Select Committee on International Development Written Evidence



Memorandum submitted by Professor George Rothschild, on behalf of the Chairpersons of the Independent Advisory Committees of four of the DFID's Renewable Natural Resources Research Strategy programmes

A.  BACKGROUND

  1.  This submission to the International Development Committee (IDC) is made on behalf of the Chairs of the independent Advisory Committees (PACs) of four of DFID's Renewable Natural Resources Research Strategy (RNRRS) programmes (Forestry Research, Livestock Production, Crop Protection, and Crop Postharvest). The Chair of the Plant Sciences Programme Advisory Committee (Prof John Perfect) has forwarded a separate memorandum to the Committee (Ev 64), which provides good insights into how individual research programmes contribute to poverty reduction, using the Plant Sciences Programme as an example, but also raises important generic issues on DFID's commitment to agricultural research in the UK and overseas.

  2.  Before discussing issues relating to DFID's role in agricultural science and technology, it is relevant to briefly summarise the background to the involvement of the independent RNRRS advisory committees in the present round of parliamentary inquiries. This has been as follows.

  3.  After your Committee's inquiry last June into DFID's 2003 Annual Report, the PAC Chairs of nine RNRRS programmes expressed their strong concerns to the then Acting IDC Chair, Tony Worthington MP, that agriculture, including research, appeared to have a declining profile on DFID's agenda, despite the sector's great importance for poverty reduction in the developing world. The PAC Chairs also pointed out that it was surprising that the DFID had not highlighted the fact that it had invested well over £200 million over the past 10 years in ten successful programmes of research on agriculture, forestry and fisheries that explicitly targeted those in extreme poverty, and that the Department had also supported other bilateral and multilateral agriculture activities. Mr Worthington then extended an invitation for the PAC Chairs to provide a brief summary of key issues of concern, as well as background on the achievements of the RNRRS programmes. This was done last July. The coordinator for the PAC Chairs also encouraged other stakeholders in the UK and overseas to make representations to the IDC on this issue. In October, the Committee published its report on DFID 2003 and flagged the need for the Department to provide a greater "visible" commitment to agriculture in its core agenda. Particular reference was also made for the need to support smallholder agriculture.

  4.  Since last July, the PAC Chairs, via their coordinator, have had regular interactions with the IDC to pursue these issues further, largely through Mr Worthington. They were urged by him to make a submission to the inquiry currently being conducted by the Science & Technology Committee (STC) into "The Use of Science and Technology in UK International Development Policy and Practice", which they have done. The PAC Chairs' coordinator also urged other stakeholders in the UK and overseas to provide evidence to that inquiry. A copy of the PAC submission to the STC has been provided to your Committee members.

  5.  Following further consultations by PAC representatives and others with parliamentary groups including the All Party Group on Overseas Development (APGOOD), the issue of DFID's policy on agriculture was taken up with the Secretary for State, Mr Hilary Benn, who led discussions on the topic at an APGOOD stakeholders' meeting in January of this year. DFID prepared a policy paper just prior to that meeting entitled Agriculture and Poverty Reduction: Unlocking the Potential, which forms the basis for the present inquiry by your Committee. This policy paper is related to a more substantial issue paper Better livelihoods for poor people: the role of agriculture which was distributed for consultation in May 2002 but apparently not finalised as a document in the public domain.

B.  IMPACT SO FAR OF IDC INQUIRIES AND APGOOD ACTIVITIES, AND CURRENT STC HEARINGS

  6.  The PAC Chairs involved in this submission believe that the stakeholder submissions, interim reports and preliminary outcomes of hearings of the IDC as well as those of the STC, have, together with the activities of APGOOD, already contributed significantly towards several constructive actions by DFID. These actions include:

    (i)  the restoration of agriculture (defined broadly) to DFID's core agenda, as demonstrated by the policy paper mentioned above;

    (ii)  extension for a further year of the RNRRS programmes to allow for scoping studies about successor arrangements; and

    (iii)  greatly enhanced support for international agricultural research through the Consultative Group on International Agricultural Research (CGIAR) system for 2004-06, and support for the African Agricultural Technology Foundation (AATF).

