March 13, 2013

Rural Development Department

Japan International Cooperation Agency

JICA’s Position Paper on Agriculture and Rural Development

1. Introduction

Aid for agriculture and rural development in developing countries increased from the late
1960s to the early 1980s in order to support the so-called ―Green Revolution‖ against a
backdrop of the food crisis of the early 1970s. The support was provided for policies aimed at
increasing agricultural productivity and for comprehensive rural development, centered on the
introduction of high-yield varieties and investment in production infrastructure. Subsequently,
certain improvements were observed in the overall supply and demand of food. After that,
against the backdrop of a downturn in the international market for primary products, there
were structural adjustment and competition with the support for social sector, and so
assistance for agriculture and rural development decreased. Following the turn of the century
though, the issues such as an increase in consumption in emerging countries and problems
surrounding biofuels saw international prices for food gradually start to rise again, and steep
rises in prices since 2008 has resulted in momentum gathering for the development
community to re-evaluate their support in the area of agriculture and rural development.

This position paper describes the general direction adopted by the Japan International
Cooperation Agency (JICA) for initiatives in the area of agriculture and rural development.

2. Objectives of agriculture and rural development

(1) Stable supply of food

In 2011, the world’s population surpassed seven billion people. According to estimates
of the Food and Agriculture Organization (FAO) of the United Nations (UN), this is
expected to reach 9.1 billion people in 2050, and it is predicted that food production to
provide for such a population will have to increase by approximately 60%. Furthermore,
the number of undernourished people in developing countries remains at a high level,
estimated to be 852 million in 2010-2012. Regionally, the most serious areas affected by
famine, where undernourished persons account for at least 35% of the total population,
are concentrated in Sub-Saharan Africa (WFP (2011)). Coupled with this, in recent
years, there have been frequent disasters such as droughts in areas including the Horn of
Africa and the Sahel. In addition, steady progress has not always been made in reducing
the proportion of undernourished persons in other regions, such as in the Middle East
and in South Asia.

Given the situation outlined above, the first objective of agriculture and rural
development is to achieve a stable supply of food to residents of both rural and urban
areas.

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 Furthermore, contributing to the stable supply of food in developing countries will also
lead to stability in the global supply and demand of food, and by extension, to food
security in Japan, which relies on imports for much of its food.

(2) Contribution to economic growth and poverty reduction

Even though the proportion of people in developing countries living in extreme poverty
on an income of no more than $1.25 per day has been decreasing of late, in 2008, this
population still numbered about 1.3 billion (22.4% of the population of developing
countries), and it is forecast to reach about 1 billion (16.3%) in 2015. Regionally, the
impoverished population is concentrated in the Sub-Saharan Africa and in South Asia
(about 75% in 2008, and 80% in 2010) (World Bank (2012), UNDP (2012a)). Three out
of four people in the impoverished classes live in rural areas, and most of them depend
on agriculture to make a living.1 There have also been reports that the effects of poverty
reduction that is brought about by growth driven by agriculture are no less than double
that for growth driven by the non-agricultural industrial sector (World Bank (2008),
Barrett, Carter and Timmer (2010)). Furthermore, in countries with low income levels,
such as those in Sub-Saharan Africa, the proportion of GDP accounted for by
agriculture is high (about 25% in low-income countries), and so, in many cases,
agriculture is expected to act as a major source of economic growth.

In addition, instead of merely agricultural production, by having the entire value chain
at work—namely, agricultural inputs, agricultural production, processing, transportation
and storage, and marketing and distribution—a greater economic benefit can be derived.
One report asserts that, particularly in middle-income countries, the proportion of the
economy accounted for by the extended agricultural sector, which includes
agriculture-related industrial sectors, is greater than 50% larger than the agriculture
alone (World Bank (2008), De Ferranti et al. (2005)). Moreover, even greater economic
benefit can be expected if new businesses can be expanded, such as the utilization of
unused biomass which until now had not always been fully utilized, the provision of
plants to pharmaceuticals, etc., tourism utilizing the natural environment and landscapes
discussed below, the utilization of mobile phones, and management incorporating up to
the processing and distribution by producers. What is more, these activities will also
contribute to increased employment in rural areas.

Furthermore, from the perspective of vitalizing rural areas or increasing employment, in

addition to these activities, the promotion of non-agricultural industries is also important.
To this end, improving the investment environment, including infrastructure
development, and providing people with education and training for finding employment
are particularly important elements.2

Through activities like those described here, agriculture and rural development will
contribute to the economic growth of developing countries and to reducing rural
poverty.

(3) Various functions of agriculture, climate change measures, etc.

1
Findings of analysis based on 2002 data by Ravallion, Chen and Sangraula (2007).
2
The issue of urban migration also needs to be considered for increasing employment.

