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 (1998/992002/03).
DATA SOURCES
Two IDS databases provide expenditure by sector:
DAC Table 5data by type
of bilateral expenditure by sector in national currency.
CRS Table 2data (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.
QUALIFICATIONSCATEGORISING
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
|