Rural Development. Strengthening the interaction of agriculture, society and economy to achieve sustainable food security

Transcription

1 Position paper Rural Development Strengthening the interaction of agriculture, society and economy to achieve sustainable food security

2 WELTHUNGERHILFE Our vision We have the vision of a world where all people can realise their right to live a self-determined life in dignity and justice, free from hunger and poverty. Who we are Welthungerhilfe was formed in 1962 as part of a ground-breaking global campaign the Freedom from Hunger Campaign. Established under the umbrella of the UN Food and Agriculture Organisation (FAO), we are now one of Germany s largest private aid agencies. We are an independent organisation and firmly rooted in German society through our member organisations, donors and supporters. We stand for courage, a passion for life and humanity as part of our mission. What we want We promote food security for all people, rural development and the preservation of natural resources. We believe in the power of dreams because dreams drive people forward. For this reason, we have increasingly been linking our partners in Germany and the project countries to a dynamic global network and are making development cooperation a reality. What we do We help people in developing countries to provide for themselves now and in the future. As a large German aid agency with many years of international experience, we have been chalking up success stories in Africa, Asia and Latin America. As part of our political activities, we fight to change the conditions that lead to hunger and poverty. In Germany, we mobilise people to support and help implement our vision. How we work We pursue a holistic, quality- and impact-oriented concept ranging from immediate disaster aid and reconstruction through to long-term development projects. In this context, we work with the affected people on equal terms offering competence, reliability and transparency. We support partner organisations in the project countries thereby ensuring that structures are reinforced from the bottom up and that successful project work can be secured for the long term.

3 FOREWORD In the 1990s, governments at summit conferences repeatedly and solemnly stated their target of halving hunger by In many countries, this target will not be reached. On the contrary, the number of malnourished people worldwide is growing. This is scandalous, because there is enough food, knowledge and funding to prevent hunger. This Welthungerhilfe position paper focuses on the improvement of living conditions in rural areas in developing countries, where three quarters of the poor and hungry live. Most of them are small-scale farmers and landless families. Supporting agriculture and rural development by helping people to help themselves has been Welthungerhilfe s main concern since it was founded 50 years ago. This position paper confirms previous experience and describes new paths. At its core, it deals with the development of site-specific agriculture and adequate development of rural areas. The dual challenge is to make direct access to adequate food and essential social services available to the poorest and to ensure sustainable food security for a growing population. This is linked to a range of topics from access to land and water to gender equality and climate protection. Controversial topics are also addressed, including organic versus conventional agriculture, genetic engineering for agriculture, the competition between food crops and biofuels, the state s obligation to implement the human right to food and the rural population s participation in the political process. The position paper covers 14 aspects. Each section is clearly and helpfully structured in three parts: an analytical introduction followed by practical hints on points in which Welthungerhilfe is involved in its programme and project work and a list of current demands on national and international decision-makers. There is no attempt to offer recipes for success; instead, complex challenges in various situations are considered. Rural areas in developing countries have been severely neglected in the last two decades in terms of investment and political reform, both by their own governments and by development cooperation organisations. Recently there are signs that a change of political direction is taking place. This paper is being published at a suitable moment. Development policy in rural areas can only succeed if it is oriented on the needs, rights and skills of the people who live there and if it takes place in a wide and coherent working framework of interests. I hope that the paper with this core message will be met with broad interest and the readiness to put the ideas into practice. Prof. Dr. Hartwig de Haen Welthungerhilfe Supervisory Board

4 Contents Introduction and overview 1. Site-specific agriculture precondition for rural development 2. Rural economy expanding economic potential in rural areas 3. Agricultural trade developing market access through fair framework conditions 4. Social security essential for the rural population 5. Micro financial services inclusion of people in the regional economy 6. The human right to food not just a guideline 7. Gender justice equality for women as a driver for development 8. Civil society a key pillar for sustainability 9. Land fundamental to survival and a resource for rural development 10. Access to water making it equitable and efficient 11. Biodiversity and agro biodiversity protect, utilise and preserve 12. Green genetic engineering sustainable usefulness not yet proved 13. Energy the issue of the future 14 Climate change a global threat to rural development in the South 16/12

5 Introduction We have a vision of a world in which all people have the opportunity to exercise their right to a self-determined life in dignity and justice, free from hunger and poverty. Rural development is one of the most important aspects in reaching this target. In 2010, 925 million of the world s population was going hungry, the vast majority in developing countries. Although the number of urban dwellers affected by poverty and hunger is rising in many parts of the world, the majority of the poor live in rural areas, that is, areas where food is produced. Most of them are small-scale farmers or landless, labouring in agriculture and related rural activities. They cannot feed themselves adequately on what they grow, harvest, sell and receive as wages. Increasing global demand for food and agricultural primary products is to be anticipated, so it is sensible and justified to focus international development policy on agriculture and rural areas. The German Federal Government, the EU, G8 and G20, the African Union, the UN, regional development banks and the World Bank have stated their determination to increase investments in agriculture and rural development in countries where hunger prevails. It is important to ensure that political efforts are focused on the needs and potential of the rural poor and that all development strategies are based on appropriate, coherent planning and implementation. This position paper formulates Welthungerhilfe s understanding of agricultural and rural development focusing in particular on small-scale farmers. It summarises political demands and concrete options for development support. The statements are based on the following principles: food security, poverty reduction, helping people to help themselves, sustainability, human rights, participation and target groups orientation. work. Acknowledging that the poor rural population has rights ensures that the people are involved appropriately in planning and implementation of development programmes as responsible, independent actors. Welthungerhilfe s political demands and project support are oriented on their concerns and needs. We are not claiming to cover the field exhaustively with the topics we have selected; rather these topics have emerged from current discussions on rural development issues and relate to Welthungerhilfe s present strategy. The content is to be updated regularly and the topic spectrum expanded if necessary. The sequence of the sections has no relation to their significance: Different aspects can be weighted differently depending on specific situations. Rural development activities are particularly effective when the different areas of activity complement and reinforce each other. The position paper has been elaborated through a process of consultation involving many experienced Welthungerhilfe staff members from Germany and abroad as well as external experts. It fulfils three functions: 1. it is primarily aimed at Welthungerhilfe staff and partners and serves as an internal guide for strategically coherent and effective project and programme work in rural development. The paper shows the areas of rural development where Welthungerhilfe is particularly involved. 2. Looking outwards, the paper is intended to communicate Welthungerhilfe s work and policy direction to an interested public and possible cooperation partners in Germany and abroad. Welthungerhilfe has been supporting projects in rural and regional development, its most important sector of support, for 50 years. This position paper is based on our long-term experience. Welthungerhilfe s central concern is poverty reduction worldwide, whereby sustainable food security is a priority. Human rights, in particular the human right to food, are central to our 3. the position paper points out that development policy can only be successful if it takes place within a broad, coherent working structure. Therefore this position paper makes concrete demands on politicians, on governments of both developing and donor countries and equally importantly, on international organisations.

