94033 ENABLING THE BUSINESS OF AGRICULTURE | 2015 Progress Report © 2014 The World Bank Group 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org 7KLVZRUNLVDSURGXFWRIWKHVWDIIRI7KH:RUOG%DQN*URXSZLWKH[WHUQDOFRQWULEXWLRQV7KHÀQGLQJVLQWHUSUH- WDWLRQVDQGFRQFOXVLRQVH[SUHVVHGLQWKLVZRUNGRQRWQHFHVVDULO\UHÁHFWWKHYLHZVRI7KH:RUOG%DQN*URXS LWV%RDUGRI([HFXWLYH'LUHFWRUVRUWKHJRYHUQPHQWVWKH\UHSUHVHQW 7KH:RUOG%DQN*URXSGRHVQRWJXDUDQWHHWKHDFFXUDF\RIWKHGDWDLQFOXGHGLQWKLVZRUN7KHERXQGDULHV FRORUVGHQRPLQDWLRQVDQGRWKHULQIRUPDWLRQVKRZQRQDQ\PDSLQWKLVZRUNGRQRWLPSO\DQ\MXGJPHQW RQWKHSDUWRI7KH:RUOG%DQN*URXSFRQFHUQLQJWKHOHJDOVWDWXVRIDQ\WHUULWRU\RUWKHHQGRUVHPHQWRU acceptance of such boundaries. Rights and Permissions 7KHPDWHULDOLQWKLVZRUNLVVXEMHFWWRFRS\ULJKW%HFDXVH7KH:RUOG%DQN*URXSHQFRXUDJHVGLVVHPLQDWLRQ RILWVNQRZOHGJHWKLVZRUNPD\EHUHSURGXFHGLQZKROHRULQSDUWIRUQRQFRPPHUFLDOSXUSRVHVDVORQJDV IXOODWWULEXWLRQWRWKLVZRUNLVJLYHQ $Q\TXHULHVRQULJKWVDQGOLFHQVHVLQFOXGLQJVXEVLGLDU\ULJKWVVKRXOGEHDGGUHVVHGWR:RUOG%DQN3XEOLFDWLRQV 7KH:RUOG%DQN*URXS+6WUHHW1::DVKLQJWRQ'&86$ID[HPDLOSXEULJKWV# worldbank.org. &RYHUGHVLJQ7KH:RUG([SUHVV,QF Contents Foreword .................................................................................................................... YLL ([HFXWLYHVXPPDU\ .................................................................................................... ix Introduction ................................................................................................................ 1 %XLOGLQJDPHWKRGRORJ\ ............................................................................................ 7 $QQH[$$WUDQVIRUPDWLRQDOIUDPHZRUN .......................................................... 12 CORE TOPICS Registering agricultural land .............................................................................  $FFHVVLQJÀQDQFLDOVHUYLFHV .............................................................................  6WUHQJWKHQLQJVHHGV\VWHPV...............................................................................  ,PSURYLQJIHUWLOL]HUVXSSO\ .................................................................................. 47 Transporting agricultural goods ........................................................................  Selling agricultural goods .................................................................................. 71 TOPICS FOR INITIAL TESTING Contracting agricultural production ................................................................ 83 (OHFWULI\LQJUXUDODUHDV.........................................................................................  &RQQHFWLQJIDUPHUVWRLQIRUPDWLRQ ..................................................................  References ..............................................................................................................  Data notes .............................................................................................................. 