show that “Sales to stimulate the growth would have reduced and rental restrictions on of the RNFE. poverty. Yet, in reality, agricultural land constrain since growth happened investments in land and only at the top, poverty agricultural technology, increased by 3.7%. employment transition Assuming sustained across farm and to political stability, the nonfarm activities, and country has a chance to access to credit and exploit both agricultural insurance, and and nonagricultural subsequently lead to lower sectors that can be agricultural productivity. pivotal in reducing By fear of losing the future extreme poverty and income stream of land, promoting shared insecurity of property prosperity” rights limits migration” away from agricultural areas. “Moreover, these adverse incentives affect different groups, particularly women, disproportionally.” “The improvement of the business climate is an important prerequisite to increasing the inflow of private investments, which can boost nonagricultural activities, helping to diversify incomes.” However, Guinea-Bissau is at the bottom of all Doing Business indicators. Also, it is the only country on the African coast not connected to a submarine cable. For all these reasons investment in Guinea- Bissau is low. 99197 Systematic Madagascar August The SCD makes only The SCD stated (based on The SCD draws no Country 25, 2015 one reference to the surveys) that employment conclusions on actions to Diagnostic rural nonfarm prospects for poor farmers stimulate the growth of economy, namely as a declined because the the RNFE. source of “rural population is However the SCD did supplementary increasing, partly due to suggest that “reorienting employment and rapid population growth, sub-sectors” such as income for poor farmers compounded by migration agriculture, artisanal stating that “Secondary from urban areas due to fisheries and artisanal sectors of employment formal/manufacturing mining “on a sustainable are important sector job losses that path, and developing additional sources of resulted from the most value chains is a income, particularly in recent political crises.” The promising avenue for services, which employ SCD therefore concluded improved income.” significant shares of the that “There is also a large On the other hand, as the top quintile” and hence potential to be exploited in SCD noted, value chains not the poor. the country’s large for Madagascar’s informal sector, such as traditional (and still agriculture, artisanal viable) exports such as fisheries and artisanal vanilla, cloves and mining. These subsectors pepper have survived or are far from marginal, and recently developed could provide livelihoods to a be sources of large share of the employment although population.” entry into these opportunities will almost certainly still favor those with skills and basic education. 221 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS 941991- Priorities for Mali June 22, The SCD noted that “A There are no conclusions ML Ending 2015 large body of literature The SCD stated that in the SCD on strategies Poverty and confirms the research findings in or investments for Boosting importance of Southern Mali “suggest stimulating the growth Shared employment that households hold very of the RNFE Prosperity diversification into different portfolios of nonfarm activities as it incomes and these in turn raises income and are related to the different reduces levels of income and asset Poverty, but off-farm holdings. Poorer economic activities also households are found to offer essential services have fewer opportunities to farmers (transport, in cash-crop production as commerce and storage well as noncrop activities, services; access to resulting in less diversified information; repair incomes. Lack of capital is services)” (Lanjouw and found to be a major reason Murgai, 2009; why poorer households Christiaensen and have less diversified others 2013). portfolios.”( Abudulai and CroleRees) 103507- Systematic Mozambique June 2016 In various sections of The SCD noted the “recent Although the MZ Country the SCD it is stressed macroeconomic instability government has Diagnostic that Mozambique has and the slower pace of established special abundant agricultural, poverty reduction over the economic zones to forestry and fisheries last decade. Whereas stimulate private resources which with between 1997 and 2003 the investment, regional improved productivity, national headcount diversification away diversification of poverty rate dropped from agriculture and the output, better transport rapidly from 68 percent to extractive industries, as facilities, and 56%, between 2003 and well as increased integration of remote 2009 it declined by only employment, there are rural areas into the four percentage points to no conclusions in the national economy by 52% despite the country’s SCD on specific linking them to urban robust GDP growth rate.” strategies or investments centers through About 70% of the nation’s for stimulating growth of regional value chains to poor live in the provinces the RNFE the RNFE and of Gaza, Manica, international export Nampula, Sofala and points there could be a Zambezia. Very remote more rapid pace of Nampula and Zambezia poverty reduction. provinces accounted for nearly half the country’s poor in 2009 but in these areas “rural households tend to receive Lower prices for their crops, pay higher prices for inputs and have access to fewer nonagricultural income opportunities” because the RNFE is not well developed. The SCD also drew attention to “Household enterprises, defined as sole proprietorships with no paid employees, provide livelihoods for an estimated 25% of the rural workforce and 40% of the urban workforce, with many households relying on them as a key secondary income source. Household enterprises are associated with higher levels of household consumption as well as lower poverty rates and greater upward mobility in rural areas.” 222 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS 93050- Ending Myanmar November The SCD stated that The SCD contained no No conclusions on MM Poverty and 4014 “With the slow creation analysis of the RNFE using strategies or investments Boosting of nonfarm jobs, household survey data for growth of the RNFE. Shared agriculture Prosperity in a will continue to employ Time many people in of Transition Myanmar for years to come and therefore play a critical role in reducing poverty in the country.” 99389- South Sudan South Sudan October 5, The SCD does not There is no explicit The SCD provided no SS Systematic 2015 explicitly refer to the reference to the use of conclusions for the RNFE Country RNFE, but analyzes household surveys in but touched on issues Diagnostic aspects of the RNFE relation to RNFE activities. related to RNFE when linked to agricultural However, the SCD refers addressing issues facing production, to the Jobs and Livelihood farmers such as raising productivity and Report, which reports productivity and livestock (for example, some data on employment improving connectivity conflict between by area/sector. to markets. pastoralists and farmers), and low access to markets. The SCD analyzes issues of connectivity, trade and land rights which constrain the development of a sound rural economy. It concluded that “Access to markets for agricultural products, both in terms of infrastructure and value chain, remains a critical bottleneck to securing resilience of rural communities.” The SCD also noted that “Basic numeracy and literacy skills are critical for improving productivity and adapting new technologies” as well as to obtaining off-farm employment. 108184- Systematic Togo September The SCD noted that The SCD noted that survey The SCD concluded that TG Country 19, 2016 surveys show that “An data show that “There is a “For Togo to accelerate Diagnostic estimated 60% of the clear correlation between and sustain poverty nation’s active consumption levels and reduction, it will need to population and 97% of employment off-farm, unleash a more vigorous, the rural active with almost 60%of those inclusive, and population are engaged self-employed on-farm sustainable growth wholly or primarily in falling into the bottom process, led by private agriculture.” It is clear consumption quintile, economic agents in both that a small proportion versus only 12% in the top agricultural and of the active rural quintile.” nonagricultural sectors, population is employed and supported and in the RNFE. Survey data also showed amplified by more that “the poorest and most effective government isolated region, Savanes, policies, public has a higher percentage of investments, and public working age people services, to: primarily employed in  generate growth agriculture (68% in 2011) in increasingly and the highest rate of formal and under-employment of all productive off- the regions. It also has a farm businesses distinctly higher for more percentage of under- remunerative employed seasonal or employment; and temporary workers 223 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS (34.8%) versus only 4.1 to  transform the 4.6% in the other regions agricultural sector excluding Lomé. More into a more isolated households, competitive, which are more often higher value- located in the poorest added sector.” regions, are also less likely to have a second source of income, typically outside agriculture” The SCD also observed that “Formal firms, which have 7.5 times greater labor productivity than informal firms, are few, and wages of non- farmworkers are 6 times those of on-farmworkers.” 