AFGHANISTAN NATURAL RESOURCES AND AGRICULTURE SECTOR COMPREHENSIVE NEEDS ASSESSMENT FINAL DRAFT REPORT JULY 2002 ABBREVIATIONS AACA Afghan Assistance Coordination Agency ADB Asian Development Bank AHD Animal Husbandry Directorate, MAAH AIA Afghanistan Interim Authority AIMS Afghanistan Information Management System AIT Artificial Insemination Technicians ARATTS Agriculture Research and Technology Transfer BVW Basic Veterinary Workers CBO Community Based Organizations CCO Community Driven Development CGIAR Consultative Group in International Agricultural Research CIMMYT International Maize and Wheat Improvement Centre DFR Department of Forestry and Rangelands, MAAH FAO Food and Agriculture Organization GEF Global Environment Fund GIS Geographic Information Systems HRDP Human Resource Development Programs ICARDA International Centre for Agricultural Research in Dry Areas ILRI International Livestock Research Institute LNZ Liquid Nitrogen MAAH Ministry of Agriculture and animal Husbandry MIDF Medium Term Development Framework MIS Management Information System MIWR Ministry of Irrigation and Water Resources MPW Ministry of Public Works MRRD Ministry of Rehabilitation and Rural Development MWA Ministry of Women's Affairs MWP Ministry of Water and Power NDF National Development Framework NGO Non Government Organization NRM Natural Resource Management PFA Poultry Farmer's Association PRA Participatory Rural Appraisal QUIPS Quick impact interventions UNDP United Nations Development Programme UNICEF United Nations Children's Fund VFU Veterinary Field Units WB World Bank WFP World Food Programme TABLE OF CONTENTS Page ABBREVIATIONS I. FOREWORD 2 II. EXECUTIVE SUMMARY 3 III. INTRODUCTION 9 A. Approach to Needs Assessment 9 B. Sector Background 9 C. Sector Development Framework 10 IV. NEEDS ASSESSMENT: SUB-SECTOR PROGRAMS 14 A. Natural Resources Management 14 B. Water Resources 17 C. Community Development Programs 21 D. Agriculture 24 E. Livestock Programs 28 F. Agriculture Research and Technology Transfer 32 G. Off-Farm Employment 34 V. NEEDS ASSESSMENT: INSTITUTIONAL REFORMS AND CAPACITY BUILDING 36 A. Natural Resource and Agriculture Sector National Institutional Structure 36 B. Individual Ministry Structures and Organisation 37 C. Provincial Natural Resource Management Structure 38 D. Capacity Building Needs 39 VI. NEEDS ASSESSMENT: POLICY REFORMS 42 A. Implementation Strategies 43 APPENDICES 1 Short Term Interventions and Project Profiles 2 Natural Resources Management 3 Water Resources Management 4 Community Development Program 5 Agriculture (Crops) 6 Livestock Production and Animal Health 7 Agriculture Research and Technology Transfer 8 Institutional Development Draft Report I. FOREWORD 1. Following the Tokyo Conference on Reconstruction Assistance to Afghanistan in January 2002, a multi-donor mission, led by the Asian Development Bank, visited Afghanistan for one week during February 2002 to initiate a needs assessment for the natural resources and agriculture sector. This mission provided the foundation for, and recommended, a more detailed analysis of needs by the current mission,1 which visited Afghanistan from 7 April to 7 May 2002. 2. The terms of reference of this mission focused on two requirements, namely (i) the preparation of project profiles for quick impact interventions, so-called QUIPS, and (ii) a medium term strategy, policy and institutional development framework for the natural resource and agriculture sector to set the stage for sustainable development into the medium term. For this purpose, the natural resources and agriculture sector is broadly defined to include all aspects of natural resource management, utilisation and protection. 3. The mission consulted extensively, with the concerned line ministries namely, the Ministry of Rehabilitation and Rural Development (MRRD), the Ministry of Irrigation and Water Resources (MIWR), and the Ministry of Agriculture and Animal Husbandry (MAAH). In addition a close working relationship was maintained with the Afghan Assistance Coordination Agency (AACA) who maintain an overview of the sector. Discussions took place with all major international agencies and donors, and with key NGOs working in the sector. Field visits were undertaken to Bamiyan province, the Panchir valley and the Shamali plains adjacent to Kabul. In addition, the mission participated in a Water Resources Management and Development Conference sponsored by MIWR and UNICEF, which was held in Kabul between 29 April and 1 May. 4. The mission is extremely grateful for the time accorded to its activities by the staff of all the various ministries and agencies working in the sector, and whose views have helped to shape this report. The aim is that this draft report will provide a basis to achieve a consensus on a medium term vision for the sector, together with the policies, programs and institutional changes needed to realise that vision. Once agreement is reached, the sector framework will provide a basis to ensure individual projects are supporting priority activities and outcomes. 