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ASIAN DEVELOPMENT BANK TAR: RES 37743 PROPOSED TECHNICAL ASSISTANCE FOR THE NINTH AGRICULTURE AND NATURAL RESOURCES RESEARCH AT INTERNATIONAL AGRICULTURAL RESEARCH CENTERS November 2004 ABBREVIATIONS ACIAR – Australian Center for International Agricultural Research ADB – Asian Development Bank AMBIONET – Asian Maize Biotechnology Network ANRR – agriculture and natural resources research ANRRD – Agriculture, Natural Resources and Rural Development ARC – Asian Regional Center of The World Vegetable Center ASEAN – Association of Southeast Asian Nations AVRDC – The World Vegetable Center (formerly the Asian Vegetable Research and Development Centre) C – carbon CAR – Central Asian republic CGIAR – Consultative Group on International Agricultural Research CIMMYT – International Maize and Wheat Improvement Center CLV – Cambodia, Lao People's Democratic Republic, and Viet Nam CLVNET – Cambodia, Lao People's Democratic Republic, and Viet Nam Network CO2 – carbon dioxide CURE – Consortium for Unfavorable Rice Environments DMC – developing member country EA – Executing Agency FSU – former Soviet Union GMS – Greater Mekong Subregion GDP – gross domestic product GR – green revolution IA – Implementing Agency IARC – international agricultural research center ICARDA – International Center for Agriculture Research in the Dry Areas ICBA – International Center for Biosaline Agriculture ICM – integrated crop management IFAD – International Fund for Agricultural Development IGP – Indo-Gangetic Plains IRRI – International Rice Research Institute IT – Information technology IWMI – International Water Management Institute LCC – leaf color chart MTA – material transfer agreement MOU – memorandum of understanding M&E – monitoring and evaluation NARS – national agricultural research system NARES – national agricultural research and extension system NGO – nongovernment organization PAC – project approval committee QPM – quality protein maize RCT – rice-wheat production technologies RD – regional department R&D – research and development RETA – regional technical assistance RSAN – Agriculture, Natural Resources and Social Sectors Division, Regional and Sustainable Development Department RSC – Regional Steering Committee RSDD – Regional and Sustainable Development Department RTCC – Regional Technical Coordination Committee RWC – rice-wheat consortium SANIIRI – Central Asia Research Institute of Irrigation SWAP – Soil-Water-Atmosphere-Plant TA – technical assistance WUA – water users association TECHNICAL ASSISTANCE CLASSIFICATION Targeting – General Classification Sector – Agriculture and Natural Resources Subsector – Agriculture production, agroprocessing and agribusiness Water resource management Environment and biodiversity Themes – Regional Cooperation Sustainable Economic Growth Environmental Sustainability Subthemes – Developing Rural Areas Natural Resource Conservation NOTE In this report, “$” refers to US dollars. This report was prepared by T. Bayarsaihan and J. Nave of the Agriculture, Natural Resources and Social Sectors Division, Regional and Sustainable Development Department, Asian Development Bank I. INTRODUCTION 1. Assistance of the Asian Development Bank (ADB) to international agricultural research spans almost 30 years. From 1975 to 1995, ADB’s support for agricultural research was channeled largely through individual grants to specific centers for specific purposes, ranging from improving training facilities to establishing regional collaborative networks. In 1995 the Board approved the Agriculture and Natural Resources Research (ANRR) Policy Paper. Since 1996 ADB has supported ANRR through an annual regional technical assistance (RETA), and has provided $38.8 million of assistance to the Consultative Group on International Agricultural Research (CGIAR) and non-CGIAR Centers. ADB's policy on ANRR addresses three strategic objectives: sustainable management of natural resources, increases in agricultural productivity, and poverty reduction. 2. In the past three decades, the international agricultural research centers (IARCs) have delivered higher-yielding food crops; more productive livestock, fish, and trees; environmentally friendly farming systems; better policies; enhanced scientific capacities in developing countries; and many dividends to poor farmers through better resource use, increased output, and greater income. The CGIAR, established in 1971, is an association of 15 IARCs working in more than 100 developing countries to mobilize cutting-edge science to achieve sustainable food security, to protect the environment, and to reduce poverty. The CGIAR research agenda is focused on both strategic and applied research, and includes the entire range of problems that affect agricultural productivity such as sustainable management of natural resources and protection of biodiversity. Appendix 1 summarizes ADB-assisted agricultural research projects funded through the CGIAR and non-CGIAR centers. 