97145- Boosting Uganda December The SCD makes a few According to the SCD There were no UG Inclusive 4, 2015 indirect references to “Real agricultural incomes conclusions on strategies Growth and the RNFE per capita grew by 4.7% or investments to Accelerating between 2006 and 2012, promote the RNFE Poverty behind the growth of 6.3% Reduction in nonagricultural incomes. It was also noted in the SCD that Christiaensen and Kaminski concluded that “During 2006–10, poverty reduction among those in wage employment and nonfarm self-employment accounted for 30% of the poverty reduction in Uganda and contributed to 66% of consumption growth experienced during this time “(Christiaensen and Kaminski 2014)”. Transition Countries 95980 Next Albania April 2015 The SCD does not refer The SCD stated that The SCD concluded that Generation to the RNFE explicitly “Estimates suggest that one of the five top Albania – A but mentions factors close to half of total priorities fundamental to Systematic that constrain the employment outside reaching the twin goals of Country growth of the RNFE. agriculture corresponds to poverty reduction and Diagnostic For example, “The informal employment, and increased prosperity was quality of education at nearly three-quarters of establishing a high- all levels is inadequate the labor in construction is quality business to equip students with informal.” environment. The policy the basic skills the labor However, there are no agenda for improving the market requires. Also, data mentioned in the SCD business environment “More than 60% of 15- that refer explicitly to included “strengthening year-olds are employment in the RNFE. the policy, legal, and functionally illiterate in institutional framework mathematics, while for private investment about 50% are deficient (including FDI) to boost in reading.” These are the incomes of economic high compared with agents (both farm and other OECD countries. nonfarm)”. 97113 Azerbaijan Azerbaijan June 3, There is no explicit The SCD noted that “In The SCD draws no Systematic 2015 reference to the RNFE addition to labor income, conclusions on the Country in the SCD for households in the bottom strategies and Diagnostic Azerbaijan 40% of the income investments to stimulate distribution rely on the growth of the RNFE. transfers (similarly to other households higher up in the income 224 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS distribution). Public transfers, in the form of pensions and other social transfers make up 19% of the income of the bottom 40%, and about 16% for the top 60% Nearly two- thirds of the population in Azerbaijan receive at least one kind of public transfer and benefits, especially pensions, have been increasing steadily (imposing a nonnegligible burden on public finances).” According to the SCD “…. It has been estimated that the current poverty rate … would be considerably higher in the absence of transfers—at 25% without pensions, and at 30% without any social benefits in 2012 (compared with the observed 6% for that year)” na Bangladesh : Bangladesh October The SCD noted that The SCD highlights the The SCD identified five More and 25, 2015 diversification of key role played by the areas where concerted Better Jobs to employment within significant tightening of efforts over the next 3 to Accelerate rural areas will the agricultural labor 5 years could have a Shared Growth continue to be market in boosting the real transformative impact on and End important for reducing agricultural wage rate and accelerating the creation Extreme extreme rural poverty. thus reducing extreme of more and better jobs Poverty However, the SCD poverty. in Bangladesh. They noted that “pull effects” The three main were (a) energy, (b) of the urban sector, both contributors to labor inland connectivity and as a growth accelerator market tightening were: logistics, (c) regional and and a source of jobs for (a) relocation of farm labor global integration, (d) the extreme poor, are to rural nonfarm sectors urbanization and (e) going to be increasingly (italics added); (b) improved delta more important relocation of rural labor to management. compared with the urban areas created by Of these five areas, rural nonfarm sector. employment opportunities improving connectivity The SCD reports on for the extreme poor in is seen as key to labor trends, noting that labor-intensive accelerating the three-quarters of the construction and transport transformation of the new jobs created activities; and (c) jobs for country’s rural areas. In between 2002—03 and the poor created in the this context the SCD 2013 were outside manufacturing sector. noted that “…rural road agriculture. investments in Bangladesh have reduced poverty significantly through higher agricultural production, higher wages, lower input and transport costs, and higher output prices, and also led to higher girls’ and boys’ schooling. Adequate attention to ensuring this network is properly maintained and developed and further integrated with the larger transport network remains an important public policy priority.” 97894 Country Bolivia June 2015 The SCD emphasized The SCD stated that The SCD is clear about Systematic that “The current model “efforts to reduce poverty the challenges of 225 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS Diagnostic: of poverty and and inequality remains achieving sustained Rebalancing inequality reduction has very much an unfinished nonnatural resource Inclusive relied heavily on agenda” and that “The extractive and nonfarm Growth to increasing income and extreme poor are employment stating that Deepen Gains job opportunities of the significantly more likely to “The analysis so far on Poverty and poor employed in live in rural areas, to be points to developing Inequality unskilled and semi- indigenous, and to have higher productivity, non- Reduction skilled jobs” in low levels of education extractive sectors as a nontradable, mostly in than the other income critical challenge to informal sectors.” groups.” Also “With sustaining advances on The SCD stated that respect to non-labor reducing poverty and “Poverty decreased income (composed mainly increasing shared from 63% of the of government and private prosperity. In the population in 2002 to transfers and hence a absence of 39% in 2013. In rural source of nonfarm income meeting this challenge, areas it fell from 79% to in rural areas) accounted there will be insufficient 60%. Poverty reduction for 26% of average total income/employment was accompanied by a income. However, opportunities for the large decline in income households with average growing number of inequality. Reductions incomes in the bottom 40% better educated people in inequality were of the distribution received looking for work, observed in urban and only 20% of their income particularly in urban rural areas, where the from non-labor sources.” areas; and reliance on Gini coefficients fell by volatile commodity 11 and 9 points Surveys showed, however, markets respectively.” that “females working in will continue, as will the Also noted was that “In non-agriculture activities,” depletion of increasingly 2013, approximately 7 as percentage of total scarce natural of 10 extreme poor lived female employment resources.” in rural areas.” increased from 31% in 1999 to 36.4% in 2012. The SCD concluded However these surveys “Among the long-term also showed that “the non- enablers, two constraints agriculture activities in could become critical to which employment grew inclusive growth once most among those in the the economy started lower 40% of the national shifting toward non- income distribution were extractive sectors (such not the most productive as agriculture) or once ones – importantly, not basic disparities in access manufacturing - but are reduced. The instead sectors that could following constraints be more affected by an stood out: (a) high economic slowdown.” transport and logistics costs such as cumbersome cross- border procedures; and (b) insufficient education quality, particularly at the secondary level: and the lack of international testing benchmarks. 95304 Systematic Botswana March The SCD noted that The SCD stated that The SCD concluded that Country 2015 “Botswana’s traditional “While only 36 percent of “Botswana needed to Diagnostic growth model has the population had a shift its growth model involved diamond consumption level more away from a reliance on revenues being than twice the poverty line diamonds and the public channeled through the in 2003, this increased to sector toward a model government, with 53% by 2010. But this also that can deliver the subsequent high means that almost 28% of broad-based investment in the population, while employment growth that infrastructure, health, technically ‘nonpoor,’ is will be needed to ensure and education.” It consuming at a level sustainability of poverty continued stating that below an average P530 elimination, shared “the formal private monthly (in nominal, prosperity, and over sector created just one 2009/10 Pula). Given that time, structural change. job for every 6 new a large share of these Such a model will need entrants to the labor people are living in rural to be built around market over the past areas and dependent on development of a decade, and the subsistence farming and diversified, competitive, nonfarm, informal small holding of livestock, private sector, oriented sector remains small which is prone to toward export markets 226 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS and lacking significant output and focused on activities dynamism.” volatility, many remain at where Botswana has or The SCD also noted that serious risk of falling back can develop strong “Botswana’s small and into poverty, at least on a comparative advantage. dispersed population temporary basis.” In the short to medium raises barriers to Botswana has experienced term, this should also be achieving high structural supported by a dynamic agglomeration and unemployment (averaging and productive informal scale and increases around 20 percent) sector, including both service delivery costs. combined with relatively farm and nonfarm Moreover, highly low labor market activities that can absorb specific skills are participation over a long a rapidly expanding naturally in short time period. While labor force.” supply and unemployment was entrepreneurialism is historically a rural However, there were no still nascent.” phenomenon, strong rural- conclusions on strategies urban migration has or investments to shifted part of the stimulate the growth of problem into the urban the RNFE. areas. While the pace of growth of nonfarm self-employment has increased in recent years, it still accounts for just 23 percent of private sector employment.” At the same time the SCD noted that “the nonfarm informal sector has not been effective as either a stepping-stone to formal sector employment or to absorb excess labor.” 