6 Rural development An overview Access to sufficient, appropriate food, clean drinking water, education and the best possible health care has gained the status of an inalienable human right through the adoption of economic, social and cultural human rights. Gender justice aiming to secure equal status for women is not simply something to be demanded as a human right; it is essential if development is to be sustainable. Women are disadvantaged and suffer discrimination in almost all societies. They carry out by far the greater proportion of unpaid work worldwide, particularly in rural areas. Very small farms are characteristic of many developing and emerging economies in Asia and Africa, where the average farm size is only 1.6 hectares. There is no generally accepted definition for the term small-scale farmer ; however, it refers to people who (have to) work on small plots of arable land with very limited equipment. Small-scale farmers in developing countries usually produce very small surpluses to sell. Most of them are subsistence farmers, producing mainly for their own use. Accordingly they are dependent on the local environmental conditions and their cash income is very small. Support for poor small-scale farmers and the landless is one of the most important levers in overcoming hunger and poverty. Site-specific agriculture is the basis of rural development. It must address many issues: increasing harvests to ensure food security and create income, while also contributing to the conservation of natural resources. Cultivation methods must be adapted to local environmental conditions and the socio-cultural context, and they must be developed on the basis of existing knowledge. Furthermore, rural development will be successful only when agricultural products from developing countries are integrated into fairer international trade systems. To enable sustainable economic activity, insurance against the most significant social and economic risks is needed and primary education and basic health care must be available free of charge. Sustainable use of natural resources is a precondition for securing livelihoods. This includes protecting and preserving biodiversity and agro biodiversity. In this context, the importance of participative cultivation and development of new varieties of crops suitable for (small-scale) farmers cannot be overestimated. Using water and soil carefully and efficiently is vital to the survival of the rural population. Securing access to safe water is a particular challenge. Appropriate drinking water supply and sanitary facilities are essential to sustainable development. Climate change is a growing threat to rural development and will have a range of consequences. A decline in agricultural productivity can already be foreseen, particularly in many developing countries; increasing weather risks and new diseases affecting people, livestock and cultivated plants are likely. Agricultural productivity must be maintained and rural people s resilience to climate change especially among vulnerable groups must be increased. Because agriculture alone cannot provide sufficient income, the rural population is already dependent on income from non-agricultural sectors. Specific support for other livelihood options is therefore important to rural development. This includes processing of agricultural products, the development of physical infrastructure (transport and storage) and provision of social services. The economic development of rural areas requires energy. As prosperity increases, rising energy consumption and greenhouse gas emissions in developing countries are inevitable. The efficient use of energy and the rapid development of energy generation preferably renewable will contribute significantly to overcoming energy poverty. For inclusion of the rural poor in local, regional and national economy and to safeguard development successes, effective micro financial services are essential. Social and economic development in rural areas will only become optimally effective if a suitable balance can be attained in all the areas mentioned here, given local conditions. 16/12

7 Section 1 Site-specific agriculture Precondition for rural development Abstract Agriculture has many functions: it must provide food, create income and contribute to the conservation of natural resources. If they are to be appropriate to the location, cultivation methods must be adapted to local environmental conditions, take cultural context into account and be based on existing knowledge. In developing countries, increasing and stabilising yields and income through site-specific agriculture is an important driver of rural development and poverty reduction. One of the most important factors in overcoming hunger and poverty is the development of poor peasants to farmers whose production is economically, ecologically and socially sustainable. Although the importance of small-scale agriculture in developing countries is increasingly recognised as the most significant lever in national strategies to combat poverty and provide food security, it is rarely given the necessary political priority. Turning unproductive small-scale and subsistence agriculture into an economically viable, socially and ecologically sustainable productive sector is one of the most important factors in overcoming hunger and poverty. To achieve this, it will be necessary to break through the limitations to growth by implementing a socially acceptable structural reform of rural areas. The agricultural sector s main potential for rural development is to increase productivity; other factors include diversification strategies, processing of produce, access to markets and provision of environmental services. The range of agricultural functions from insuring food security, adequate income and sustainable use of natural resources to environmental protection and preservation of cultural assets can only be fulfilled when site-specific strategies can be developed and implemented. There are no global solutions to this issue and no blueprints for success. Environmental conditions, the level of development and the cultural background in the different locations demand specific agricultural solutions. Above all, agricultural strategies should secure sustainable food supplies even when the population is growing. At the same time, the local economy, in particular the creation of effective markets and processing structures of agricultural produce, should be supported (cf. Section 2 on the economy). Technologically appropriate processing and storage to reduce post-harvest losses are also important. Important features for sustainable agriculture comprise the appropriate use of local natural resources including use of renewable energy sources, applying mainly organic fertilisers and opting for integrated farming systems in which a high proportion of nutrients are recycled. Organic agriculture seems to be the ideal form of sustainable agriculture. It renounces genetically modified seed, synthetic pesticides, chemical fertilisers and to a large extent mineral fertilisers; it rejects the use of growth accelerators (antibiotics, hormones) and complies with high standards of animal protection. However, there also are environmentally friendly forms of conventional agriculture that use modern means of production in crop cultivation and animal husbandry while respecting the principles of environmental protection and sustainable use of natural resources as well as ethical norms for animal protection. The different forms of sustainable agriculture utilise improved seeds, irrigation and mechanisation in order to increase yields, within the framework of their specific standards and regulations. In practice, the decision as to which mix of methods best serves the needs and potentials of farmers must be made with respect to location in order to combat poverty and hunger most effectively. Implementing site-specific agriculture to combat poverty requires improved access to necessary resources, including availability of financial means for investments (irrigation, mechanisation etc.), reliable access to seeds, to relevant information (weather forecasts, market data) and to education and research. Site-specific cultivation methods can only make sustainable contributions to the conservation of natural resources such as soil, water, air and biodiversity if they are continually adapted to changing framework conditions. Climate change is one of the greatest challenges in this context (cf. Section 11 on agro