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 Agriculture is the act of manipulating nature and leveraging that force to produce a
harvest. Intrinsically, therefore, not only is it affected by nature, but it can also have a
significant influence on nature. There are many examples of inappropriate agricultural
practices that cause loss to natural resources and have a major impact on the lives of
local communities. For instance, improper irrigation can accelerate the scarcity of
water; the uncontrolled expansion of farmland and ill-managed farming can lead to
deforestation, a decrease in biodiversity or soil erosion; and the excessive use of
fertilizers and agrochemicals can lead to the contamination of water or soil.

In contrast, the diverse benefits that can be provided by agriculture which is conducted
in a sustainable manner in harmony with nature are also widely recognized. Functions
of agriculture include: conservation of national land, the development of water
resources, the preservation of biodiversity and ecosystems, the conservation of air, soil
and water quality, and the preservation of landscapes. 3 Discussion is currently
underway at the Organization for Economic Cooperation and Development (OECD) and
other organizations on policy approaches for demonstrating these benefits in a highly
transparent manner that does not impede the market.

Ensuring and exerting these functions through agriculture and rural development in this
way will help to preserve the natural environment, etc. Agriculture and rural
development will also help with climate change measures from both mitigation and
adaptation aspects.

3. Characteristics of agriculture and rural development

(1) Greatly affected by the geographical conditions

Production technologies that can be applied in agriculture vary greatly depending on

geographical conditions such as climate, topography, soil fertility and water resources.
More often than not, the success of a technology in one region cannot be reproduced in
another. Moreover, differences in climatic conditions mean that there is no guarantee
that a certain technology will produce the same results even in the same region. For this
reason, for each project, it is necessary to try and substantiate introduced varieties and
production technologies that are suited to the target area before establishing appropriate
technology systems.

(2) Distinctive quality of farm households

Farm households tend to take actions based on the characteristics of agriculture and on
their own economic environment. While these actions may sometimes be perceived as
being inefficient, in many cases it is a necessary choice. For example, because new
technology involves uncertainty in specific environments, the dissemination of a new
technology frequently proceeds at a slow pace as farmers watch and wait, thinking
about whether to adopt the technology themselves while they learn from the results of
others. Furthermore, in low-income countries such as in Sub-Saharan Africa, where
access to credit and insurance markets is restricted, farmers choose technologies that

3
For example, the OECD (2001) gives the following as examples of some of the non-agricultural effects related
to agricultural production: scenery, diversity of species and ecosystems, soil quality, water quality, air quality,
water use, land conservation, greenhouse gases, rural revitalization, and cultural heritage.

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 have low rates of return but which also involve low risk (World Bank (2008), de Janvry
and Sadoulet (2006)). Therefore, in order to encourage action needed for farmers to
increase their income, such as the introduction of a new technology or the appropriate
technology, it is important to first analyze the constraints on the side of farm households
through adequate economic and social surveys as well as farming surveys. At the same
time, in order to broaden the choices of technology for farmers to consider for adoption
from financial and risk management perspectives, it is important to also consider
providing support for the development of systems such as agricultural credit and
agricultural insurance.

(3) Need for long-term commitment

Given that agricultural production activities are greatly influenced by geographical

conditions (see 3.(1) above), and given that they have a production cycle of, at most,
one, two or three times a year, it will take a long time before development efforts exhibit
a beneficial effect.

4. International efforts for supporting agriculture and rural development

The problem of soaring food prices has been discussed as a priority issue at international
meetings such as G8 and G20 since prices surged in 2008.

At the G8 Summit in L’Aquila, Italy, in July 2009, the L’Aquila Food Security Initiative
(AFSI) was announced. In addition to the importance of safety nets, trade policies, and global
partnerships, etc., the initiative emphasized increasing investment in agriculture. Donors
declared that they would mobilize US$ 22 billion over three years for sustainable agriculture
development. Then, at the FAO World Summit on Food Security in November 2009, the ―Five
Rome Principles for Sustainable Global Food Security‖ were adopted. The five principles are:
investment in each developing country’s own plan; strategic coordination at the national,
regional and global level; a comprehensive twin-track approach (consisting of direct action to
immediately tackle hunger and medium- and long-term agriculture development); ensuring a
strong role for the multilateral system; and sustained and substantial commitment by all
partners to investment.

Even after that, interest among the international community remained strong, buoyed by the
continuing high food prices. At the G20 Summit in Cannes, France, in 2011, the Action Plan
on Food Price Volatility and Agriculture was announced. While the action plan recognizes the
importance of improving agricultural production and productivity, it focuses more on
measures for countering the shock of fluctuating food prices. It includes reducing the effects
of price volatility for the most vulnerable, centering on: better market information and
transparency as typified by the Agricultural Market Information System (AMIS) and the
Global Agricultural Geo-Monitoring Initiative; international policy coordination, including
establishment of a Rapid Response Forum for discussions by relevant countries at times of
soaring food prices; an agriculture and food security risk management toolbox; and
emergency humanitarian food reserves.

