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Brussels Briefing n. 30
Agricultural Resilience in the Face of Crises and Shocks
                     4th March 2013
              http://brusselsbriefings.net

   Enhancing resilience in the Horn of Africa
   Jean-Francois Maystadt, Researcher, IFPRI
Enhancing Resilience in the Horn
           of Africa
                  CTA Brussels Briefing
                 Brussels, March 4, 2013

                 Jean-François Maystadt

    International Food Policy Research Institute (IFPRI)
 Center for Institutions and Economic Performance (LICOS)
Lack of resilience in the Horn?
(+) Traditional coping strategies (e.g. mobility)
(+) Livestock sector is a source of current wealth and a sector with potential
added value (e.g. exports to the Middle East)

(-) More severe and frequent shocks and stress (on limited amount of water)
(-) Restricted mobility due to a mix of population growth, fragmentation of
grazing lands and insecurity
(-) Conflict, poor governance , price volatility and lack of long-term donor
commitment
(-) Pastoralist populations in ASAL regions often politically and economically
neglected in terms of public investment

2011 drought: Relief efforts have saved lifes but have not sufficiently
increased the capacity to withstand future shocks and stresses

Source: Headey, L. You, and A.S. Taffesse (2012) Enhancing resilience in the Horn of Africa. IFPRI
DP. Forthcoming in World Development.
Vicious cycle of violence?
Violence in Somalia, 1997-2009                           Estimated food security conditions,
                                                                      9/2011




Source: Maystadt et al. (2013), based on ACLED (2012).                                Source: DFID(2012).
Vicious cycle in Somalia




Source: Maystadt, Ecker and Mabiso (2013) Extreme weather and civil war in Somalia: Does
Drought Fuel Conflict through Livestock Price Shocks . IFPRI Discussion Paper, forthcoming.
Vicious cycle in Somalia (and Sudan)
                                            TDI3             Cattle price        Change in number
Scenario
                                           change              change               of conflicts
                                           Percent            Percent            Number     Percent
Increase of TDI3 by one standard
                                             32.6                –4.3             0.52        37.4
deviation
Increase of TDI3 by temperature rise
                                             49.0                –6.8             0.80        58.3
according to IPCC A1B scenario


    • Droughts fuel civil conflicts in Somalia
    • Specific channel: drought-induced economic shocks on the livestock
      sector and resulting income changes
    • Link between extreme weather shocks and violence also found in North
      and South Sudan (work in progress)

    • … Risk of violence is likely to magnify in the future …
    • Unless urgent action to enhance resilience to shocks is taken
   Source: Maystadt, , Ecker and Mabiso (2013) Extreme weather and civil war in Somalia: Does Drought
   Fuel Conflict through Livestock Price Shocks. IFPRI Discussion Paper, forthcoming.
Enhancing resilience through a balanced development strategy

 Investment in pastoralist activities:
      Improved livestock resilience to drought: adoption of drought-resistant
       animals, veterinary health services, emergency feed, and better access to
       water but without disturbing the (well-functing) livestock value chain
      Help de-stocking and re-stocking through improved access to markets,
       insurance and credit markets, weather insurance schemes
 Support income diversification: Irrigation, Migration and Education
 Social Safety Net Program? What can we learn from Safety Net
  Programmes to enhance resilience in the Horn of Africa?




Source: Headey, L. You, and A.S. Taffesse (2012) Enhancing resilience in the Horn of Africa. IFPRI DP.
Forthcoming in World Development
Ethiopia’s Productive Safety Nets Programme
                               (PSNP)

• Between 1993 and 2004, the Government of Ethiopia launched near-
  annual emergency appeals for food aid and other forms of emergency
  assistance.
• These succeeded in averting mass starvation but:
    – They did not banish the threat of further famine;
    – They did not prevent asset depletion; and
    – The ad hoc nature of these responses meant that the provision of emergency
      assistance—often in the form of food-for-work programmes—was not
      integrated into ongoing economic development activities.

• In other words, these responses did not build resilience
Ethiopia’s Productive Safety Nets Programme
                               (PSNP)
• PSNP began operating in 2005 (until 2014)
    – Reaches approximately one million households; 7 million people annually
    – EU is a major donor along with the USAID, World Bank, DfID, and a number of other
      countries
• The PSNP “provides transfers to the food insecure population in
  chronically food insecure woredas in a way that prevents asset depletion
  at the household level and creates assets at the community level”
    – It provides recipient with public works
    – It also seeks to stimulate market development and rehabilitate the natural environment
• The PSNP is complemented by a program (now) called the “Household
  Asset Building Programme” (HABP)
    – Increased contact and coordination with agricultural extension services
    – Improved access to credit
Ethiopia’s Productive Safety Nets Programme:
                                       Impact on food security
                       1
           .2 .4 .6 .8
                       0
         -.6 -.4 -.2




                           1                           2                       3                 4    5
                                                     Years receiving payments for PSNP Public Works

                                                               Dose Response         Low bound

                                                               Upper bound

                           Confidence Bounds at .95 % level




Source: Hoddinott J., A.S. Taffesse and others (2012)
Building resilience:
       Change in food security for households experiencing 2+
                              droughts




Source: Hoddinott J., A.S. Taffesse and others (2012)
Building resilience:
   Change in livestock for households experiencing 2+ droughts




Source: Hoddinott J., A.S. Taffesse and others (2012)
Building resilience at the household level

      Change in food security                           Change in livestock




Source: Hoddinott J., A.S. Taffesse and others (2012)
Ethiopia’s Productive Safety Nets Programme:

• Builds resilience at:
   – Government and governance
   – Natural resource management
   – Household