8 Section 1 biodiversity and Section 14 on climate change). The pressure on natural resources has been growing for a long time, above all due to population increases and changing consumption patterns. Traditional cultivation methods are often no longer adequate in view of the limited availability of agricultural land and the pressure for increasing production. There is a need for production techniques based on traditional knowledge but at the same time including innovative approaches, continually adaptable to environmental and market conditions. Poverty can only be reduced by an economically viable agriculture. Surpluses must be produced in order to create and secure income and jobs. Paying subsidies to farmers for services could be appropriate for clearly defined measures (e.g. environmental services, food security, social security) as long as they are transparent and equitable (cf. Section 3 on agricultural trade). Land and water are finite resources. In many countries, it is already the case that these resources are no longer sufficient to secure the livelihoods of all subsistence and small-scale farmers (cf. Section 9 on land and Section 10 on water). Agriculture as the sole income source is a poverty trap for millions of small-scale farmers; it only meets the requirements of social and economic sustainability in very few cases (e.g. for indigenous peoples). For social and economic development it is essential to create new income sources in rural areas. In the medium run, site-specific agriculture must progress beyond local self-sufficiency. To achieve this, farmers must diversify their production and their income sources. The structural change needed to achieve this must be poverty-oriented: The loss of agricultural livelihoods must be balanced by the creation of alternative jobs, e.g. in processing agricultural products (cf. Section 2 on the economy). Welthungerhilfe s involvement in relation to site-specific agriculture: Supporting small-scale farming to increase productivity and farmer s incomes. The cultivation methods applied are innovative and efficiency-focused, based on up-to-date knowledge. We support access to the necessary resources (loans, infrastructure, seeds, information etc.). Orienting cultivation methods toward a diversity of plants and varieties. The focus is on sustainable use of natural resources (soil, water, biodiversity, energy). Agro-forestry and integrated farming systems are significant in this context and are promoted, as are integrated crop protection systems, breeding of adapted seeds, sustainable irrigation management and measures to improve soil fertility (compost, mulching, crop rotation, erosion control and soil conservation techniques). Supporting appropriate methods of keeping and feeding livestock; including measures for growing feed crops and veterinary provision. Promoting measures to support avoidance of post-harvest losses (e.g. storage) to increase the availability of food and create jobs. Promoting marketing activities (local, regional and export) and the processing of agricultural primary produce for strengthening the local economy. This can take place in partnership with the private sector in order to use existing know-how, capital and logistics structures. Welthungerhilfe s demands relating to the implementation of site-specific agriculture: Poverty eradication and food security must be at the core of national agricultural policy in countries affected by hunger. Agriculture should be given higher priority in rural development by international development organisations, matched by an equivalent level of funding. Site-specific agriculture is an important tool for realising the human right to food. Industrialised countries must reduce their agricultural and export subsidies where they impair the agricultural development of poor countries by distorting the markets. Development projects and private business should not use technologies or make investments which conflict with the conservation of natural resources and the implementation of the right to an adequate standard of living in the recipient countries. 16/12

9 Section 2 Rural economy Expanding economic potential in rural areas Abstract In many developing countries, the majority of the population works in agriculture. However, this sector is often unable to provide sufficient jobs and income. Economic poverty is therefore still one of the main problems in rural areas, although many people already improve their incomes by taking on supplementary work outside agriculture. Support for businesses and services particularly in preand post-processing of agricultural products is of great significance for the socio-economic development of rural areas. This is the only way in which new sources of income can be developed for the rural population that is most affected by hunger. The creation and expansion of physical infrastructure is an essential precondition for this development, particularly in neglected rural areas. Good governance also entails the creation of functioning state institutions which ensure the implementation of participative regional planning and the development of physical infrastructure designed to reduce poverty. Rural development is usually assumed to mean diversifying production and increasing productivity in agriculture. Both of these factors are indeed worthy of support, as long as they are carried out in a sustainable and appropriate manner. Increasing productivity, however, also means that working capacities are set free, hence, new jobs and income opportunities must be created. Support for businesses and services, in particular in respect to post-harvest processing of agricultural products, is essential for a socially and economically balanced development in rural areas. This is the way in which new sources of income can be created for the rural population. Economic diversification is essential for additional value creation (pro-poor growth) that reduces poverty and promotes the sustainable overall economic development. The potential for this kind of development often arises directly from agricultural production. Promising fields include the pro- cessing (including minimising post-harvest losses, storage, preservation, packaging, transport and marketing) of agricultural produce. In addition, services are necessary such as the repair and maintenance of machines and tools, as well as services in consulting, financial services, information and (further) education. Inputs for agriculture (equipment, construction) are also necessary, as is product marketing. The preconditions for these activities include adequate physical infrastructure such as roads, storage facilities, energy supply and water infrastructure as well as suitable institutions for education and vocational training. Women and young people usually suffer discrimination in relation to access to production and financial support; special support for these groups gives them new opportunities. It also is necessary to look for solutions in respect to the disadvantages which result from the usually inadequate vocational training opportunities in rural areas (cf. Section 7 on gender equality). Cooperatives and similar self-help business organisations are important instruments for the economic development of rural areas and small-scale farming communities. Joint economic activity reduces costs; depending on the situation, this may be through cooperation in purchasing, transport, storage and marketing, as well as in financing investments. Successful cooperative businesses can have a positive effect on the division of labour and specialisation, which helps to improve product quality. Cooperatives can play an important role for diversification, if they expand their activities to, for example, educational and financial services or the trade of non-agricultural products. However, cooperatives have not always proved to be efficient and effective. If there is no foundation for self-organised responsible cooperation, then either private business solutions or collaboration between selfhelp structures and the private sector are preferable. In the medium run, support for the economy leads to reduced dependency on a single sector. New sources of income increase the population s purchasing power, which also strengthens local and regional markets. In this way, a diversified local economy

