Assessing the distributive effects of agricultural policy in Honduras

The preliminary exchange between RUTA and the Ministry of Agriculture of Honduras indicate that by August a capacity building initiative will commence in Honduras. It will use the Poverty and Social Impact Analysis (PSIA) approach to evaluate the distributive effects on agricultural policy implementation, This methodology is funded by a grant from the German development cooperation, obtained by RUTA through the World Bank. As part of this initiative, the IFAD/RUTA team will provide technical support to Honduras on the economic and social impact assessment of sector reforms, seeking to take steps to maximize the number of beneficiaries while minimizing the negative effects on vulnerable groups.

Esta metodología es financiada por una donación de la cooperación al desarrollo de Alemania, obtenida por RUTA a través del Banco Mundial. Como parte de una iniciativa del equipo del FIDA/RUTA, se ofrecerá apoyo técnico a Honduras en la evaluación tanto económica como social de los impactos de las reformas en el sector, con el objeto de tomar las medidas necesarias para ampliar la base de beneficiarios de las nuevas oportunidades y disminuir los efectos negativos en sectores vulnerables.

Launching of training program on agricultural policy analysis and support measures

Regional Training Workshop on the Analysis of Support Policies and Programs in the Agricultural Sector

The recent progress on trade liberalization taking hold in Central America needs to be accompanied by a series of changes and reforms in agricultural policies and programs which are required for countries to improve their competitiveness. Therefore, it is essential for each country that the public sector defines clearly the current policies and programs, assessing their effectiveness and impact.

In response to such demand, RUTA, with participation of IFAD’s team and the Interamerican Development Bank (IDB), formulated a technical training program funded through the Spanish Cooperation Fund (FGCE). The program seeks to generate local capacity in each country to undertake a systematic qualitative and quantitative analysis of the estimated support in the agricultural sector, using the methodology standardized by the Organization for Economic Cooperation and Development (OECD). The objective is to assist each country to identify the current structure of price subsidies and fiscal support provided to the sector, analyzing the potential effects of trade liberalization.

The training program includes theoretical and practical components and it will be implemented over a nine-month period. The theoretical part includes two regional workshops: at the beginning and at the end of the training project. The hands-on component includes the updating of estimated agricultural subsidies and a descriptive qualitative and quantitative analysis of policies and programs in the rural sector including agricultural subsidies. These analyses will be carried out by local staff to be trained in each country, with support and supervision of national consultants. The kick-off workshop took place in San Jose, Costa Rica (April 24 – 26, 2007).

RUTA supports the formulation of IFAD’s Subregional Strategy for Mexico and Central America 2007 –2010

Under joint collaboration led by IFAD’s Latin America and the Caribbean Division and the IFAD team at RUTA, IFAD has prepared the Subregional Strategy for Mexico and Central America 2007-2010. This document (currently under review) provides a guiding framework for all subregional activities in compliance with IFAD’s mission of enabling the rural poor to overcome poverty. The strategy uses a multidimensional approach based on IFAD’s goals and comparative advantages seeking to contribute to the empowerment of women and men of rural areas of Mexico and Central American, aiming at increasing their household income and food security.

The strategy is expected to facilitate the work of IFAD (and the supporting structures assisting the formulation and implementation of projects and programs), the government, small producers and their organizations, and the rural poor, as well as other national public and private institutions and international cooperation agencies, with whom IFAD is making alliances to accomplish its mission. The strategy is expected to be disseminated soon by IFAD.

Se espera que esta Estrategia facilite las acciones del personal de la División y estructuras que apoyan la formulación e implementación de proyectos y programas, de los Gobiernos, de los pequeños y pequeñas productoras y sus organizaciones y otra población rural pobre; así como de otras entidades nacionales públicas y privadas y organismos de la cooperación internacional con quienes el FIDA establezca alianzas para el cumplimiento de su agenda. Su divulgación será realizada próximamente por el FIDA.