Pro-poor Policies of Sri Lanka for Agriculture and Rural Development by Centre for Poverty Analysis (CEPA)
Pro-poor Policies (enabling pro-poor growth-poor people Participating in growth) Pro-poor Growth Poverty Reduction
What are Pro-poor Policies? Those policies that aim to improve the assets and capabilities of poor people (Wellbeing) (Curran & de Renzio, 2006). Policy interventions that directly target poor people or focus on poverty reduction in general Some policies are not specifically targeted the poor but are assumed (indirectly) to have pro-poor outcomes Rural development programmes, National legislation on gender equality, institutional reforms Indicators ( Income, education, health ) of poor improves faster than for non-poor (Kate Bird, Stefanie Busse 2006)
When Formulating Pro-poor Policies Which sectors and sub-sectors are growing most rapidly? Which sectors and sub-sectors have pro-poorest potential? Are these growing sectors concentrated or evenly spread in the country? Who is benefiting from the growth? What factors are blocking the equity opportunity for the poor? (Barriers to entry- Discriminations, exclusion ) How can growth processes be encouraged which generate employment opportunities for unskilled, semiskilled and rural workers (Kate Bird, Stefanie Busse 2006)
Pro-poor Policies Targeted interventions Safety transfers nets, conditional cash Microfinance, micro insurance Anti-discrimination policies Social investment funds Exemption schemes for utility services Targeted subsidies, e.g. Fertilizer, water In-kind programmes Scholarships General policies Good macro-economic management Agricultural policy Rural development policies in support of off-farm diversification Eg: IT, employment generation Private sector investment Provision of basic social services to all Infrastructure policies that effect cross section of the population Institutional changes (to increase transparency and accountability) Universal education & healthcare
Why Agriculture and Rural Sectors are Important From a Pro-poor Policy Perspective? Contributes 16.8% of Sri Lanka s GDP in 2006. 24% of gross export earnings are from agricultural commodities More than 65% of the rural families secure significant share of their income from Agriculture livelihoods 30% of the land area is devoted for agriculture. 32 % of the employed population is engaged in agriculture. Sector employs 2,122,000 people
Poverty in Rural Sector Poverty headcount ratio National and by sector (%). Sector 2002 National 22.2 Urban 7.9 Rural 24.7 Estates 30.0 Source: HIES 2002
Agriculture Policies Overall Agriculture policy Increasing the productivity, creating exportable surplus and import substitution, promote processing, marketing and value addition, employment Sectoral Policies Non Plantation Agriculture Plantation Sector Livestock and Fisheries Sector Land Irrigation
Non Plantation Agriculture Promoting Domestic Agriculture Achieving food security and productivity enhancement Facilitating marketing and related infrastructure Minimizing post harvest losses Participation of community based organizations (CBOs) Trade Related Adopting stable trade policies Enhancing the agricultural export base Providing rural financing Transforming the current net importer status Research and Development Enhancing agricultural research Utilizing and sharing plant genetic resources Ensuring seed and planting material production
Livestock Sector Dairy Sector Promote liquid milk production in non-traditional areas Quality improvement of diary herd Improve the competitiveness of the sector Encourage value addition Poultry Sector Encourage private investment Limiting the public sector investment and encourage private sector activities. Meat sub-sector Limiting the public sector investment and encourage private sector activities.
Land Policy Agriculture and food security -allocation of land, nonconversion of non-marginal land and Productivity improvement Self sufficiency in food Land and People Land Information System and land data bank to minimise the fragmentation and avoid encroachment Bimsaviya Instituting a land policy framework Giving free hold rights
Irrigation Policies Institutional Policy Irrigation System Management Policies Operation and Maintenance Water Allocation Irrigation Financing
Irrigation Strategies and Interventions to achieve policy objectives Investment in rehabilitation of existing irrigation system development of new irrigation systems in watershed development in minor and major irrigation schemes private investments by farmers Improvement Improving productivity and irrigation efficiency Improved water allocation system Small tank / minor scheme rehabilitation Dahasak Vew" Institutional reforms and capacity building
Prosperous Village
Livelihoods Diriya Kantha programme for women Livelihood skills programme for youth Dairy Village Program Establish dairy villages to develop productivity, processing and marketing of milk and milk products Science and Technology Nana Sala programme Gamata Thaakshanaya (Technology to Village)- Vidatha resource centre Land Senkadagala Revival -State land to landless SME Development Gemidiriya Rural Credit
Infrastructure Ruhuna Re-awakening Tourist centers and eco-tourism Southern highway, Connecting roads, ports and commercial towns Rajarata Reawakening Maga Neguma (Rehabilitation of rural roads and minor extension) The providing of transport facilities for rural population agricultural produce Gemi Diriya Project Developing rural infrastructure, market facilities, credit and technical support services Pubudamu Wellassa
Expansion of Rural Electrification low cost electricity by establishing low cost coal-fired plants Dedicated Economic Centres Elimination of middleman, competitive price, employment, promotion of services Model periphery village schemes in economic zones. Institutions Gemidiriya- strengthening local governments planning and implementation capacity
Samurdhi Programme Cash grant programme Livelihood Development through supportive measures- Entrepreneurial Development Jana Pubuduwa and Gam Pubuduwa
Questions for Discussion 1. Why does Sri Lanka need pro-poor policies? Is there a need to differentiate within sectors/areas? 2. Are directly targeted policies to the poor likely to generate greater benefits than general policies? In which instances? 3. Policy as written and policy as implemented, Is there is a difference in pro-poor sense, why? 4. What challenges are faced when implementing propoor policies? (Various institutions) 5. Are the poor participating in decision making (in formulating Policies)? How?
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