At the G8 Summit held at Camp David in the United States in May 2012, the New Alliance
for Food Security and Nutrition was announced for food security in Africa. The aim of this
initiative is to lift 50 million people out of poverty over the next ten years through

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improvements in food security and nutrition. The program has a particular focus on promoting
the participation of private enterprises, and it proposes: the mobilization of private capital,
such as through expansion of the Global Agriculture and Food Security Program (GAFSP);
technological innovation, such as through the establishment of the Scaling Seeds and Other
Technologies Partnership; the reduction and management of risk, such as through the
establishment of the Platform for Agricultural Risk Management (PARM); and the
reinforcement of linkages with nutrition. Agreements for a cooperation framework have also
been concluded and implemented for the six pioneering countries of Ethiopia, Ghana,
Tanzania, Cote d'Ivoire, Burkina Faso and Mozambique. Japan is the joint lead with the US
for Mozambique. The written agreements include specific declarations of intent by individual
private enterprises, as well as by each government and donors.

5. Past achievements and lessons learned

(1) Achievements

(a) Halving the percentage of people living in poverty

Of the Millennium Development Goals (MDGs) closely related to agriculture and

rural development, it has been reported that the MDG 1 goal of ―halving the global
percentage of people living in poverty by 2015‖ was achieved for the world as a
whole in 2010 (World Bank (2012)). The contribution of agriculture and rural
development to this point is not insignificant. Nevertheless, looking at the results
region by region as mentioned previously, there are still some regions, such as
Sub-Saharan Africa and South Asia, where the goal has not yet been reached. Further
efforts are still needed by the international community.

(b) Halving the percentage of undernourished people

It goes without saying that agriculture and rural development contributes greatly to
increasing the volume of food supply to address the many years of increasing
demand, and to decreasing the proportion of undernourished people. With respect to
another of the MDG 1 goals of ―halving the global percentage of people who suffer
from hunger by 2015,‖ it has been estimated that the 23.2% of 1990-1992 had
decreased to 14.9% in 2010-2012 (FAO (2012)), and so further concentrated efforts
are needed to achieve this goal. There is also a growing awareness of the importance
of the linkage between food supply and nutrition.

(c) Growth rate of the agricultural sector

With respect to the question of what growth rate should be achieved for the
agricultural sector, different countries have different aspects to consider, such as the
status of the agricultural sector and the potential of agriculture. Nevertheless, the
following examples should help. Under the Comprehensive Africa Agriculture
Development Programme (CAADP), which covers Sub-Saharan Africa, the target
agricultural growth rate is 6%. Under the World Bank’s Agriculture Action Plan
2010-2012 (World Bank (2009)), the target has been set at 5%. Using a target of 5%,
if we look at the 40 year period between 1961 and 2011 and consider the percentage
of years in which individual countries achieved the target, we see that 11.3% of all

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 developing countries achieved the 5% target in at least half of the years. Furthermore,
for low-income countries, where, more often than not, the coverage of the
agricultural sector in total GDP is relatively large, the figure was 14.7%. If we
narrow our observation to the period since 1990, the figure was 16.5% for all
developing countries, and 32.4% for low-income countries. Moreover, if we change
the parameter to countries that achieved the target in at least 40% of the years, the
figure is 31.5% for all developing countries, and 47.1% for low-income countries,
meaning attainment for nearly half of all low-income countries. While achieving an
agricultural growth rate of 5% will not always be easy, continuous efforts are needed.

(2) Lessons learned

(a) Support focusing on increasing productivity

In order to achieve a goal of realizing economic growth and reducing rural poverty
through a stable supply of food and agricultural promotion, entire value chains, from
inputs through to production and distribution (from upstream to downstream), need
to be improved. Looking back at JICA’s projects for the past 20 years in the area of
agriculture and rural development (namely, technical cooperation, loan aid and grant
aid provided on a project basis, excluding the dispatch of individual advisors, etc.),
the majority of projects are accounted for by support in areas that relate directly to
production and productivity increase, such as farmland development and
irrigation/drainage, agricultural machinery and agricultural materials, development
and dissemination of technology, and livestock, as well as by support in the area of
rural development, including rural infrastructure and community development. On
the other hand, relatively there has not been much in the way of support for policies
and systems, such as legal systems and institutions, development plans and land
management, support in the areas of distribution and agricultural processing, and
support in the area of finance. In many respects, it appears that this is founded on the
past experience in Asia during the 1970s and 1980s when JICA used to mainly assist
that region, where a positive effect was produced because the government shouldered
the burden for a substantial portion of the package of research and development,
dissemination, improved seeds, fertilizer, finance, storage and distribution, which
was necessary to increase the volume of grain production, as typified by the Green
Revolution, and the private sector also took on distribution, etc. (Hazell (2012), or
Rai (2007) in the case of Indonesia), and therefore even if JICA was to concentrate
on the parts directly related to production, the other parts were also separately
covered.

