Investor Relations –Analysis of investors who have maintained fisheries & aquaculture as a distinct priority or where some niche

opportunity may exist for WorldFish.

May 2009

The overall funding going towards fisheries and aquaculture has seen substantial fluctuations over the last five years, with over $200M invested in 2006, mostly through bilateral sources. The biggest overall investors are Denmark, Japan, Norway, Spain, EC, and Sweden. Noteworthy is the fact that several of these countries are most reliant on fisheries either from an import or export perspective and have a strong appreciation of the importance of fish from both an economic and food security perspective. The other key fish importing and exporting countries should have a strong appreciation of the importance of fisheries from an economic and food security standpoint (see Annex 1)

Some investors have maintained fisheries as a distinct priority within their development policies, while others are now moving towards more integrated approaches with the entry points being areas such as biodiversity and environmental issues. Some niche opportunities do exist with investors, often reflecting individual priorities within countries or a bundling of fisheries support within broader agricultural programming. Aquaculture in particular sometimes falls under the more general agriculture and rural development focus.

ADB

With the introduction of its new Strategy 2020 in 2008, the ground work has been laid for fundamental shifts in programming at the ADB which will impact prospects for the support in fisheries and aquaculture over time. Overall, the funding from ADB to these sectors has been diminishing for the last several years. The new priority areas for funding are moving away from traditional approaches to agriculture and fisheries and towards a new set of interventions that focus on five areas: infrastructure; environment, including climate change; regional cooperation and integration; financial sector development; and education.

The Strategy specifically indicates that the approach to supporting agriculture (which includes fisheries) will shift from traditional interventions to placing emphasis on its links to natural resource management and regional cooperation and integration.

As stated in the project documents, this shift is a partial reason for the approach being taken to the latest Thirteenth Agriculture and Natural Resources Research at International Agricultural Research Centers. This Technical Advisory program is focusing on the current food crisis and only two of the CG Centers are now receiving funding under this program—IRRI and IFPRI. A further opportunity for engagement is through ADBs programming for the Greater Mekong Sub-region Agriculture Secretariat[1] which focuses on regional cooperation and investment in the areas of biotechnology and biosafety, rural renewable energy development, agriculture information network services, cross-border trade and food security. This program specifically mentions rice-fish as a priority.

In the short term, adjustments will be made slowly and current programming focus will be continued. For example, in the recent Country Operations Business Plan 2008 to 2010 for Cambodia the work on the Tonle Sap Biosphere Reserve will be continued. Existing loans are currently funding fisheries project such as the Coastal Fisheries Management and Development project in Papua New Guinea and the Sustainable Aquaculture for Poverty Reduction in Indonesia. Programming more related to Climate Change, for example the CTI are covered in the analysis on CLIMATE CHANGE.

Our past track record on delivering ADB projects outcomes impacting natural resource management and regional cooperation initiatives should position us well for future engagement with them.

AfDB

The African Development Bank continues to have one of its priorities as agriculture and rural development—which includes fisheries. In the Strategic Plan 2003-2007 and the 2004 Policy on Poverty Reduction, agriculture and rural development are seen as important strategies for tackling the poverty in Africa. Within this, the AfDB has been undertaking fisheries projects such as the Lake Malawi Artisanal Development Project and the Fisheries Development Program in Uganda. In the last several years, however, they have been increasing their sector support to broader agricultural initiatives and there have not been any recent large scale fisheries focused projects. Further clarity as to the consequences for fisheries and aquaculture may come with Norway’s review of AfDB’s fisheries and aquaculture programming.

AfDB feels that agricultural research is better done on a regional or sub-regional basis and is likely to increase funding to the Forum for Agricultural Research in Africa (FARA) and sub-regional organizations like the Association for Strengthening Agricultural Research in Eastern and Central Africa. (ASARECA).

Australia

The Australian Center for Agriculture Research (ACIAR) unveiled a very progressive strategy for its fisheries investments to reduce poverty. With a strong focus on Southern Philippines, Eastern Indonesia, South central coastal and North West Vietnam, Laos, Papua New Guinea and the South Pacific it will focus on marginalized groups (farmers, ethnic minorities and women).

ACIARs programming in fisheries also gives priority to integration of programs with government systems rather than relying on short-term projects led by international/expat led projects and with stronger involvement of the private sector. Further in keeping with Australian ODA policy and in line with the approach taken by most ODA investors, they want to see greater coordination with partner governments and investors and will be placing a greater emphasis on monitoring effectiveness of aid and on development research. ACIAR aims to expand project size to a minimum of AUD 1M and invest in sectors most likely to deliver community impacts, where science and technology issues are the major constraints, with public and private sector partners best placed to undertake the research and extension elements and in communities where there is capacity for and likelihood of adoption.

Investments will focus on highest scientific priorities of country partners, areas where Australia has expertise, potential for impact, where there are benefits to Australia and non-duplication of other investor programs. Benefits to Australia could include professional development, market development, work that benefits Australian fisheries etc.