• Impacts are larger when combined with the HABP. Why?
   – Transfers provide both a safety net and working capital
   – HABP provides technical expertise

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30thBrussels Briefing on Agricultural Resilience- 5. Jean-François Maystadt: Enhancing resilience in the Horn of Africa

  • 1. Brussels Briefing n. 30 Agricultural Resilience in the Face of Crises and Shocks 4th March 2013 http://brusselsbriefings.net Enhancing resilience in the Horn of Africa Jean-Francois Maystadt, Researcher, IFPRI
  • 2. Enhancing Resilience in the Horn of Africa CTA Brussels Briefing Brussels, March 4, 2013 Jean-François Maystadt International Food Policy Research Institute (IFPRI) Center for Institutions and Economic Performance (LICOS)
  • 3. Lack of resilience in the Horn? (+) Traditional coping strategies (e.g. mobility) (+) Livestock sector is a source of current wealth and a sector with potential added value (e.g. exports to the Middle East) (-) More severe and frequent shocks and stress (on limited amount of water) (-) Restricted mobility due to a mix of population growth, fragmentation of grazing lands and insecurity (-) Conflict, poor governance , price volatility and lack of long-term donor commitment (-) Pastoralist populations in ASAL regions often politically and economically neglected in terms of public investment 2011 drought: Relief efforts have saved lifes but have not sufficiently increased the capacity to withstand future shocks and stresses Source: Headey, L. You, and A.S. Taffesse (2012) Enhancing resilience in the Horn of Africa. IFPRI DP. Forthcoming in World Development.
  • 4. Vicious cycle of violence? Violence in Somalia, 1997-2009 Estimated food security conditions, 9/2011 Source: Maystadt et al. (2013), based on ACLED (2012). Source: DFID(2012).
  • 5. Vicious cycle in Somalia Source: Maystadt, Ecker and Mabiso (2013) Extreme weather and civil war in Somalia: Does Drought Fuel Conflict through Livestock Price Shocks . IFPRI Discussion Paper, forthcoming.
  • 6. Vicious cycle in Somalia (and Sudan) TDI3 Cattle price Change in number Scenario change change of conflicts Percent Percent Number Percent Increase of TDI3 by one standard 32.6 –4.3 0.52 37.4 deviation Increase of TDI3 by temperature rise 49.0 –6.8 0.80 58.3 according to IPCC A1B scenario • Droughts fuel civil conflicts in Somalia • Specific channel: drought-induced economic shocks on the livestock sector and resulting income changes • Link between extreme weather shocks and violence also found in North and South Sudan (work in progress) • … Risk of violence is likely to magnify in the future … • Unless urgent action to enhance resilience to shocks is taken Source: Maystadt, , Ecker and Mabiso (2013) Extreme weather and civil war in Somalia: Does Drought Fuel Conflict through Livestock Price Shocks. IFPRI Discussion Paper, forthcoming.
  • 7. Enhancing resilience through a balanced development strategy  Investment in pastoralist activities:  Improved livestock resilience to drought: adoption of drought-resistant animals, veterinary health services, emergency feed, and better access to water but without disturbing the (well-functing) livestock value chain  Help de-stocking and re-stocking through improved access to markets, insurance and credit markets, weather insurance schemes  Support income diversification: Irrigation, Migration and Education  Social Safety Net Program? What can we learn from Safety Net Programmes to enhance resilience in the Horn of Africa? Source: Headey, L. You, and A.S. Taffesse (2012) Enhancing resilience in the Horn of Africa. IFPRI DP. Forthcoming in World Development
  • 8. Ethiopia’s Productive Safety Nets Programme (PSNP) • Between 1993 and 2004, the Government of Ethiopia launched near- annual emergency appeals for food aid and other forms of emergency assistance. • These succeeded in averting mass starvation but: – They did not banish the threat of further famine; – They did not prevent asset depletion; and – The ad hoc nature of these responses meant that the provision of emergency assistance—often in the form of food-for-work programmes—was not integrated into ongoing economic development activities. • In other words, these responses did not build resilience
  • 9. Ethiopia’s Productive Safety Nets Programme (PSNP) • PSNP began operating in 2005 (until 2014) – Reaches approximately one million households; 7 million people annually – EU is a major donor along with the USAID, World Bank, DfID, and a number of other countries • The PSNP “provides transfers to the food insecure population in chronically food insecure woredas in a way that prevents asset depletion at the household level and creates assets at the community level” – It provides recipient with public works – It also seeks to stimulate market development and rehabilitate the natural environment • The PSNP is complemented by a program (now) called the “Household Asset Building Programme” (HABP) – Increased contact and coordination with agricultural extension services – Improved access to credit
  • 10. Ethiopia’s Productive Safety Nets Programme: Impact on food security 1 .2 .4 .6 .8 0 -.6 -.4 -.2 1 2 3 4 5 Years receiving payments for PSNP Public Works Dose Response Low bound Upper bound Confidence Bounds at .95 % level Source: Hoddinott J., A.S. Taffesse and others (2012)
  • 11. Building resilience: Change in food security for households experiencing 2+ droughts Source: Hoddinott J., A.S. Taffesse and others (2012)
  • 12. Building resilience: Change in livestock for households experiencing 2+ droughts Source: Hoddinott J., A.S. Taffesse and others (2012)
  • 13. Building resilience at the household level Change in food security Change in livestock Source: Hoddinott J., A.S. Taffesse and others (2012)
  • 14. Ethiopia’s Productive Safety Nets Programme: • Builds resilience at: – Government and governance – Natural resource management – Household • Impacts are larger when combined with the HABP. Why? – Transfers provide both a safety net and working capital – HABP provides technical expertise