121 3LORWGDWDWDEOHV .....................................................................................................  $FNQRZOHGJPHQWV.................................................................................................  CONTENTS | 2015 III BOXES %R[:KDWLVWKHUROHRIDODQGUHJLVWU\³DQGZK\LVLWVRLPSRUWDQW".................................. 18 Box 3.2: Getting to scale in Rwanda .............................................................................................  %R[7KHLPSRUWDQFHRIGHOLPLWLQJODQG .................................................................................. 22 %R[2YHUYLHZRIWKHEUDQFKOHVVEDQNLQJRSHUDWLRQ ............................................................ 28 %R[8JDQGD·VQHZPRELOHPRQH\JXLGHOLQHV ....................................................................... 32 %R[6WUDWHJLHVWRLQFUHDVHWKHSURGXFWLRQRIFHUWLÀHGVHHG LQ0RURFFRDQG*XDWHPDOD ........................................................................................... 38 %R[+DUPRQL]LQJIHUWLOL]HUUHJLVWUDWLRQDQGWUDGHIRUORZHUFRVWDQG greater choice ...................................................................................................................  %R[([WHQGLQJUHDFKWKURXJKDPRELOHVRLOODELQ8JDQGD .................................................  %R[:KDWLVWKHUROHRIWUXFNLQJDVVRFLDWLRQV" .......................................................................  %R[0RURFFR·VQDWLRQDOSURJUDPVIRULPSURYLQJUXUDOURDGV ..............................................  %R[$WLHUHGDSSURDFKWRH[WHQVLRQVHUYLFHVLQ5ZDQGD .................................................... 73 Box 8.2: Regional integration facilitates cross-border agricultural trade ..................................  %R[$SSURYDORIDVWDQGDUGFRQWUDFWLQ6SDLQ......................................................................  %R[0DQGDWRU\PHGLDWLRQLQ0RURFFR ..................................................................................  FIGURES )LJXUH7KHJOREDOSRSXODWLRQLVH[SHFWHGWRH[FHHGELOOLRQE\ ................................ 1 Figure 2.1: A learning and growth process .................................................................................. 10 )LJXUH$&RXQWU\VHJPHQWDWLRQEDVHGRQDJULFXOWXUH·VUROH LQWKHQDWLRQDOHFRQRP\ ........................................................................................ 12 )LJXUH$$JULFXOWXUHDQGDJULEXVLQHVVYDOXHDGGHGDVVKDUHRI*'3DQG WKHUDWLREHWZHHQWKHP ................................................................................................... 13 )LJXUH7RWDOFRVWRIÀUVWWLPHUHJLVWUDWLRQVLVOHVVWKDQRIWKHSURSHUW\YDOXH LQWKHPDMRULW\RISLORWFRXQWULHV....................................................................................... 20 )LJXUH7RWDOWLPHWRFRPSOHWHÀUVWWLPHUHJLVWUDWLRQVRIODQGLVHTXDORU OHVVWKDQGD\VLQKDOIRIWKHSLORWFRXQWULHV .............................................................. 20 )LJXUH$OOSLORWFRXQWULHVDOORZWDQJLEOHPRYDEOHSURSHUW\DVFROODWHUDO ........................... 