10 Section 2 provides more socio-economic stability in the long run than an export-oriented economy which is highly dependent on a few products and sectors and external market demand. A diversified economic structure is also more likely to be successful in countering undesirable developments in the market economy (e.g. price distortions, development of monopolies) and in intervening to regulate the situation. International markets can provide important contributions to the economic development of rural areas. However, they must be thoroughly analysed to assess their true potential. International trade usually requires a much higher degree of organisation. larger quantities of goods and higher product quality. In order to be able to utilise international market opportunities despite underdeveloped infrastructure and inadequate framework conditions, new industries in developing countries must protect their products from superior competition. For this, developing countries should be able to make use of existing WHO instruments (e.g. safeguards, green box) to fend off imports of cheap, subsidised products which damage their domestic agricultural production and strategically important industries (cf. Section 3 on agricultural trade). Functional physical infrastructure (transport infrastructure, water and energy supply, communications) is essential for the sustainable economic development of rural areas. Experience also shows that financial services must also be extended in order to cover investment and liquidity requirements (cf. Section 5 on microfinance). Local and regional administrative structures and governmental institutions must also function adequately for promoting economic development. They are the main actors in establishing suitable instruments for supporting economic activity and in creating appropriate framework conditions. This includes the rule of law, for example in relation to the land ownership situation and land use rights (cf. Section 9 on land). In addition, a coordinated national policy for efficient regional planning and development is needed: This can reduce urban-rural disparities and lead to more effective coordination and implementation of economic funding programmes at the regional level. Economic support should also include active labour market policy, particularly in relation to vocational education. Good governance is essential for a pro-poor economic development. Welthungerhilfe s involvement in relation to developing economic potential in rural areas: Supporting farmers in sustainably increasing agricultural production and productivity. Supporting target groups in expanding pre- and post-harvesting activities related to agricultural produce, in order to create diversified value chains with a range of income opportunities. Promoting vocational training for the rural poor, with respect to farming as well as in fields other than agriculture. Strengthening self-help organisations and cooperative business models. Supporting measures designed to improve the functioning of markets for the local, regional and international exchange of goods. Promoting communication between market actors (producers, traders, processors) to ensure cooperation and transparency of relevant market information. Welthungerhilfe s demands in relation to the development of economic potential in rural areas: Industrialised and emerging countries must not be permitted to thwart the economic development of poor countries by forcing them to open their markets or flooding them with imports. Developing countries must make more use of the legitimate (WHO) instruments to protect their (agricultural and other) producers from cheap imports. (Suitable) vocational education and training are urgently required, as is the transfer of know-how and adapted technologies. Products and processes which are linked to agricultural production or which provide value for rural areas should be promoted. Locally and regionally emerging economic structures should be given special support. Developing countries should reform their market structures and invest more in infrastructure. This includes rural markets and social structures (overcoming the urban bias) as well as basic physical services. Developing countries must implement an integrated, transparent and participative regional policy which focuses particularly on the agricultural sector and supports decentralised structures for efficient public services. 16/12

11 Section 3 Agricultural trade Developing market access via fair framework conditions Abstract The majority of developing countries depend on agricultural imports for their food security. Prices for agricultural products are rising and also becoming more volatile, so that it is increasingly difficult for these countries to meet their needs on the global market. Their own agricultural sectors, mostly based on small-scale farming, must play the main role with respect to domestic food security. Local and regional markets must also be strengthened and appropriate agricultural strategies are needed for promoting stability and competitiveness. Protectionist trade policies continue to hinder access to international agricultural markets for producers in poor developing countries. For effective rural development the governments of affected countries must invest more in rural areas. In the context of WHO negotiations, global agricultural trade must be regulated in such a way that it promotes development and sustainable food security in all countries. Local availability of food in developing countries often fluctuates considerably. Harvests can vary substantially due to factors such as weather, pest infestations, crises and conflicts. Regional and international trade must contribute to food security by balancing out shortages and overproduction. For decades, developing countries were able to fill the gaps in their own agricultural production by cheap imports. This was particularly beneficial to the net buyers. The losers were the local small producers who could not compete with the cheap imports because they were produced by often-subsidised large-scale industrialised agriculture at minimal cost. In recent years, this situation has changed dramatically. World market prices for agricultural products are volatile and have risen greatly, making it very difficult for developing countries to meet their needs at a reasonable price on the global markets. It has therefore become even more important to strengthen their own production and the local and regional markets. Industrialised countries have been boosting their agriculture for decades by supporting production with subsidies and protective tariffs. Their surplus produce was dumped onto the world market at low prices, thanks to huge export subsidies. At the same time, wealthy countries have used various instruments to protect their agricultural markets, making market access very difficult for developing countries. This is still the case e.g. due to the high quality and safety standards for food in industrialised countries. The gradual move away from an agricultural policy of supporting producers prices and towards direct income payments to farmers in OECD countries and the subsequent reduction of export subsidies and import restrictions in industrialised countries are steps in the right direction. International trade can only be fair if it is based on recognised rules. It is the WTO s task to develop and agree on these rules. However, so far the chance to use WTO negotiations to combat hunger has been wasted. Opening the markets in developing countries a move that the World Bank and IMF have long demanded for the agricultural sector primarily benefits the export interests of industrial countries. Developing countries lose import duty revenues and must fear that their own structurally disadvantaged producers will lose out even more with the influx of cheap imports. In order to promote development, trade policy must be oriented toward the marketability of product groups. Trade in products such as tea, coffee or cocoa benefit from liberalisation, whereas cereals or poultry and dairy production in many developing countries still require special protection in order to gradually reach marketability. Due to the structural disadvantages, it will take many years before the agricultural production of marginalised rural areas in developing countries reaches competitiveness compared to levels of efficiency and quality found in industrialised countries. For this reason it is essential that developing countries have the right to protect their own agricultural sectors from cheap imports which obstruct their own production (e.g. through customs duties and import restrictions) (cf. Section 2 on the economy). At the same time, developing countries must ensure that they do not disadvantage their own production through overly high exchange rates, export taxes for agricultural products and import subsidies. Efficient administrative structures, investment in market infrastructure and economic policies designed to reduce