Now, though, in Sub-Saharan Africa where the stable supply of food is a key issue, it
would appear that, to begin with, it is appropriate to focus on support which
contributes to increased production and increased productivity. However, since the
markets in this region have often not necessarily been developed properly, it is also
necessary to simultaneously look at distribution aspects including agricultural
processing and finance aspects. Furthermore, in more advanced countries as
described later, it would appear that, more than support in areas that relate directly to
production and productivity increase, support needs to be focused more on
high-value-added agriculture, the quality and the safety of farm produce and
distribution and other needs. Moreover, the current progress of economic
globalization has also resulted in an increase in situations where these needs are

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 satisfied by way of trade. For this reason, the export of agricultural produce presents
an enormous opportunity for developing countries, and so support for this is also
needed.

(b) Strengthening macro perspectives

As discussed above in the analysis of JICA’s projects in the area of agriculture and
rural development, policies and systems related support was also relatively limited.
By further expanding analysis of the overall agricultural sector in the target country,
as well as consideration of medium- and long-term development strategies based on
this analysis and the formation of projects based on this consideration, and by
providing packages of support for both policy and system aspects as well as
implementation aspects, it should be possible to enhance the effectiveness of
development. Possible specific examples of policies and systems related support
include improving administrative capabilities, policy advice such as for policies on
food supply and demand and for the stabilization of food prices, budget support for
agricultural programs, and land policy (for instance, realization of the Principles for
Responsible Agricultural Investment (PRAI) at the national level).

(c) Response to changes in the status of agriculture and rural development in each
country’s overall development policy

As mentioned in (2)(a) above, the majority of JICA’s agriculture and rural

development projects over the past 20 years can be accounted for by support in areas
that relate directly to production and productivity increase and by support in the area
of rural development. Even if we divide this trend up into five-year blocks, despite
some variation in the breakdown of support, there has been no significant change to
the overall trend. Meanwhile, many countries, especially emerging countries, have
achieved remarkable growth particularly in recent years, and as a consequence, they
have experienced changes in how they position agriculture and rural development
within their development policies and changes in their policy priorities as described
below. Rather than merely adopting its usual approach, JICA will need to develop
systems so that it can respond to the current needs of these developing countries.

6. Future direction

(1) Cooperation in view of entire value chains, combined with improving agricultural
productivity

Bearing in mind JICA’s track record in the development and dissemination of

agricultural production technologies, backed by many years of experience in Asia and
other regions, and in view of Japan’s comparative advantage in human resources,
knowledge and know-how in rice cultivation, JICA will work on support for increasing
agricultural productivity. When providing this support, JICA will examine entire value
chains, including agricultural inputs, processing, distribution and sales as well as the
promotion of related agricultural industries, before selecting areas for improvement and
supporting them.

(2) Response to global issues

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(a) Response to soaring food prices

Food prices rose rapidly in 2008, then plunged temporarily in 2009 as a consequence
of the Lehman shock, before beginning to rise again at around the end of 2010,
eventually surpassing the levels of 2008 in early 2011. Moreover they spiked again in
2012. At present, they are still stuck at high levels. At the national level, these high
prices have consequently led to fiscal deterioration, commodity price rises and
destabilization of administrations in some cases, and at the household level, they
have led to a decline in the quantity and quality of diet, undernourishment
particularly among the socially disadvantaged, a reduction in spending on education
and health, and a decrease in household purchasing power.

The cause for soaring food prices is considered to be the combination of two kinds of
factors. One is the structural factors which include the ―thin‖ and volatile structure of
international markets, the increase in demand shown by emerging countries,
medium- and long-term constraints on the supply side, and the pressures of
increasing demand stemming from expanded biofuel production. The other is the
short-term (shock) factors, for instance, damage attributable to unseasonable weather
or natural disasters, feverish speculation and steep rises in energy prices.

In order to address these problems, in addition to improving agricultural productivity

and self-sufficiency through the establishment of agricultural production bases in
developing countries, support needs to be provided to strengthen their capacity to
deal with shocks such as surging food prices and unseasonable weather.

One specific example of JICA’s activities is the Coalition for African Rice
Development (CARD). The goal of CARD is to double the annual rice production of
Sub-Saharan Africa in the ten years from 2008 to 2018, from 14 million tons to 28
million tons. Jointly proposed by JICA and the Alliance for a Green Revolution in
Africa (AGRA), CARD has attracted the participation of no less than ten donors,
including the Africa Rice Center and the World Bank, and is promoting support for
23 African target countries.

(b) Climate change measures

Agriculture is greatly affected by global warming. It has an important function to

play in climate change adaptation measures. For instance, the provisions prescribing
the objective of the United Nations Framework Convention on Climate Change
(UNFCCC) clearly state, ―a level that would prevent dangerous anthropogenic
interference with the climate system… should be achieved within a time-frame
sufficient to ensure that food production is not threatened.‖ At the same time,
agriculture accounts for approximately 14% of sources of greenhouse gases, making
it one of the major contributors, and meaning that it also has many areas that could
contribute to mitigating climate change. JICA will promote cooperation that
contributes to adaptation measures, such as through irrigation and water management,
variety improvement and pest and pathogen control, as well as to mitigation
measures, such as the use of bioenergy and better conservation and management of
farming land.

