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World Bank Document Document of The World Bank FILE COP FOR OFFICIAL USE ONLY CONFEIDNTIAL Public Disclosure Authorized Report No. 4133-EGT ARAB REPUBLIC OF EGYPT Public Disclosure Authorized SELECTED ISSUES IN AGRICULTURE, IRRIGATION AND LAND RECLUI4ATION Public Disclosure Authorized May 20, 1983 Public Disclosure Authorized Regional Projects Department Europe, Middle East and North Africa Regional Office Agriculture I This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (as of June 30, 1982) LE 1.00 US$1.22 US$1.00 = LE 0.817 WEIGHTS AND MEASURES 1 feddan (fed) = 0.42 ha 1 hectare (ha) = 2.38 feddan (fed) 3 l cubic meter (m ) = 35.21 cubic feet (cu ft) I milliard m3 I billion m3 (1 X 109 m 3) VERNACULARS Meska: Farm Header Ditch Sakhia: Water Wheel Worked by Animal Power Fellahin: Peasant Farmer ABBREVIATIONS DRI - Drainage Research Institute EPADP - Egyptian Public Authority for Drainage Projects HAD - High Aswan Dam GDP - Gross Domestic Product GRI - Groundwater Research Institute IBRD - International Bank for Reconstruction and Development IFAD - International Fund for Agricultural Development MIOA - Ministry of Agriculture MOI - Ministry of Irrigation MLR - Ministry of Development and State Ministry for Housing and Land Reclamation PPU - Project Preparation Unit UNDP - United Nations Development Program WMP - Master Plan for Water Resources Development and Use WRC - Water Research Center IDA - International Development Association IFC - International Finance Corporation SAAD - Strategies for Accelerating Agricultural Development - Report of the US Presidential Mission, July 1982 BDAU - Bank tor Development and Agricultural Credit EWUP - Egyptian Water Use and Management Project MOI - Ministry of Irrigation PBDAC - Principal Bank for Development and Agricultural Credit UNUP - United National Development Programme USAID - United States Agency for International Development USDA - United States Department of Agriculture NUPS - National Urban Policy Study GARPAD - General Authority for Rehabilitation Projects and Agricultural Development GOVERNMENT OF ARAB REPUBLIC OF EGYPT FISCAL YEAR July 1 to June 30 This report was prepared by Edward Quicke (Bank), Carl Gotsch (consultant) and John Burfield (consultant). U OPNL&.I USE ONLY CONFIDENTIAL TABLE OF CONTENTS Page I. INTRODUCTION ..................................................... 1 Brief Overview of the Agricultural Sector ............................ 1 Bank's Sector Work ................................................ 2 The Production-Consumption Gap ..................................... 4 II. EMERGING AGRICULTURAL STRATEGY .................................. 6 A. General Diagnosis and Prescription ............................... 6 B. Individual Incentives and Supply Response ...................... 8 Rationalization of Relative Prices ............................. 9 Increasing Yields; The Technology Package ...................... 10 C. Public Sector Contributions to Agricultural Development ..... 12 Global Reorganization of Ministries of Agriculture, Irrigation, and Land Reclamation ............................ 14 Reorganization of the Ministry of Agriculture ................... 15 Ministry of Irrigation (MOI) .................................... 17 Ministry of Development and New Communities and State Ministry of Housing and Land Reclamation (MLR) ................ 18 III. THE WORLD BANK'S EXPERIENCE IN EGYPT'S AGRICULTURAL SECTOR ..... 20 A. Ministry of Agriculture ........................................ 20 Review of Projects ............................................ 20 B. Ministry of Irrigation ........................................ 22 Drainage ..................................................... 22 Irrigation ................................................... 23 Operation, Maintenance and Modernization of the Irrigation System 25 Operation of the Distribution System .......................... 25 Maintenance ................................................ 26 Modernization of the Irrigation System ...................... 26 Improved Watercourse Management ............................... 27 C. Ministry of Development and New Communities and State Ministry of Housing and Land Reclamation ................................. 28 Rehabilitation of Old New Lands ............................... 28 New Lands of West Nubariya .................................... 29 Lake Manzala and Nortnern Delta ................................ 30 Development of the Salhiya Area ................................ 31 This dcument ha a resuicwd distribution and may be used by recipients only in the performance of their officiul duties. Its contents may not otherwise be disclosed without Worid Bank authoriationt Page D. Distillation of the Bank's Post-1975 Experience .................. 