12 Section 3 poverty are all essential in the bid to create adequate national framework conditions. However, protecting domestic production does not automatically benefit all the poor of that country. Farmers produce for market benefit, while poor rural and urban consumers have to pay higher prices. Protective measures should aim at achieving price stability at a suitable level, rather than trying to push through higher or lower prices. The concentration process leading to the dominance of a few supermarket chains is an obstacle in international trade and increasingly, in regional and local trade as well. Few small-scale farmers are in a position to deliver the demanded standards in terms of quality and quantity. They require training and counselling about standards of quality and hygiene, sanitation and phytosanitation as well as access to suitable technologies. This is becoming more important due to increasing consumer quality awareness in developing countries too, and due to the growing demand for refined and processed products. Unnecessary technical standards, e.g. in relation to the size and shape of agricultural products, must be reduced in the interests of supporting small-scale farmers. Some companies are concerned about environmental and social standards of production (organic cultivation, suitable working conditions, rejection of child labour etc.). They are attempting to establish markets for products produced to these standards for which price advantages can be obtained. In this way they try to develop exemplary, fair models which aim to directly improve the conditions for farmers in the producing countries. Consumers are directly involved in trade strategies of this kind. The initial result is simply to create a niche market for example, to improve quality in order to test the products marketability or to open up new (international) marketing opportunities. However, the innovations bear the potential to gradually introduce environmental and social standards for the entire sector. That said, improved trade conditions are not enough to raise agricultural production sustainably. Small-scale farmers must also be able to react to rapid alterations in demand due to unexpected weather conditions or fluctuations in international markets. This aspect requires a response from developing countries themselves. Only if effective agricultural and development policies are implemented can the interplay of fair trade conditions and the support of rural areas lead to poverty reduction and improved food security (cf. Section 2 on the economy) Welthungerhilfe s involvement in relation to promoting fair trade conditions for small-scale farmers: Promoting market access for small-scale farmers and the marketability of their products by training and support for farmers self-help structures (producer groups etc.). Supporting investments in transport infrastructure and market information systems in order to improve access to local and regional markets. Promoting storage and processing of agricultural products in order to improve farmers negotiating position and their value creation. Supporting farmers with small incomes in order to utilise the opportunities for certification and fair trade. Supporting the marketing of farming products from developing countries in Europe. Welthungerhilfe s demands for agricultural trade that reduces poverty: Fair trading conditions must be created within the framework of international negotiations (WTO). However, industrialised countries must also reduce their agricultural export subsidies independently of the WTO negotiations. Agricultural subsidies in emerging economies and industrialised countries which distort the international market must be further reduced. Qualitative import restrictions in industrialised countries for agricultural products from emerging economies and developing countries must be reviewed and adapted to be suitable for the products. Developing countries must be permitted to protect their local or regional production from cheap imports if this helps to reduce poverty. Developing countries must build national and regional agricultural strategies which will promote food security, economic development and international marketability. Private companies and consumers in industrialised countries are called on to support farmers in developing countries and fair agricultural trade through shopping basket policy (i.e. considering the impact of consumption behaviour). 16/12

13 Section 4 Social security Essential for the rural population Abstract Every society should aim to ensure for all its members a dignified living standard. An important precondition for achieving this is the provision of a safety net to protect people from the greatest social and economic risks. Primary education and basic health care should be available to everyone free of charge. The ratification of economic, social and cultural human rights has given these political targets the status of an inalienable human right. Health and education are important for full participation in economic, social and cultural life. Social security measures must therefore become an integral part of rural development. Private business and self-help systems play an important role in this regard, but above all, it is the responsibility of governments to take the initiative in their countries and create favourable framework conditions. In states where government structures are fragile or inadequately equipped, the international community should support the provision of social security preferably involving local civil society at least intermittently. Social security entails protection from economic misery. Beyond securing pure survival, it aims at assurance of living standards compatible with human dignity for all members of a society. Fundamental risks must be insured against in order to avoid dependency and poverty. People who are unable to earn a living and contribute to the social security system also have the right to a life compatible with human dignity. This includes assured access to food, health services and education. Traditional social security structures (family, clan) tend to function less satisfactorily in many developing countries. This makes state benefits (income transfers in the form of social welfare payments) increasingly important. Public, private and self-helpbased institutions also play an important part in providing instruments for social security and income transfer. State monitoring and regulatory mechanisms are essential in order to guarantee that these institutions function effectively. State social programmes (e.g. minimum wage, social welfare) have become increasingly important in developing and emerging countries since the turn of the millennium. To date, at least 45 states have such programmes, reaching a total of 110 million families about half a billion people in all. Many studies prove that people involved in these programmes are healthier and better nourished, that their children go to school more regularly and that they work more productively than comparable groups who have no access to social services. Cash transfers do not only support survival; they also stimulate the economy and help people to help themselves. In rural areas, the impacts of social security systems are becoming increasingly visible. Cash transfer based on preconditions linked for example to work (cash for work), participation in training and education or to health care services can support the development of rural infrastructure. They also have indirect positive effects such as contributing to higher wage levels and encouraging growth of the local economy (productive safety nets). Due to such programmes, the poorest people are no longer forced to accept work under any conditions. Income support can strengthen the position of women in the village community. New concepts to protect particularly vulnerable groups (children, orphans, the old, the sick and people with handicaps) are becoming increasingly important because even in rural areas, traditional family structures are eroding partly due to migration. In some cases it can make sense for the social security system to be supplemented by private providers. This is particularly the case in relation to limited, clearly defined risks, e.g. to cover funeral costs or redemption of a credit through a life insurance. Insurance for the farming population (e.g. against loss of harvests) could have great economic and social impact (cf. Section 5 on microfinance). Social security in its wider sense could include all state measures and those of public institutions and organised (civil) society which have socio-political targets. This primarily covers health, educational and labour policy.

