How to improve the ability of the poorest and hungry to demand pro- poor policies and ensure the effective delivery of services? Regina Birner Research Program: Governance for Agriculture and Rural Development

Reducing Hunger and Poverty Much has been learnt on how to do it –Role of growth; role of different sectors –Role of social safety nets and redistributive policies –Some countries had remarkable successes Innovative approaches to reach the poor –Micro-credit –Cash transfers –Rights-based approaches Declared political commitment is high –Millennium Development Goals Still: Hunger and poverty persist!

The Triple Challenge of Reducing Hunger and Poverty Virtually all policy instruments face at least one of three challenges: 1.Political feasibility –Political opposition (e.g., against land reform) –Lack of political support 2.Administrative feasibility –Lacking ability of the public administration to implement “first-best” policy instruments effectively 3.Fiscal feasibility –Lacking ability to raise financial resources for pro- poor policies on a sustainable basis

The Triple Feasibility Challenge Type of policy instrument Political feasibility Administrative feasibility Fiscal feasibility Redistribution of assets low low to neutral Public infrastructure high (with exceptions) low Technologyhigh (with exceptions) low to neutrallow to high Social safety nets highlow Subsidies, trade protection highlow Market liberalization lowhighlow to high Pro-poor fiscal and tax policies low high

The Triple Feasibility Challenge Type of policy instrument Political feasibility Administrative feasibility Fiscal feasibility Redistribution of assets low low to neutral Public infrastructure high (with exceptions) low Technologyhigh (with exceptions) low to neutrallow to high Social safety nets highlow Subsidies, trade protection highlow Market liberalization lowhighlow to high Pro-poor fiscal and tax policies low high

The Triple Feasibility Challenge Type of policy instrument Political feasibility Administrative feasibility Fiscal feasibility Redistribution of assets low low to neutral Public infrastructure high (with exceptions) low Technology (ag. research) high (with exceptions) low to neutrallow to high Social safety nets highlow Subsidies, trade protection highlow Market liberalization lowhighlow to high Pro-poor fiscal and tax policies low high

The Triple Feasibility Challenge Type of policy instrument Political feasibility Administrative feasibility Fiscal feasibility Redistribution of assets low low to neutral Public infrastructure high (with exceptions) low Technologyhigh (with exceptions) low to neutrallow to high Social safety nets highlow Subsidies, trade protection highlow Market liberalization lowhighlow to high Pro-poor fiscal and tax policies low high

The Triple Feasibility Challenge Type of policy instrument Political feasibility Administrative feasibility Fiscal feasibility Redistribution of assets low low to neutral Public infrastructure high (with exceptions) low Technologyhigh (with exceptions) low to neutrallow to high Social safety nets highlow Subsidies, trade protection highlow to neutrallow Market liberalization lowhighlow to high Pro-poor fiscal and tax policies low high

The Triple Feasibility Challenge Type of policy instrument Political feasibility Administrative feasibility Fiscal feasibility Redistribution of assets low low to neutral Public infrastructure high (with exceptions) low Technologyhigh (with exceptions) low to neutrallow to high Social safety nets highlow Subsidies, trade protection highlow Market liberalization lowhighlow to high Pro-poor fiscal and tax policies low high

The Triple Feasibility Challenge Type of policy instrument Political feasibility Administrative feasibility Fiscal feasibility Redistribution of assets low low to neutral Public infrastructure high (with exceptions) low Technologyhigh (with exceptions) low to neutrallow to high Social safety nets highlow Subsidies, trade protection highlow Market liberalization lowhighlow to high Pro-poor fiscal and tax policies low high

How to overcome the feasibility challenge? Adjusting Policy Design and Implementation Improving the Underlying Conditions Political feasibility challenge * Compensating the losers; packaging * “Windows of opportunity”; stealth * Increasing transparency * Strengthening political voice of poor people – Democratization, political decentralization * Social mobilization/political organization Administrative feasibility challenge * Reducing technical complexity * Reducing scope for corruption * Working with NGOs * Supply-side reform strategies – Increased capacity and incentives * Demand-side reform strategies – Citizen report cards, right to information Fiscal feasibility challenge * Recovering costs * Targeting * Reform of the budgetary process * Reform of tax system

How to overcome the feasibility challenge? Adjusting Policy Design and Implementation Improving the Underlying Conditions Political feasibility challenge * Compensating the losers; packaging * “Windows of opportunity”; stealth * Increasing transparency * Strengthening political voice of poor people – Democratization, political decentralization * Social mobilization/political organization Administrative feasibility challenge * Reducing technical complexity * Reducing scope for corruption * Working with NGOs * Supply-side reform strategies – Increased capacity and incentives * Demand-side reform strategies – Citizen report cards, right to information Fiscal feasibility challenge * Recovering costs * Targeting * Reform of the budgetary process * Reform of tax system

How to overcome the feasibility challenge? Adjusting Policy Design and Implementation Improving the Underlying Conditions Political feasibility challenge * Compensating the losers; packaging * “Windows of opportunity”; stealth * Increasing transparency * Strengthening political voice of poor people – Democratization, political decentralization * Social mobilization/political organization Administrative feasibility challenge * Reducing technical complexity * Reducing scope for corruption * Working with NGOs * Supply-side reform strategies – Increased capacity and incentives * Demand-side reform strategies – Citizen report cards, right to information Fiscal feasibility challenge * Recovering costs * Targeting * Reform of the budgetary process * Reform of tax system

A voice for the poorest! Institutional mechanisms –Reservation of seats in local councils Empowerment – a political process! –True empowerment is self-empowerment! Social mobilization –Vision and leadership – Ideas matter  change of mindsets –Amartya Sen: “There is much evidence in history that acute inequalities often survive precisely by making allies out of the deprived. The underdog comes to accept the legitimacy of the unequal order and becomes an implicit accomplice.” –Coming to believe that “another world is possible!”

Social movements – pathways to economic and political empowerment Labor movement –Welfare state, collective bargaining Peasant movements –Land reforms Cooperative movement –F.W. Raiffeisen – created farmers’ cooperatives (19 th century) –Until today, large agricultural market shares in cooperative hands Ghandian movement –Mobilization of the poor –small-scale farmers also became organized Grameen-Bank type women’s organizations –Economic empowerment as a path to political empowerment Rights-based development movements –Right to information; right to food

What can the development community do? Promoting the frame conditions for self-empowerment – people-oriented governance –Right to association –Freedom of speech, free press –Transparency; access of the poor/women to justice! –Political institutions that accountable to all citizens Encouraging leadership – at all levels! Project implementation methods that create space for empowerment –Community-driven development Works best if building upon local initiatives Refrain from “blue-printing” and “one-size-fits all”

Challenges ahead Building the “demand-side” of governance is not enough! State institutions need to have the capacity and incentives to respond to the poor (supply-side reforms) –Why do only the rural poor need to form user groups to get better services –Supply-side reforms - unresolved problem - requires more attention! Some innovative approaches: E-government; ISO 9000 certification for governments Equity in financing public services –Cost-recovery debate focuses on how to get the poor to pay for services – how to make sure that the rich pay a larger share?