>7 ,_3("h(uDPX *FUQN}5h:G{Cl>t AO`(e! a20b)L#f 3ybiX] Mn6`QSp8Npcx^ oGb|- This may be, for example, through risk guarantees, cost sharing, innovative publicprivate partnerships, targeted subsidies, or provision of infrastructure conditional on private investment. o Creating economies of scale, efficient production and co-ordinated markets through public private partnerships (PPP), farmer-to If these trade-offs are explicitly considered and communicated when developing the agricultural transformation plan, it is possible to tailor the choice of value chains, cross-cutting enablers, and geographies to differentially achieve the governments chosen goals. We focus on six core elements of a national agricultural plan (what to do) that increase the odds of a successful rural transformation, and then reflect on elements of the on-the-ground delivery of an agricultural transformation (how to do it). With this in mind, we believe there is great value in the creation of an academy focused on building the next generation of leaders in an agricultural transformation. We paint a comprehensive portrait of the changing nature of the rural economic structure, blurring of rural-urban distinctions, and how this poses a challenge as well as opportunity to create employment for labor leaving the agricultural sector. Without this, the transformation may proceed more slowly, stall, or not reach scale. Unleash their potential. Moroccos Plan Vert started with seven value chains, expanded to nine, and focused on six geographic areas. Change agents are people who farmers trust and interact with regularly. Readiness for agricultural transformation. changes in the enabling environment that will be necessary as the transformation progresses to support increasing private-sector engagement. uuid:uuid:6da9cb64-f9da-129a-7bd4-1b10c8d7e341 Our aim is to help African countries and institutions accomplish these strategies. First, there are elements of transformation readiness. Changes to a countrys institutional framework, governing mechanisms, and political environment can significantly influence the likelihood of accelerating an agricultural transformation. Most large-scale transformations in the private sector use versions of PMOs. Successful agricultural transformation plans give farmers the opportunity to raise their household incomes. 2010-11-17T07:29:42-05:00 Economic transformation, inclusive growth, and competitiveness: Towards an Economic Strategy for South Africa Prepared by Economic Policy, National Treasury . The Black Economic Empowerment Commission and the formulation of a national strategy for Black Economic Empowerment (BEE) legitimacy issues and slow transformationand therefore a sector in which people have no confidence and pride. Agriculture and the Economic Transformation of Ethiopia John W. Mellor and Paul Dorosh Development Strategy and Governance Division, International Food Policy Research Institute Ethiopia Strategy Support Program 2, Ethiopia IFPRI-Addis Ababa P.O. Economic development transforms an economy from one that is largely agricultural to one that is largely manufacturing and services. Effective change agents exist in both the public and private sectors. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. To catalyze this, a change agent might be the person providing extension knowledge, offering financing for farming inputs such as fertilizer, aggregating crops, or facilitating marketing services. Elita Chikwati. The how-to elements of a transformation described in the second part offer an even greater opportunity to accelerate agricultural transformations. Please use UP and DOWN arrow keys to review autocomplete results. However, our experience shows that, depending on the country, the positives of a PMO (improved coordination, management of progress toward targets, increased ability to learn and adjust implementation over time) can greatly outweigh the negatives (high transaction costs, the potential for added complexity in political channels). Services: Economic Strategies, Economic Growth, Revenue Transformation, Modernizing Agriculture. Second, a good agricultural transformation plan identifies public investments designed to catalyze additional private-sector engagement. Many African countries have experienced unprecedented rates of economic growth in recent years, yet their economic transformations display features that could constrain their future growth prospects. Why agriculture is different 291 3.1. A common reaction to this interdependency problem is to try to move all elements ahead in a highly prescribed way, specifying interventions up and down value chains and creating complex plans with a high potential for failure. Sustainable economic transformation goes far beyond simple