14 Section 4 Health care in rural areas is generally less effective than in urban agglomerations. Large numbers of people work in the informal sector; this includes landless people and seasonal migrants in search of work. These groups usually have no access to formal social security systems at all (health and pensions insurance, social security). There is also a lack of rural social infrastructure. Health care institutions are usually far apart and difficult to reach, due to the lack of transport facilities. They are often poorly equipped and run by inadequately trained healthcare staff. Several studies have shown that poor people are more frequently ill and on average die younger than those with means. They are often unable to afford the cost of treatment, which means that they sink even deeper into poverty. Micro insurance can make a significant contribution if there is no access to comprehensive social security systems. Women have particular health-related rights and needs. The human right to sexual and reproductive health includes the right to family planning and safe pregnancy and birth (cf. Section 7 on women). In addition, the rural population needs access to effective educational institutions. The infrastructure problems listed above in relation to the health care system also apply to education. Formalised structures for vocational training are practically nonexistent in rural areas; illiterate people are usually excluded from educational opportunities. There is little formal vocational training in agriculture. Local agricultural extension services are often understaffed and employees are badly paid. The demands made on schools and on non-school education have changed greatly in recent years. Rural households must be strengthened so that they can meet economic and social challenges (cf. Section 8 on civil society). Welthungerhilfe s involvement in relation to social security for the rural population in developing countries: Supporting people in disaster-related emergency situations by the immediate, unconditional provision of food and materials and promoting reconstruction by cash-for-work or food-for-work measures. Promoting self-help-based insurance for the rural poor. Measures of this kind not only improve social security in the villages but also give communities more negotiating power vis-à-vis health care providers. Supporting people in claiming the social security payments to which they are entitled (e.g. National Rural Employment Guarantee Scheme in India). Supporting partners in the fight against corruption, particularly in the health care system, in order to improve the effectiveness of social systems. Education and health care are supported as an integral aspect of rural development projects. Welthungerhilfe s demands relating to social security for the rural population: Donor countries should make funding available for the development and maintenance of social security systems from the funds for development cooperation. Governments should take steps to allow free access to primary education and basic health-care for the whole population. Developing countries must fulfil their human rights obligations to ensure basic social security for their citizens. This includes state financed, preferably free primary education and basic health care. Developing countries must introduce laws and monitoring systems so that public institutions and private businesses can provide effective and efficient social security. Particularly vulnerable groups (e.g. people with handicaps, the old, orphans) not possessing property or working capability should be provided with special support. One effective measure to reduce the rural exodus is to make rural areas more attractive by introducing education and training opportunities (school systems and vocational training). 16/12

15 Section 5 Micro financial services Inclusion of people in the regional economy Abstract The support for financial services can make a significant contribution to reducing poverty and to the sustainability of rural development but only if they are adapted to local conditions. Functioning financial services are essential to allow the rural poor to take part in regional and national economic activities and to ensure that development processes are sustained. Experience so far has shown, however, that the availability of micro financial services is not automatically linked to economic development and poverty reduction. For this reason, micro financial services should be combined with supplementary social and economic measures. For micro financial institutions to function satisfactorily, governments must regulate the conditions in the financial markets in such a way that the micro financial services are attractive, without triggering negative social effects. A small loan can improve an individual s life. The money can be used to develop an economic activity and so contribute to increased and diversified income. It can be used to survive a time of need for example a natural disaster and can reduce vulnerability to failed harvests and disease. In addition, integrating the rural poor into the money economy is a precondition for a sustainable development process. Micro financial activities help to increase productivity and to counter the risks of unstable weather conditions (cf. Section 2 on the economy). (MFIs) can only make a contribution to sustainable poverty reduction when embedded in comprehensive development processes. The spectrum of MFIs ranges from self-help groups and their associations through cooperatives to micro banks and agricultural development banks. In 2009, the 1,000 largest MFIs worldwide served 100 million loan customers and employed around 500,000 people. The total global volume of microloans has now reached around 45 billion euros. It is estimated that 90 investment funds are active in the market with a total volume of six billion euros. The World Bank anticipates growth to 15 billion euros in this field alone by It is not surprising that private players are entering the market. The potential gains are enormous. However the high interest rates which are due for micro credits must cover the high costs for supervision and should not be skimmed by global financial players, for example through investment funds. Micro credits are often targeted towards women because they are statistically more reliable than men in making repayments. They also are more likely to use the money for purposes which promote social development, so the economic benefit is not limited to themselves alone. The positive effects of micro credits on women s self-confidence and social status can clearly be seen (cf. Section 7 on gender equality). On the other hand, it must be stated that a loan is not a social instrument and is only of benefit to people who can work and who have sufficient status in their neighbours eyes to be considered creditworthy. The old, the sick, children and the very poor are normally excluded from micro credits. For micro credits, no appraisal of credit worthiness takes place and no collateral is required. The typical process usually takes the form of a savings and credit group whose members in turns take out a loan and stand surety for each other. This enables loans to be taken out by poor population groups who would normally have no access to capital. For a long time, microloans have been viewed as the key to combating poverty; however, an increasing number of studies are revealing the excesses and distortions in the fast-growing sector and advise caution. Microfinancing cannot remove poverty s structural causes. Microfinance institutions To achieve development goals and combat poverty sustainably, micro financial services should be promoted in conjunction with supplementary support measures. These include: Investment advice and support for management qualifications Health support and preventive measures education and literacy training Vocational training nutrition counselling