1 The mission was led by the Asian Development Bank and comprised Allan Kelly (ADB, Project Economist/ Mission Leader), Ray Shaw (ADB consultant, Agriculture Economist), Richard Smith (ADB consultant, Rural Development Specialist), Elayne Gallagher (ADB consultant, Institutions Specialist), Ted Breckner (ADB consultant, Agriculturalist), Aziz Bouzaher (World Bank, Natural Resource Specialist), Tony Garvey (World Bank, Water Resources Specialist), Rodney Kennard (FAO consultant, Livestock Specialist), Abdul Salkini, (ICARDA, Agricultural Research) and Roma Bhattacharjea (UNDP, Gender Specialist ). 2 Draft Report II. EXECUTIVE SUMMARY 5. The overall objective in the natural resources and agriculture sector is to improve livelihoods for all sections of the rural community based upon economically competitive activities, social cohesion and sustainable use of natural resources. Specifically, the planned outcome is self-reliant communities who are able to meet their needs through a combination of food production, off-farm employment and trade. 6. This needs assessment for the medium term development of the natural resources and agricultural sector is based on sub-sector programs or investments, institutional reforms and capacity building, and policy reform. The recovery process requires a coordinated response on each of these aspects for the medium term development outcomes to be achieved. The assumptions underlying this development are one of a market led economy, with Government pursuing prudent financial and fiscal polices and a liberal trade regime. Additionally, the recovery process is premised upon continued political stability, and a return to normal climatic conditions. 7. The vision for the sector reflects the principles outlined in the Tokyo speech of Afghanistan Interim Authority (AIA) Chairman Karzai, January 2002 and the National Development Framework (NDF), April 2002. It has the following key elements: (i) A “bottom-up” community based approach to the determination of development priorities, using the micro-watershed as the planning unit; (ii) A natural resources management and regulatory mechanism, which ensures that the use of natural resources by communities, in aggregate, does not exceed the capacity of natural systems to sustain themselves. (iii) The critical natural resource is “water” whose availability must be maximized and whose use must be effective and efficient. In doing so, ecosystems will be sustained while agricultural output is maximized. It is essential that all communities and agencies become aware that the abstraction of water incurs a cost over and above the delivery of the water; (iv) The transfer of modern dryland farming technologies to rainfed areas with a view to producing at least half the country’s cereal needs from rainfed farming; (v) Rehabilitation of small, medium and large irrigation systems managed by their communities/beneficiaries and growing predominantly high value cash crops capable of supporting the cost of the infrastructure; (vi) A traditional integrated livestock economy based on sustainable rangeland management and crop by-products, plus commercial peri-urban livestock enterprises serving the main urban communities; (vii) Private sector led provision of agriculture services including seed, fertilizer, farm machinery, agro-chemicals and animal health products; (viii) Agricultural marketing in the hands of the private sector, but with a significant farmer based marketing organisation segment; (ix) A thriving off-farm income generating sub-sector primarily targeted at and organised/operated by women; (x) A lean, reformed set of sector institutions performing an agreed set of public sector functions (xi) An appropriate policy framework conducive to a thriving private sector. 8. Rebuilding the natural resources and agricultural economy upon which up to 85 percent of the population depend for their livelihood will require a fundamental change in the manner in which development priorities are determined and implemented. Its calls for a development agenda, which is driven by community-determined priorities, and should be based upon appropriate participatory mechanisms to ensure that all stakeholders are 3 Draft Report represented. Logically, this should produce a dual approach to community based interventions which include both productivity enhancing interventions for those with land (and employment opportunities for the landless) and targeted off-farm interventions for the landless