99722 Promoting Egypt September The SCD stated that The CSD stated that The SCD concluded that Poverty 2015 “After 30 years in “Small-scale farmers in the “the ability of regular Reduction and operation, Egyptian traditionally farmed areas Egyptians to engage in Shared firms have only hired along the Nile and in the entrepreneurship, the Prosperity: A on average 50% more Nile Delta (“Old Lands”) other main Systematic workers than they did are fully integrated into nonagricultural source of Country initially.” the market town and income, has been Diagnostic “As a result, nonfarm village complex, so negatively impacted by employment in Egypt addressing their the lack of growth in the has become constraints will also formal private sector. concentrated in young stimulate local economies There are also constraints and small firms, which and improving nonfarm that have affected provide nearly 40% of incomes in rural areas. income generation nonfarm employment.” Reforms that affect these through agriculture, The SCD commented farmers are thus more especially for small that “The natural likely to be effective in farmers, which plays an dynamics whereby reducing poverty important role especially firms are born, grow, compared with those for poorer rural and expand their affecting larger farmers in households.” employment or exit the expansion areas market appear to be (‘New Lands’)” No conclusions on stalled in Egypt.” strategies or investments for stimulating the growth of the RNFE. na Guatemala: Guatemala 2015 The SCD states that Surveys showed that No conclusions on Closing Gaps “The gaps between the “Between 2000 and 2006, strategies or investments to Generate poor and the nonpoor the two main drivers of for stimulating growth in more Inclusive in Guatemala are large. overall and extreme the RNFE Growth - In general terms, the poverty reduction were a Systematic poor are more likely to growth in employment for Country be informally both men and women and Diagnostic employed, live in rural transfers. Labor income areas in specific played a more limited role departments, and in poverty reduction than belong to an indigenous in other Latin American group, with very low countries. levels of education. “ The SCD stated that it was The SCD also noted that found that “the substantial “In 2014 almost 49% of wage differences between 227 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS those in the bottom 40% rural and urban areas were of the income largely explained by the distribution nationally differences in the worked mainly in endowments of the two agriculture, whereas populations, of which only about 14% of those education was key” in the top 60% of the (Hertz, 2008). The same income distribution was true within the rural worked in agriculture. sector: the substantial On the other hand 18% earnings advantage of of the first group and nonagricultural workers 33% of the second was due mainly to group worked in differences in endowments wholesale or retail such as education, health trading.” and childhood nutrition.” na Toward a Haiti 2015 The SCD included The SCD noted evidence The SCD concluded that Narrative: many references in the from surveys that there is “most Haitians are likely Systematic SCD to nonfarm a “lack of qualified labor.” to continue working in Country enterprises and For example, “The level of low-productivity Diagnostic employment. education among the adult agriculture and It noted that “Recent population remains low: nonagriculture informal evidence suggests that 45.7 percent of the adult sector activities over the the decline in extreme population (60.5 percent of foreseeable future. The poverty was driven by households’ heads) have challenge is thus to labor income, private never attended school or enhance the transfers, and aid. have not completed productivity, and hence Nonagricultural labor primary education.” It the earnings, of those income increased by goes on state that these already employed, while about 3½% on average constraints “seem to be at the same time creating per year, especially particularly present in the more formal jobs.” among men, with agriculture and the On the basis of expansions in nonagriculture informal consultations for the construction, sector, where most preparation of the SCD it telecommunications Haitians are likely to was concluded that and transport, all continue working for the “Most people in Haiti concentrated in urban foreseeable future.” were occupied in a less areas. Formal The SCD also noted that visible private sector: in employment remains “With regard to the the agriculture and small (13% of the labor informal nonagriculture informal sectors, force) with agriculture sector, empirical evidence two sectors that had been and urban informal suggests that a little neglected so far. The sectors still providing investment in years of potential contribution of most of the education or remedial the formal sector in employment with about training for skills creating jobs was 40% and 47% of the acquisition among people recognized, but it was labor market, who have been out of the not seen as becoming the respectively.” school system for a long main employer in Haiti Nevertheless “average time, as well as improved any time soon. Incomes monthly salaries in the access to inputs, such as generated in agriculture formal or informal electricity and water, are or in the informal sector sectors are two to four associated with substantial are, however, not times higher than in the increases in income.” sufficient to pull people agricultural sector.” The SCD observed that out of poverty. The The SCD also noted that about 24 percent of challenge is thus to “The Gini coefficient Haitians have moved enhance the stagnated at about 0.6 internationally (1 million) productivity—hence the between 2001 and 2012. and internally (2 million) earnings—of those However, this result from their place of birth already employed in hides important seeking an alternative agriculture and the regional disparities: living and working informal sector, while at inequality (Gini) environment – a large the same time creating widened in rural areas proportion from rural to more formal jobs.” (0.49 to 0.56), it urban areas. Such No specific conclusions narrowed in movements have on strategies or Urban areas (0.64 to generated remittances investments for 0.59).” from international and stimulating growth in local urban to rural areas the RNFE in Haiti. na Unlocking Honduras 2015 The SCD stated that the According to the SCD in The SCD noted that Economic agricultural sector 2013, “almost 65 percent of connecting rural areas to Potential for directly employs one- Honduran households urban markets is one of Future third of the Honduran were below the poverty the country’s main Opportunities: labor force and 228 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS Systematic accounts for about 30 line, with 43 percent in transport and logistics Country percent of total exports. extreme poverty.” challenges. Diagnostic However, the SCD The SCD also stated that provides no explicit “The rural poor There were, however, no coverage of the rural overwhelmingly rely on conclusions on strategies nonfarm economy agriculture as their or investments for principal livelihood. stimulating the growth Although the SCD stated of the RNFE that “Over the last two decades, farmers and agricultural firms have gradually transitioned into higher-value products, according to Weiss “72% of agricultural families in Honduras are engaged in semisubsistence farming, which is typically characterized by low marginal productivity and high vulnerability to shocks” (Weiss 2014). However,”Large and small-scale farmers compete over the country’s limited arable land. The poorest 70% of farmers own 10% of the land as smallholdings, while the richest 1% of farmers own 25 percent of the land as large plantations (USAID 2011).” The SCD recorded that “Agribusiness exports experienced robust growth over the past decade, rising from $600 million in 2006 to $3 billion in 2014” accounting for 63 percent of total exports. However, as the SCD stresses, “the agricultural sector remains highly vulnerable to both shifts in international prices and exogenous production shocks such as diseases and natural hazards.” 94066- Indonesia Indonesia September The SCD identified According to the SCD Looking forward, the ID Systematic 2015 constraints to growth in surveys showed that, SCD noted that there are Country the RNFE. They although 35% of the three ways to improve Diagnostic: included significant workforce is employed in the growth of the RNFE. Connecting the infrastructure gaps, agriculture the sector The first is to Bottom 40 unique and significant contributes only 12% to dramatically improve Percent to the natural resource issues national GDP. Hence GDP transport to better Prosperity in forest and coastal per capita in agriculture is connect the economy Generation communities, and most significantly less than for domestically and importantly, little other sectors in the support growth in transformation of economy. It is clear that productive activities in agriculture due to weak increased employment in rural areas. Second, the policies. the RNFE could play an structural reform agenda Contrary to its former important role in needs to boost role as a source of supplementing the productivity in growth and incomes of the rural agriculture, reducing employment the workforce. postharvest waste and agricultural sector has shifting to higher-value become a drag on crops while also overall productivity of accelerating investments the economy reflecting in manufacturing and policies that provide the services, including wrong incentives for tourism, thereby efficient use of land, reducing dependence on 229 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS labor and capital. mineral commodities for Consequently, the exports. And