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(3) Appropriate approach suited to the actual state of agriculture and rural development of
the country (development situation)

The changing roles of agriculture and rural development during the process of a
country’s economic development by and large follow the course outlined below,
although vary in certain respects depending on the international economic environment
and on the conditions of the respective country’s natural and economic environment.

In countries with a low income level, usually the role of the agricultural sector is very
large and agricultural development has a high priority. The reasons for this include food
security for the people, the contribution of the agricultural sector to economic growth,
and maintenance of the livelihoods of people living in rural areas, which usually make
up a large proportion of the country.

During the subsequent process of economic growth, as the manufacturing industry,

service industry and other non-agricultural industries expand, the growth rate of these
industries will surpass that of agriculture, and the labor force will migrate to those
industries from the agricultural sector. As a result, the portion of the national economy
contributed by agriculture will decrease. In addition, the proportion of labor force in the
rural sector will also decrease.

Meanwhile, as a consequence of the increase in national income, the food preferences of

the people change. Demand for livestock products and high-value-added farm produce
such as vegetables and fruit will increase from a diet centered on grains, and there will
also be a growing interest in food quality and safety.

Then, as this economic growth leads to a change in the status of agriculture in

development policies, the focus on agriculture and rural development will also change.
Consequently, the cooperation suited to these changes is needed. The specific direction
for the cooperation is outlined below. However, since there are no strict standards for
classifying individual countries, and since conditions vary even within a single country
such as according to suburban areas, plains, highlands, mountainous areas and
disadvantaged areas, rather than a single direction that applies uniformly to the country
as a whole, approaches suited to the relevant conditions will also be needed.

(a) Countries where subsistence agriculture dominates

There is a strong need to raise food self-sufficiency, especially for grains, and
establish a stable supply of food, and the contribution of the agricultural sector in
economic growth is high (generally mostly low-income countries).

(i) Description of support

Focus on increasing the volume of production by expanding the area of cultivated

land and improving crop yields, especially for grains. Aim to establish sustainable
systems, such as the development and dissemination of low-input technologies
with a mind to the technology level and income level on the part of the developing
country. Also contribute to the development of related value chains.

(ii) Stance of support

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 Depending on the circumstances, think flexibly about such basic principles as
ownership and self-help efforts taking into account the weak systems on the part
of the developing country, and predominantly provide support with a focus on
grant aid (technical cooperation and capital grant assistance) until outcomes such
as improvement of food supply become apparent from a humanitarian point of
view.

(b) Countries that are in transition to commercial farming

As grain production increases and farmers have an increasing surplus to sell, the
demand by consumers for farm produce (including for the diversification from grains
to vegetables and other crops) will also increase as a consequence of increased
number of non-farming families and better income levels. (generally mostly between
low-income countries and lower middle-income countries).

(i) Description of support

Support to further improve the productivity of grain from the perspective of

securing a stable supply of inexpensive food at a national level and of securing
room to diversify produce. (It is possible to introduce more costly technologies at
this stage.) Meanwhile, in suburban areas and other suitable locations, support the
introduction and production increase of high-value-added crops. An important
issue for farmers will be to acquire management knowledge and to constantly
supply farm produce to consuming regions in the required volume when needed
responding to the change at consumer needs.

(ii) Stance of support

With respect to financial assistance, depending on the country, suggest projects

financed through loan aid while continuing to also provide grant aid, while also
fostering the ownership on the part of the developing country.

(c) Countries where agriculture is centered on commercial farming

Grain self-sufficiency has been virtually achieved, the number of full-time grain,
vegetable and livestock farm households has increased, and the ratio of subsistence
farm households has decreased. Meanwhile, the demand structure has transformed
further. For instance, diet has become more diversified due to the growth of the
middle class in urban areas, there has been an increase in consumers’ preference for
quality and safe farm produce, and there has been a further increase of non-home
meals consumption (large supermarkets, food service industry, etc.) (generally
mostly upper middle income countries or higher).

(i) Description of support

One issue amid globalization of the supply and demand for food is to secure the
agricultural competitiveness of the country while also contributing to the food
security of other importing countries. Greater importance will also be placed on
responding to the above mentioned diversification of diet, increased preference for

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 quality and safe farm produce and the increase of non-home meals consumption.
Support for tackling these issues also contributes to coordination for win-win
outcomes based on relationships of trust with relevant organizations in the country
which have been established through the course of many years of cooperation.
Furthermore, the country can serve as a cooperative partner supporting the
agricultural development of low-income countries, etc.

(ii) Stance of support

Focus on support for private-sector activities as well as loan aid and technical
cooperation while emphasizing ownership on the part of the developing country.
Maintain networks with relevant organizations through support, also bearing
Japan’s food security in mind.

