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EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental Policy, Imperial College London Jenifer Piesse Department of Management, King’s College London Department of Agricultural Economics, University of Stellenbosch Colin Thirtle Centre for Environmental Policy, Imperial College London Department of Agricultural Economics, University of

EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

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Page 1: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA

Bruce HearnDepartment of Management, University of Leicester

Veli KocCentre for Environmental Policy, Imperial College London

Jenifer PiesseDepartment of Management, King’s College London

Department of Agricultural Economics, University of Stellenbosch

Colin Thirtle Centre for Environmental Policy, Imperial College London

Department of Agricultural Economics, University of Stellenbosch

Page 2: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Outline and background• Follows OECD 2009 - database – http://stats.oecd.org/Index.aspx See

Development/Aid Activities/Creditor Reporting System

• They cover all agricultural aid from OECD DAC countries

• We look specifically at EU countries aid to SSA only – overview

• Historical background – theoretical framework - regional distribution – amounts and shares by donor country – aid effort – disbursements versus commitments – decomposition by purpose – broad sector aid including food aid and emergency assistance.

• Top recipients – aid by purpose for Mozambique, Ghana and Uganda

Key points• Bilateral aid to agriculture has halved since the mid 1980s

• DAC aid to agriculture was 17% of total aid in the late 1980s – now only 6%

Page 3: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Official Development Assistance (ODA): Net Disbursements

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

19

60

19

62

19

64

19

66

19

68

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

Years

2007

$ U

S m

illi

on

s

All ODA to all recipients All ODA to Africa DAC ODA to agriculture

Page 4: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Development Assistance Committee (DAC) EU Members ODA

0

5,000

10,000

15,000

20,000

25,000

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

Years

2007

$ U

S,

mil

lio

ns

DAC EU members to Africa DAC EU members to agriculture DAC EU to SSA agriculture

Page 5: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

A Theoretical Framework

• The basic concept is not difficult. We have a matrix with a column for each donor county i, where i =1….m, and a row for each recipient country j, where j = 1…n. The EU countries are all bilateral donors and if in addition we knew their contributions to multilateral agencies, summing the columns would give the country totals in terms of either commitments or disbursements. Similarly, most of the countries of SSA are recipients and summing the rows would give the total aid allocated to each country.

Page 6: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Regional distribution

Page 7: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

ODA Disbursements by DAC Countries to SSA Agriculture - 2007 (2007 m US$)

Donor country

Total aid to agriculture

As %GDP Aid to agriculture as share of total aid %

As share of total DAC* aid %

Denmark 47.7 0.0240 7.5 5.8

Norway 38.6 0.0152 4.8 4.7

France 308.9 0.0149 11.7 37.6

Ireland 24.5 0.0127 5.2 3

Belgium 33.2 0.0090 5.5 4.1

Sweden 26.7 0.0083 3.3 3.3

Switzerland 12.7 0.0040 4.6 1.5

Netherlands 24.7 0.0038 1.6 3

Germany 47.8 0.0017 2.5 5.8

Spain 21.5 0.0015 4.6 2.6

Finland 2.6 0.0014 1.3 0.3

UK 22.9 0.0011 0.9 2.8

Italy 11.9 0.0006 4 1.4

US 71.13 0.0005 1.77 8.67

EC** 86.79 2.17 10.58

Total DAC 820.7   4 100

Page 8: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Aid to Agriculture as Share of Total DAC Agricultural Aid % by Donor Country

6%

0%

37%

6%3%1%3%5%

3%3%

2%3%

9%

11%

8%

Denmark Finland France Germany Ireland

Italy The Netherlands Norway Spain Sweden

Switzerland United Kingdom United States EC Other DAC

Page 9: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Aid Effort: DAC Members' Total Aid to Agriculture - 2007 (millions $)

Donor Bilateral Disbursements

Bilateral Commitments

Multilateral Commitments

Total Commitments

Australia 92 82 24 106

Austria 9 12 27 39

Belgium 66 91 33 124

Canada 122 114 38 152

Denmark 79 83 23 106

Finland 23 34 15 49

France 399 451 158 608

Germany 238 317 210 527

Greece 5 5 11 15

Ireland 32 33 14 47

Italy 42 45 88 132

Japan 687 821 209 1030

Luxembourg 9 9 4 13

Netherlands 116 121 51 172

New Zealand 6 11 2 13

Norway 100 117 18 135

Portugal 2 2 11 12

Spain 111 163 76 230

Sweden 117 144 50 193

Switzerland 64 69 27 96

United Kingdom 153 113 205 319

United States 472 932 149 1081

EU Institutions 359 444 17 462

Total DAC 3302 4213 1458 5670

Page 10: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Commitments versus DisbursementsUK