third, forest sector has become and coastal regions need caught in outdated special attention to subsidies, restricted ensure there is an trade, and policies that efficient, effective and do not reflect changing sustainable management consumption patterns of natural resources. toward higher value and processed foods (many of which are being imported). na Moldova: Moldova August The SCD stated that “By The SCD noted that The SCD concluded that Paths to 2016 creating nonfarm job “During the last decade, a “Economic growth has Sustained opportunities in rural large share of poor been largely Prosperity – A areas, especially for the households was able to consumption-driven and Systematic large share of farmers improve their living fueled by remittances. Country with limited potential to standards and escape Poverty changes are Diagnostic commercialize, and by poverty, while few non- largely derived from promoting poor households fell into remittances and urbanization, poverty. Since the pensions. Employment connectivity and domestic financial crisis, has fallen, limiting the equitable service the share of people who role of labor markets in delivery, these priority have been persistently improving living areas can increase stuck in poverty is low, standards. Given that the economic opportunities and churning—the growth in remittances for those in rural areas, phenomenon of people and pensions will where the poor are exiting and reentering continue to slow, concentrated.” poverty even repeatedly— sustainable progress In general remittances seems to be limited.” requires a new growth are “a quarter of The SCD stated that model driven by higher Moldova’s GDP” and “While 57 percent of the private sector growth hence an important population lives in rural and job creation.” contribution to nonfarm areas, 84% of the poor are Implicitly this strategy income. concentrated there. The includes growth of the poor and non-poor in rural RNFE. areas rely more on agriculture and remittances for income relative to their urban counterparts, who derive more income from nonagricultural employment according to surveys.” “Increases in nonagricultural wage income, rather than job creation, have contributed to inclusive growth in Moldova.” Based on survey data, the SCD noted that, among the average poor, nonagriculture-related income and remittances are 31% and 13% of total income but for the non- poor these two income sources accounted, respectively, for 35% and 25% of total income. The SCD noted barriers to finding jobs: “Almost half the firms in Moldova (46%) encounter difficulties on a systematic basis in seeking staff with the desired qualifications. This affects firms of all categories and sizes, including firms in agriculture. 230 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS 103246 Sri Lanka: Sri Lanka October There is no explicit On the basis of surveys, There are no conclusions Ending 2015 coverage of the RNFE in the SCD noted that on the strategies or Poverty and the SCD, although there “Notwithstanding high investments to stimulate Promoting are some references to rates of poverty in specific the growth of the RNFE Shared off-farm employment remote districts, the Prosperity majority of the poor and as However, the SCD well as the bottom 40 notes that” High percent live in populous, protection of import- effectively urban areas in competing crops along the center of the island.” with fertilizer subsidies Also, “Between 2002 and have created strong 2012/13, most of the disincentives for crop reduction in poverty was and export due to higher labor diversification. incomes and, in particular, Incentives are to increased earnings, as structured to expand opposed to higher production of import- employment or higher competing crops (rice, transfers.” maize) and discourage “Most of the increase in the production of labor income was, in turn, exportables through the due to increased returns to introduction of high work both in and outside export taxes (‘cesses’) agriculture. Increased on raw materials such returns to agriculture as tea, rubber, accounted for about 31% cinnamon, coconut and of the decline, of which spices, with the notion roughly two-thirds were that this would increase higher returns to self- value addition of employed farmers.” exports. Revenues from However, It was also cesses were supposed to noted that “Recent growth be then invested in has been mainly led by the research and nontradable sectors,” development for the namely “construction, corresponding sectors transport, domestic trade to encourage value and banking, and addition, yet this has insurance and real estate.” not been implemented.” Agriculture was “less This does not bode well prominent.” “Moreover, for the agricultural the decline in agricultural sector or the RNFE employment coincided with a sharp increase in workers employed in establishments with no regular employees. By 2012, 37% of nonfarmworkers were employed in establishments with no regular employees, up from 33% in 2006. Similarly, by 2012, 74% of unskilled workers had only temporary or casual wage employment, up from 70% in 2006, suggesting that these workers are increasingly working under precarious conditions. Wages of temporary workers are on average 33% lower than wages of permanent workers; one-third of that gap cannot be explained by differences in the job or individual characteristics suggesting that to some extent workers would choose more stable jobs if they could.” The parlous position of farmers and 231 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS farm labor in the RNFE in Sri Lanka is evident 106454 Systematic Uzbekistan May 20, The SCD stated that The SCD stated that The SCD noted that Country 2016 “The agricultural sector “According to official “Uzbekistan’s unique Diagnosis for is likely to remain one statistics, between 2003 state-driven Uzbekistan of the key pillars of and 2012 the poverty rate development strategy economic growth, job declined from 27% to has facilitated growth, creation, and poverty 15%.” Despite resilience, and reduction in rural areas. methodological issues, the diversification, but the Agriculture value SCD concluded that “This government recognizes added has grown at an reduction in poverty that this model has its average annual rate of appears to have been own limits.” 6.5% since 2003. The accompanied by equity The SCD concludes that strongest growth has gains, as the income of the “Uzbekistan needs to come from crops other bottom 40 percent of the take the same steps as it than wheat and cotton, income distribution is overcomes challenges in notably from estimated to have grown almost all dimensions of horticulture. at a slightly faster rate efficiency enhancers that Horticultural products than that of the top 60 involve some measure of are fast becoming the percent over the period liberalization of goods second largest 2008–13.” markets, labor markets, agricultural export Based on surveys and financial markets.” commodity group, after “Employment prospects The SCD did not cotton.” But, the SCD are stronger for consider that growth in shows that cotton’s individuals with the RNFE was among the historically high share university and secondary most important of export income of special and technical constraints to improving 33.9% in 2000 declined education, although the poverty reduction and to 8.7% in 2013. gap is more pronounced shared prosperity. However, there is no among women.” The SCD explicit reference in the goes on to state that SCD to the RNFE “…workers with a tertiary education on average earn a 55% higher wage than similar workers with a secondary education.” However, the SCD also notes that, “In Uzbekistan, only 26% of preschool age children were enrolled in ECD programs in 2011.” Until this percentage is increased, rural youth in Uzbekistan will be particularly challenged in obtaining employment in the RNFE. na Sustaining Vietnam 2016 There was no explicit The SCD stated that in There were no Success: coverage of the RNFE in 2014 “The “near poor” conclusions on strategies Priorities for the SCD but constitute 11% of or investments for Inclusive and considerable implicit population. Less well-off stimulating growth in Sustainable references Vietnamese are in rural the RNFE, but there were Growth areas: 82% of the near poor a number of implicit and 84% of the bottom 40 suggestions. are located there. Only very small numbers are located in the major urban centers … which are home to 2% of the poor, 4% of the near poor, and 3% of the bottom 40%.” According to household data in the SCD income from farming accounted for 22% of total income for the average nonpoor household, but income from agriculture accounted for 46% of average income for poor households. However, nonagricultural wages accounted for 20% of the 232 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS total income of the poor whereas it accounted for 41% of total income for the nonpoor. Most wage income was for nonagricultural work. On the other hand, agricultural wages for the nonpoor contributed 4% to total income whereas for the poor it contributed 14%. Remittances for the poor and nonpoor were about the same. It is clear from these data that the RNFE is important for the poor in Vietnam Urbanized Country (Case Study for the Evaluation) 106569 Retaking the Brazil June 2016 The SCD for Brazil The SCD states that “the There are no conclusions Path to contains very little incidence of poverty in on strategies or Inclusion, information on the rural areas is more than investments to stimulate Growth and opportunities for the double that in urban areas, the growth of the RNFE. Sustainability: rural nonfarm with levels of moderate However, the SCD draws Systematic economy, and also has a and extreme poverty at general conclusion, Country very limited spatial 22.6 and 9.1 percent, namely that “Multiple Diagnostic focus, in sharp contrast respectively, in 2013, policy approaches are with the earlier detailed compared with 6.3 and 3.1 necessary, including land and analytically-based in urban centers. reform, improved access Policy Notes for Brazil However, the gap between to