(4) Promoting participation of the private sector

The main processes and elements related to agricultural production include input of
agricultural production goods (seeds, fertilizer, tractors and other agricultural
machinery), research and development of agricultural technology, extension, production,
post-harvest processing, distribution, finance, and the development of related
infrastructure. In addition to public organizations, private enterprises are usually
involved in each of the processes and elements.

Among developing countries, there are cases where agricultural production does not
increase partly because the private sector has not developed sufficiently. Therefore,
when providing support for agriculture and rural development, projects have to be
carried out while also giving consideration to encouraging the participation of private
enterprises.

Furthermore, in order to successfully promote agriculture and rural development in

developing countries, as it is very important to have support for small-scale farmers,
which form a large majority of the agricultural sector, private investment in production
should also be planned for benefits to small-scale farmers. Everything possible needs to
be done though to prevent any development that does not benefit small-scale farmers as
well as any ―land grabs‖ whereby private capital is used to finance the haphazard
acquisition of large plots of land. Internationally, there is support for promoting the
Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and
Forests and the trial use of the Principles for Responsible Agricultural Investment
(PRAI). For example, JICA is assisting agricultural development in the Nacala Corridor
of northern Mozambique by drawing on the knowledge from agricultural development
in Cerrado, Brazil through trilateral cooperation between Japan, Brazil and Mozambique.
In this program JICA will promote poverty reduction and food security for local
small-scale farmers and also contribute to the economic growth of the area inviting
private sector. As part of this, JICA is also considering recommending systems whereby
the above guidelines and principles can be realized.

Furthermore, private enterprises in Japan are also moving forward with investments in
developing countries in such areas as seed, fertilizer, agricultural machinery, production,
post-harvest processing, distribution, and food processing. JICA will also implement

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 programs while bearing cooperation with these private enterprises and further
promotion of investment in mind.

(5) Strengthening resilience

As mentioned in the section on responding to soaring food prices, it is extremely

important to strengthen the capacity of developing countries to deal with surging food
prices and shocks such as unseasonable weather. The importance of strengthening
resilience has been further heightened particularly by the damage sustained in the recent
Great East Japan Earthquake and Thai floods, and also by the damage caused by the
recurring droughts in the Horn of Africa. Specific actions include policy advice that
covers stabilization of food prices, improvement of irrigation and other facilities
including disaster prevention aspects, variety improvement and dissemination, the
development of agricultural statistics and storage facilities, strengthening the
community’s capacity to respond to these kinds of events, and the examination of
weather insurance.

In terms of agriculture and rural development measures to cope with the Thai floods,
JICA provided support to meet short-term needs, including support for the recovery of
productivity in pasturelands in order to secure animal feed which has been in short
supply because of flood damage as well as support for the restoration and repair of
damaged irrigation and drainage facilities. In longer term perspective JICA also
supports the improvement of the crisis management capacity of residents aimed at
fostering agriculture and rural development that is resilient to disasters. Furthermore, in
terms of medium-term measures dealing with drought in the Horn of Africa, JICA is
currently supporting activities of stable agricultural production such as through the
development of a livestock marketing environment, the development of water
infrastructure for agro-pastoralists engaged in farming and consideration of weather
insurance in areas of Kenya and Ethiopia where pastoralists have been the main victims
of drought.

(6) Peace building

In most cases, agriculture and rural development is important for post-conflict countries,
such as countries where the agricultural sector is one of key industries, and countries
where conflict has meant that no other industries of note have developed. JICA will give
priority to this type of assistance for such countries as Afghanistan, Iraq and South
Sudan.

(7) Strengthening the program approach, and promoting domestic and international
cooperation and coordination

JICA plans and implements individual projects under medium- and long-term scenarios,
based on the characteristics of agriculture and rural development, and in line with an
approach suited to the development situation mentioned in (3) above. Where necessary,
these scenarios are not limited to just the agricultural sector. They also need to take into
account water resources development, education and health, transport infrastructure,
information and communications, energy supply and other such factors in rural
communities. Relevant issues and schemes should be clearly defined and prioritized,
and projects have to be managed to address those specific issues. In recent years,

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 because JICA has not necessarily implemented a large number of loan aid and grant aid
projects in the area of agriculture and rural development, it will work to form programs
that include financial assistance in order to enhance the development effect. JICA will
also consider enhancing the development effect by packaging support for policy
together with support for implementation.

JICA will contribute to the development of international frameworks such as by actively

communicating knowledge gained through projects in the international arena. It will
also promote cooperation with other donors in order to improve the development effect.

Domestically, JICA will strengthen its alliances with the private sector, universities,
local governments and non-governmental organizations.

7. Region-specific issues

The issues for each region are described as follows. However, a response suited to the
conditions is needed due to the variance in conditions depending on the country and district.