30 )LJXUH,Q(WKLRSLDGHPDQGIRUEDVLFVHHGIRUWKHPXOWLSOLFDWLRQ RIK\EULGPDL]HUHJXODUO\H[FHHGVVXSSO\ ......................................................................  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TABLES 7DEOH7RSLFVFRYHUHGE\WKHSURMHFW........................................................................................ 8 7DEOH$.H\PDFURHFRQRPLFGDWDIRUSLORWFRXQWULHV .......................................................... 14 7DEOH:KHUHODQGUHJLVWULHVSURYLGHFRPSHQVDWLRQLQWKHHYHQWRIHUURUV ........................ 23 Table 4.1: Countries regulate branchless banking to different extents .....................................  7DEOH&URSVHDVRQVUHTXLUHGIRUHYDOXDWLRQDQGUHJLVWUDWLRQRIFHUHDOYDULHW\................ 40 CONTENTS | 2015 V 7DEOH&RXQWU\PHPEHUVKLSLQUHJLRQDODQGLQWHUQDWLRQDOVHHG FHUWLÀFDWLRQVFKHPHV ........................................................................................................ 44 7DEOH7UDQVSRUWLQJJRRGVIURPWKHFRXQWU\·VODUJHVWQHLJKERULQJ agricultural trading partner ..............................................................................................  7DEOH*HQHUDOWUDGHUHTXLUHPHQWVZLWKWKHODUJHVWQHLJKERULQJ agricultural trading partner ..............................................................................................  7DEOH'HIDXOWDQGPDQGDWRU\UXOHVIRUFRQWUDFWVSHFLÀFDWLRQV ......................................... 87 7DEOH,&7HQDEOHGPDUNHWLQIRUPDWLRQDQGHH[WHQVLRQVHUYLFHV in the 10 pilot countries ...................................................................................................  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INTRODUCTION | 2015 5 Notes  8QLWHG1DWLRQV 2 FAO 2012c.  0F&DUWK\HWDO 4 Nelson et al. 2013.  5RVHQ]ZHLJHWDO  (DVWHUOLQJHWDO  )$2  ,ELG,)$'  7KLUWOH/LQDQG3LHVVHGH-DQYU\DQG6DGRXOHW &KULVWLDHQVHQ'HPHU\DQG.XKO'LDRHW al. 2012.  $EERWW 11 Altenburg 2007.  &3%  ;HQRSKRQ2HFRQRPLFXV  1D\  0HVHJXHU  6FKOXGL 6 ENABLING THE BUSINESS OF AGRICULTURE | 2015 Building a methodology The Enabling the Business of Agriculture PHWK- such as the procedures and cost to register a RGRORJ\ DLPV DW LGHQWLI\LQJ PHDVXULQJ DQG QHZ VHHG YDULHW\ 7KH\ VSHFLI\ ZKHWKHU WKH H[DPLQLQJNH\SROLF\DQGUHJXODWRU\IDFWRUV JRYHUQPHQWKDVDQRIÀFLDOSROLF\RUVWUDWHJ\ WKDWKDYHDQLPSDFWRQDJULEXVLQHVVDFWLYLW\7R WR JXLGH WKH GHYHORSPHQW RI FULWLFDO DUHDV PHHWWKHSURMHFW·VREMHFWLYHVWKHPHWKRGRORJ\ VXFKDVWKHSURYLVLRQRIH[WHQVLRQVHUYLFHVRU LVGLUHFWHGWRZDUGFRPSOHPHQWLQJVWDQGDUGL]HG LQFUHDVHGIHUWLOL]HUXVH$QGWKH\GHVFULEHWKH PHDVXUHVRIODZVUHJXODWLRQVDQGLQVWLWXWLRQV PDUNHWVWUXFWXUHDVVHWRXWE\SROLF\GHVLJQ ZLWKRWKHUYDULDEOHV7KLVDSSURDFKLVPHDQWWR SUDFWLFHDQGSHUIRUPDQFH7KHGDWDDUHFXU- SURYLGHDEURDGHUSLFWXUHRIDFRXQWU\·VDJULFXO- UHQWDVRI0DUFK WXUDOFOLPDWHDQGWRKHOSLGHQWLI\NH\LVVXHVWR LPSURYHWKHHQYLURQPHQWDORQJWKHDJULFXOWXUDO How the data are collected YDOXHFKDLQ%\EHJLQQLQJWRFROOHFWGDWDDQG LGHQWLI\GLIIHUHQFHVLQGLIIHUHQWWRSLFDUHDVD 