C.  ISSUES STEMMING FROM DFID'S DRAFT POLICY PAPER ON "AGRICULTURE AND POVERTY REDUCTION: UNLOCKING THE POTENTIAL", WITH SPECIAL REFERENCE TO AGRICULTURAL SCIENCE AND TECHNOLOGY (AST)

  7.  In this submission, we have consciously not dwelt on the overarching reasons why agriculture should have high priority in the DFID agenda. We are also not addressing the economic and social reasons for emphasising smallholder agriculture rather than commercial farming in the context of Sub-Saharan Africa. These major issues has been comprehensively and ably addressed by witnesses in the previous IDC hearing on 12 May 2004 in their oral evidence and in the papers by Dr Peter Hazell and colleagues of the CGIAR International Food Policy Research Institute, Washington DC. The overarching issues are also being discussed in DFID's current E-forum on renewable natural resources and agriculture, for that team in the DFIDHQ Policy Division, preliminary findings of which are being forwarded to your Committee.

  8.  We agree in principle with most of the evidence presented, and will therefore highlight other matters. Before this, we do wish, however, to refer to two overarching issues:

    (a)  the critically important issues of population and food security, which we believe has received far too little attention in the current debates on poverty; and

    (b)  DFID's support for "pro-poor" activities.

  9. (a)  Food security: As it is not strongly emphasised in DFID's policy paper on Agriculture and Poverty Reduction, we feel that there is a need to reiterate to the Committee that the global population will rise to nine billion over the next several decades—half as many people again as there are now. Most of these will be in the developing world. Given that about a billion people are chronically malnourished now, there will be a real challenge in ensuring food security in the future. While economic and social policy interventions will be required to address problems of access, markets, trade and so on, the bottom line is that food production will have to increase by around 50% from less land, and with less water and probably less labour—given the trend of the landless to seek non-farm employment. AST to raise production will clearly be critically important in meeting this challenge. In parallel, in Sub-Saharan Africa, there is rapidly rising demand for fuelwood and charcoal for cooking and heating in both rural and urban areas. This must also be supplied from smaller areas of increasing degraded woodland.

  **Recommendation 1: That DFID clarifies its policy on addressing the potential crisis in food security, including the role of AST.

  10. (b)  DFID's pro-poor agenda: The previous Secretary for State, Clare Short, made it clear in 1997-98 that the major emphasis of DFID's aid delivery was to be directed towards those in extreme poverty. The RNRRS and some other DFID research programmes were accordingly re-focussed on the needs of the very poor. Given the multi-faceted livelihoods of the very poor, it must be accepted that there are complexities and associated high transaction costs for AST and improvements in livelihoods undertaken directly with these communities. In its recent policy statements, DFID has increasingly used the term "pro-poor", which some interpret as being less clearly directed towards those in extreme poverty. If pro-poor means, for example, moving towards commercial scale farming rather than smallholder production, and focusing on non-farm employment opportunities and policy interventions at the national level, then it implies that the impacts on those in extreme poverty may be more indirect—that is through mechanisms sometimes defined as "trickle down". The statistical association between economic growth and reduction in poverty does not seem to hold for those still at subsistence level of livelihoods. Benefits may trickle down, through increased employment in commercial agriculture, but this is scarcely likely to affect the livelihoods of the very poor in remote and marginalized communities. It would be helpful if DFID could clarify where it currently stands on the issue. Specifically, is DFID still concerned about the livelihoods of the very poor, and with this an obligation of accepting higher transaction costs of such concerns?

  **Recommendation 2: That DFID clarify what it means by pro-poor in terms of its agriculture agenda.

  11.  Moving on from these overarching issues, we will now focus on several themes that are more concerned with how DFID manages AST rather than what it does in terms of subject matter. The themes include the internal organisation of DFID in terms of AST, DFID's support for institutions undertaking AST, the Department's role in capacity building and institutional strengthening, how research outcomes are integrated with mainstream development and application, the implications of direct budgetary support for AST, and the role of private-public sector partnerships in AST.

