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Why is the BBA important? 11 October 2013 Alan Rennison Program Officer, Bill & Melinda Gates Foundation
© 2013 Bill & Melinda Gates Foundation | Overview of the Foundation and our work in the Ag Policies space 2 Foundation belief: Every person deserves the chance to live a healthy, productive life Ag Development goal: Sustainable smallholder productivity growth Ag Policies goal: Address policy and institutional constraints that limit sustainable productivity growth in staple and livestock value chains Foundation belief: Every person deserves the chance to live a healthy, productive life Ag Development goal: Sustainable smallholder productivity growth Ag Policies goal: Address policy and institutional constraints that limit sustainable productivity growth in staple and livestock value chains BMGF’s Ag Policies investment areas BMGF’s Ag Policies grantees Granting by BMGF business unit Payout in 2012 Awarded since 1995 Foundation- wide $3.2bn (100%) $34.2bn (100%) Global Development $1.5bn (47%) $13.6bn (40%) Agricultural Development $378m (12%) $2.6bn (8%) Agricultural Policies $56m (1.8%) $348m (1.0%) 5. Monitoring & priority setting 1. Data & statistics 2. Policy research & analysis 3. Deliberation & policy selection 4. Cost- effective policy implementation
© 2013 Bill & Melinda Gates Foundation | Why does BMGF invest in policy?: Good policy and regulatory environments facilitate sustained smallholder productivity growth Well designed policies facilitate smallholder access to: (i) improved inputs and knowledge; and (ii) output market opportunities 3 Inputs market Outputs market Supply-side Demand-side Supply-side Demand-side Smallholder farmers Smallholder farmers Urban and rural consumers Local processors and other agribusinesses NGOs Government Neighboring farmers Seed companies, agro- dealers NGOs Government Smallholder access to safe, efficacious inputs and improved farm practices Investment in local agribusinesses that supply inputs and knowledge to farmers Investment in local agribusinesses that buy raw produce from farmers Improved targeting and efficiency of ag expenditure allocations Stable and more predictable food prices Smallholder incentives to participate in efficient markets and trade Ag policies and regulations should facilitate:
© 2013 Bill & Melinda Gates Foundation | Why is BBA important? It informs policy decision making, in particular around commercial ag involving smallholders BBA draws upon and complements indicators from a number of other important data sets 4 BBA enables: Assessments of the extent to which national policies and regulations adhere to CAADP Benchmarking and cross-country comparison of key ag indicators Focused and detailed policy dialogue and analysis A basis for national-level policy and regulatory reform A basis for improved donor investment targeting A private sector ‘voice’ in the ag policy debate BBA enables: Assessments of the extent to which national policies and regulations adhere to CAADP Benchmarking and cross-country comparison of key ag indicators Focused and detailed policy dialogue and analysis A basis for national-level policy and regulatory reform A basis for improved donor investment targeting A private sector ‘voice’ in the ag policy debate BBA complements:
© 2013 Bill & Melinda Gates Foundation | Why is BBA important? It helps to identify policies and regulations that facilitate or deter private sector investment in smallholder ag We focus on local SMEs because of their crucial role in the inputs and outputs markets that smallholders participate in 5 MARKETS Basic research Input production Input delivery On-farm production Trading Processing Domestic Markets International Markets Post- harvest Seed companies Fertilizer blenders Input wholesalers ‘Outgrower’ farms Agri- processors Traders / retailers Importers / exporters Commercial seed farms DISCOVERY Variety registration and release: Excessive requirements Industry structures: Government monopolies, Government producer/regulator conflict Certification, grades and standards: Excessive requirements, weak enforcement, lack of regional harmonization Import / export procedures: Excessive requirements and non-tariff barriers Ad hoc implementation: Uncertain timing and duration of active policies and regulations, inconsistent economic rationale Adaptive Research Aggregation businesses Agri-vets Local SME agribusinesses Examples of policies and regulations limiting private investment in ag SMEs
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