7KHGDWDDUHFROOHFWHGLQDVWDQGDUGL]HGZD\WR PHWKRGRORJLFDODSSURDFKZHQWWKURXJKLQLWLDO HQVXUHFRPSDUDELOLW\DFURVVFRXQWULHVDQGRYHU WHVWLQJGXULQJWKHSURMHFW·VSLORWSKDVHDQGLVLQ WLPH7RVWDUWWKHSURMHFWWHDPFRQGXFWHGD WKHSURFHVVRIEHLQJUHÀQHG7KHÀQDORXWFRPH WKRURXJKOLWHUDWXUHUHYLHZDQGKHOGGLVFXVVLRQV RIVXFKDSURFHVVZLOOEHWKHEXLOGLQJRIVHYHUDO ZLWKWHFKQLFDOH[SHUWVDQGUHSUHVHQWDWLYHVIURP V\QWKHWLFLQGLFDWRUVWKDWLQVXEVHTXHQWSURMHFW GRQRUDJHQFLHVFLYLOVRFLHW\RUJDQL]DWLRQVDQG SKDVHVZLOOLQFOXGHVFRULQJDQGDJJUHJDWLQJ partner institutions. 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Questions re- whether there are regulations to facilitate con- ODWLQJWRUHJXODWRU\SURFHVVHVZHUHGHYHORSHG WUDFWIDUPLQJRUWRVXSSRUWDFFHVVWRÀQDQFLDO DURXQGVWDQGDUGFDVHVWXGLHVZLWKDVVXPSWLRQV VHUYLFHVIRUDJULFXOWXUH7KHGDWDGRFXPHQWWKH DERXWWKHOHJDOIRUPRIWKHEXVLQHVVLWVVL]HLWV FRPSOH[LW\RIUHJXODWLRQVXFKDVWKHQXPEHU ORFDWLRQDQGWKHQDWXUHRILWVDFWLYLWLHV RISURFHGXUHVUHTXLUHGWRREWDLQDOLFHQVHIRU transporting agricultural goods or to register a 7RIDFLOLWDWHXQGHUVWDQGLQJDQGDYRLGPLVLQWHU- SORWRIDJULFXOWXUDOODQGIRUWKHÀUVWWLPH7KH\ SUHWDWLRQTXHVWLRQQDLUHVZHUHWUDQVODWHGLQWR TXDQWLI\WKHEXUGHQRIUHJXODWLRQFRPSOLDQFH HDFKFRXQWU\·VPRVWVSRNHQORFDOODQJXDJHDQG BUILDING A METHODOLOGY | 2015 7 DGPLQLVWHUHGWRPRUHWKDQORFDOH[SHUWV y Pre-transition countries³ZKHUH DJUL- LQFOXGLQJSXEOLFVHFWRUUHSUHVHQWDWLYHVSULYDWH FXOWXUH HPSOR\V PRUH WKDQ  RI WKH VHFWRUUHVSRQGHQWVIDUPHURUJDQL]DWLRQVVSH- ZRUNIRUFHDQGDJULFXOWXUHYDOXHDGGHG FLDOLVWVIURPDFDGHPLFRUUHVHDUFKLQVWLWXWLRQV FRQWULEXWHVOHVVWKDQWRWKH*'3 DQGRWKHULQIRUPHGFRQWULEXWRUV7KHWHDPRIWHQ KHOGVHYHUDOURXQGVRILQWHUDFWLRQZLWKWKHVH y Transition countries³ZKHUH DJULFXOWXUH H[SHUWV LQYROYLQJ FRQIHUHQFH FDOOV ZULWWHQ HPSOR\V EHWZHHQ  DQG  RI WKH FRUUHVSRQGHQFHDQGFRXQWU\YLVLWV7RÀOODQ\ ZRUNIRUFHDQGDJULFXOWXUHYDOXHDGGHG GDWDJDSVTXHVWLRQQDLUHVZHUHVXSSOHPHQWHG FRQWULEXWHVOHVVWKDQWRWKH*'3 E\GHVNUHVHDUFKWKDWGUHZRQVWXGLHVUHVHDUFK SDSHUVDQGRIÀFLDOVRXUFHV ODZVUHJXODWLRQV y Urbanizing countries³ZKHUHDJULFXOWXUH SROLFLHVDQGRIÀFLDOVWDWLVWLFV  HPSOR\V EHWZHHQ  DQG  RI WKH ZRUNIRUFHDQGDJULFXOWXUHYDOXHDGGHG What topics and countries FRQWULEXWHVOHVVWKDQWRWKH*'3 are covered y Developed countries³ZKHUH DJULFXO- 6L[FRUHWRSLFVZHUHVHOHFWHGIRUWKHSURMHFW·V WXUHHPSOR\VOHVVWKDQRIWKHZRUN- pilot phase (table 2.1) and 3 other topics were IRUFHDQGDJULFXOWXUHYDOXHDGGHGFRQ- LGHQWLÀHGIRULQLWLDOWHVWLQJ6HYHUDORWKHUVZLOOEH WULEXWHVOHVVWKDQWRWKH*'3 WDFNOHGLQ\HDURISURMHFWLPSOHPHQWDWLRQ Ten countries were selected for the pilot phase 7KHSURMHFW·VFRYHUDJHLVH[SHFWHGWRH[SDQG RIWKHSURMHFWWKDWUHSUHVHQWDUDQJHRIJHR- to about 80 to 100 countries during the next 3 graphic regions and stages of agricultural \HDUV7KHDLPLVWRVHOHFWFRXQWULHVLQGLIIHUHQW WUDQVIRUPDWLRQ PDS  VWDJHVRIDJULFXOWXUDOWUDQVIRUPDWLRQ VHH$QQH[ WRWKLVFKDSWHU 7KHSURMHFWGHYHORSHGDFRXQWU\ +RZWKHSLORWGDWDDUHFODVVLÀHG FODVVLÀFDWLRQEDVHGRQDJULFXOWXUH·VUROHLQWKH QDWLRQDOHFRQRP\DQGZRUNIRUFHDVIROORZV The pilot data