16.58 14.1322.37

17.9812.02

22.90

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

2001 2002 2003 2004 2005 2006 2007

US

D M

illi

on

Commitments Disbursements

France

114.0782.99 89.99 83.68

104.01

317.45

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

2001 2002 2003 2004 2005 2006 2007

US

D M

illi

on

Commitments Disbursements

USA

10.92 27.69 40.1175.67 65.81 71.74

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

2001 2002 2003 2004 2005 2006 2007

US

D M

illi

on

Commitments Disbursements

European Commission

37.04 39.39

69.4952.82

98.96 95.86

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

2001 2002 2003 2004 2005 2006 2007

US

D M

illi

on

Commitments Disbursements

Page 11: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Distribution of Aid Between Agriculture-Related Sub-Sectors

UK FRANCE US EC

Agriculture/Fishing/Forestry 32.09 326.41 74.90 126.09

Agriculture 22.90 317.45 71.74 95.86

Fishing 0.06 4.18 0.10 13.82

Forestry 9.13 4.79 3.05 16.41

Rural development 3.14 22.90 0.00 81.10

Food aid 82.85 30.10 285.99 169.82

Emergency food aid 33.09 0.35 961.90 311.57

Total 151.17 379.76 1,322.79 688.58

Page 12: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Agricultural Aid by PurposeAgricultural Aid Sub-Divided by Purpose for FranceAgricultural Aid Sub-Divided by Purpose for Germany

Agricultural Aid Sub-Divided by Purpose for the UK Agricultural Aid Sub-Divided by Purpose for the US

Page 13: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Top Recipients of Aid to Agriculture only from all DAC countries (US$ mil)

Country DAC aid to agriculture

Madagascar 68.45310949

Mali 56.22215552

Burkina Faso 54.92056853

Kenya 50.11661781

Ghana 50.03826509

Mozambique 47.09733563

Ethiopia 45.62768451

Uganda 44.29296511

Cameroon 44.10523707

Malawi 41.39384274

Senegal 40.10907136

Zambia 37.12482499

Tanzania 26.51654954

South Africa 22.25277538

Page 14: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Top Recipients by Donor

• Belgium – DRC 6.45, Benin 3.15, Rwanda 2.93

• France – Madagascar 56.07, Cameroon 41.98, Burkina Faso 27.84

• UK – Malawi 6.93, Ghana 4.89, Rwanda 3.82

• US – Uganda 16.29, Mozambique 2.79, Kenya 10.25, Zambia 9.46, Malawi 5.45

Page 15: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Aid by Purpose to 3 CountriesMozambique

45%

4%2%1%0%0%0%1%

14%

20%

13%

Agricultural Policy Agricultural Production Agricultural Land & Water Agricultural Inputs

Education Research Services Forestry

Fisheries Environment Miscellaneous

Page 16: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Ghana

48%

2%

1%

5%2%

14%

0%

14%

1%

8%

5%

Agricultural Policy Agricultural Production Agricultural Land & Water Agricultural Inputs

Education Research Services Forestry

Fisheries Environment Miscellaneous

Page 17: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Uganda

32%

4%

0%

1%

1%14%

23%

4%

0%

5%

16%

Agricultural Policy Agricultural Production Agricultural Land & Water Agricultural Inputs

Education Research Services Forestry

Fisheries Environment Miscellaneous

Page 18: EUROPEAN ASSISTANCE TO AGRICULTURE IN SUB SAHARAN AFRICA Bruce Hearn Department of Management, University of Leicester Veli Koc Centre for Environmental

Shares of Official Development Assistance to SSA Agriculture by Donor (%)

DAC EU UK France US EC

Donor ODA to SSA agriculture/

Donor ODA to SSA 4.09 0.88 11.97 1.79 2.4

Donor ODA to SSA agriculture/

DAC EU ODA to SSA agriculture 100 2.73 37.87 8.56 11.4