  12.  The DFID Policy paper on Agriculture and Poverty Reduction confirms that agriculture is back on DFID's agenda, and as pointed out in the introductory background, we welcome this development. Agricultural science and technology are mentioned, albeit rather briefly, and there is a commitment to maintain a "substantial" programme of collaborative work between the CGIAR, UK institutions and others, as well as significant additional funding for the CGIAR. However, no examples of the use of AST or its impact on the poor are included—all those given in the Box in the paper are concerned with social and economic issues.

  13.  DFID has yet to finalise its new research strategy, but it has just released (11 May) a public consultation draft to help develop this strategy entitled Research Funding Framework 2005-07. The Framework will also be discussed at the Science & Technology Committee hearing on 26 May. We will not comment on the Framework in this submission, but a number of issues raised below are relevant, and will be mentioned briefly.

  14.  The last section of DFID's policy paper on Agriculture and Poverty Reduction is entitled "Next steps", and this mentions that further consultations with stakeholders will take place, including an E-forum, to help DFID develop its agenda on agriculture. The E-forum is now underway and over 450 contributions have been received on several themes, including science and technology. We understand that your Committee is being kept informed of progress in the Forum, and will receive the wrap-up reports from DFID.

D.  INTERNAL ORGANISATION OF DFID IN TERMS OF AST FOR DEVELOPMENT

  15.  (a) Responsibility within DFID for agriculture/research: With the continuing reorganisation of DFID HQ, it remains unclear which group(s) has(ve) responsibility for agricultural research. The Agriculture and Renewable Natural Resources Team within the Growth and Investment thematic group in Policy Division deals with agriculture/forestry/fisheries issues, and this team was apparently largely responsible for the paper that forms the basis for the present IDC hearing. Research on the other hand is managed by the Central Research Department, which is distinct from the Policy Division and located as from 17 May 2004 in the Corporate Performance and Knowledge Sharing Directorate. We are not aware of the strength of linkages in terms of joint planning and regularity of communication between the two entities, but perceptions, rightly or wrongly, of those outside of DFID are that these are less than might be expected—given that new strategies are being developed for managing agriculture and other renewable natural resources and AST within DFID. Moreover, other teams within the DFID Policy Division must have some relation to agriculture and renewable natural resources and presumably could have an interest in commissioning new AST research and making use of AST outputs. These include: all four teams in the Sustainable Development thematic group, and at least four out of the six teams in the Social Development thematic group.

  **Recommendation 3: That DFID clarify how responsibilities for AST are assigned within DFID, and in particular the respective roles of CRD and the Agriculture & RNR Team within the Policy Division.

  16.  (b) In-house capacity for AST: The number of DFID staff with backgrounds in science and technology, and more specifically in AST, has declined considerably since 1998, and most advice to DFID currently comes from its outsourced RNRRS programmes. The Central Research Department is still in the process of recruiting staff, and it is unclear how many of these will have relevant backgrounds.

  17.  DFID previously had senior positions for Chief and Deputy Chief Natural Resources Advisers, together with technical advisory departments. These posts and departments were abolished as from April 2003 or earlier. With science and technology widely accepted as being of increasing importance in economic growth (as recently demonstrated by Chancellor Gordon Brown in launching the UK's new S&T initiative), we believe that there are good reasons for appointing a Chief Scientist/Chief Adviser (CSA) to take a leadership role in DFID. This individual would provide high level advice to top DFID management, as the Chief Economist already does, and would also undertake communication and coordination between DFID, and other UK government departments and agencies, as well as with international donor agencies and other key organisations engaged in S and T for international development. The CSA of DFID would be a member of the Whitehall CSAIC.

  **Recommendation 4: That DFID ensures that it has sufficient in-house capacity to address S&T issues, including AST, and that it give serious consideration to creating a post of Chief Scientist/Adviser to also take a lead role nationally and internationally in S&T for development.

E.  DFID SUPPORT FOR THE CGIAR

  18.  CGIAR: The recent significant increase in funding for the CGIAR during 2004-06 and for the AATF is most welcome, but it is hoped that after evaluation of the RNRRS and bilateral research activities, meaningful levels of funding will be forthcoming for whatever replaces those programmes—rather than the multilateral contributions offsetting these. The main reason being that the CGIAR centres have comparative advantages in some areas such as crop genetic improvement, but, because of funding cuts, as well as other structural problems, now lack the critical mass of scientists necessary to undertake strategic research on a number of major research areas of importance for poverty reduction.