that were collected can be FODVVLÀHGLQWRFDWHJRULHVPHDVXUHPHQWVGH- y Agriculture-based countries³ZKHUHDJ- VFULSWLYHGDWDDQGUHIHUHQWLDOGDWDDVIROORZV ULFXOWXUHHPSOR\VPRUHWKDQRIWKH ZRUNIRUFHDQGDJULFXOWXUHYDOXHDGGHG 1. Measurements DUH YDULDEOHV WKDW DUH FRQWULEXWHVPRUHWKDQWRWKH*'3 TXDQWLWDWLYH QXPEHUV  RU FDQ EH TABLE 2.1: Topics covered by the project Core topics Topics for initial testing Topic areas for year 2 Registering agricultural land Contracting agricultural production 0HFKDQL]LQJDJULFXOWXUH $FFHVVLQJÀQDQFLDOVHUYLFHV (OHFWULI\LQJUXUDODUHDV Water 6WUHQJWKHQLQJVHHGV\VWHPV &RQQHFWLQJIDUPHUVWRLQIRUPDWLRQ /LYHVWRFN ,PSURYLQJIHUWLOL]HUVXSSO\ Gender Transporting agricultural goods (QYLURQPHQWDOVXVWDLQDELOLW\ Selling agricultural goods 8 ENABLING THE BUSINESS OF AGRICULTURE | 2015 MAP 2.1: Countries covered in the pilot phase UKRAINE SPAIN MOROCCO NEPAL PHILIPPINES GUATEMALA ETHIOPIA UGANDA RWANDA MOZAMBIQUE Agriculture-based countries: Ethiopia, Nepal, Rwanda Pre-transition countries: Mozambique, Uganda Transition countries: Guatemala, the Philippines Urbanizing countries: Morocco, Ukraine Developed country: Spain Source: Enabling the Business of Agriculture database. 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Descriptive data ZKLOH VWDWLVWLFDOO\ UH- WKHGRPHVWLFPDUNHW'DWDRIWKLVW\SH OLDEOH LQFOXGH LQIRUPDWLRQ WKDW LV FRQ- FULWLFDOWRXQGHUVWDQGLQJNH\SURFHVVHV WH[WXDO DQG VHUYHV RQO\ WR GHVFULEH LQ WKH DJULEXVLQHVV VHFWRU DUH EXLOW RQ HOHPHQWV RI D SROLF\ DQG UHJXODWRU\ OHJDOUHTXLUHPHQWVDQGFRVWPHDVXUHV HQYLURQPHQW7KHVHGDWDGRQRWUHSUH- DUH EDFNHG E\ RIÀFLDO IHH VFKHGXOHV VHQWIDFWRUVWKDWDUHQHFHVVDULO\PRUHRU BUILDING A METHODOLOGY | 2015 9 OHVVFRQGXFLYHWRDQHQDEOLQJHQYLURQ- What are the lessons learned PHQW IRU FRPPHUFLDO DJULFXOWXUH DQG WKHUHIRUH DUH QRW PHDQW WR EH FRP- $PRQJWKHPDLQJRDOVRIWKHLQLWLDOSLORWVWDJH SDUHG 7KH GDWD LQFOXGH IRU H[DPSOH KDYHEHHQWRGHYHORSWHVWDQGUHÀQHWKHGDWD WKHVRXUFHRIÀQDQFLQJIRUODQGUHJLVWU\ FROOHFWLRQPHWKRGRORJ\,QWHUDFWLRQEHWZHHQ RSHUDWLRQVDQGWKHW\SHRIJRYHUQPHQW VRPH RI WKH VWHSV³FRQVXOWDWLRQ RI OLWHUDWXUH DJHQF\ LQ FKDUJH RI LVVXLQJ SK\WRVDQL- DQG H[SHUWV ÀHOG H[SHULHQFH UHYLHZ RI WKH WDU\FHUWLÀFDWHVQHHGHGIRUWKHWUDGHRI TXHVWLRQQDLUHV³KDV OHG WR D OHDUQLQJ DQG agricultural products. 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Referential data are data points that ÀJXUH  DUH FRQVLGHUHG RI LQWHUHVW DQG DUH RI- WHQ LPSRUWDQW EXW DUH QRW VWDWLVWLFDOO\ This process can be seen in the work done to UREXVW³W\SLFDOO\ EHFDXVH WKH\ DUH QRW GHWHUPLQHWKHGHVLJQFRQWHQWVDQGVFRSHRI GHULYHG IURP D UHSUHVHQWDWLYH VDPSOH WKHTXHVWLRQQDLUHV³DOOFULWLFDOLQHQVXULQJWKH RU EHFDXVH WKH\ DUH EDVHG RQ RSLQLRQ UREXVWQHVVRIWKHGDWDFROOHFWLRQ7KHTXHVWLRQ- RU H[SHULHQFH (YHQ LI QRW VWDWLVWLFDOO\ QDLUHVZHUHUHYLVHGDQGWUDQVIRUPHGRYHUWKH UHOLDEOHWKHGDWDFDQEHXVHGDVUHIHU- FRXUVHRIWKHFRXQWU\YLVLWVDVIROORZV HQFHSRLQWVLQRQJRLQJHIIRUWVWRGHYHO- RSDQGUHÀQHWKHSURMHFW·VPHWKRGROR- y Questionnaires