economic growth. For some, that will mean raising farm productivity or shifting the mix of production to include higher-value crops and livestock. Senior Reporter. Many African countries have experienced unprecedented rates of economic growth in recent years, yet their economic transformations display features that could constrain their future growth prospects. Keywords Agriculture, development, strategies, policies, poverty reduction Introduction A rich literature, both theoretical and empirical, has examined the process of structural transformation of economies, from the least developed in which economic activity is based Ethiopia and Morocco both invested more than a year of intense study and stakeholder engagement to craft their agricultural transformation plans. Our experience suggests that they are the biggest controllable factors leading to successful conclusions. It takes management over time. IFPRIs research on this strategic area: Overly prescriptive and inflexible strategies in agricultural transformation fail because of the complexity of agriculture-based economies. When the trade-offs among multiple objectives are not explicitly integrated into the agricultural transformation plan, progress is characterized by underdelivery across too many, sometimes competing, objectives. iv ECONOMIC TRANSFORMATION AND JOB CREATION IN MOZAMBIQUE. South Africas Economic Transformation: A Strategy for Broad-Based Black Economic Empowerment 4 characterise the economy and act as a deterrent to growth, economic development, employment creation and poverty eradication. Most successful transformations can be traced to specific single individuals who had an extra-ordinary impact on the project. Land policy is a good illustration of how critical it is for policies to be dynamicchanging over time to prevent transformations from stalling. Land policy is often cited as a pivotal factor in determining whether a countrys agricultural transformation can simultaneously achieve sustained progress and inclusivity (contributing to widespread poverty reduction). xDGtrE#|wpg Agricultural transformation lies at the core of poverty reduction, food security, and improved nutrition. Last, there are drivers related to delivery mechanisms. This category focuses on what is needed to translate the national agricultural plan into on-the-ground impact. In other sectors of the economy, particularly manufacturing and services along agricultural value chains. For example, more productive land that is already well connected to markets, such as irrigated land in Morocco, can support large- or small-scale farms; agribusiness is easier to scale there. We'll email you when new articles are published on this topic. The key is to ensure the use of appropriate metrics and incentives, sufficient training, and performance management of the change agents. bj@iX/=bI}vo"9lt6at$!.$IWrv +S6u=Ys '0"+]Jpf3[&P\*/5&_M\E~My93 L:FoweX'DRd!3]A?k0YtYPs IQ}59*s? oIblJaQ_M&IRco X+'c{:YJ^UgM@\"q$NT[)v4IgJ'O93,u_{. gw6q+~9>D0:SAVe]-E3 It is also important to be clear how the intervention in the agrifood sector will contribute, directly or indirectly, to poverty reduction, food and nutrition security, and sustainable food systems. Countries often prioritize a combination of both food security crops as well as export or higher-value commodities. Building on what it has accomplished over the last decade Use minimal essential This is normal change management in the private sector. The document outlines the characteristics, challenges, opportunities, vision, mission, strategic thrusts and the Successful agricultural transformation plans differentially target agri-food systems and geographic areas with tailored strategies. The book offers a detailed roadmap for government-driven structural transformation via small-farm agriculture. December 01, 2020 Violence against Women and Girls; financial and economic inclusion of women among key outcomes of AU Ministerial meeting. Ethiopias investments in expanding the agricultural extension system are believed to have accelerated its agricultural transformation. Agricultural transformation incorporates two main processes: transforming or modernizing farming by boosting productivity and running farms as modern businesses, and strengthening the links between farms and other economic sectors in a mutually beneficial process, whereby farm output supports manufacturing (through agroprocessing), and other sectors support are core to the role of agriculture in economic transformation. After running more than 30 country diagnostics, we found that the drivers fall into three main categories. AGRICULTURAL SECTOR DEVELOPMENT STRATEGY 20102020 ix PREFACE The Agricultural Sector Development Strategy (ASDS) is the overall national policy