EVALUATION REPORT THE PLAN FOR THE MODERNISATION OF AGRICULTURE ANNEX A September 2005 Oxford Policy Management 6 St Aldates Courtyard 38 St Aldates Oxford, OX1 1BN United Kingdom Tel: +44 (0) 1865 207300 email: admin @opml.co.uk Evaluation of the Plan for Modernisation of Agriculture CONTENTS ANNEX A1 TERMS OF REFERENCE 1 ANNEX A2 PERSONS MET 14 ANNEX A3 DOCUMENTATION CONSULTED 18 ANNEX A4 PMA PILLARS AND THE NSCG 25 ANNEX A5 PILLAR MATRIX AND MAPS 67 ANNEX A6 PMA POLICY, REGULATORY AND INSTITUTIONAL REFORM AGENDA 81 ANNEX A7 GENDER MAINSTREAMING 103 ANNEX A8 METHODOLOGY FOR PMA RESOURCE ALLOCATION ANALYSIS ANNEX A9 PMA EXPENDITURE TABLES 106 ANNEX A10 PROGRESS WITH REALIGNMENT PMA PROJECTS 111 Oxford Policy Management, August 2005 Evaluation of the Plan for Modernisation of Agriculture Annex A1 Annex A1 Terms of Reference 1 BACKGROUND The PMA and the National Policy Framework The long-term vision of the Government of Uganda (GoU) is to eradiate poverty by year 2017, i.e. to reduce the poverty incidence from 44 percent in 1996/97 to below 10 percent by 2017. The strategies for achieving this vision are defined in the Poverty Eradication Action Plan (PEAP) which constitutes Uganda’s national Comprehensive Development Framework. The PEAP was designed in 1997 and is currently undergoing its second revision. One of the cornerstones of the PEAP is to enhance the ability of poor rural households to increase their incomes from farm and off-farm activities. The Plan for Modernisation of Agriculture (PMA) was issued in 2000, after a long and inclusive consultative process, and has been implemented since 2001. The PMA is an integral part of the PEAP strategies and contributes directly to two of the four overarching PEAP goals/pillars, viz. Goal 1: rapid and sustainable economic growth and structural transformation, and Goal 3: increased ability of the poor to raise their incomes. The vision of the PMA is to eradicate poverty through a profitable, competitive, sustainable and dynamic agricultural and agro-industrial sector . The mission is clearly and briefly defined as transforming subsistence agriculture to commercial agriculture . The specific objectives of the PMA are to: (i) increase the income and quality of life of rural households; (ii) improve household food security through the market; (iii) generate gainful employment; and (iv) promote sustainable use and management of natural resources. The PMA is not in itself an investment plan. Rather it defines the visions, and the principles and strategies which Central Government, Local Councils and farmers/rural households may apply to develop policies and investment plans for the sectors and sub-sectors that are relevant for improving agriculture-based livelihoods. The PMA is comprehensive in the sense that it covers all renewable natural resource sectors, crops, livestock, fisheries and forestry, as well as the processing and marketing of these sub-sectors 1. The PMA applies a multi-dimensional approach to reduction of rural poverty and has prioritised seven complementary areas, viz. 1) Agricultural research and technology development 2) Delivery of agricultural advisory services 3) Rural financial services 4) Promotion of agricultural marketing and processing 5) Agricultural education 6) Sustainable natural resource management and use, and 7) Supportive physical infrastructure, - roads, and water and energy for production In addition to these priority pillars, the GoU is transferring Non Sectoral Conditional Grants (NSCGs) to districts and sub-counties to empower farmers to address their PMA-related non-sectoral challenges and capitalise on farm and non-farm opportunities that arise. The grants are conditional in the sense that they shall be used for the multi-sectoral PMA menu and that the conditionality of the fiscal decentralisation (Local Development Grants) is applied. 1 In the following, ”agriculture” refers to all renewable resource sub-sectors unless otherwise indicated 1 Evaluation of the Plan for Modernisation of Agriculture Annex A1 While the public budget for the PMA emphasises the financing and delivery of “public goods”, the PMA places strong emphasis on developing public-private partnerships within agro-processing and marketing but also with respect to the financing and delivery of traditional services (research and extension) which hitherto has been the primary responsibility of government. Co-funding of services by end-users and local governments is a fundamental principle of the PMA. In addition to the central and local governments and Uganda’s development partners, - the private sector, civil society and the farmers and their organisations are therefore important stakeholders. The PMA recognises the need for reform of the policy and institutional