3. In December 2000, ADB reviewed the 1995 ANRR policy and evaluated the experience and impact of its IARC funding.1 Based on the evaluation, ADB recommended continued support to the IARCs based on high return on investments, relevance of the policy and research outputs of supported projects, and overall effectiveness of the annual RETA modality. In April 2003, the Agriculture, Natural Resources and Social Sectors Division, Regional and Sustainable Development Department (RSAN) prepared a comprehensive Guidelines on Submission of Project Proposals (2003) for the annual RETA on ANRR. It specifies ADB’s required format for project preparation, participation and ownership of the countries concerned, and alignment of proposals within country priorities. 4. Following the Guidelines, the Agriculture, Natural Resources and Rural Development (ANRRD) Committee met on 12 March 2004 to review in detail the concept notes received for consideration under the Ninth RETA on ANRR. The committee selected a prioritized list of proposals for consideration during the Project Approval Committee (PAC) meeting on 16 March 2004. PAC comprises the regional directors of the agriculture, environment, and natural resources divisions2 and is chaired by the RSAN director. PAC discussed the merits of each proposal and selected seven for expansion to full technical proposals. ANRRD Committee members received and conducted a technical evaluation of the revised proposals during a second meeting on 15 June 2004. The Committee assessed the quality and content of the proposals and short-listed proposals that best demonstrated innovation, relevance, and synergy with ADB operations, as well as potential impact on poverty. The shortlist of proposals was finalized and endorsed to PAC for its consideration and final selection. The PAC discussed each 1 ADB. 2000. Special Evaluation Study on the Policy and Implementation and Impact on Agriculture and Natural Resources Research. Manila. 2 South Asia Department, Mekong Department, Southeast Asia Department, East and Central Asia Department, and Pacific Department. 2 of the prioritized proposals and selected five projects to support under the Ninth RETA. These projects are expected to substantially contribute to ADB’s programs in the respective regions. II. ISSUES 5. Results of agricultural research benefit the livelihoods of millions throughout the Asia and Pacific region, particularly the poor, mainly through: (i) raising farm income and employment; (ii) lowering food prices in the market; (iii) providing more means for better education, health, and household services; and (iv) promoting broad-based economic growth. But agricultural research faces several major challenges. 6. Increasing pressure to meet food demand and quality In Asia and the Pacific. Yearly, 76 million people are added to the world’s population, which is now 6.2 billion. By 2050, population is expected to increase by almost 50%, reaching 9 billion (estimates of the United Nations Food and Agriculture Organization). The Asia and Pacific region is experiencing an even higher population growth rate, plus greater urbanization and faster per capita consumption. Those factors significantly increase food demand in the region. But productivity of much of the region’s arable land is declining because of shrinking water supplies and deteriorating land quality. It is increasingly recognized that only a continuous stream of yield-enhancing technologies can boost food production and avert possible food shortages. Improved food quality has also become an essential requirement of modern society. Through partnerships among IARCs, the private sector, and the national agricultural research systems (NARS), small farmers will have access to a range of promising technologies to stabilize and increase yields, and improve food quality. 7. Need for new breakthroughs in cutting-edge science. There is a constant need to develop new technologies for higher yields, and more drought-resistant varieties, to significantly boost food production in the region. But breakthroughs in agricultural research have been fewer in recent years, mainly because of the lack of effective national research policies, inadequate focus on key and strategic research areas, and increasing funding constraints. Funding for agricultural research by national governments and international donors has continuously declined in the past several years. A need is emerging to increase focus on high-priority and strategic research to accelerate breakthroughs in agricultural and food technologies. The international community should