document for the sector ministries and all stakeholders in Kenya. Every Kenyan should have access to affordable and nutritious food. cookies. More than just an economic imperative, the deracialisation and engendering of our economy is a moral requirement in Make a contribution to the Agricultural Sector Transformation and Growth Strategy (ASTGS). Although rural families often make their living from many different types of work, improvements in farming have proved to be the path toward widespread, poverty-reducing growth in the rural economy. volume that any serious student of agricultural development and economic transformation needs to read. tHq\M}t5AC/KA)8b6I""`f]*YZL?q#m2X|_h)pv). Investing in Agriculture for Food Security and Economic Transformation November 20, 2012 4 | P a g e Executive Summary South Sudans 90% estimated 640,000 square kilometers of land is considered suitable for agriculture of which 50% is prime agricultural land. As farmers have more money in their pockets, they spend more in the local economy, creating jobs, opportunity, and more demand for agricultural goods. Please click "Accept" to help us improve its usefulness with additional cookies. The appropriate choice of change agent might vary depending on what part of the transformation plan is involved and the characteristics of the countrys agri-food systems. The economic outlook for Sub-Saharan Africa for 2016 gives room for cautious optimism. Agricultural transformation plans with an investor mind-set include three strategic planning components. The African Center for Economic Transformation (ACET) defines agricultural transformation as a process that leads to higher productivity on farms, commercially orients farming, and strengthens the link between farming and other sectors of the economy. For example, improvements in agricultural extension and seed systems might enable farmers to switch to a more productive hybrid seed, but lack of access to fertilizer (upon which the hybrid depends) could prevent productivity increases and leave the farmer unwilling to buy hybrid seed next time. There is a case for using existing structures such as ministries rather than creating a temporary new organization. The critical enabler, without which an agricultural transformation is likely to fail, is a frontline change agent that helps farmers modify their practices. Because they feed their families with some of the farm output as well as sell into markets, they make decisions based on their potential profit, risk, and cash flow across family food consumption as well as sales. They are high-return-on-investment actions that can make the what to dosthe larger investments in areas such as processing facilities, roads, and fertilizerhave a much likelier chance of success. AGRICULTURAL ECONOMIC REPORT NO. This choice dramatically increased the income opportunities for small farmers and has led to an average land productivity increase of 30 percent. Too often, agricultural plans recommend particular commodities without paying attention to this basic calculus of farmer household economics. A PMO is also charged with engaging relevant stakeholders when problems arise. Soil and climate conditions allow for a wide variety of food and cash crops. Sara Boettiger is a senior advisor for the McKinseyCenter for Agricultural Transformation, Nicolas Denisis a partner in McKinseys Brussels office, and SunilSanghvi is a senior partner in the Chicago office. Eight of the 13 national agricultural plans that we analyzed in Africa didnt set clear priorities. Box 5689 Addis Ababa, Ethiopia Tel: +251-11-646-2921 Fax: +251-11-646-2318 Ethiopias agricultural transformation plan initially prioritized three value chains and five geographic areas. Agricultural transformation is more than changes in farming practices. The Agriculture and Agro-Industry Department of the African Development Bank Group launched its Strategy for Agricultural Transformation in Africa 2016-2025 on Monday, September 19, 2016 at the AfDB headquarters in Abidjan, Cte dIvoire. The role of the agricultural sector 288 3. \tEDOJJ2)PZ&~{Y)AO*w)x\WR:&^QT9]Iz}Z]Y[]^>CA&QY9UH>=[YgBWAG7KNEIo^^>VT 627(7gZalFUFC2cW0n6~eeiriiV? O-- -,XQv[[}X[OhDT1e}[[Wl?Y aOXzAHwvwwIp9U:f!QS3skW7gwoo_++Za_CWjl >nyvUU:WSW_]]kpAp^(=T24*&t6=0Ln9nR/%y*rfkr\{{uKg (8lh'BeP%T]A^!4MBBaLeaX6k8x Please try again later. With few exceptions, countries that have moved toward middle-income status have been initially driven along that path of economic growth by the transformation of their agriculture sector. Strategic plan for the transformation of agriculture in Rwanda: Phase III, Republic of Rwanda Ministry of Agriculture and Animal Resources, July 2013, minecofin.gov.rw. 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