(a) Southeast and East Asia

For higher income countries, it is important to improve distribution that includes

securing the quality and safety of farm produce and to improve regions that are
lagging from a social equity point of view. For lower income countries, the main
issue is rural development for increasing the productivity of food crops and for
rectifying internal disparities. Furthermore, the development through public-private
cooperation should be taken into account. Especially for ASEAN, it is critical to
consider policies on food supply and demand in view of regional policy coordination
within the region while also bearing in mind future policies for the liberalization of
regional tariffs.

(b) Central Asia and Caucasia

In general, there are many countries where agricultural production is showing signs
of recovery, but which have not yet achieved self-sufficiency. Continuous support is
also needed for the development of value chains adapted to the market economy. In
most of the countries, amid the restrictions on water resources, there is also a need to
respond to soil degradation.

(c) South Asia

In regions experiencing population pressure and facing the broad impoverished

classes and the disparities, apart from the most vulnerable Afghanistan, the domestic
supply and demand for staple foods is at last becoming evenly matched. Despite this
though, production is unstable, agricultural productivity is low (compared to
countries in Southeast Asia, etc.), and regional disparities are wide. Support is
needed for food security and agricultural rural development, such as for improving
productivity through the development of rural infrastructure and introduction of
high-yield varieties, for the diversification of farm produce and shift to
high-value-added produce, and for the development and dissemination of appropriate

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 agricultural technologies in the lagged area for narrowing regional disparities.
Furthermore, there is also a need for reform of public distribution systems and
agricultural cooperative organizations, for increasing distribution efficiencies through
the participation of the private sector, and for the introduction of cold chains,
depending upon the country.

(d) Central and South America

For countries with surplus production capacity (grain exporters), JICA provides
support with a view for public-private cooperation from the perspective of Japan’s
food security. For other countries facing food security problems, such as relying on
imports for its staple foods, JICA provides support for increasing productivity which
also emphasizes support for the poor.

(e) Sub-Saharan Africa

Self-sufficiency is very low, and food expenses account for a large proportion of
household budgets (the most vulnerable). This is also the region with the most severe
nutrition problems. Although productivity is low, the potential for development is
relatively high, and so the main issues are the development of entire value chains
centered on increasing agricultural productivity especially for small-scale farmers, as
well as promoting a market-oriented approach to agricultural production and
cooperation with the private sector. Moreover, the region tends to experience
frequent droughts, floods and other natural disasters due to the effects of climate
change, and so another important issue is strengthening the resilience of rural
communities.

(f) North Africa and the Near and Middle East

Most countries in this region have a low rate of self-sufficiency, and their production
potential is also low. JICA provides support from a food security perspective,
focusing on the self-sufficiency of major grains. Water resources are scarce, and so it
is also important to improve water utilization efficiency.

References

1. OECD (1998) ―Communiqué from the Ministers - Meeting of the Committee for
Agriculture at Ministerial Level‖

2. OECD (2010) ―Communiqué from the Ministers - Meeting of the Committee for
Agriculture at Ministerial Level‖

3. Akiyama, Takamasa, Suzanne Akiyama, Naonobu Minato (2002) ―Kaihatsu Enjo

Senryaku no Hensen to Tenbou‖ (Development Assistance Strategies: Transition and
Outlook) FASID

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4. Ministry of Foreign Affairs, Ministry of Agriculture, Forestry and Fisheries (2009)
―Shokuryou Anzen Hoshou no Tame no Kaigai Toushi Sokushin ni Kansuru Shishin‖
(Guidelines on Promoting International Investment for Food Security)

5. Ministry of Foreign Affairs (2010) ―Sekinin Aru Nougyou Toushi ni Kansuru

Raundoteeburu‖ (Roundtable on Responsible Agricultural Investment)

6. Japan International Cooperation Agency (2010) ―Kaihatsu Kadaibetsu Shishin Suisan‖

(Thematic Guidelines for Development: Fisheries)

7. Japan International Cooperation Agency (2011a) ―Kadaibetsu Shishin Nougyou /

Nouson Kaihatsu‖ (Thematic Guidelines: Agriculture and Rural Development)

8. Japan International Cooperation Agency (2011b) ―Kinnen no Shokuryou Kakaku Koutou

to JICA no Taiouan‖ (Recent Surging Food Prices and JICA’s Response)

9. Research Institute for Development and Finance, Japan Bank for International
Cooperation (1999) ―Indoneshia Kome Ryuutsuu no Genjou to Kadai‖ (Current State
and Issues concerning Rice Distribution in Indonesia) JBIC Research Paper Series No.5

10. Japan Association for International Collaboration of Agriculture and Forestry (1994)
―Kokuren Kaihatsu Keikaku Jinteki Kaihatsu to Jizokuteki Nougyou – 1990 Nendai to
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1990’s and Beyond‖)

11. Japan Association for International Collaboration of Agriculture and Forestry (1998)
―Wagakuni no Nouringyou Kaihatsu Kyouryoku 40 Nenshi‖ (A 40-Year History of
Japan’s Development Cooperation in Agriculture and Forestry)