addressing legal and J\([DPSOHVLQFOXGHWKHSHUFHQWDJHRI UHJXODWRU\ LVVXHV ZHUH LQWHJUDWHG ZLWK IDUPHUVDYHG VHHG DQG WKH UHDVRQV IRU WKRVHPHDVXULQJSROLF\DQGPDUNHWUH- WKHSRRUTXDOLW\RIURDGV ODWHG YDULDEOHV UHVXOWLQJ LQ D VLQJOH FIGURE 2.1: A learning and growth process Jan–Jun 2013 Jun–Oct 2013 Nov 2013 Dec 2013 Jan 2014 Research and Consultation with Round 1 data Round 2 data Refinement and consultation on key technical experts to collection in collection in Morocco, review of constraints in enabling develop questionnaires Guatemala Rwanda and Ukraine questionnaires environment for agriculture Feb–Mar 2014 Mar–May 2014 May–Jul 2014 Aug–Sep 2014 Oct–Dec 2014 Round 3 data collection Data verification Data analysis and Consultations on Implementation of in Ethiopia, Mozambique, through follow-up and report writing main findings and suggestions on report Nepal, Philippines, Spain extensive research methodology analysis and methodology and Uganda for second-year data collection 10 ENABLING THE BUSINESS OF AGRICULTURE | 2015 TXHVWLRQQDLUH IRU HDFK WRSLF ,Q DGGL- PHDVXUDELOLW\ DQG UREXVWQHVV RI HDFK WLRQ GDWD SRLQWV ZHUH UHH[DPLQHG LQ YDULDEOH WKH GDWD SRLQWV FROOHFWHG light of the initial experience in collect- ZHUHFODVVLÀHGLQWRWKHFDWHJRULHVGH- LQJGDWDDQGTXHVWLRQVZHUHFRQVROLGDW- VFULEHGDERYHPHDVXUHPHQWVGHVFULS- HG 7KH RXWFRPH ZDV D TXHVWLRQQDLUH WLYHGDWDDQGUHIHUHQWLDOGDWD WKDWFRXOGEHPRUHUHDGLO\DGPLQLVWHUHG WRFRQWULEXWRUVDQGWKDWSURYLGHGEHWWHU y 7KH GDWD VHW REWDLQHG IURP WKH TXHV- LQWHJUDWLRQEHWZHHQWKHW\SHVRIGDWD tionnaires for each topic was sorted and being collected. VWXGLHG 'DWD SRLQWV LQ HDFK FDWHJRU\ ZHUH WKHQ WDJJHG E\ SULRULW\ OHYHO RQ y $ VLQJOH PDVWHU TXHVWLRQQDLUH IRU HDFK WKH EDVLV RI WKHLU UHOHYDQFH WKH IHDVL- WRSLF ZDV FXVWRPL]HG IRU HDFK W\SH RI ELOLW\ RI WKHLU FROOHFWLRQ WKHLU YDULDELOLW\ FRQWULEXWRU³SXEOLF VHFWRU UHSUHVHQWD- DQGWKHLQWHJUDWLRQEHWZHHQWKHP7KH WLYHV SULYDWH FRPSDQ\ PDQDJHUV DV- RXWFRPH RI WKHVH VWHSV KDV UHVXOWHG LQ VRFLDWLRQ RIÀFHUV DFDGHPLF IDFXOW\ TXHVWLRQQDLUHV WKDW DUH PRUH IRFXVHG DQG IDUPHU RUJDQL]DWLRQV 7KLV PHWKRG RUJDQL]HG DQG VXFFLQFW³DQG GDWD UHGXFHG WKH QXPEHU RI TXHVWLRQV IRU VHWVWKDWFDQEHPRUHHDVLO\PDQDJHG HDFKFRQWULEXWRUDQGVLPSOLÀHGWKHVXU- DQG SUHVHQWHG 7KH TXHVWLRQQDLUHV DQG YH\SURFHVV GDWDVHWVIRUPDVROLGIRXQGDWLRQIRUWKH EXLOGLQJ RI LQGLFDWRUV DQG XSFRPLQJ y ,QOLJKWRIDFORVHUH[DPLQDWLRQRILVVXHV data collection in the next phase of the DQG GDWD DQG DQ DVVHVVPHQW RI WKH SURMHFW BUILDING A METHODOLOGY | 2015 11 Annex A: A transformational framework )LJXUH$EHORZUHODWHVDJULFXOWXUH·VFRQWUL- SRLQWVRIDJULFXOWXUDOWUDQVIRUPDWLRQ2QHPHW- EXWLRQWRDFRXQWU\·V*'3WRWKHSHUFHQWDJH ULF WKDW VHHPV IXQGDPHQWDO LV WKH UHODWLYH of its workforce engaged in agriculture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·V*'3LQUHODWLRQWRWKHUHVWRI *'3JURZVDORQJWKHWUDQVIRUPDWLRQSURFHVV WKHHFRQRP\7KHUHDUHKRZHYHUVLJQLÀFDQW ÀJXUH$  differences between countries. $QRWKHUVHWRIPHWULFVWKDWFDQEHFRPSDUHG 