Select Committee on International Development Written Evidence


Memorandum submitted by the Department for International Development

ANALYSIS OF DATA ON TRENDS IN BILATERAL ASSISTANCE TO AGRICULTURE

  This brief presents a preliminary analysis of data on trends in bilateral expenditure on agriculture. The analysis is based on recent data from the OECD International Development Statistics (IDS) database (http://www.oecd.org/dataoecd/50/17/5037721.htm), and DFID's published Statistics on International Development (1998/99—2002/03).

DATA SOURCES

  Two IDS databases provide expenditure by sector:

    —  DAC Table 5—data by type of bilateral expenditure by sector in national currency.

    —  CRS Table 2—data (total ODA/OA and Other Official Flows) by sector in constant US dollars to allow comparison with other donors.

    —  DFID's publication provides data on bilateral and multilateral expenditure by type and by sector.

QUALIFICATIONS—CATEGORISING AGRICULTURE

  The IDS databases categorise agriculture as follows: "Including agricultural sector policy, agricultural development and inputs, crops and livestock production, agricultural credit, co-operatives and research".

  In the DFID classification, agriculture falls within the Rural Livelihoods category, which includes: Agriculture policy, Renewable Natural Resources Research, Land Policy and Forestry production. In the data reported in the DFID spreadsheet, bilateral expenditure on agriculture is classified as total rural livelihoods less Forestry.

  Although reporting years are different, the expenditure data in the IDS and DFID sources are broadly similar (with the exception of 2001, where IDS data shows a sharp dip in expenditure as compared to DFID data which shows a slight increase over 2000).[14]

TRENDS IN BILATERAL EXPENDITURE

  Bilateral expenditures comprise the major share of UK aid and assistance expenditure on agriculture. Following a peak in real expenditure on agriculture in 1992, there has been no discernable trend in real expenditure during the 1990s.


Source: CRS2

  Expenditure on technical cooperation has dominated throughout the 1995-2002 period, whilst expenditure in the form of investment projects has remained at or below 10% of expenditure on agriculture.


Source: DAC5

EXPENDITURE ON AGRICULTURE AS A PROPORTION OF TOTAL BILATERAL EXPENDITURE

  Although total bilateral expenditure has increased during the 1990s, expenditure on agriculture as a proportion of the total has fallen sharply from a peak of more than 10% in the early 1990s to below 5% in the early 2000s.


Source: CRS2

COMPARISONS WITH OTHER DONORS

  With the exception of the United States, other donor expenditure on agriculture has also remained relatively constant or fallen over the period.


Source: CRS2

  As a proportion of total expenditure, expenditure on agriculture has also fallen sharply in most donor programmes (selection depicted below), with the exception of Japan where the proportion has recently risen as high as 9%.


Source: CRS2

  Similarly, World Bank expenditure on agriculture as a proportion of total spend has fallen significantly since the early 1990s, although this probably reflects the effect of several large (capital) projects. Trends in bank lending to the sector also vary between regions: general down in relative terms if Africa but remaining large and probably increasing in India.


Source: CRS2

MULTILATERAL FUNDING

  Multilateral expenditure (DFID file) has increased in the period 1998-2003, but has remained at about 10% of bilateral expenditure.

Multilateral expenditure (excludes Banks and EU)


FAO
IFAD
CGIAR+
Total Multilateral agriculture

1998-99
5,274
2,155
6,943
14,372
1999-2000
5,439
2,713
7,121
15,273
2000-01
14
2,752
7,599
10,365
2001-02
6,621
2,728
8,205
17,554
2002-03
6,117
3,000
7,900
17,017

Source: DFID Statistics on International Development

June 2004



14   The UK submission to the OECD DAC is on a calendar year basis under ODA and OOF, but does not include a portion of UK subscription to FAO and UNESCO, CDC exchequer advances and World Bank and Regional Development Bank promissory notes. Back


 
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