12. Commission on Growth and Development (2009) ―Sekai Ginkou Keizai Seichou
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13. Shobayashi, Mikitaro, Yukio Kinoshita, Mari Takeda (2012) ―Sekai no Nougyou
Kankyou Seisaku‖ (World Agro-Environmental Policies) Association of Agriculture and
Forestry Statistics

14. Tsubota, Kunio (2006) ―Ajia Shokoku no Nougyou to Kunibetsu Kakusa no Youin‖
(Agriculture in Asian Countries and Factors Underlying Country Disparities) Japan
Association for International Collaboration of Agriculture and Forestry Vol29, No.2
P2-15 kanngai

15. National Agriculture and Biooriented Research Organization (2006) ―Saishin Nougyou
Gijutsu Jiten‖ (Dictionary of Latest Agricultural Technology) Rural Culture Association
Japan

16. Ministry of Agriculture, Forestry and Fisheries (2012) ―Kaigai Shokuryou Jukyuu
Repooto (Monthly Report Rokugatsu)‖ (Report on the Overseas Supply and Demand for
Food (June Monthly Report))

15
17. Hayami, Yujiro, Yoshihisa Godo (2002) ―Nougyou Keizairon Shinpan‖ (Agronomics,
New Edition)

18. Rai, Shunsuke (2007) ―Indoneshia ni okeru Kinshuku Zaisei to Beika Antei Seisaku no
Shukushou‖ (Tight Financing Policy in Indonesia and Curtailment of the Policy for Rice
Price Stabilization) Yokohama Journal of Social Sciences, 12 (3): 93-109

References in English

19. Barrett, Christopher B., Michael R. Carter, and C. Peter Timmer (2010) ―A Century
Long Perspective on Agricultural Development‖ American Journal of Agricultural
Economics 92(2): 447-68

20. Christiaensen, Luc, Lionel Demery and Jesper Kühl (2010) ‖The (evolving) Role of
Agriculture in Poverty Reduction: an Empirical Perspective‖ UNU-Wider Working
Paper No.2010/36

21. de Ferranti, David, Guillermo E. Perry, William Foster, Daniel Lederman, and Alberto
Valdes (2005) ―Beyond the City: Rural Contribution to the Development‖ Washington
D.C.: World Bank

22. de Janvry, Alain and Elisabeth Sadoulet (2006) ―Progress of Modeling of Rural
Household's Behavior under Market Failures‖ in Alain de Janvry and Ravi Kanbur,
―Poverty, Inequality and Development: Essays in Honor of Erik Thorbeck‖. New York:
Kluwer Publishing

23. de Janvry, Alain (2009) ―Agriculture for Development – Implications for

Agro-industries‖ in Carlos A. da Silva, Doyle Baker, Andrew W. Shepherd, Chakib
Jenane and Sergio Miranda-da-Cruz ―Agro-industries for Development‖ FAO and CABI

24. FAO (2010) ―The State of Food Insecurity in the World 2010‖

25. FAO (2012)‖The State of Food Insecurity in the World 2012‖

26. Hazell, Peter, Colin Poulton, Steve Wiggins, and Andrew Dorward (2007) ―The Future
of Small Farms for Poverty Reduction and Growth‖ IFPRI 2020 Discussion Paper 42

27. Hazell, Peter B.R. (2012) ―Option for African Agriculture in an Era of High Food and
Energy Prices‖ Elmhirst Lecture 27th International Conference of Agricultural
Economists, Fos do Iguacu, Brazil

28. Heisey, Paul, W., Maximina A.Lantican, and H. J. Dubin (2002) ―Impacts of
International Wheat Breeding Research in Developing Countries 1966-97‖ CIMMYT

29. JICA (2012) ―Agricultural Transformation & Food Security 2040-ASEAN Region with
a Focus on Vietnam, Indonesia, and Philippines (Executive Summery)‖

30. OECD (2001), ―Multifunctionality Towards an Analytical Framework‖

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31. Ravallion, Martin, Shaohua Chen, and Prem Sangraula (2007) ―New Evidence on the
Urbanization of Global Poverty‖ Background paper for the WDR 2008

32. UNDP (2012a) ―The Millennium Development Goals Report 2012‖

33. UNDP (2012b) ―Africa Human Development Report 2012‖

34. WFP (2011) ―Hunger Map 2011‖

35. World Bank (1982) ―World Development Report 1982‖

36. World Bank (2003) ―Reaching The Rural Poor-A Renewed Strategy for Rural
Development‖

37. World Bank (2005) ―Meeting the Challenges of Africa’s Development: A World Bank
Group Action Plan‖

38. World Bank (2007) ―World Development Report 2008: Agriculture for Development‖

39. World Bank (2009a) ―World Bank Group Agriculture Action Plan: FY2010-2012‖

40. World Bank (2009b) ―World Development Report 2010 Development and Climate
Change‖

41. World Bank (2011) ―Growth and Productivity in Agriculture and Agribusiness‖

42. World Bank (2012) ―Global Monitoring Report 2012‖

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