The World Bank changes course ! Print

There can be no fight against poverty without supporting agriculture

In its forthcoming annual report on world development, to be published in September, the World Bank encourages governments of poor countries to provide peasant farmers with increased assistance and financial support. The World Bank thus makes a head on attack on the neo-liberal doctrine of “structural adjustment” it has defended for decades. For the first time since 1982 the report, which should set the guidelines for the Bank’s new strategy, concentrates on agriculture. After having been neglected in anti-poverty policies, the support to agriculture has now become a major issue.

 The World Bank report starts out by stating a fact, which our readers are well familiar with: “It is striking to note that three fourths of the poor in developing countries are the rural populations.  2.1 billion live below the poverty line, on less than 2 dollars a day, i.e. one third of humankind (…) Even though agriculture is not the only instrument that can put an end to poverty, it is a highly efficient tool, which can generate the necessary growth to get there.”

 The report goes on to make a diagnosis, which reads like a confession of past errors: “In spite of this, the driving force of agriculture in development has all too often been under-utilised. As industrialisation has dominated the political debate, the possibility of achieving development through agriculture has not even been considered an option. Developing countries very frequently suffer from under-investment or bad investment in agriculture, as well as political shackles, that turn out against agriculture and poor rural populations. Donors have also turned their backs on agriculture. This neglect of agriculture has resulted in high costs for growth, improved living standards and the environment.”

 According to the French daily paper LE MONDE of April 20 2007 Mr Michel Griffon, a Frenchman in charge of agriculture and sustainable growth at the French National Research Institute (Agence nationale de la recherche), welcomes this radical change, “which will shape the Bank’s policy for the next twenty years”. “This is the document that we have been expecting from the Bank for the past twenty years, since the time when structural adjustment programmes swept away previous government policies in agriculture without replacing them”, he applauds.

Noting that the share of agriculture in public funding went down from 1980 to 2004 in Africa (from 6.4 to 5%), as well as in Latin America (from 14.8 to 7.4%) and in Asia (from 8 to 2.7%), the document emphasises the need to re-launch public aid. “Growth in agriculture, even when led by the private sector and the market, is highly dependent on support from the public sector. However, it is in countries where agriculture is the most vital, that governments seem to be the weakest (…). The introduction of an agricultural development policy requires solid national strategies and a public administration that promotes efficient distribution and financial responsibility (…).”

 Vincent Ribier, economist at the Centre for International co-operation in agronomic research for development (Centre de coopération internationale en recherche agronomique pour le développement), took part in an expert meeting on the World Bank report at the French Ministry of Foreign Affairs, on April 6th. He was impressed by the change of tone and told LE MONDE: “The neo-liberal structural adjustment policies pursued by the World Bank and the International Monetary Fund have had a very direct and adverse effect on the rural populations in poor countries”.

 According to Mr Ribier, for the first time in a major international document, the World Bank is now about to formally endorse “the end of the Washington consensus”, which sums up the strategies of experts at the World Bank, the International Monetary Fund and the U.S. Treasury since 1989: privatisation, deregulation, low taxation, trade  liberalisation. One of the main authors of the report confirms this: “We have clearly by-passed the Washington consensus, because poverty has not receded and the environment is now an urgent problem.

 At a time when rural exodus has reached an historic high, according to the United Nations, the new approach in the World Bank’s report stems from the perception of new threats. “The acceleration of climate change, the imminent crisis in water supply, the slow adoption of new biotechnology and the growing demand for bio-fuels and animal fodder create new uncertainties as to the conditions for food availability in the world economy” the Bank warns.

 This reversal in the World Bank’s approach ought to reassure peasant farmers all over the world. It is a first step towards the next stage: recognition of food sovereignty by the World Bank and the international community. In the meantime the African farmers’ organisations (among others) would be wise to become thoroughly familiar this document. It ought to enable them to take up useful negotiations with their respective governments.

 The European Commission has refused to put agriculture on the agenda in its negotiations with the ACP countries (in Africa, the Caribbean and the Pacific). Will the Commission be alone in obstinately refusing to recognise the vital part that peasant farmers play in the fight against poverty and for development?

 Source: LE MONDE of April 20th 2007

Koudougou, 21 April 2007
Maurice Oudet
Director, SEDELAN



 
 
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