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Rural transformation processes: can we learn from other experiences?

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1 Rural transformation processes: can we learn from other experiences?
Major drivers for rural transformation in Africa: job creation for rural growth Brussels Briefing No 24 September 14, 2011 Felicity Proctor, Independent Consultant, UK

2 Presentation Focus on emerging economy country experiences specifically Brazil, China, India and South Africa Informed by debate and outputs the high level International Conference on the Dynamics of Rural Transformation in Emerging Economies - India April 2010 Aim: - to help to set the backcloth for the briefings with NEPAD on Rural Transformation in Africa - to inform the development of a rural transformation framework for SSA

3 The Context Rural societies of Brazil, China, India and South Africa comprise 25 per cent of the world’s population They are undergoing a process of change unparalleled in history, whether in scale, speed or potential consequences for humanity as a whole Such transformation is taking place in a context that is full of fundamental uncertainties: climate change, the impacts of growing scarcity of land and fresh water, the triple impact of the food, energy, and financial crises This rapid change is creating conditions of enormous risk and vulnerability for rural people ……… .. yet new opportunities are emerging linked for example to renewable energy, provision of environmental services and a renewed focus on food production These countries are both major producers and consumers of food, make up about 40 per cent of world population and therefore have a responsibility to world food security It is estimated that about 87 per cent of the world’s 500 million small farms (less than 2 ha) are in Asia and the Pacific region. China and India alone account for 193 million (IFAD figure or 220 million China paper) and 93 million farms, respectively Nutrition and Maternal Mortality Indicators (2005) Indicators India Brazil China South Africa Children under 5 yrs, who are underweight (weight for age, less than 2 standard deviations SD, %) ( ) 43.5 2.2 6.8 31 Maternal mortality (per 100,000 deliveries) 450 110 45 400 Source: UNDP (2007) Human Development Report

4 The Context The process of change is made ever more complex for the current generation as it deals with the heavy weight of historical inheritances: poverty inequality and injustice dual agrarian structures lack of rights and social marginalization of large groups in the rural population, including women and tribal and indigenous peoples lack of access to health, education and other basic services insufficient private and public investment Despite this inheritance, ultimate success can be based on the evidence of the impressive achievements to date in these emerging economies

5 Whilst outcomes are not uniform between and within countries - much has been achieved
Hundreds of millions have been lifted out of poverty Food production has increased many times over since the famines of the late 1950s and early 1960s Natural resources and ecosystems can no longer be destroyed in obscurity and with impunity Hundreds of thousands of small and medium firms have been created and are contributing to the global economy Many more young women and men are going to school when compared with their parents’ generation Governments are more accountable to citizens and civil societies are more active and vibrant than ever What the rural societies of the emerging countries have done in the last generation is an achievement that has not been registered by any other nation in a similar period of time or on such a scale.

6 Four countries – Four approaches?
Brazil - Total pop.193.7m 16% rural China - Total pop 1.33b rural 53.4% Strengthening family farms and increase numbers, increasing minimum wage and securing social inclusion of the rural poor Zero Hunger Programme Then National Programme for the Strengthening of Family Farming (PRONAF) and the Marketing Food Acquisition Programme (PAA) Territories of Citizenship Programme-budget US$15.3 b (2010): new approach to secure productive inclusion of poor people, universal access to basic programmes, expansion of social participation and increase efficiency of public policies. Dual agricultural system still remains Rural Pop to decrease to 30–35% in next 20 years. 220 million farmer-HH operate on less than 0.6 ha per HH. Township and Village Enterprises -TVEs ( ) provided 119 million jobs. Rural social safety nets have been established Current focus: ensure national food security relying on domestic production to guarantee food supply and basic self-support of key foods; renewed focus on agriculture incl. rural land tenure; job creation in rural areas; promote rural–urban migration; social equity in rural areas including the equalisation of basic public services provision between urban and rural areas; a number of social welfare programmes India - Total pop 1.16b 70% rural South Africa - Total pop 9.3m 39% rural Many approaches to rural development have been tried and not all have done well resulting in many ‘silos’ created. Rural–urban disparities across all indicators exist. Rural economy becomes less agricultural in recent years. 2004 Eleventh Five Year Plan (2007–2012)-multiple new rural initiatives. Panchayati Raj plays a key role in implementation e.g. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Environmental concerns on the horizon. Historical past of ‘apartheid system’ created geographic differentiation. After a number of efforts to development a rural strategy after 1994, 2007 has seen the Comprehensive Rural Development Programme with focus: coordinated and integrated broad-based agrarian transformation, including market and cooperative development and addressing the needs of women and youth; investment in rural development infrastructure; and an improved land reform programme. Emphasis placed on job creation and entrepreneurship.