31 IV. PROPOSED FUTURE ROLE OF THE WORLD BANK IN EGYPTIAN AGRICULTURE 34 Introduction ............................................................ 34 A. A Strategy for the Old Lands .................................... 35 B. A Strategy for New Lands Development ............................ 37 V. PROJECTS FOR POSSIBLE BANK FINANCING ............................ 40 A. Project Priorities in the Old Lands ............................ 40 Governorate Agricultural Development Projects ................... 40 National Agricultural Credit project .......................... 41 Agricultural Studies ............................................ 42 Drainage .......................................................... 42 Irrigation ....................................................... 43 B. Project Priorities in the New Lands ............................ 43 Protection of Old Lands from Urban Sprawl ....................... 43 The Northern Delta and Lake Manzala ............................. 44 Reclamation of Desert Soils, West and East of the Delta ... 45 Interrelated Agricultural and Urban Development .......... 46 ANNEXES 1 List of Projects .......................................... 48 2 Water Balance ........................................ 49 3 Bibliography ......................................... 50 MAPS I Drainage Program and Boundaries of Irrigated Areas - Upper and Middle Egypt. ... ............................ IBRD 16775 2 Drainage Program and Boundaries of Irrigated Areas - Lower Egypt ............................................ IBRD 16776 3 Old-New Lands and New Lands ............................... IBRD 16777 Key to Old-New Lands and New Lands (Map No. 16777) 51 ARAB REPUBLIC OF EGYPT SELECTED ISSUES IN AGRICULTURE, IRRIGATION AND LAND RECLAMATION ABSTRACT This report complements several recent studies on Egyptian agriculture including an agricultural strategy paper by the Ministry of Agriculture, a major sector survey by USAID and an agricultural pricing and trade strategy report by the Bank (Report No. 4136-EGT). It examines some of the major issues in irrigation and land reclamation as well as agriculture, ana outlines a strategy for Bank lending in the sector. It identifies five main constraints that have contributed to the disappointing performance of agriculture in the past decade; government procurement/pricing policies, lack of good research results, lack of tested farm input packages, water logging/salinity, and urban sprawl onto valuable agricultural land. It questions why Egypt's policymakers have done so little for agriculture and discusses the stalemate between the belief that agricultural development would not work until the climate of incentives was improved, and the view that it was not worth providing incentives because there was no supply response. The report then examines some of the main institutional problems in the three ministries, Agricu'lture, Irrigation and Land Reclamation before reviewing the main lessons learned from the Bank's experience in lending through these ministries. The report sets out guidelines for Bank participation in Egyptian agriculture over the next few years, and concludes by discussing the main investment projects in the pipeline. ARAB REPUBLIC OF EGYPT SOKE ISSUES IN AGRICULTURE, IRRIGATION AND LAND RECLAMATION I. INTRODUCTION Brief Overview of the Agricultural Sector 1.01 Agriculture accounts for about 23% of GDP and 40% of total employment, thereby constituting the largest sector of the Egyptian economy. Agricultural production is based upon some 6.1 million feddans (2.5 million ha) of irrigated land, including about 5.5 million feddans of "old" alluvial lands, virtually all of which are double cropped (with 195% average intensity) ana farmed in small plots by traditional methods. Cropping patterns in Egypt are determined by a mix of factors, including commodity prices, Government quota requirements, producer preferences, soil and climate limitations, and degree of farmer commercialization. Wheat and berseem are the principal winter crops; in summer, cotton and rice are important cash crops, while maize and sorghum are major subsistence crops. In a typical three-year rotation, the area is divided into three more or less equal blocks. The first block is planted in winter to a temporary catch crop of berseem (1-2 cuts), followed in March by cotton. The second block is planted in winter to clover or other legume. The third block is planted to wheat. Both second and third blocks are followed by maize, rice or sorghum. This pattern changes in Upper Egypt, where sugarcane is the main cash crop, replacing rice and cotton.
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