16 Section 5 Promoting micro financial activities in rural areas is important because commercial banks and insurance companies are not keen to provide services in thinly populated areas where logistical costs are high and turnover comparatively low. In many cases, microfinance is also used to bridge financial gaps which often occur with the purchase of agricultural materials (seed, equipment etc.) or the building of small-scale agricultural infrastructure (bridges, irrigation systems etc.). Micro insurances are a useful element of basic social security. Even poor people can use micro insurance as a protection against serious risks. Micro insurance is aimed at people of the informal sector who have no access to formal insurance systems or cannot afford high insurance premiums. For these people, micro insurances offer protection from economic shocks and crises such as illness, accidents or natural disasters (cf. Section 4 on social security). To spread the risks, there must be a sufficient number of participants and risk exposure must be spread as widely as possible. For example, health insurance cannot function if the only people who have insurance are those who are ill. Micro health insurance can be run effectively on a self-help basis with little external support. This makes sense particularly in places where the state has not created or does not support suitable structures. Inter-regional cooperation and collaboration with large insurance companies could help to even out the social balance. In addition to credits and insurance, new financial services are continually being set up as development tools. These include mobile bank services (branchless banking) that enable customers to manage their accounts using SMS messages, as well as savings models (e.g. for retirement provision or a housing loan), credit cards (to provide a flexible way of bridging periods of low income) and leasing options (for large agricultural investments). Welthungerhilfe sees a fundamental conflict of roles between the activities of a development-oriented NGO and an MFI. An NGO s primary role is to offer advice and support, aiming to promote and strengthen its target groups. An MFI on the other hand must behave as a business, whose existence is determined by the market and by financial success. For this reason, Welthungerhilfe does not operate an MFI itself and usually does not take on credit guarantees. Welthungerhilfe s involvement in relation to micro financial services in developing countries: Enabling training for our partners staff and the members of MFIs. This includes training courses and communicating experiences in relation to supporting self-help groups, providing fully planned training modules and exposure visits to model projects and successful organisations. Supporting the establishment of self-help structures on the basis of savings and other financial activities. Supporting the development of financial literacy of the target groups. This includes contract and management issues as well as advice on the use and repayment of loans. Arranging and promoting contact to funding organisations, MFIs and formal banks. Subsidising and counselling partners to supplement funding for productive and development-oriented application of loans. Offering assistance to partners searching for refunding sources for self-help groups and MFIs. Supporting innovations in the field of micro financial services. These include micro savings, credit cards, the use of non-cash financial transfers in programmes for food security or self-help based micro insurance approaches. Welthungerhilfe s demands relating to micro financial services: Micro finance must not be misused as a new type of investment in the international financial market. The interest rates must be used mainly to cover running costs. Developing countries must shape their national financial structures so that they do not contribute to reinforcing economic inequalities. Micro financial services must be regulated in a poverty-oriented way. Developing countries must establish a financial structure to suit their needs, one that aims to supply liquidity in the real market and does not just accelerate speculation. 16/12

17 Section 6 The human right to food Not just a guideline Abstract Access to sufficient, appropriate food is a human right. Governments of countries affected by hunger have the obligation to create the framework conditions to enable people to gain access to sufficient, nutritious and culturally appropriate food. Governments in the North have to evaluate the policy measures of all their departments with respect to possible exacerbation of hunger in other countries. Civil society in both North and South should utilise the right to food as an instrument for monitoring state actions, for demanding suitable strategies to combat hunger and for ensuring that they are implemented. Within the framework of international agreements, governments have the obligation to implement the right to appropriate food. It is part of binding international law and set down in Article 11 of the International Covenant on Economic, Social and Cultural Rights (social pact) of States have the obligation to respect, protect and guarantee the human right to food. In order to promote the implementation of the covenant, the Voluntary Guidelines to Support the Progressive Realisation of the Right to Adequate Food in the context of national food security were adopted by 187 states in the FAO Council in Access to sufficient and appropriate food can be achieved by producing one s own food or by earning enough money to buy food. If this is not possible, social security measures and emergency aid such as cash payments or provision of food aid must take effect (cf. Section 4 on social security). In these cases, it must be ensured that the food distributed does not contain hazardous substances and that it is culturally acceptable. All states that have signed the Guidelines are directly bound to the obligations derived from international agreements on the right to food. This also has consequences for the work of international aid organisations, whether governmental or nongovernmental. Emergency aid and development support in this sense are more than just charity. On the contrary, industrialised countries are obliged to support people in developing countries in claiming their rights. National and international development organisations must orient their work on the needs identified by the people themselves and on the strategies undertaken by governments in the affected countries to meet the requirements of the right to food (e.g. Poverty Reduction Strategy Papers). At the global level, the recommendations of the UN committee for economic, social and cultural rights with regard to the human right to food should be followed. A programme approach oriented toward the right to food is needsbased. In the context of rural development, this includes: supporting locally adapted agricultural advisory services and research supporting small-scale farming families and households headed by women in producing food for their own needs and for sale implementing poverty-oriented land reforms Ensuring access to financial means and appropriate technologies special support for disadvantaged social groups setting up social security structures in rural areas. The experience of Welthungerhilfe and its partners shows that project work and political work on the right to food can supplement each other very effectively. Supporting sustainable agriculture and rural development (e.g. setting up small-scale farming producer groups and marketing groups or providing training in respect to sustainable cultivation and appropriate nutrition) have a direct effect on improving food security. Harmful framework conditions can be identified within the context of development programmes. Based on this, political lobbying can then focus on corrective measures to improve the situation. Governments must regulate land rights issues; they are responsible to create market transparency and set standards in food quality and safety. These are sovereign state issues which should not be handled by private actors. The right to food is an essential self-help tool. Poor and malnourished people gain a new self-awareness when they know

18 Section 6 they have a right to food. They are transformed from recipients of charity into people with a say in their own future. In many countries affected by hunger, the state s responsibility to ensure the right to food has been substantiated by governments or courts. Poor and marginalised people often do not know their rights or how and where they can claim them. Here, international development organisations and local partners can provide support. Even in countries where the right to food has not yet been given concrete forms and cannot be claimed, civil society can still hold the state to account. National and regional hunger indexes, for example, can direct attention to the extent and causes of hunger. Civil society reports on implementing the right to food can document weaknesses in state action and cases of discrimination in access to appropriate food. In such reports, NGOs can also frame strategies for meeting the challenges (cf. Section 8 on civil society). The right to food strengthens the position of individuals vis-àvis their governments. Civil society has to seek dialogue with the government in each case in order to lobby towards changes on the ground. In view of often difficult framework conditions local players know best the forms and intensity of possible political action. The scope of foreign organisations is very limited in this respect, although these organisations can act as agents for change in initiating processes for creating transparency and building awareness of problems. They can provide funding to initiate dialog and ensure follow-up. Another role of international organisations is to ensure that partners in the South are heard on the political level in the North. A responsible food policy which promotes the right to food of all people everywhere is required globally. Obligation Description Examples of failure to comply Respect The state must not infringe on the right to without adequate compen- State expropriation of land food sation to those affected, so that their livelihoods are not secured Protect The state must ensure An investor overuses water resources to the extent that third parties (e.g. companies) do not infringe on the human prived of water. The state that local agriculture is de- right to food is aware of the situation but takes no action Guarantee The state must gradually introduce measures are not benefiting from Particular social groups to ensure the right to state transfer payments food for all for securing people s basic needs Welthungerhilfe s involvement in relation to the right to food: Carrying out informative work on the right to food as a component in rural development programmes and projects. Supporting partner organisations which use the right to food as an instrument to evaluate their government s activities and to demand responsible strategies to combat hunger. Carrying out civil society lobbying and awareness building in the North to raise consciousness and find consensus that private consumption, economic strategies and policy design must not have negative impacts on the right to food in countries in the South. Welthungerhilfe s demands in relation to promoting the global right to food: Donor countries should place the human right to food at the core of their development policy for rural areas and intensify consultancy and awareness-raising on the topics of land rights and sustainable land use. The governments of industrialised countries in particular must put an end to all policies which infringe upon or endanger the right to food for people in the South (e.g. agricultural export subsidies or over-ambitious bio-energy targets). International obligations on combating hunger must be fulfilled (e.g. implementation of the Millennium Declaration). Developing countries must give highest priority to combating hunger. Developing countries must implement the Voluntary Guidelines to Support the Progressive Realisation of the Right to Adequate Food in the framework of their national food strategies. 16/12