framework governing the seven priority areas and considerable efforts have during the first years of implementation gone into work on reforming the institutional, legal and policy framework. Policy/strategy documents have been issued or are in the process of formulation, and a number of bills have been submitted and new laws have been passed. Plans for restructuring of central agencies are being prepared or adopted. The Institutional Architecture for PMA Implementation The PMA applies a decentralised and participatory approach to planning and service delivery and is implemented within the decentralised administrative and political framework of Uganda. The centre focuses mainly on policy guidance and overall resource allocation while the responsibility for implementation of activities in the field lies with districts and sub-counties. In order to provide a wide section of stakeholders with the opportunity of following and influencing the implementation, a PMA Forum has been established and meets about every six months. The PMA Forum has no decision powers but is used to exchange views, receive advice and generate ownership among the many stakeholders. At the national level, a PMA Steering Committee (SC) provides the overall coordination and guidance, and advises the Government, in particular the Ministry of Finance, Planning and Economic Development (MFPED), on the allocation of resources. The Permanent Secretary of MFPED/Secretary to the Treasury (PS/ST) chairs the SC, which has representatives from relevant line ministries, local government, the development partners, civil society and the private sector. In the original design, it was envisaged that the PMA SC would actually decide on the allocation of resources through implementation of a basket fund mechanism supported by donors. It was also assumed that all central ministries in most meetings would be represented at the level of Permanent Secretary. However, these assumptions have been difficult to realise. Under the PMA SC, several sub-committees 2 have been established to address and coordinate specific aspects of the PMA, such as Monitoring and Evaluation, and Programmes and Projects, - the latter is amongst others screening projects and programmes for PMA compliance. To support the PMA SC undertake its responsibilities efficiently and effectively, a PMA Secretariat has been established. It provides consolidated progress reports (quarterly), technical analyses and information for monitoring and evaluation. A comprehensive monitoring framework with numerous indicators has been established 2 Under the PMA SC, there are nine sub-committees, viz. Monitoring and Evaluation; Finances and NSCGs; Projects and Programmes; Environment and Natural Resources; Food and Nutrition; Gender Technical; Marketing and Agro-Processing; Dissemination; and Rural Finance. 2 Evaluation of the Plan for Modernisation of Agriculture Annex A1 but baseline and repeat studies are still lacking in a number of areas. The PMA Secretariat follows up with the “PMA agencies” on their progress in implementing the agreed undertakings and actions. Funding for the PMA Secretariat is included in the budget of the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) whose Permanent Secretary serves as the Secretary of the PMA SC. The PMA Secretariat reports to both the PS/MAAIF and the PS/ST. In a district, the district council and the administration coordinate the PMA activities while sub-county councils coordinate the implementation of PMA activities at sub- county and community level. In addition, local PMA fora have been established in the sub-counties inter alia as a mechanism for identifying demand for PMA supported services. Operationalisation of the PMA According to the PMA Document, the initial operationalisation, over a period of three years, comprises five phases which are largely focusing on establishing the implementation structure, undertaking the necessary policy, legal and institutional reforms, and rolling out the PMA to districts and other stakeholders. Major targets included the establishment of National Agricultural Advisory Services (NAADS) and a National Agricultural Research System (NARS) delivering services based on demand and having the private sector participating in the financing and delivery of services. Currently, NAADS is operational and its coverage is being expanded, while the legal and institutional framework for NARS is under development. Progress in the implementation and operationalisation of the seven pillars and the NSCGs has shown considerable variation. NAADS and the NSCGs have been operationalised at field level in a part of the country and investments in “PMA infrastructure”, in particular in district and community access roads, are being implemented.