appropriate developed by World rural and urban poverty technologies, education, Bank thematic and rates has declined from improved nonfarm job sectoral specialists. The 30.3 percentage points in opportunities, and social SCD dedicates only a 2001 to 16.3 percentage transfers. Fragmented few pages to the topic points in 2013. Moreover, land holdings and of “rural development Brazil has experienced a diversified production, and the conservation of high rate of urbanization, often with considerable biomes” and most of with 85.2 percent of the subsistence elements, this refers to country’s population create challenges for environmental concerns living in urban areas in rural extension services. such as reducing 2013. As a result, in spite After the deforestation and more of the lower incidence of decentralization of rural biodiversity, although poverty in urban areas, in extension services from some consideration is 2013 60 percent of the the federal to state given to the agricultural nation’s poor (almost 17 governments, sector in another section million) lived in cities. governments in the that refers to “land and A recent study showed North and Northeast its uses.” While the SCD that “farms in the have been unable to fund observes that “one Northeast with between enough rural extension potential source of zero and five hectares workers to attend the further productivity (nearly one-half of all large family farming growth is to improve farms in this macro region) population, creating the access of family are too small to allow their technological and farmers to owners to escape out of knowledge gaps with infrastructure, credit, poverty, even if family farms and rural and modern production productivity were to households in other parts technologies,” there is increase.” This led the of the country” no mention of the rural SCD to conclude that nonfarm economy at all. “small-scale farms continue to require targeted support” The SCD observed that “In 2004, out of the 16 million rural workforce, 25 percent had nonagricultural incomes, whereas in 2012, even with the reduction in the total workforce to 13.4 million, approximately 44.7 percent receive income from nonagricultural activities. However, a 233 APPENDIX J RNFE ANALYSIS IN STRATEGIC COUNTRY DIAGNOSTICS large portion of these rural nonagriculture jobs have been for low-skilled labor in construction, trade, and social services, calling for a vocational training agenda for rural areas to raise the quality and skills of the rural workforce. Other nonagriculture rural economic activities that have been growing relate to rural tourism, arts, and crafts.” 234 Appendix K. List of Persons Consulted Name Title Organization Name Title Organization World Bank Group Active and Retired Staff and Consultants – Washington, DC. Dellien, Hans Senior Operations IFC Nair, Ajai Program Coordinator World Bank F&M Officer GP Emery, James Head IFC MAS Nielson, David J. Lead AG Economist World Bank AG GP Moses, Eugene Strategy Officer IFC MAS Piccioni, Sr. Rural Dev’t World Bank AG Norman Bentley Specialist GP Ronchi, Loraine Lead Economist T&C GP, IFC Proctor, Felicity Former DFID Secondee World Bank ARD Alasino, Enrique Sr. Education World Bank ED GP Robalino, David Manager World Bank Jobs O. Specialist Almeida, Rita Sr. Economist World Bank ED GP Rossignol, Ivan Chief Technical World Bank T&C Specialist GP Alvi, Imtiaz Sr. Rural Dev’t World Bank AG GP Sennhauser, Director World Bank AG Akhtar Specialist Ethel GP Barghouti, Shawki Consultant World Bank ARD Townsend, Adviser World Bank AG (Retired) Robert GP Bradley, Sean Lead Social Dev’t World Bank SURR Varangis, Head World Bank F&M Spec. GP Panayotis Broka, Sandra Senior Agriculture World Bank AG GP Voegele, Juergen Senior Director World Bank AG Economist GP Coetzee, Sr. Financial Sector World Bank FM GP Weiss, Eli Sr. Rural Dev’t World Bank AG Gerhardus Spec. Specialist GP Darvas, Peter Sr. Economist World Bank ED GP Wong, Susan Lead Social Dev’t World Bank SURR Specialist GP De Salvo, Paolo Rural World Bank Saeki, Hiroshi Senior Economist World Bank ED GP Development Spec. Engman, Michael Sr. Economist World Bank T&C Brhane, Program Leader World Bank GP Meskerem Edmeades, Senior Agriculture World Bank AG GP Zulfiqar Ahmed, Senior Transport World Bank Svetlana Specialist Muhammad Specialist Golan, Amnon Consultant World Bank ARD Mclean, Keith Lead Governance World Bank GOV (Retired) Specialist PSI Gonzalez, Alvaro Principal World Bank. Jobs Mghenyi, Elliot Senior Agriculture World Bank, AG Economist W Economist GP Janssen, Lead Agriculture World Bank Forman, Senior Livestock World Bank, AG Wilhelmus Economist Stephane Specialist GP Kamano, Pierre Sr. Education World Bank ED GP Lufafa, Abel Sr. Agricultural World Bank, AG Joseph Specialist Specialist GP Kumar, Anjali Lead Economist World Bank IEG Hyder, Ziauddin Sr. Nutrition Specialist World Bank, HNP Kuriakose, Anne Sr. Social Dev’t World Bank Pierre Olivier Senior Microfinance World Bank, AG T. Specialist GCCCI Colleye Specialist GP Morris, Michael Lead Agricultural World Bank AG GP Rasagam, Ganesh Practice Manager World Bank, Trade & Economist Competitiveness Innovation & Entrepreneurship Luthria, Manjula Senior Economist World Bank, SP&L Lall, Smik V Lead Urban Economist World Bank, DRM M AFR 235 Name Title Organization Name Title Organization Hayward, Natasha Sr. Agricultural World Bank, AG Anna Director World Bank, SURR Specialist GP Wellenstein Dyer, Nichola Program Manager World Bank, AG Kar, Anuja Economist World Bank, AG GP GP Palaniswamy, Economist, Poverty World Bank Ridao- Cano, Lead Economist World Bank, SP & Nethra and Equity Cristobal L Wang, Xiaole Associate IFC, MAS GAFSP Mecagni, Laura Head IFC, MAS GAFSP Investment Officer O Hanmer, Lucia Lead Economist World Bank, Poverty World Bank Group staff – country offices Woo, Soniya Sr. Operations World Bank- Khan, Qaiser Program Leader World Bank - Officer Australia Ethiopia Ahmed Farhad Sr. TR Specialist World Bank – Legesse, Assaye Sr. AG Economist World Bank – Bangladesh Ethiopia Ahmed Rokeya WAT & Sanitation World Bank – Markland, James Sr. TR Specialist World Bank – Spec. Bangladesh Ethiopia Hossain, Zahid Chief Economist World Bank— Nigatu, Esayas Livestock Specialist World Bank – Bangladesh Ethiopia Jungbluth, Frauke Lead AG Econ. World Bank— Okafor, Sr. Social Dev’t World Bank – Bangladesh Chukwudi Specialist Ethiopia Moyeen, Sabah Sr. Social Dev’t World Bank— Soer, Wolter Sr. Protection Specialist World Bank – Specialist Bangladesh Ethiopia Munshi, Meena Integrated LLI World Bank— Tesfaye, Teklu Sr. Agricultural World Bank – Eng’t. Leader Bangladesh Specialist Ethiopia Nur, Shah Senior Energy World Bank— Woldehawaria, Sr. Procurement World Bank – Specialist Bangladesh Shimelis Specialist Ethiopia Sadeque, Zubair Senior Energy World Bank— Abiassi, Erick H Senior Agriculture World Bank— Specialist Bangladesh Economist Benin Sene, Manievel Sr. Agriculture World Bank -- Murgai, Rinku Lead Economist, World Bank – Economist Bangladesh Poverty, SAR India Abicalli, Marcos Sr. WAT & World Bank - Shetty, Shobha Practice Manager World Bank – Sanitation Spec. Brazil India Amazonas, Fatima Sr. Rural Dev’t. World Bank - Vesin, Vincent Sr. TR Specialist World Bank - Specialist Brazil Morocco Baddini, Curralero Sr. SP Spec World Bank - Claudia Brazil Clarke, Roland N. Program Leader World Bank - Fischer Dieter Sr. Operations Officer IFC – Mozambique Brazil Costa, Aberto Sr. Specialist – World Bank - Jagun-Dounmu, Country Manager for IFC – Mozambique Social Dev’t Brazil Jumoke Mozambique and Angola De Gouvello, Energy and World Bank - Segura, Ubiergo, IMF - Mozambique Christophe Extractives Spec Brazil Alex Dutz, Mark Lead Economist , World Bank - Sousa, Daniel Da Original Task Team World Bank - T&C Brazil Cruz E Leader for MLSDP Mozambique Moreira, Adriana Sr. Environmental World Bank - Brito, Paulo Consultant/Project World Bank - Specialist Brazil Facilitator Mozambique Nuciforums, Sr. Economist World Bank - Cagenas Senior Investment IFC – Nicaragua Antionio Brazil Carolina Officer Olinto, Pedro Program Leader World Bank - Talavera Investment Officer IFC – Nicaragua Brazil Margarita Procee, Paul Program Leader, World Bank - Onoka Jane Operations Officer IFC – Nairobi Infra. Brazil 236 Name Title Organization Name Title Organization Raiser, Martin Country Director World Bank - Alaniso Enrique Education Specialist World Bank – Brazil Nicaragua Tuchschneide, Rural Dev’t Spec., World Bank - Barrios Raul Sr. Country Operations World Bank – David SD Brazil Officer Nicaragua Wolf, Gregor Program Leader World Bank - Luis Constantino Country Manager World Bank – Brazil Nicaragua Labara, Adamou Country Manager IFC – Ethiopia Garcia Augusto Sr. Operations Officer World Bank – Nicaragua Abate, Asferachew Sr. Env’t Specialist World Bank – Medina Nelson Sr. WAT Sup. & World Bank – Ghana Sanitation Spec Nicaragua Abate, Meseret Security Specialist World Bank – Montenegro Sr. SP Specialist World Bank – Ethiopia Miriam Nicaragua Adamtei, Highway Engineer World Bank - Siezar Carlos Consultant World Bank – Haileyesus Ethiopia Nicaragua Coll-Black, Sarah Sr. SP Spec World Bank – Carter, Patricia Country Manager World Bank- Ethiopia Tajikistan Diaw, Issa Sr. Power Engineer World Bank – Bakanova, Senior Country World Bank- Ethiopia Marina Economist Tajikistan Fanuel, Senidu Sr. Priv. Sector World Bank – Rajabov, Alisher Poverty Economist World Bank- Dev’t Spec. Ethiopia Tajikistan Farmer, Elisabeth Consultant World Bank – Sabirzoda, Country officer World Bank- Ethiopia Ravshan Tajikistan Goodland, Program Leader World Bank – Bethe, Ernest Senior Operations IFC (MAS- AS) Andrew Ethiopia Officer Ouedraogo, Elisee Senior Agriculture World Bank-- Kalvakonda, Principal Insurance IFC Indonesia Economist Burkina Faso Vijay Kumar Specialist Dahan, Stephanie Sr. WAT & World Bank - Tomio A. Senior Investment IFC Indonesia Raphael Sanitation Spec. Morocco Komatsu Officer Liverani, Andrea Program Leader World Bank - Morocco Medouar, Sr. Rural Dev’t World Bank - Jennifer Wang Senior Investment IFC MAS Mohamed Specialist Morocco Officer Samir Nabil Transport World Bank - Werner, Wendy Country Manager IFC Bangladesh Specialist Morocco Karimbaev, Associate World Bank- Lohani, Rita Associate Operations IFC Bangladesh Farrukh Operations Officer Tajikistan Officer Hoo, Lily Monitoring and World Bank, Shahriar, Hasan Results Measurement IFC Bangladesh Evaluation Indonesia Specialist Specialist Ikhwan, Mohamad Consultant World Bank, Sircar, Mrinal Consultant IFC Bangladesh Indonesia Balachandran, Consultant World Bank, Shahab, Syed Contractor, ST. IFC Bangladesh Niruban Indonesia Management Services Tomlinson, Kevin Program Manager World Bank, Azim, Ehsanul Senior Investment IFC Bangladesh Indonesia Officer Prasta, Yogana Operations World Bank, Rahman, Lopa Cooperate Governance IFC Bangladesh Adviser Indonesia Specialist Wrobel, Rob Social World Bank, Quader Private Sector IFC Bangladesh Development Indonesia Mahjabeen Development Officer Specialist Bassinette, Portfolio and World Bank, Saxena, Prerna, Investment Officer IFC Delhi Josephine Operations Indonesia Manager Clark, Sam Senior World Bank, Bhatnagar, Sr. Investment Officer IFC Delhi Development Indonesia Nandini Specialist 237 Name Title Organization Name Title Organization Kasirye Dan Country IFC Tanzania Rusenga Mihigo Country Head IFC Rwanda representative Bacyaha Ergashev, Adham Operations Officer World Bank- El-Gamal, Yasser Country Manager World Bank Tajikistan Rwanda Komatsu, Tomio Senior Investment IFC Rusenga Mihigo, Resident Representative IFC Rwanda Officer Ignace Sitorus, Djauhari Senior Financial World Bank, Kalisa, John Consultant World Bank Sector Specialist Indonesia Rwanda Sofyan, Safriza Senior Operation World Bank, Garcia, Augusto Senior Operations World Bank -- officer Indonesia Officer Nicaragua Kusharto, Clarita M&E Specialist World Bank, Mwumvaneza, Senior Agriculture World Bank-- Indonesia Valens Economist Malawi Pane, Fajar Financial Sector World Bank, Yatimov, Sr. Agricultural World Bank-- Analyst Indonesia Bobojon Economist Tajikistan Diop, Ndiame Practice Manager World Bank, Indonesia Prasta, Yogana Operations World Bank, Adviser Indonesia Multilateral, regional, and bilateral development partners Bermudez, Ministerio de Gelb, Alan Sr. Fellow Center for Global Santiago Energia de Miras Dev’t Centero, Pablo Division de Gutierrez, Data Scientist Cientifico de datos Politicas y Planes Vladimir de Desarrollo Cleaver, Kevin Overview IFAD Prado, Vladimir Ordenomiento Temtorial De Salvo, Carmine Rural Dev’t Inter-American Ramachandran, Sr. Fellow Center for Global Paolo Specialist Development Bank Vijay Dev’t Gelb, Alan Senior Fellow Centre for Global Ramachandran, Senior Fellow Center for Global Development Vijaya Development Local private sector Shome, Rajib Executive Director Reptiles Farm Gulnora, Operations Director, Arvand Ltd. Yukubova MDO Chowdhury, Uzama Director PRAN Foods Sharipova, CEO Imon International Sanvbar Vajjula Durga, Director Nacional Bakhresa Grain Ibragimov, Finance Director Imon international Sivajee Milling (MOC) Gairat LDA Palanivel, Gestor Financeiro Bakhresa Grain Gaibullozoda Owner LLC Tajero/LLC Selvamanyn Milling (MOC) Amiri LDA Kumar, Rakesh Vice President- Said Salim Muminova CFO LLC Tajero/LLC Finance (projects) Bakhresa & Co. Amiri Muni. I, Peter General Manager, Bakhresa Group Vaisova, CEO MDO Humo new projects Mavsuda Shott, Loni Directora de Portos Do Notre, Chmelnizki CEO MDO Finca Operacoes S.A Portuarias Ou Chim, Joaquim Direccao De Electricidade De Sadikova, Shoira General Director Arvand IFC Agro Electrificacai E Mocambique, E.P Service Project Projectos 238 Name Title Organization Name Title Organization Janeiro Heber Project Manage, Electricidade De Sangimurod, General Director OJSC “Madadi Electrical Mocambique, E.P Gafurov Tursunzoda Engineer Rao, K.P Chief Financial Bakhresa Grain Tunggal, Bapak Owner PT. Giwang Citra Officer Milling, Rwanda Bakhresa, Mounir Managing Bakhresa KSU Tunas cooperative Jeneponto district Director Rwanda Rumput Laut Hategeka, Emmanuel Permanent Ministry of Trade Indrayanti, Rini Executive Director Cocoa Secretary and Industry sustainability Partnership (CSP) Suharto, Imam Program Manager The Sustainable Trade Initiative Madeleine, Nirere Presidente Commission Gafur, Executive Director Pensa Agromadiri Nationale Des Hermansyah Driots De la Personne, Rwanda Lucky, Philip Director Global Rwanda Investment Development Promotion Unit Board BANGLADESH Government Mainuddin, Secretary Ministry of AG Nath, Rathindra Deputy Secretary Ministry of Local Abdullah Md. Gov’t and Rural Development Kanti Ghosh, Former Secretary Ministry of AG Hossain, Director General Ministry of Power, Shymal Mohammed Energy and Mineral Resources Hossaim, Abual Joint Secretary Ministry of Land Hossain, Delwar Sr. Assist. Chief and Ministry of Finance Deputy Project Coordinator Ul Alam, Mejbah Secretary Ministry of Land Jahangir, Ahm Deputy Chief Ministry of Finance NGOs, civil society organizations, foundations, research institutes, and academia Ahmed, Nazneen Sr. Research Fellow Bangladesh Stuart Sr. Economist Dept of Institute of International Dev’t Development Studies (BIDS) Asaduzzaman, M. Professorial Fellow BIDS Kader, Fazlul Deputy Managing Palli Karma Director Sahayak Foundation Murshid, K. A. S. Director General BIDS Sattar, Zaidi Chairman Policy Research Institute Toufique, Ali Research Director BIDS Alam, Shamsul Member General Economics Div. Planning Commission Yunus, Sr. Research Fellow BIDS Akhtar, Chief of Party Int’l Food Policy Mohammed Research Inst Kamal, Mostafa Project Director Bangladesh Rural Electrification BoAG Multilateral, regional, and bilateral development partners Imdad, Principal Country Asian Tatewaki, Unit Head, Portfolio ADB Mohammed Specialist Development Bank Yoshinobu Management 239 Name Title Organization Name Title Organization Kumar, Bidyut Sr. Financial Sector ADB Uddin, Zahir Team Leader, WAT ADB Specialist Resources Management BRAZIL Government Bodanese, Julio Director, Special Secretaria de Goncalves, Technical Specialist SEINFRA Projects Agricultura e de Sheila Pesca (SEAPEC) De Sa, Marcelo Chief, Evaluation SEAPEC Pascoal Paulo Planning Coordinator SEINFRA and Monitoring Unit Poleto Andre Tech. Manager, SC SEAPEC Pierre Andre Technical Specialist SEINFRA Rural Brandao Wilson Deputy Secretary Secretaria de Rolim Luiz Technical Specialist SEINFRA Desenvol-vimento Agrario (SEDA) De Abreu Eudes Projeto São José SEDA Rolim Renato Technical Specialist SEINFRA Coordination Unit De Barrios Ana Projeto São José SEDA Boppre Norton Director of Regional Secretaria de Coordination Unit Development and Cities Planejamento Do C. Neto Projeto São José SEDA Flores Murilo Secretary Secretaria de Francisco Coordination Unit Planejamento Holanda Ana Projeto São José SEDA Mior Luiz Director of Regional Secretaria de Coordination Unit Development and Cities Planejamento Menezes Janio Projeto São José SEDA Victoria Flavio Manager of Urban Secretaria de Coordination Unit Planning Planejamento Schumacher Jack Projeto São José SEDA Pires Sobreira Deputy Secretary Secretaria de Coordination Unit Carlos Planejamento e Gestão Faco Joaquim Deputy Secretary SEDA Cristina Mercia Coordinator of Secretaria de Infrastructure and WAT Recusos Hidricos Resources Lima Antonio Deputy Secretary SEDA De Oliveira Secretariat for Rural Secretaria do Lafaiete Development Desenvolvimento Agrario SDA (Rural Development Agency) Beilfuss Bruno Director of WAT SEDA Ferreira Claudio Deputy Secretary Secretaria do Resources Desenvolviment Economico Correa Luis Director of WAT Secretaria de Flores Aldir Director de Mudancas Secretaria do Resources Desenvolvemento Climaticas Estado e do Economico Planejamento Sustantavel Ribeiro Daniel Director of Climate Secretaria de Kamers Luiz State Secretariat Secretaria do Change and Estado da Estado e do Sustainable Economico Planejamento Development Sustantavel Bodanesses Marcio Director of Special Secretaria de Luz Carlos Project Manager Secretaria do Project – SC Rural Estado da Estado e do Agricultura e da Planejamento Pesca Correa Vamilson Executive Secretaria de Luz Rosane Director of Planning Secretaria do Secretariat for Estado da Cultura Estado e do Rural Programs in e da Pesca Planejamento 240 Name Title Organization Name Title Organization the State of Santa Catarina Beifuss Ditmar Director of ENV Secretaria de Zimath Janiana Executive Secretariat Secretaria and Sanitation Estado do Executiva Estadula Desenvolvimento de Santa Catarina Economico Rural Sustentavel Directoria de Recursos Hidricos Sa Julio Director of WAT Secretaria de Henrique Paulo Planning Coordinator SEINFRA Resources Estado do Desenvolvimento Economico Sustentavel Directria de Recursos Hidricos Alves Tania Technical Specialist Secretaria de Lima Marcondes Accounting Adviser Sisar – Infrastrutura – Coordinated (SEINFRA) Program of Rural Sanitation De Brito José Technical Specialist SEINFRA De Lucena Director of Surface SOHIDRA Antonio WATs Faco Andre Secretary SEINFRA Guimaraes José Deputy Superintendent SOHIDRA Fernandes Antonio Deputy Secretary SEINFRA Diana Sawyer Research Coordinator UNDP NGOs, civil society organizations, foundations, research institutes, academia Flavio Ataliba F. Director General Institute of Da Silva Paulo State Extension APAGRI D. Barreto Strategic Economic Coordinator Studies of Ceara De Menezes Director of Institute of Da Silva Research and Extension APAGRI Adriano Economic Studies Strategic Economic Vamilson Analyst Studies of Ceara Da Silva Berenice Professor University Federal Da Silva Ricce Agricultural Zoning APAGRI de Catarina Willian Researcher Veronica Patricia Professor at the University of Ceara De A. Almeida CIRAM APAGRI University of Ceara Paulo Francisco Araujo Superintendent of Bank of Northeast De Miranda CIRAM APAGRI Technical Office of Brazil Guilherme Economic Studies of the Northeast Figueiredo Hugo Secretary Bank of Northeast De Oliveira CIRAM APAGRI Brazil Erikson Holanda Marcos President, former Bank of Northeast Marcondes Socioeconomic and APAGRI Director General of Brazil Tabajara Agricultural Planning IPECE Center Lyra Stelio Superintendent of Bank of Northeast MonAGo Marcia CEPA APAGRI Microfinance and Brazil