7KLVW\SRORJ\FDQEHXVHGWRH[DPLQHDEURDGHU DFURVV WKLV FDWHJRUL]DWLRQ UHODWHV WR WKH SUR- UDIWRIPHWULFVLQFRXQWULHVWKDWDUHDWGLIIHUHQW MHFWHGJURZWKRIIRRGGHPDQGLQFLWLHVZLWKD FIGURE A2.1: Country segmentation based on agriculture’s role in the national economy, 2012 70 Agriculture value added as percent of GDP 60 Agriculture-based 50 40 30 Urbanizing Transition 25 20 Developed Pre-transition 10 0 0 10 20 30 40 50 60 70 80 90 100 Economically active in agriculture as percent of total economically active population Sources:(FRQRPLFDOO\DFWLYHSRSXODWLRQLQDJULFXOWXUHGDWDIURP)$267$7IRUDJULFXOWXUHYDOXHDGGHGGDWDIURP81QDWLRQDO accounts for 2012. 12 ENABLING THE BUSINESS OF AGRICULTURE | 2015 FIGURE A2.2: Agriculture and agribusiness value added as share of GDP and the ratio between them 100 90 1:0.56 1:0.87 1:1.06 1:1.17 1:1.90 80 70 60 Percent 50 40 30 20 1 0 Agriculture-based Pre-transition Transition Urbanizing Developed Rest of other sectors Agribusiness Agriculture Source:'DWDIRULQSXWRXWSXWWDEOHVIURPWKH*OREDO7UDGH$QDO\VLV3URMHFW *7$3 3XUGXH8QLYHUVLW\ 1RWH$JULFXOWXUHYDOXHDGGHGWRDJULEXVLQHVVUDWLRFDOFXODWHGDVDVKDUHRI*'3LQ86EDVHGRQLQSXWRXWSXWWDEOHVFUHDWHGIRU FRXQWULHV0HWKRGRORJ\DGDSWHGIURP3U\RUDQG+ROW   FRPSRXQGDQQXDOJURZWKUDWH &$*5 LQWKH WREHFRPLQJDGHYHORSHGDJULFXOWXUHVHFWRU XUEDQPDUNHWUDQJLQJIURPDQHVWLPDWHG FRXQWU\'XULQJWKHODVWWKUHHGHFDGHV6SDLQ LQDJULFXOWXUHEDVHGFRXQWULHVWRLQGHYHO- KDVFKDQJHGIURPDQXUEDQL]LQJFRXQWU\LQWR RSHGFRXQWULHV$JULFXOWXUDOH[SRUWSHUFDSLWD DGHYHORSHGFRXQWU\ HVSHFLDOO\IRUSURFHVVHGDJULFXOWXUDOSURGXFWV W\SLFDOO\WDNHVRIILQXUEDQL]LQJDQGGHYHORSHG 7DEOH$EHORZSUHVHQWVJHQHUDOWUHQGVLQ stages. DJULFXOWXUDO *'3 DJULFXOWXUDO HPSOR\PHQW DQG FDSLWDO LQYHVWPHQW SHU IDUP ZRUNHU IRU )LYHRIWKHSLORWFRXQWULHVVWXGLHGLQWKHSDVW WKH  SLORW FRXQWULHV 7KH QXPEHUV KLJKOLJKW \HDU³(WKLRSLD0R]DPELTXH1HSDO5ZDQGD WKHORZHUUHODWLYHLPSRUWDQFHRIDJULEXVLQHVV DQG 8JDQGD³ KDYH SULPDULO\ RSHUDWHG DV LQ(WKLRSLD1HSDODQG8JDQGDDVZHOODVWKH DJULFXOWXUHEDVHGFRXQWULHV8JDQGDKDVPRVW KLJKSURMHFWHGLQFUHDVHLQXUEDQGHPDQGLQ UHFHQWO\ HQWHUHG WKH SUHWUDQVLWLRQ FOXVWHU RI (WKLRSLD5ZDQGDDQG8JDQGD FRXQWULHV$JULFXOWXUHLQ*XDWHPDODDQGWKH 3KLOLSSLQHVLVQRZDWWKHPLGSRLQWRIWKHWUDQ- Notes VLWLRQ VWDJH ZKLOH 0RURFFR KDV MXVW PRYHG 7KHXQGHUO\LQJUHVHDUFKDQGGHVLJQRIWKH$JULFXOWXUDO LQWR DQ XUEDQL]LQJ VWDJH 8NUDLQH LV RQ WKH 7UDQVIRUPDWLRQ)UDPHZRUNEHQHÀWHGIURPYDOXDEOHLQSXW FXVS RI PRYLQJ RXW RI WKH XUEDQL]LQJ SKDVH SURYLGHGE\6DQMLE&KRXGKXUL ANNEX A: A TRANSFORMATIONAL FRAMEWORK | 2015 13 TABLE A2.1: Key macroeconomic data for pilot countries Agriculture Agriculture Agriculture Agriculture value capital Estimated value value EAP in added/EAP stock/EAP in future urban added to added agriculture in agriculture agriculture food demand agribusiness Country (% of GDP)a (% total EAP)b (US $/person) (US $/person)c (% CAGR)d (ratio)e Ag based (n = 26)       Ethiopia       0R]DPELTXH       Nepal      1: 0.33 Rwanda       Pre-transition (n = 