7 Informing a framework for rural transformation

8 The rural transformation envisioned is about human development, as opposed to simply the development of assets For this type of transformation to occur, the Conference identified an agenda based on three pillars: Significant and continued investment is needed for inclusive, sustainable and diversified rural development to occur Need for the right governance systems, institutions and policy processes Need to improve the efficiency and effectiveness of public policy and programmes

9 A. The imperatives for rural transformation
1. Reducing poverty and inequalities, not only those inherited from past policy decisions and social structures, but also the new poverties, gaps and inequalities being created by the process of rapid change itself 2. Ensuring food security, accelerating agricultural development, and securing a relevant role of and opportunities for small-scale producers and family farmers in national, regional and global value chains 3. Creating more and better jobs and economic self-sufficiency in rural areas, including in small towns and intermediate cities (and their associated investments) And … Heavy investments are needed for inclusive, sustainable and diversified rural development to occur Point 3 Rural economic diversification is a major driver of job creation. At the same time, rural labour markets are notoriously imperfect and they represent a huge challenge that needs to be addressed urgently

10 The rural transformation imperatives (cont.)
4. Stimulating the growth of rural towns and intermediate cities and strengthening the links between them and their rural hinterlands 5. Managing the complex and sensitive issue of rural–urban migration 6. Meeting the climate change and environmental challenge, enhancing environmental services, making much more efficient use of scarce natural resources such as land and water, promoting renewable sources of energy that can only be created in rural areas, and leveraging a green agenda for new jobs and sources of income for the poor

11 The rural transformation imperatives (cont.)
7. Securing universal access by rural populations to basic public services including education, health, housing, fresh water, electricity, transport and communications, with improving quality standards 8. Developing land reform and land tenure systems that balance objectives of social equity, economic growth and environmental sustainability, and that can evolve rapidly as many young and better-educated people join new non-farm rural jobs or out migrate 9. Securing widespread access to efficient and sustainable financial services and capital, without which the benefits of the rural transformation cannot be realized in full Point 9 - This requires a significant expansion of financial resources and budgets, as well as major improvements in the efficiency and institutional sustainability of rural financial systems.

12 The rural transformation imperatives (cont.)
10. Promoting innovation, research and development focused on the needs of rural people and rural producers and firms, and making much better use of the opportunities offered by the ICT revolution 11. Putting in place social support schemes including cash transfers, pensions, employment guarantees, and subsidies for the most vulnerable that secure the basic human dignity of every rural dweller Ref Point 11 At the same time, it is important to reaffirm that poverty eradication and social inclusion will lead to better long-term outcomes and be more sustainable if they rest on localized, inclusive economic growth, complemented and not replaced by social support schemes.

13 B. Need for the right governance systems, institutions and policy processes
The Conference learned – often through painful and costly failures – that this agenda is simply impossible to design and implement if such hard investments are not accompanied by much better governance, institutions, social participation and policy processes “Rural change would be easy if it was only a matter of ‘bricks and mortar’ projects and of spending more money, but we know that this is not the case”

14 Major governance, institutional and policy challenges
The term ‘rural’ is no longer synonymous of agriculture or food production Rural includes small towns and intermediate cities Rural people include much more than male farmers The agro-sectoral rural lens of the past needs to be urgently replaced by a place-based lens that recognizes inter-connections between places at national, regional and global levels Rural development does not live in the shadow of urban development - instead rural development calls for a deliberate investment in rural social and economic infrastructure for the growth of rural economies The social construction of a new meaning of the concept ‘rural’ in the 21st century in these rapidly changing countries. Policies and programmes cannot be successful if they are rooted in notions that reflect the reality of 20 or 30 years ago, but that have very little to do with the essential characteristics of contemporary rural societies in these four countries Minister Cassel – Min of Agrarian Development “Brazil is changing rapidly, and is beginning to reexamine and redefine itself as the country it wants to be in the future. In our opinion, a new balance between urban and rural and between different regions is possible. More than just possible, it is necessary to transform rural areas into places where people have the social and economic security needed to work, with access to healthcare, education and culture, and will hopefully be increasingly involved in the sustainable development of the nation” 