19 Section 7 Gender justice Equality for women as a driver for development Abstract Gender equality is a human right. Women are disadvantaged in almost all societies and suffer discrimination in many places. They perform the larger proportion of unpaid work, particularly in rural areas. They often bear alone the burdens of running households, taking care of and bringing up children as well as caring for the old and sick. In Asia and Africa it is estimated that half of all food is produced by women; in Latin America the figure is about 20 percent. This makes it particularly important to strengthen the position of women in countries affected by hunger. Investments in women s education and health are of great significance in the battle against poverty. Development efforts can only be successful when all actors (men and women) build on the active participation of women who usually form the most active population in small-scale agriculture. Apart from recognising the value of their work, securing their economical inclusion and ensuring that they are receiving fair benefit from the fruits of their work, it is also important to effectively reinforce women s rights to social and political participation. Gender justice is essential to achieving sustainable rural development. For all the diversity of women s situations in developing countries, they have one thing in common: Their contribution to the production and processing of local basic foods is always decisive. Agriculture is becoming feminised, particularly in regions where it provides only marginal income opportunities. It is almost always women who care for particularly vulnerable groups such as children, old people, the sick or disabled; they also do almost all housework. At the same time, women are disproportionately affected by poverty and hunger. The number of women living below the poverty line has increased by half since the 1970s, while the number of men affected has risen by 30 percent. If the status of men and women were brought into line, the number of malnourished children in South Asia would decrease by 13.4 million and in Africa by 1.7 million. In regions where women have a better position (education, access to resources, income, political representation, legal status), they are better fed and can provide better for their families. However, it is not enough to focus on the welfare of women and their families. Women s human rights overall must be put into practice. Only then will women be able to participate in political decision-making processes, articulate their own interests, earn money and be self-sufficient. To achieve this, the power balance between men and women must be resolutely shifted in favour of women. The empowerment of women has long been a goal of development cooperation. Gender mainstreaming is currently the most popular instrument. Using this tool, development programmes and projects are monitored and assessed in relation to their effectiveness in promoting gender equality. This also applies in cases where at first glance the decisions to be taken have nothing to do with gender issues. To give two examples: Would those involved in a project prefer food or cash in return for their work? Men usually go for the cash. Which crops should be cultivated? Men usually prefer crops that can be exported. Gender justice and equal opportunities must be part of all rural development programmes. In many societies, this entails changing patterns in the division of labour. In most developing countries, men are engaged in the cash economy while women are responsible for the production of food and the household tasks. Women need opportunities to take up formal and informal work outside the home. It is important in this context that they do not end up in marginalised sectors but are given real opportunities in the market. For fair competitiveness, support especially in relation to their education and access to resources is needed (cf. Sections 2 on the economy, 8 on civil society and 9 on access to land). Awareness raising and capacity development are also required to encourage women to make their voices heard on an equal basis on all political and social issues. Educational opportunities are just as vital in this context as in relation to strengthening women s economic position.

20 Section 7 In principle, the same options and freedom of action that men expect must also be available to women. Men must learn to share power and responsibility, this includes taking on tasks which have previously been carried out by women. If this does not occur, the economic inclusion of women will simply result in an additional work burden. In general terms, men s behaviour has a great influence on the achievement of gender justice. This can be seen directly in regard to the welfare of women and girls. Domestic violence decreases when the position of women is strengthened. Less obviously, the general prosperity of the household (including that of the men in it) increases when women have a relatively strong position. This also applies in cases where the man migrates to the city in order to improve the family income. Women s rights also include their sexual self-determination and reproductive health. One third of all illnesses affecting women of childbearing age are due to problems of sexual and reproductive health. To tackle this situation, women-oriented health care is required and pregnancy and birth must be made safer (cf. Section 4 on social security). It is equally important to ensure that women have a genuine right to self-determination so that they also have a say in family planning. Of course this also requires access to modern contraceptive methods and the necessary information. Welthungerhilfe s involvement in relation to empowering women: Gender justice is a crosscutting issue, i.e. in all Welthungerhilfe supported projects and programmes the effects on the situation of women and gender justice issues will be taken into consideration. This applies wherever possible, from situation analysis and project planning through implementation to monitoring and evaluation. Strengthening women s role as (agricultural) producers. Enabling women to participate in political and social decisionmaking processes and to speak up for their own interests. Supporting women s networks and countering discrimination against women. Taking into account women s particular needs e.g. in relation to their budgeting of time, cultural factors (e.g. in relation to travelling) or the necessity of childcare. This explicitly includes planning and provision of necessary materials and funding. Applying principles of gender equality to staff appointment to positions in projects and programmes (e.g. women as trainers). Ensuring that activities in project work do not simply result in additional work for women. The aim is to make women s working days easier. Welcoming the improvement of gender equality through the application of quotas. Welthungerhilfe s demands in relation to gender equality and equality for women: Targeting support for women in countries affected by hunger. Giving priority to investment in women s education and health in the context of combating poverty. Strengthening women s political and social participation as well as their economic integration. Working to decisively reduce gender-based differences of access to education, health, markets, land, economic and natural resources and political bodies. Developing countries must ensure that there are no laws on the books that are discriminatory against women. This is particularly important in relation to marital and family law, the law of inheritance and the right to own or use land and capital. 16/12