18)      1: 0.87 8JDQGD      1: 0.40 Transition (n = 35)       *XDWHPDOD      1: 1.02 3KLOLSSLQHV       Urbanizing (n = 27)      1: 1.17 Morocco      1: 0.83 8NUDLQH       Developed (n = 50)       Spain      1: 1.28 Source: Enabling the Business of AgricultureFDOFXODWLRQVXVLQJGDWDIURP8QLWHG1DWLRQV1DWLRQDO$FFRXQWV  )$267$7)$2 E $OH[DQGUDWRVDQG%UXLQVPD  DQG*OREDO7UDGH$QDO\VLV3URMHFW *7$3  Note: 'DWDREWDLQHGIURP8QLWHG1DWLRQV1DWLRQDO$FFRXQWVIRU D (FRQRPLFDOO\$FWLYH3RSXODWLRQ ($3 LQ$JULFXOWXUHIURP)$267$7IRU($3LQ$JULFXOWXUHLQFOXGHVWKHODERUIRUFHLQDJULFXOWXUH E ERWKHPSOR\HGDQGXQHPSOR\HG $JULFXOWXUDO&DSLWDO6WRFN $J&DS6WRFN IRUIURP)$2 E  F &RPSRXQG$QQXDO*URZWK5DWH &$*5   HQGLQJYDOXHEHJLQQLQJYDOXH A \HDUV ²'DWDIRUFDOFXODWLRQVDUHEDVHGRQ G )$2HVWLPDWHGDQGSURMHFWHGXUEDQSRSXODWLRQJURZWKIURPWRDQGWKHH[SHFWHGDYHUDJHFKDQJHLQZRUOGGLHWVLV H[SUHVVHGLQNLORFDORULHFRQVXPSWLRQ $OH[DQGUDWRVDQG%UXLQVPD>@ 7KH&$*5PHDVXUHVWKHSRSXODWLRQJURZWKUDWHWDNLQJ LQWRFRQVLGHUDWLRQWKHEHJLQQLQJRIHYHU\\HDUQRWRQO\WKHLQLWLDOSRSXODWLRQEXWDOVRWKHJURZWKWKDWKDVEHHQH[SHULHQFHGXQWLO WKDWPRPHQW 7KHDJULFXOWXUHYDOXHDGGHGWRDJULEXVLQHVVUDWLRLVFDOFXODWHGDVWKHVKDUHRI*'3LQ86GROODUVEDVHGRQLQSXWRXWSXWWDEOHV H FUHDWHGIRUFRXQWULHV7KHPHWKRGRORJ\ZDVDGDSWHGIURP3U\RUDQG+ROW  'DWDIRUWKHLQSXWRXWSXWWDEOHVZHUH REWDLQHGIURPWKH*OREDO7UDGH$QDO\VLV3URMHFW *7$3 3XUGXH8QLYHUVLW\ 14 ENABLING THE BUSINESS OF AGRICULTURE | 2015 Registering agricultural land María Heredia, a farmer in Spain’s Andalusian province of Almería, has a one-hectare greenhouse in which she grows high-end “raf” tomatoes. Her grandparents were landless peasants in the nearby province of Granada at the turn of the 20th century; they moved to Almería because of a land reform and colonization program that provided them with farmland. One of the least developed parts of Spain at the time, Almería now boasts one of the highest levels of income per capita among Andalucía’s provinces. Its smallholders have invested in their land to become market leaders in vegetable production—growing peppers, squash, tomatoes, zucchini and other vegetables in the hundreds of greenhouses they have built since the 1960s. The province ships fresh produce to markets across Europe. The land reform that allowed smallholders to register their rights to farmland is perceived to be one of the critical factors in the development of this suc- cessful agriculture-based economy.1 )DUPHUVVHHNLQJWRHQWHUWKHFRPPHUFLDOPDUNHW Agriculture for DevelopmentLOOXVWUDWHVWKHLULP- need secure access2WRVSHFLÀFSORWVRIODQG3 SRUWDQFHXVLQJDQH[DPSOHRIIHPDOHIDUPHUVLQ ZKHWKHUWKHDFFHVVLVORQJWHUP WKURXJKLQGL- $IULFD:LWKLQVHFXUHSURSHUW\ULJKWVWKHIHPDOH YLGXDORUFROOHFWLYHIUHHKROGSURSHUW\ULJKWV4 IDUPHUVWHQGWRSURGXFHOHVVWKDQWKHLUDVVHW FXVWRPDU\ULJKWVRUORQJWHUPOHDVHV) or for a EDVHFRXOGRWKHUZLVHVXSSRUWEHFDXVHWKH\ SUHGHWHUPLQHGSHULRG WKURXJKPHGLXPDQG IHDUWKDWLIWKH\DUHPRUHSURGXFWLYHPHQLQ VKRUWWHUPOHDVHV7). 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