  19. Most CGIAR centres have always been dependent on partnerships with advanced research institutions in the UK and other OECD countries as well as national research agencies in the stronger developing nations—and actively seek out such partnerships. DFID should not see the CGIAR as a "proxy" for getting all of its AST done through the disbursement of large tranches of funding and thus low transaction costs. The CGIAR is not capable of responding and this is also not the agreed purpose of that research system. For the investment in the CGIAR to be of value, DFID must ensure that there is an equally strong commitment to national research programmes if there is to be real impact. This includes partnerships with other research institutions as just noted. Additionally, given that the UK has adopted a principle of untied aid, and an open competitive tendering system for AST in its bilateral programmes, it needs to clarify whether the large additional allocation to the CGIAR for 2004-06 has been made on the basis of careful evaluation of the returns from DFID's investment in terms of impact on the poor, or whether this additional allocation represents unrestricted core funding with no conditionality attached to it.

  **Recommendation 5: DFID should clarify the basis for its increased contribution to the CGIAR, and in particular whether this has been based on full evaluation of returns for the investments made, as is, for example, to be the case for the RNRRS programmes.

F.  DFID'S RNRRS PROGRAMMES

  20.  RNRRS research programmes and their possible replacement: As noted in paragraph 6 above, the outsourced RNRRS programmes have over the past 9 years been the main vehicle for DFID to support strategic research for development in agriculture, forestry and fisheries. The programmes were due to be terminated in March 2005, but, largely as a result of the activities of your Committee and associated parliamentary inquiries, have, as noted earlier, been extended for a further year to permit scoping studies for successor arrangements.

  21.  The recently released public consultation draft for the new research strategy referred to earlier, namely the DFID Research Funding Framework 2005-07, appears to have taken little account of what has been done previously or lessons learned from the RNRRS programmes, which have run for almost 10 years, with the total investment exceeding £200 million. This may reflect the limited attention given to the RNRRS programmes in the 2002 Surr report, which has apparently formed the basis for much of DFID's current thinking. A number of the proposed activities for the new Funding Framework are undertaken routinely by the RNRRS programmes and by major development agencies elsewhere; these include extensive exercises to identify stakeholder priorities for poverty reduction, and longer term horizon scanning for future priorities (eg 2020 programmes of World Bank, CGIAR and others).

  22.  We hope that the extension of the RNRRS through to 2006, and the planned series of consultations on key AST issues will allow for proper evaluation of impact and lessons learned, and thereby provide sound background for the new DFID research strategy. In particular, there is a need to ensure that, whatever system DFID finally adopts for managing research is based on a comprehensive review of the many options available. The Development Research Centre concept, raised in the Research Funding Framework has weaknesses as well strengths, and while perhaps suitable for some of the social science studies, may not be appropriate for all AST or in other sectors such as education, health and engineering. The institutional arrangements for research should depend on the objectives and on the mechanisms envisaged for promotion, uptake and application of research results. These do not appear to have been considered in the consultation draft.

  **Recommendation 6: DFID needs to undertake a comprehensive review of the options available for managing research before adopting a particular model or models. It may also need to consider using several different mechanisms for different types of research for development.

G.  DFID AND THE ROLE OF UK RESEARCH INSTITUTES IN INTERNATIONAL DEVELOPMENT

  23.  In terms of AST, the UK science base has contributed significantly to poverty reduction programmes in the developing world. In the past, much of the work was undertaken by institutions dedicated to research in the developing world, such as the range of institutes formerly within DFID's predecessor ODA, which were then merged into one entity, the Natural Resources Institute (NRI), and finally privatised; and the Oxford Forestry Institute. Valuable work in developing countries has also been undertaken by other UK-based research institutes, supported by the Research Councils such as the BBSRC and NERC, and with co-funding from ODA/DFID, but this has usually been undertaken by individuals or small units, and represents a relatively minor part of their overall agenda of more fundamental and strategic research primarily for the benefit of the UK. In contrast to NRI and OFI, UK institutions supported by the Research Councils receive core funding, and this has a major impact on their viability. The CGIAR centres also receive significant unrestricted core funding from some other donor governments.

