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Public expenditure in selected West and
East African countries: The Maputo
Target and what’s behind it?
Monitoring African Food and Agricultural
Policies (MAFAP)
Jean Balié, FAO
ReSAKSS Conference, Dakar, 12 and 13 November 2013
With the financial support of
MAFAP System
1. Working with national partners to build evidence
a) Price incentives for key agricultural value chains
b) Public expenditure and aid
c) Policy coherence

2. Facilitating policy dialogue, uptake and advocacy
–

Regional (CAADP) and national (investment plans, policy
reforms)

3. Developing institutional capacities
4. Establishing a community of practice
Overarching categories

Categories

Sub-categories

Components

Payments to consumers

Individual support to
food and agriculture

Cash
Food aid
School feeding

Payments to producers

Inputs subsidies

Payments to other agents

Agriculture-specific expenditure
(food and agriculture
development support)

Research
Feeder roads

General support to
food and agriculture

Technical
assistance/extension services

Training
Irrigation

Storage
Inspection

Marketing
Rural education

Agriculture-supportive
expenditure (rural development
support)

Idem

Rural health
Rural infrastructure

Income support
Governments agreed to
Level of public expenditure for increase
PE in support to Ag. and rural
Absolute
Relative
agriculture and rural development:
development (CAADP) ≠
Decline of PE

Overall decline of public expenditure for
ag. and rural development between 200610%
and 2010
Behind the Maputo target…

From 2006 to 2010 :
National spending : +14%
`
Donor spending : -8.3%
Behind the Maputo target… (2006-07 vs
2008-10)
Share of aid in public expenditure for
food and agriculture
Burkina Faso

-10

Kenya

+2

Mali

-2

Tanzania

-19

Uganda

-19
Behind the Maputo target…
Share of total
Ag PE per
Ag PE per
budget going to ag agricultural worker agricultural land –
(05-10)
- USD (05-10)
USD/ha (05-10)

Burkina Faso

15.5 %

46

22

Kenya

6.3%

62

18

Mali

11 %

74

4

Tanzania

12.1%

34

14

Uganda

11.1%

51

31
Composition – general categories
Policy objectives focus on boosting
production and
Decline of rural expenditure productivity rather
than fostering rural development.
Specialization towardsin ruralspecialization of
Share of donor spending agricultural
East Africa : development
Burkina
specific expenditureMali Tanzania indirect)
(direct and Uganda
expenditure towards private goods
Kenya
Faso
rather than public.
82%

0

83%

64%

31
Composition – Ag-specific support
Pillar 3 of CAADP- Promotion of
Low support to consumers though public
food security by fostering
productivity and production and
spending.
improving food availability

PE target mainly producers.
Composition – payments to producer
Coherent with national policy
strategies for Western African
Western African countries: capital (on
90
countries : boosting rice production
80
farm irrigation) and yields.
70
On-farm services
Eastern African countries: variable based
East African : technology inputs
60
Burkina Faso
improvmt of productivity Capital
50
Irriga on
100

75%

40

Variable inputs

30

Other
25%

20

Composition of capital subsidies

10
0
MALI

BURKINA FASO

UGANDA

TANZANIA

KENYA
Composition – indirect ag-specific
Research and dissemination of
Pillar 4- Investments in agricultural
Pillar 2- Improved market access
knowledge
research
Limited support to marketing
Overall relative decline
activitiesSupported trough infrastructure
Higher spending in spending African
Eastern

Countries in support to research but
overall relative decline.
Composition – groups of commodities
Crops mostly targeted
Share of PE targeting
individual commodities
: more diversified

East Africa
West Africa

support than
Conclusions
 after food crisis, mixed signals sent to producers: price & trade policies versus subsidies
 reduction in donor funds affects rural development
spending

 regional differences: importance of capital, variable
inputs, research and extension
 period analyzed was exceptional: regular tracking
required
Thank you!
For more information: www.fao.org/mafap

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Monitoring African Food and Agricultural Policies (MAFAP) - Jean Balié, FAO ReSAKSS Conference, Dakar, 12 and 13 November 2013