15 Major governance, institutional and policy challenges (cont.)
The challenge of coordination across government levels (from central, to provincial, to local) and across sectors (agriculture, education, health, environment, infrastructure and so on), and across and between market, state and civil society actors The challenge of building the capacity of accountable local governments The challenge of private–public partnerships, particularly when there is no/limited private sector available or willing to join in partnership

16 Major governance, institutional and policy challenges (cont.)
The huge challenge of the most disadvantaged regions and social groups, like the tribal areas, badly lagging regions and the rural destitute The continuing challenge of refashioning gender relations on the basis of equality The challenge of strengthening civil society processes and structures so that they can better contribute to and be drivers of rural transformation

17 C. Improving efficiency and effectiveness of public policy and programmes
This third pillar seeks to close the gap between outlays and outcomes. Key questions are: How to sequence priorities in rapidly changing countries? How to allocate resources more effectively and transparently? How to improve approaches to targeting and to social control of investments? How to strengthen Monitoring and Evaluation (M and E), learning systems, research on rural development, and build up adaptive, evidence-based policymaking? Our countries are investing huge amounts of public money in rural areas with overall social and economic gains, but in some cases outcomes are not proportional to the effort. We need to improve our performance to expand the opportunities of rural societies and to create a more solid base of support for further investments. RSA Minister

18 Call for shared learning
Innovation in institutional structures that breakdown sectoral barriers at all levels of public sector support and intervention Job creation in rural areas/skills development for (changing) rural employment Managing duality in agriculture (small-scale producer and the agribusiness) e.g. effective regulation or mechanisms for conflict mitigation and resolution that secure small farmers’ rights within environment of dual systems Better understanding of impacts of agriculture policy of large emerging economies on local, regional and global socio-economic outcomes and on other agriculture outcomes (production, trade and nature of farming) Skills development for rural employment – experiences of intervention to support skills, needs assessments and development for the changing rural labour markets

19 Call for shared learning
Rural finance and financial intermediation models e.g. mutual guarantee groups in China Role of the private sector in rural transformation Funding mechanisms for ecosystems security and carbon credits Policies that enable rural migration Setting up of marketing cooperatives Planning for land utilization i.e. food v biofuels; agriculture v urbanisation – models and experiences Role and impact of coalitions and social movements on rural change Cash transfers The role and impact of coalitions and social movements on rural change. Models of practice and approaches on how to strengthening grass roots democracy and empowerment for development at the local level Planning for land utilization i.e. food v biofuels; agric v urbanisation – models and experiences – better understanding of rural settlement and land use change

20 Call for shared learning
Why development investment outlays are not having the desired outcomes? What are the best approaches to address the gap between (investment) outlays and outcomes including sharing experiences on the use of different indicators? Learn about what has worked through cross country study to generate ideas on Monitoring and Evaluation include: use of Rapid Evidence Assessments (REAs) now being tested in South Africa shared learning with China (and a South East Asia regional network) on Results Based Management how does Monitoring and Evaluation feed into Government policy and link with planning including for continuous learning? It was noted that any development practice lesson learning or sharing needed to be underpinned by a common understanding of the different measures/indicators and contexts. There is need to improve the capacity to deliver for sustained impact including monitoring and increased accountability.

21 What does this mean for SSA?
Whilst countries in SSA face unique challenges – there are lessons of strategy, policy and intervention practice to be drawn from emerging economy countries in Asia and Latin America and within SSA Recommendation Build effective mechanisms for continuous SSA – Asia –Latin America shared learning and evidence generation on rural transformation to help SSA optimize on the experiences of others and to share with others in SSA and beyond on what works well in the SSA context

22 Sources of Information
International conference websites

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