Family AG Romao Tiberio ENVal Manager Bank of Northeast Reiter Janice CEPA APAGRI Brazil Alves Otaciana Manager of Rural Ceara WAT & Steinwandter State Manager, Rural APAGRI Sanitation Sewerage Co Edilene Extension and Researcher De Araujo Cyntia Coordinator of Ceara WAT & Vieira Hamilton CIRAM APAGRI Public Works Sewerage Co De Sousa Pereira Coordinator, Rural Ceara WAT & Mello William Coordinator of APAGRI Cesar Sanitation Sewerage Co Development and 241 Name Title Organization Name Title Organization ENVal Sustainability Program Dalla Rosa Diego Adviser of Conselho Estadual Prudencio Program Coordinator of APAGRI ARPINSUL de Povos Indigenas Hamilton Business and Market (CEPIN) Damiani Ana Adviser from SED CEPIN Ricce Matias Coordinator of APAGRI Development and ENV and ENVal Sustainability Program Mitia Lauro President of CEPIn CEPIN Becker Ivana Manager of Licensing State ENVal Agency ENV Foundation (FATIMA) Patte Joato Indigenous CEPIN Dos Anjos Manager of Agricultural FATIMA Adviser of the Gabriela and Forestry Licensing Xokleng etnia Patte Woie Adviser CEPIN Santa Walmir Manager for Rural and FATIMA Forest Licensing Klink Carlos Center for Mattei Gabriela Regional Coordinator FUNAI – Fundacao Management and Nacional do Indio Strategic Studies Araujlo Iria Coordinator of Centro de Martins EduAGo President FUNCEME – Management and Informacoes de Research Institute Sanitation ENV Recuros for Meteorology Ambientais e de and WAT Hidrometeorologia Resources (CIRAM) Blainski, Edson Researcher CIRAM Virginio Secretariat for Labor Fundo Estadual de Josbertini and SD Combate a Pobreza Boll, Erikson Researcher CIRAM Correa Marcelo Manager of Rural Fundo Estadual de Enterprise Desenvolvimento Rural Massignmam, Iria Meteorologist CIRAM Osario Rafael International Policy Center for Inclusive Growth Miranda, Angelo Researcher CIRAM Alves Fabio Senior ENVal Institute of Economist Applied Economic Research (IPEA) Oliviera, Everton Researcher CIRAM De Moura Coordinator IPEA Adriana Patte, Cesar Manager CIRAM Megalhaes Coordinator IPEA Antonio Silva, Jibran Researcher CIRAM Paulsen Sandra Director of ENVal IPEA Studies Viera, Quilherme Researcher CIRAM Rocha LeonAGo Rural Development IPEA Specialist Megalhaes Senior Project Empresa de Valadares Public Policy and IPEA Hotaciana Manager Assistencia Tecnica Alexandre Governmental e Extensao Rural Management Specialist do Ceara Antunes EduAGo CIRAM AG Research and Matteri Lauro Professor, University of NECAT – Nucleo Rural Extension Santa Catarina de Estudos de Agency of Santa Economia Catarina (APAGRI) Catarinense Blainski Everton CIRAM APAGRI Dubois Katia ENVal Consultant Other Boll, Mathias CIRAM APAGRI Sanson Joao Former Professor Other 242 Name Title Organization Name Title Organization Correa Janaina Research and APAGRI Amorim Monica Vice Director SBEPT – Brazilian Extension Analyst Society of Research and Technology Multilateral, regional, and bilateral development partners Sawyer Diana Research United Nations Wulf HAGi Program Manager for IFADt Coordinator Development Brazil Programme Conceicao Gerson Program Manager IFAD Beekman Gertjan Coordinator of Inter-American for Brazil Sustainable Institute for Management of Natural Cooperation on Resources and Climate AG Change Silveri Paolo Program Manager IFAD Miranda Carlos Coordinator of AG, Inter-American Land and Rural Welfare Institute for Cooperation on AG Tavares Iris Program IFAD Coordinator ETHIOPIA Government Asfaw, Eshetu Director, Planning Ministry of Kassaye, Hailu PME Sr. Officer Ministry of Foreign and Resource Education Affairs MFA) Mobilization Directorate Wuletaw, State Minister Ministry of Federal Kebede, Sr. Internal Auditor MFA Mulugeta Affairs Solomon Abera, Fisseha Director, Ministry of Finance Omer, Seid PCDP Project MFA International & Economic Coordinator Financial Development Institution cooperative Directorate Adem, Ahmed Ministry of Finance CDSP Sr. Officer Tefere, Aweke Sr. P. Officer MFA & Economic Development Ashcalew, Sr. Finance Officer Ministry of Finance Tefere, Gebre ENVal and Social MFA Tekalign SafeguAGs Sr. Specialist Bedru, Ahmed Sr. Market Ministry of Foreign Belayneh, AGP Coordinator Agricultural Information Affairs (MFA) Keberu Growth Program System Officer (Ministry of AG) Beyene, Rigut Admin and MFA General Sr. Officer NGOs, civil society organizations, foundations, research institutes, and academia Tessema, Director JaRco Consult Adams, Vanessa Director ACDI VOCA Tsegahun Tadesse, Beyene Managing Director Loyya Consult Marcos, Mirafe Chief of Staff & Sr. Agricultural Director – Special Transformation Projects Agency Mussa Economist Lead MMA Semeane Director, Seed Program Agricultural Mohammed Consultancy Development Yitbarak Transformation Consultancy Agency Abeba Eskedar Pastoral Affairs Mikael Laketch Sr. Director, Cross- ATA Standing Cutting Initiatives Committee 243 Name Title Organization Name Title Organization Belete Dagnew Pastoral Affairs Himes Melissa CARE Standing Committee Gelgelo H.E. Pastoral Affairs Surrur Usman Director General Federal Hussen Standing cooperative Committee Agency Wolde Lijalem Vice Chair Pastoral Affairs Challa Director General Federal Micro and Standing Gebremesk el Small Enterprises Committee Dev’t Agency Yusuf Mohammod Chairperson Pastoral Affairs Cerza Rosa Consultant Federal Micro and Standing Small Enterprises Committee Dev’t. Agency Multilateral, regional, and bilateral development partners Allahoury, Representative to FAO Admasu, Dubale Pastoral and Livestock USAID Amadou Ethiopia Programs Coordinator Mekonnen, Gedlu Animal Health FAO Robbins, Gary Office Chief, Economic USAID Officer Growth and Transformation Office Habte, Selassie Programme and IFAD Aylieff, John Representative and World Food Dagmawi Partnership Officer Country Director Program Shapiro, Barry Sr. Program ILRI Tesfaye, Mesfin Procurement & World Food Development Partnership Officer Program Adviser Nega, Fasil Country Program UNIDO Wanmali, Samir Sr. Deputy Country World Food Coordinator Director Program INDIA NGOs, civil society organizations, foundations, research institutes, and academia Somanathan, Professor of Delhi School of Himanshu Assistant Professor of Jawaharlal Nehru Rohini Economics Economics Economics University Mishra, Meera Country IFAD Misra Shuchi Ph.D. Scholar Symbiosis Programme International Coordinator University Mahajan, Kanika Ph.D. Scholar Indian Statistical Kaur Simitri Professor, Public Policy University of Delhi Institute Kumar, Parmod Professor and Institute for Social Head, Agricultural and Economic Development and Change Rural Transformation Center MOROCCO Government Arrach Redouane Eng. General de la Ministere de I’AG L’Kadida Rachid Chef De Pole Ministere de Strategie et des ed de la Peche Coordination De L’indh l”Interieur Statistiques Maritime Charrat Noura Head of Ministere de I’AG Loukhnati Pole Administratif De Ministere de Multilateral ed de la Peche Abdelhadi Financier l”Interieur Coordination Maritime Said Laith Directeur de Ministere de I’AG Moujahid Pole Financier Ministere de Development de ed de la Peche Adellatif l”Interieur I’Espace Rural et Maritime zones de montagne 244 Name Title Organization Name Title Organization Errajraj Abdeijalil Directeur de la Ministere de Bilghithi Ahmed Ingenieur General Ministere de l’AG Presevation du I’Artisanat et de et de la Peche Patrimoine I’Economie Sociale Maritime et Solidaire Guezzar Directeur Associe Ministere de El Yacoubi Eng. In Chief Ministere de l’AG Abdeirhani I’Artisanat et de Zakariae et de la Peche I’Economie Sociale Maritime et Solidaire Kadri Asma Directrice de la Ministere de Ajbilou Azizi Secretaire General Ministere des Strategie, I’Artisanat et de Affairs Generales Programmation et I’Economie Sociale et de la de le cooperation et Solidaire Gouvernance - MAGG Messelek Secretaire General Ministere de El Amrani Directeur de la Ministere des Mohamed I’Artisanat et de Abdelkrim Cooperation Affairs Generales I’Economie Sociale Internationale et de la et Solidaire Gouvernance - MAGG Farhat Youssef Sous-Directeur Ministere de Zaouni Mouna Direction de la Ministere des Charge de la I’Economie et des Cooperation Affairs Generales Coordinator des Finances Internationale et de la Structure du Gouvernance - Financement des MAGG Projets El Hassan Aiyad Chef de I’Unite de Ministere de Tabit Larbi Secretaire General Ministere du Gestion du I’Equipement, du Développement PNRP2/ Head of TR et de la Social de la Famile the PMU of the Logistique et de la Solidarite rural roads program Boutayed Secretaire General Ministere de Er Rich Directeur, Tourism Ministere du Noureddine l’Interieur Mohammed Engineering and Tourisme Investment Boukil Ait Program Assistant Ministere de Roudies Nada Secretaire General Ministere du Mohamed l’Interieur Tourisme Guermai Nadira Gouverneur Ministere de Sadik Tarik Directeur de la Strategie Ministere du Coordinatrice De l’Interieur et de la Cooperation Tourisme INDH NGOs, civil society organizations, foundations, research institutes, and academia Barrakad Imad President du Societe Marocaine Directoire d’Ingenurie Touristique SMIT Multilateral, regional, and bilateral development partners Chothia Nazia Head UN Resident El Ahmar Directeur Group Credit Coordinator’s Mustapha Ben Agricole du Maroc Office Moll De Alba Representative UNIDO El Jamali Jamal Secretaire General Group Credit Jaime Eddine Agricole du Maroc Muschaialli Ebe Chargee de UNIDO Allalat Abdelhab Directeur Haute programmes Commisariat au Plan Bolata Meriem Project Manager UNWOMEN Doudieh Eng. General Haute Mohammed Commisariat au Plan Hutchison Deputy Economic US Embassy El Houdi Eng. General Haute Stephanie Counselor Khadija Commisariat au Plan 245 Name Title Organization Name Title Organization Santos Andre Senior Economist African Said Zauouali Chef de Haute Development Bank division/planning Commisariat au Plan Agbadome Senior Evaluation African Siham Zarrari Chef de division Haute Mirianaud Officer Development Bank Commisariat au Plan Karvella Anne- Chargee de Agence Française Soudi Khalid Directeur Observatoire Haute Sophie Mission de Développement Commisariat au Plan Benyassine Directeur de Agence