  • 1. Public expenditure in selected West and East African countries: The Maputo Target and what’s behind it? Monitoring African Food and Agricultural Policies (MAFAP) Jean Balié, FAO ReSAKSS Conference, Dakar, 12 and 13 November 2013 With the financial support of
  • 2. MAFAP System 1. Working with national partners to build evidence a) Price incentives for key agricultural value chains b) Public expenditure and aid c) Policy coherence 2. Facilitating policy dialogue, uptake and advocacy – Regional (CAADP) and national (investment plans, policy reforms) 3. Developing institutional capacities 4. Establishing a community of practice
  • 3. Overarching categories Categories Sub-categories Components Payments to consumers Individual support to food and agriculture Cash Food aid School feeding Payments to producers Inputs subsidies Payments to other agents Agriculture-specific expenditure (food and agriculture development support) Research Feeder roads General support to food and agriculture Technical assistance/extension services Training Irrigation Storage Inspection Marketing Rural education Agriculture-supportive expenditure (rural development support) Idem Rural health Rural infrastructure Income support
  • 4. Governments agreed to Level of public expenditure for increase PE in support to Ag. and rural Absolute Relative agriculture and rural development: development (CAADP) ≠ Decline of PE Overall decline of public expenditure for ag. and rural development between 200610% and 2010
  • 5. Behind the Maputo target… From 2006 to 2010 : National spending : +14% ` Donor spending : -8.3%
  • 6. Behind the Maputo target… (2006-07 vs 2008-10) Share of aid in public expenditure for food and agriculture Burkina Faso -10 Kenya +2 Mali -2 Tanzania -19 Uganda -19
  • 7. Behind the Maputo target… Share of total Ag PE per Ag PE per budget going to ag agricultural worker agricultural land – (05-10) - USD (05-10) USD/ha (05-10) Burkina Faso 15.5 % 46 22 Kenya 6.3% 62 18 Mali 11 % 74 4 Tanzania 12.1% 34 14 Uganda 11.1% 51 31
  • 8. Composition – general categories Policy objectives focus on boosting production and Decline of rural expenditure productivity rather than fostering rural development. Specialization towardsin ruralspecialization of Share of donor spending agricultural East Africa : development Burkina specific expenditureMali Tanzania indirect) (direct and Uganda expenditure towards private goods Kenya Faso rather than public. 82% 0 83% 64% 31
  • 9. Composition – Ag-specific support Pillar 3 of CAADP- Promotion of Low support to consumers though public food security by fostering productivity and production and spending. improving food availability PE target mainly producers.
  • 10. Composition – payments to producer Coherent with national policy strategies for Western African Western African countries: capital (on 90 countries : boosting rice production 80 farm irrigation) and yields. 70 On-farm services Eastern African countries: variable based East African : technology inputs 60 Burkina Faso improvmt of productivity Capital 50 Irriga on 100 75% 40 Variable inputs 30 Other 25% 20 Composition of capital subsidies 10 0 MALI BURKINA FASO UGANDA TANZANIA KENYA
  • 11. Composition – indirect ag-specific Research and dissemination of Pillar 4- Investments in agricultural Pillar 2- Improved market access knowledge research Limited support to marketing Overall relative decline activitiesSupported trough infrastructure Higher spending in spending African Eastern Countries in support to research but overall relative decline.
  • 12. Composition – groups of commodities Crops mostly targeted Share of PE targeting individual commodities : more diversified East Africa West Africa support than
  • 13. Conclusions  after food crisis, mixed signals sent to producers: price & trade policies versus subsidies  reduction in donor funds affects rural development spending  regional differences: importance of capital, variable inputs, research and extension  period analyzed was exceptional: regular tracking required
  • 15. For more information: www.fao.org/mafap

Notas do Editor

  1. MAFAP definition of PE to food and agriculture based on the Maputo declaration : agricultural-specific (ag sector), agricultural-supportive (rural development : rural health, education, infrastructure), includes donor and government expenditure, central and decentralized, off-budget and on-budget, policy transfers and administration costs. This graph shows that the share of total budget going to PE has gone down over the years in most countries (except Mali and Kenya). States seem to bemovingawayfrom Maputo..
  2. However, the absolute amounts and share of government expenditure for agriculture has gone up, it is the donors who have somehow withdrawn their support to agriculture from various reasons : financial crisis, political crisis in some countries (Mali, Burkina…)…In this graph, one can see that the total amounts of donor expenditure to agriculture and rural development have gone down, whereas government’s have gone up. This is also true for relative values.
  3. This table illustrates that less donor spending towards agriculture, and more government spending, led to a significant change in donor share of total public expenditure.
  4. Another illustration of how to look beyond the Maputo target numbers. In Kenya, 6.3% of budget going to ag, but 2nd highest PE per worker. In Mali, 11% of budget but lowest share of Ag PE per hectare.
  5. Moving to categories. This shows that the share of support to rural development shrank over the study period, and the share of ag-specific has gone up….In response to the high food price crisis, the focused diverged from rural development onto agriculture-specific support.
  6. Withinag-specific support, the balance is quite equal between indirect and direct support. However, we can see that indirect support has gone up in Mali and Burkina (irrigation projects) whereas it has gone down in the east-African countries (input subsidies). When ag-specific support is direct, it goes overwhelmingly to producers.
  7. …and when support goes to producers, we have two different scenarios. In sahelian states, it is mainly focused on capital (on-farm irrigation mainly – see example in Burkina Faso) and in East Africa (except Kenya) on variable inputs.
  8. Now if we look at indirect ag-specific support, ag infrastructure (in orange) is much more important in West Africa than in East Africa, due to the weight of irrigation. Most of ag infrastructure in East Africa is feeder roads. The weight of research is much higher in Eastern African countries states whereas it is more comparablefor training and extension services.
  9. High share of crops.