  24.  The untying of aid by the UK to encourage fair and open competition is right in principle. However, some other OECD countries have failed to follow suit in practice, which has made it more difficult for UK scientific research institutions with high profiles in development to compete with counterparts overseas for EU and other donor agency funds. For example, the decline in university core funding in the UK has led to an increase in the overheads levied on research grants, thus making them less competitive. It is definitely not a level playing field. This combined with the lack of core support, means that UK institutions, more exclusively dedicated to scientific research for development, are experiencing major reductions in staff, and associated loss of unique experience vital for DFID's programmes and those of development agencies overseas.

  25.  One noticeable consequence of this decline in employment and career opportunities is the significant reduction in numbers of young professionals seeking a career in science for overseas development. All this means that the UK, which has long been a world leader in many areas of AST for development, may have to look to other nations to take the high ground in this area, unless steps are taken to address this problem.

  **Recommendation 7: It is suggested that, without compromising its position on the untying of aid, DFID examines options for ensuring that the UK science base continues to contribute significantly to international development. This could in part be achieved by ensuring that funds allocated to the CGIAR are also available for competitive bids by UK institutions.

H.  DFID'S ROLE IN CAPACITY BUILDING AND INSTITUTIONAL STRENGTHENING IN AST

  26.  We have very recently (18 May) prepared a summary of this issue in response to supplementary questions from the STC and consider that it is appropriate to provide an edited quotation from this for the benefit of the IDC.

  We suggest that . . . "In the broader context of agriculture, forestry and fisheries, effective capacity building is essential if DFID support for AST is to lead to sustainable development that targets the very poor, and is not dependent on long-term donor intervention. Capacity building has to be a fully integrated part of the development process—best seen as a research-development-application continuum—or run in close association with it. The training must be needs driven and thus be based on a meaningful analysis of what these needs really are. It can be undertaken in-country with local and regional representation, or in OECD countries when this is required. Pressure for the more costly latter option often comes from developed country institutions, including some in the UK supported by the Research Councils, and this requires careful scrutiny to determine whether such training does indeed provide value for money in terms of relevance and likely impact.

  27.  There has been no explicit contractual requirement for programmes supported by DFID, such as the RNRRS, to undertake capacity building in AST, and few formal mechanisms other than a number of small grant schemes are available for this. The RNRRS programmes have addressed capacity building through various avenues, but principally through partnerships relevant to immediate project needs. These partnerships are almost always interdisciplinary and involve several countries, with developing and developed country partners having equal standing (added note: some other DFID centrally-funded research programmes do have significant capacity building elements).

  28.  Capacity building in these partnerships is focussed on specific projects, and as such tends to be small-scale and discontinuous. This limited approach means that there is no training in core requirements such as research organisation and management or other broader issues needed for strengthening entire institutions. Yet, it is universally recognised that there is a compelling need for institution building on a massive scale, especially in Africa, if sustainable development in the agriculture sector is to become a reality; because of the perennial deficiencies in the educational system, which need to be repaired to bring staff up to research standard. In this regard, it is unfortunate that the CGIAR organisation known as the International Service for National Agriculture Research (ISNAR) has, because of lack of sufficient donor support, been reduced to a single programme within another centre. There is an ever-increasing need for the kind of work undertaken by ISNAR, which should therefore be addressed through other approaches, for example, establishing units for this purpose in individual CG centres or within regional organisations" . . . End of extract.

  **Recommendation 8: There is a clear requirement, and an excellent opportunity, for DFID to demonstrate leadership among the international donor community in developing, funding and managing a coherent long-term needs-based strategy for capacity building and institutional strengthening. This should be integrated or closely aligned with DFID's overall programmes of research-development-application in agriculture and associated sectors, for both central and in-country programmes. However, proper provision has to be made for this in terms of funding.

