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AIDCO/543/04-EN Orig. 1 Brussels, Proposal for a Commission AIDCO/543/04-EN Orig. EUROPEAN COMMISSION EuropeAid Co-operation Office Horizontal operations and LRRD Food security and thematic support Brussels, Proposal for a Commission Decision To support improved food security in Afghanistan (To be presented to the Food Security and Food Aid Committee) Project 2004-2005 Biannual Food Security Programme in favour of Afghanistan Recipient Country Afghanistan Authority presenting the project Government of Afghanistan Sectoral classification (according to 52010 – Food Aid/Food Security OECD classifications) Commitment proposed as grant €30 Million Budget Year 2004 : € 20 Million Budget Year 2005 : € 10 Million Case officers: Head of Delegation to Afghanistan: Mr Karl Harbo Desk officer, RELEX/E/3: Ms Helene Radcliffe Desk officer AIDCO F5: Mr Stefano Corrado 1 AIDCO/543/04-EN Orig. SUMMARY After a long period of wars and socio-economic turmoil that has resulted in severe damages and disruption to the national infrastructure, including in the rural sector, the Afghan Transitional Authority (ATA) has embarked upon in comprehensive reconstruction programmes which is described in the 2002 National Development Framework and embedded in the successive 2002/2003/2004 National Development Budget as well as in the 2004 “securing Afghanistan future” 7-year public investment programme. Irrigation and water management always appears as key investment priority to enhance agriculture growth and reduce poverty and food insecurity. Similarly, the lack of reliable information on poverty and vulnerability is also recognized as a major constraint for improved policy and planning. Under its 2003 Food security programme (EC FSP 2003) the Commission has already taken steps to support these key priorities. With the present 2004-2005 Food Security Programme, it is proposed to consolidate the 2003 food security/water management programme component which is already on going in Kunduz, Baghklan and Takhar provinces (FSPWM 2003) and extend its scope in the neighbouring poor and food insecure province of Badakhshan. In the latter region urgent needs exist for rehabilitating and/or improving the local irrigation schemes and upstream water catchments areas and to promote in parallel social empowerment and reorganisation. It is also proposed to further strengthen the 2003 support to the development of a national food security and poverty information system, by supporting the Food and Agriculture Information and Policy Unit of the Ministry of Agriculture and Animal Husbandry (FAIPU-MAAH) A RELEVANCE 1. Consistency with global objectives 1.1 EC aid policy objectives and priorities After the defeat of the Taliban regime the EC prepared a multi-sectoral support programme aimed at long term political and socio-economic stabilisation and community development in Afghanistan. The 2004-2005 EC Food Security Programme (FSP 2004-2005) is in accordance with the EC's development cooperation objectives (art 177 of EU Treaties) and supports the principles of the Bonn Agreement to reconstruct Afghanistan. Furthermore, it builds on the FSP 2003 and supports the ATA’s institutional reform, capacity building and policy planning objectives. 1.2 Objectives of NIP The CSP/NIP identifies Rural Development & Food Security as one of the key focal sectors. It foresees EC support at two levels: (i) the development of instruments aiming at a better comprehension and reduction of people’s vulnerability in rural areas in the medium term, and (ii) the development of programmes looking at long term rehabilitation and the development of Afghan farmers producing conditions (including irrigation and the strengthening of rural production). 2 AIDCO/543/04-EN Orig. 1.3 Link with annual country review The first country review for Afghanistan took place on 19 June 2002. This review underlined the importance of food security in the recovery and reconstruction process of the country while highlighting the need of adequately integrating the food security actions with the projects/programmes put in place trough the other EC instruments. 2. Sectoral analysis 2.1 Food security situation in Afghanistan Poverty is widespread throughout rural Afghanistan, but there are notable variations across geographical areas. Data from the 2003 National Risks and Vulnerability Analysis suggest that in 2003 21.3% of the rural households were considered as food insecure (food consumption below 2100 cal/day). A number of observations seem to suggest that the supply of food in rural Afghanistan, and its local availability is not an issue (though seasonal trends and location specific shocks cannot be ruled out). In addition to growing domestic production, data suggest that private imports of wheat into Afghanistan have been substantial in recent year, with large numbers of traders who are highly responsive to market forces bringing grain from Pakistan, Kazakhstan and other countries in the region. Instead the body of evidence justifying households food intake gaps weights in favor of the demand side (lack of purchasing power). With 85% of the approximately 22 million Afghan populations living in rural areas, on farm activities play a key role in the household economy and in the national growth and employment rates. Stimulating agricultural growth by raising major constraints is seen as a long term strategy to increase farm income, generate employment and reduce poverty and food insecurity. In 2003, one third of the rural households reported that lack of irrigation is a key agricultural constraint. After water, access to livestock and tools for farming is the next most important consideration. Households associated with poppy production have significant lower poverty rates. In particular, only 33 percent among households reporting production of poppy are poor, compared with 49 percent among those who are not involved in poppy. However, this situation might change tremendously if eradications campaigns are conducted without accompanying measures. 2.2 Status of national policy Following a 20-year long war period, and the socio-economic disruption and deterioration of the national rural infrastructure that this has caused, the Afghan Transitional Authority (ATA) has embarked upon a comprehensive reconstruction programme. Although food security is recognised as a crucial result to be achieved, there is no specific governmental food security policy. Instead, food security is integrated into a more general poverty reduction framework and mainstreamed across several national programmes (Natural Resources Management, Livelihoods and Social Protection being the most important ones). Under the Natural Resources Management (NRM) national programme of the 2002 National Development 3 AIDCO/543/04-EN Orig. Framework, emphasis was put on supporting rural population through, inter-alia, the rehabilitation and improvement of small and medium scale irrigation schemes according to a river basin integrated management based approach. A Sectoral Policy & Strategy Framework for the rehabilitation and development of agriculture and natural resources in Afghanistan was developed later on and recently approved by the ATA. The document states that: Water is critical for the development of the natural resource sector. All irrigation rehabilitation work, and agricultural, forestry and rangeland activities are to be undertaken within the framework of the river basin management approach that the government has adopted for water resource management. Further, the irrigation work on traditional systems will support and facilitate community based management and ownership of the schemes. … Such policy and strategy framework provides valuable orientations for water management in the country and already received significant financial support from the donors. Similarly, the establishment of national poverty/vulnerability surveillance systems is recognised as a key priority under the Livelihood and Social Protection National Programme of the National Development Framework. Hence it appears as key investment priority under the 2003 and 2004 National Development Budget. 3 Problem analysis 3.1 Target groups, beneficiaries, and stakeholders a) Target groups: Beside the Ministry of Irrigation, Water Resources and Environment (MIWRE) and the Ministry of Agriculture and Animal Husbandry (MAAH) staff who will benefit from training in undertaking the programme’s related functions, the private sector will also benefit from the irrigation/water management component by receiving training on technical matters and tendering procedures. The capacities of the MIWRE and MAAH provincial staff are to be considered as very weak. b) Final beneficiaries: These are the water users who will benefit from more secure water supply for irrigation and civil use. The poor and powerless farmers/sharecroppers of Badakhshan and Kunduz river basin living in the bottom valleys, those suffering of unfair water distribution in their own community will particularly benefit from increased water availability and more equitable water distribution. Recent finding have shown that an important percentage of the very poor population in Badakhshan owns some land (average 0.25 ha). This improved water availability should stimulate agricultural growth in the entire area and in the long term generate sustainable employment for landless and/or poor vulnerable groups. Similarly the poorest communities living in the upper catchment’s areas will also be among the direct beneficiaries, as the adopted river basin approach requires an integrated natural resources’ conservation
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