pour le Nemmaoui Country Project Officer IFAD Abderrahim I’Aggregation et Développement Chakib du Partnariat Agricole El Guerrouj Director General Agence pour le Benabdellah Consultant IFAD Mohamed Développement Majid Agricole Felloun Hamid Directeur de la Agence pour le RichAG Lavalle Head of the Youth ILO Gestion des Projets Développement Project Agricole Hage Michael Representative FAO Mjid Najat SD Consultant Independent Laiti Abdelhak Program Officer FAO Bannani Hind Coordinator IOM Lucante Pierre Conseiller GIZ Technique Principal MOZAMBIQUE Government Matule Raimundo National Director, Ministry of AG and BechAGas Cadaster Department, Ministry of Land, Directorate of Food Security Lavinia National Directorate of ENV and Rural Planning and Land Development Cooperation Correio Vasco Director of Ministry of Cossa Isabel Deputy Director – Ministry of Land, National Studies Economy and DNPDR ENV and Rural Finance Development Antonio Palmica Project team Ministry of Gender, Dos Anjos Banze National Director, Ministry of Land, member, Women’s Children and Social Olegario DNPDR ENV and Rural Empowerment and Welfare (MGCSW) Development Skills Development Project II Buque Sansao Project MGCSW Nguice Halima Planning Department, Ministry of Land, Coordinator, National Directorate of ENV and Rural Women’s Land Development Empowerment and Skills Development Project II Nhancolo Luis Project team MGCSW Rui Mario Cadaster Department, Ministry of Land, member, Women’s National Directorate of ENV and Rural Empowerment and Land Development Skills Development Project II Ntauma Bisque Project team MGCSW Tualufo Jacinto Head of Cadaster Ministry of Land, Agatha member, Women’s Department, National ENV and Rural Empowerment and Directorate of Land Development Skills Development Project II AbeldAGo Mateus National Director Ministry of Aberlado Chemical Engineer, Ministry of of Industry Industry and Trade Americo National Director da Industry and Matusse, Mateus Industry Trade, Republic of Mozambique 246 Name Title Organization Name Title Organization Joaquim Regional Delegate Ministry of Goncalves Gazeda Economy and Ferreira Finance NGOs, civil society organizations, foundations, research institutes, and academia Baxter Michael Country Director OZMOZIS Uaiene Rafael In-Country Coordinator Michigan State University Multilateral, regional, and bilateral development partners Cone Camara Consultant African Manzanares Program Officer, Embassy of Spain Latefa Development Bank Cristina Spanish Cooperation Silva Carla Evaluation Officer African Ankaert Geert Counselor, Economics EU Development Bank and Governance Baloi Edgar Executive Director Commodity Berghmans Els Counselor, Public EU Exchange of Financial Management Mozambique and Governance Do Rosario Chairman/Chief Commodity Strampelli Head of Cooperation EU Grispos Antonio Executive Officer Exchange of Enrico Mozambique Neves Joao Executive Director Commodity Shrikantha Naik Country Head Export Marketing EduAGo Exchange of Co (ETG), Mozambique Nampula Grant, William Global Practice DAI London Gafar, M. Administrator/Manager Gani Commercial, Leader, Market Yunuss LDA, Nampula Systems Development Bentley, Kobi Team Leader, Department of Int’l Dube, Francois First Secretary High Commission Governance and Dev’t (DID) (Development) of Canada EP Herbert, Alicia Country DID Rombe, Miguel Development Officer High Commission Representative of Canada Gutierrez Coordinator Embassy of Spain Hernandez General, Spanish Cristina Cooperation NICARAGUA Government Pineda, Alejandro Director de Ministerio Perez Uriel Director General de Ministerio de José Monitoreo y Agricultura Credicto Publico Hacienda y Seguimiento de Credito Publico Ciclos Productivos Sanchez José Director General Ministerio Guzman Cristhel Coordinatora del Pyecto Ministerio de TRe de Politicas Agricultura e Infrastructura Deering Denis Director de Ministerio de Santana José Vice ministro Ministerio de TRe Cooperation Economia Familiar Amadeo e Infrastructura Comunitaria Cooperativa y Asociativa Larios Manuel Director de Ministerio de Gutierrez Economista de Pais BID Proyectos Economia Priscilla Cooperativa y Associativa Bermudez Ingeniero Ministerio de Kolodin Susan Representante BID Santiago Electricista Energia y Minas Encargada Y Jefa de Operaciones Leon Medrano Responsable Ministerio de Solorzano José Economista Asistente BID Indiana Direccion General Energia y Minas David Mansell Salvador Ministro Ministerio de Barreda Presidente Ejecutivo Empressa Energia y Minas Rodriguez, Ervin Nigaraguenze de 247 Name Title Organization Name Title Organization Acueductos y Alcantarillados Bonilla Olivas Director General Ministerio de Castano, Director de Empresa Francisco de Industria y Fomento, Industria Reynaldo Planificacion Nicaraguenze de Technologia y Comercio Acueductos y Alacantarillados Mendez Mejia Director General Ministerio de Erick de Fomento Fomento, Industria Empresarial y y Comercio Articulacion Sectorial NGOs, civil society organizations, foundations, research institutes, and academia Gutierrez Corea Data Scientist Nicaraguan Zelaya, Maria Official de Programas Swiss Cooperation Vladimir Institute of Antonia Agency Territorial Studies (NITS) Prado, Vladimir NITS Bathrick, Ryan Country Director Techno Serve Chevez, Francisco Coordinator del Procuraduria Aleman, Estela Representative The Tropical Proyector PRODEP General de le Agricultural Republica Research and Higher Education Center Estrada, Hernan Procurador Procuraduria General de la Republica Multilateral, regional, and bilateral development partners De Joie Eric Agregago par European Union Torralba, Miguel Principal Evaluator IFAD Asuntos de Cooperacion Aleman Miguel FAO Baltodano Maria Representative International Eugenia Center for Tropical AG (CIAT) Cantarero Lubina Directora Tecnica Fondo de Reyes Bryon Impact Evaluation CIAT Mantinimiento Vial Molina Karen Directora Ejecutiva Fonto de Mario Aldana Representative Instituto Mantinimiento Vial Interamericano de Cooperacion para la AG IIICA) Chamorro Juan Director Ejecutiva Fundacion Blanco José Secretario Ejecutivo Institutio Sebastian Nicaraguense para Nicaraguaense de el Desarrollo Estudios Economico y Social Territoriales FUNDIES Alaniz Enrique Director de Fundo Ramirez Juan Director UNIDO Investigaciones y Internacional para Fernando Proyectos el Desafio Economico Global Caraballo Jorge Evaluation Analyst IFAD Alvarado Coordinator PAP World Food Francisco Program Castrillo Adolfo Representative IFAD Faune Maria EEP Consultant IFAD Angelica Iscobar Germán Consultant IFAD Tajikistan Government 248 Name Title Organization Name Title Organization Pirizoda, Jalil Head, Agriculture Executive Office of Alimardon, Director PMU Land and Environment President Azimzoda registration and Department cadaster system (LRCSP) Karimzoda, First Deputy Ministry of Finance Qodiri, Chairman Hukumat of Sughd Jamshed Minister Abdurahmon Kayumova, Gulru Deputy Minister Ministry of Valeriy, Kim Deputy Head Banking Economic Association Development and Trade Faizullozoda, First Deputy State Investment Mukhtarov, CEO Credit Bureau Lochin Chairman Committee Rustam Rahimzoda, Sulton First Deputy Ministry of Energy Khaidarov, General Director IFC IS Minister and Water Abdusattor Resources Kurbon, Deputy Chairmen Hukumat of Khakimzodai of the Khatlon Khatlon Oblast Oblast Samadovna, Deputy Minister Ministry of Jamilya Agriculture Sadulloev, Director PMU (Agriculture Habibulo Entrepreneurship Development (AED)) Nuridinzoda, Ahliddin Director PMU (Joint World Bank and ADB credit line project) Tabari, Yatimzoda Chairmen State Land Committee NGOs, civil society organizations, foundations, research institutes, and academia Multilateral, regional, and bilateral development partners Hell, Christian Attaché EU Indonesia Government Adi Suryabrata, Deputy Minister of BAPPENAS Wismana Developing Financing Murniningtyas, Deputy of BAPPENAS Endah Maritime and Natural Resources Iriyanti, Rahma Deputy of BAPPENAS Population & Job Opportunities Development Madjid, S. Sos, M. Director of Village Ministry of Village, Si, Taufik Community Transmigration Empowerment and Disadvantages Areas (MoV) NGOs / CSOs / Research Institutes / Academia/clients Dr. Nicola Nixon Counselor, Poverty DFAT Australia Julia Suraish Principal Finance Wings and Social Officer Management Development DFAT 249 Name Title Organization Name Title Organization Sutanto, Handoyo Finance and HRD Wings Director Management Multilateral, regional, and bilateral development partners Hermanus, Patrick Senior Program Australian Manager DFAT Embassy Joanne Sharpe Minister- Australian Fleur Davies Counselor Embassy Development Aid DFAT Palinrungi, Program leader - Ford Foundation Rafiuddin Cocoa Sustainability Partnership (CSP) Rwanda Government Christian Permanent Ministry of Rwakunda, Secretary Infrastructure Tom Rwahama Adviser to PS Ministry of Infrastructure David Niyonsenga Divisional Urban Planning, Manager Ministry of Infrastructure Eddy Kyozze Manager Rwanda Housing Authority Innocent Permanent Ministry of Musabyimana Secretary Agriculture Esdras Byiringiro Acting LWH & RSSP SPIU Coordinator Celestin Permanent Ministry of Ntivuguruzwa Secretary Education Vincent Permanent Ministry of Local Munyeshyaka Secretary Government Jerome Gassana Director General Workforce Development Authority Benoit Ngabonziza Director Ministry of Youth & ICT Ronald Nkusi Director of Ministry of External Affairs Economy & Finance Emmanuel Permanent Ministry of Trade Hategeka Secretary and Industry Philip Lucky Director, Global Rwanda Investment Development promotion Unit Board NGOs / CSOs / Research Institutes / Academia/clients John Peter Rwema Executive Director Association of Microfinance Eric Manzi Program Manager YES Rwanda Multilateral, regional, and bilateral development partners Mark Davies Livelihoods DFID Adviser Otto Muhinda Asst. Resident FAO Representative 250 Name Title Organization Name Title Organization Arnaud De EU Vanssay Edward Sennoga Country Economist African Development Bank Note: DIFD = Department for International Development; EU = European Union. 251 The World Bank 1818 H Street NW Washington, DC 20433