By Alex F. McCalla, Wendy S. Ayres, World Bank Group
ISBN-10: 0821339664
ISBN-13: 9780821339664
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Extra resources for Rural development: from vision to action
Example text
Future increases in food supplies must come primarily from rising biological yields, rather than from area expansion and more irrigation. Why? Because land and water are becoming increasingly scarce. Most new lands brought under cultivation are marginal and ecologically fragile, and cannot make up for the land being removed from cultivation each year because of urbanization and land degradation. The sources of water that can be developed costeffectively for irrigation are nearly exhausted, and irrigation water will increasingly need to be reallocated for municipal and industrial use.
As a consequence IFC's agribusiness portfolio performance has improved dramatically, and is now in line with the rest of IFC and growing rapidly. Actions to Improve Performance Actions taken by the Bank have led to improved performance of its portfolio of agricultural and rural development projects, and to improved quality at entry. In fiscal 1996, 78 percent of completed agricultural projects were rated satisfactory, which is 10 percentage points better than the Bank average. While this news is encouraging, it is too early to determine whether this good performance will continue, given the 100 or so projects scheduled to close in the next 18 months.
For many countries this may mean the pursuit of suboptimal policies, as they try to position themselves in anticipation of the eventual application of the Common Agricultural Policy (CAP). Here, too, nonlending services will be significant, as the Region endeavors to convince governments not to introduce CAP-type policies prematurely. The Region will also work with the European Union to reduce the likelihood that introduction of protectionist measures prior to accession negotiations results in compensation benefits from the European Union after membership.