I.  DFID'S ROLE IN ENSURING THAT AST IS APPROPRIATELY INTEGRATED OR CLOSELY ALIGNED WITH MAINSTREAM DEVELOPMENT BOTH CENTRALLY AND THROUGH THE IN-COUNTRY PROGRAMMES

  29.  Some consider that this is the single most important issue that requires attention at DFID, and it is referred to elsewhere in this submission as the research-development-application continuum. Many donor agencies, not just DFID, have failed to develop effective means of ensuring that important outcomes of demand -led research are further developed and then adopted by or for those in poverty. There appears to be little "joined-up thinking", let alone practice. To be successful, AST has to be built into mainstream development projects/programmes from the outset and be considered jointly at all phases from problem identification with key stakeholders through implementation and on to application and evaluation. This applies to both centrally managed and in-country programmes. There has to be an accompanying commitment to provide longer-term funding to support such activities—that is, "joined up" funding

  30.  Currently, there is usually considerable discontinuity between research outcomes being piloted and then disseminated more broadly, and in the use of research results for policy shaping. These breaks frequently lead to loss of momentum in major projects of crucial importance to the poor, as well as loss of key partners in developing countries, the UK and elsewhere.

  31.  We believe that DFID could learn valuable lessons on how to develop research-development continua from the experiences of its outsourced RNRRS programmes over the past decade, which, in the absence of formal mechanisms at DFID, have developed approaches of their own for addressing these problems. These vary somewhat from programme to programme but all are worthy of scrutiny.

  **Recommendation 9: That DFID develops appropriate mechanisms for linking research with mainstream development so as to maximise the returns from its investment in AST, and that this is based on full evaluation of other models including its own RNRRS programmes.

J.  DFID AND POLICY FOR DIRECT BUDGETARY SUPPORT

  32.  DFID has increasingly emphasised the importance of Direct Budgetary Support (DBS) for developing countries to enable them to determine their own priorities, including AST for poverty reduction, with the assistance of poverty reduction strategy papers (PRSPs). As your Committee is aware, although most of the poor in developing countries are dependent on agriculture, the ministries and line departments responsible are usually weak, and the sector is therefore often not accorded the priority that it deserves—let alone AST.

  33.  This implies that it might be difficult, if not impossible, for DFID to influence the development agenda of partner nations in terms of the inclusion of agriculture and AST, indeed any particular sector—if DBS becomes the norm—without conditionality or change forecasts, and even if the poverty reduction strategy papers (PRSPs) are appropriate. The question then is what would be the role of the central policies on agriculture and AST currently proposed by DFID in its new Research Funding Framework? At another level, the same question could be posed in relation to CRD's relationship with the DFID country programmes, which will be accorded far greater responsibilities for development, including budget management.

  **Recommendation 10: DFID needs to clarify how it will manage the agriculture/AST agenda if Direct Budgetary Support is to be the preferred mode of aid delivery to achieve poverty reduction. It also needs to clarify whether those responsible for agriculture and RNR as well as AST are likely to be called upon to help drafting PRSPs.

K.  DFID AND PRIVATE SECTOR INVOLVEMENT IN AST

  34.  Over the past two years, DFID has undertaken a number of reviews to identify suitable mechanisms for attracting investment by the private sector in AST, as well as in the development and application of research products. This has led to the Department co-funding the African Agricultural Technology Foundation (AATF), which supports the development of technologies that are affordable for small farmers.

  35.  Much has been written on the issue of private sector engagement with AST for the developing world. By and large, it is true to say that the private sector is not attracted to invest in pro-poor AST for the developing world, as the returns are too small. Furthermore, many of the products of such AST are international public goods, and thus private companies cannot appropriate the returns. Most private sector involvement that does take place is leveraged through partnerships with the public sector organisations. This however presupposes that there is a strong public sector partner, which in many developing countries is not the case, especially in Africa.

  36. A number of the larger multinational agribusinesses have established foundations and other entities, whereby biotechnology products and technologies, including some under IPR protection, are donated to researchers working on pro-poor technologies in developing countries. A number of the livestock vaccine programmes, currently of interest to DFID, fall into this category. We conclude that there is role for the private sector in AST for those in poverty, but that this is likely to be limited for the foreseeable future.

  Professor Rothschild also submitted an memorandum to the Science and Technology Committee, as part of their inquiry into `The Use of Science in UK International Development Policy'. This memorandum will be included in a Science and Technology Committee report, HC 133-II, when it is published.

May 2004





 
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