Canada

The funding by CIDA is the last several years for fisheries projects has been primarily based on responsive proposals from various Canadian and outside groups. CIDA no longer has a fisheries expert (and no plans for replacement) and with a shift towards a greater economic development focus, it is difficult to determine the future emphasis on this area

The types of projects that have been funded are either multi-donor like the Nile Basin Initiative, responding to the tsunami crisis as with the support of the FAO for the National Aquatic Resources Research and Development Agency in Sri Lanka, or responding to interests of Canadian non-governmental organizations such as the work in India helping fishers improve their livelihood. Early in 2009, Canada released the names of its 20 key development partners, included on the list are Bangladesh, Ethiopia, Ghana, Indonesia, Mali, Mozambique, Pakistan, Senegal, Sudan, Tanzania and Vietnam. Beyond its support to the CG which channels core funding directly to Centers, CIDA favors programming direct to countries or sub-regional or regional organizations.

Denmark

Denmark has been supporting aquaculture and fisheries extensively in the past but the support is currently focused on only two of their programming countries—Vietnam (although it is gradually being phased out as a priority due to its rapid economic development) and Bangladesh. Two-thirds of all Denmark’s development assistance is focused on Africa.Fisheries come under their social and economic development priority.

Denmark has been shifting away from project funding with partner countries to program based funding and sector support. This is basically direct or multi-donor budgetary support to the Governments to implement programs based on country priorities and plans. As a result, the aquaculture support is bundled into these broader sector support programs.

In Bangladesh, Denmark is supporting Agricultural Sector Support Programme II which includes fisheries sector. The focus is on diversification into areas such as aquaculture with increased awareness about the linkages between production, food, and nutrition. Denmark commissioned a major view of opportunities for aquaculture in Bangladesh in 2005. The Greater Noakhali Aquaculture Extension Component is promoting freshwater prawns and integrated farming systems and has a specific focus on women. The Patuakhali-Barguna Aquaculture extension Component is providing training to improve integrated pond polyculture and integrated gher farming. Funds for these programs have already been allocated so further opportunities would

have to be explored with the agencies responsible for the sector programming, not Denmark per se. These are the Ministry of Fisheries and Livestock in Bangladesh and the Ministry of Fisheries in Vietnam.

Denmark published an Africa Strategy that outlines it strategic objectives for 2007-2011. These include: inclusion in globalization; increased regional integration and strengthened cooperation between Africa and the EU; and more and better assistance with a focus on young people, gender equality, and in particular employment. Currently, Denmark has long term programming with ten countries: Benin; Burkina Faso; Ghana; Kenya; Mali; Niger; Mozambique; Tanzania; Uganda; and Zambia. Further, In 2008, Denmark established an Africa Commission aimed at developing new ideas and strategies for development cooperation with Africa. The focus is on growth and economic development. The Commission is composed of 18 members and includes the President of Tanzania, the Prime Minister of Mozambique, high level UN, African Union and EU members. Denmark has set aside DKK200 M (nearly $40M) to the recommendations that emerge in 2009.

European Commission

The EC has a strong focus on sustainable management of natural resources especially fisheries. Funding is provided through both the geographic programming as well as the Thematic Program for Environment and Natural Resources. The latter are dedicated funds for biodiversity, and sustainable fisheries. The fisheries programming focuses on strengthening fisheries and marine management and governance, particularly transboundary issues and environmental measures that enhance the sustainability use of fisheries and marine resources, as well as protection of coral reefs and coastal zone management. Given ECs fisheries interests is strongly aligned with natural resources management, their fisheries programming appears in the analysis focused on the environment. More details are also included in ECsThematic Programme on Environment and Sustainable Management of Natural Resources outlines priorities for 2007 to 2013.

Germany

Germany is another investor that has consistently included fisheries in its rural development and agricultural programming and has funded large scale projects in particular on aquaculture, in Africa and Asia. In its Program of Action 2015, a series of priorities are laid out including enhancing the role of the poor in the economy. It specifically calls for a series of activities to support enhancing food security and agricultural performance including:

  • Supporting the rapid elimination of protectionism in the agricultural sector and all forms of export subsidies so as not to harm food production and marketing in the developing countries;
  • Increasing support for agricultural including fisheries to improve opportunities for small farmers;
  • Enhancing rural producers' capacity for self-help by supporting capacity building and organizational development;
  • Supporting agricultural development and agricultural research, focusing on food production;
  • Supporting national and international food security programs, and especially taking the role of women in food production into account;
  • Providing secure access to genetic resources; and
  • Supporting developing countries in putting in place the framework conditions to guarantee effective protection against the risks involved in genetic engineering in the areas of food and agriculture.

Food security, agriculture and rural development are the main focuses of German development cooperation in 22 partner countries. Over the years these approaches have translated into a wide range of programming in support of aquaculture and fisheries in poor communities. Most of these initiatives have taken an integrated approach ranging from support to production to fisheries management. Some of the on-going projects include the Program for the Management of Sustainable Resources in the Philippines which takes a multi-prong approach working at the policy level as well as with low income families reliant of fisheries, aquaculture, forestry, and agriculture. Germany also has an integrated program in Timor Leste supporting the development of improved agricultural products including fish.

As for our priority countries; Ethiopia, Mozambique and Cambodia are receiving support in implementing their national food security strategies, which are also part of their national Poverty Reduction Strategy Papers (PRSP). Germany is helping the Philippines and Cambodia implement agricultural reforms.

Germany has provided considerable leadership in investor coordination both with and outside the CGIAR. As such discussions with them reach multiple channels. For example, Germany was instrumental in the establishment of the Global Donor Platform for Rural Development (GDPRD) and houses the Secretariat. The Donor Platform is active in three areas: advocacy and outreach; shared learning; and promoting aid effectiveness in rural development. They are now funded by a range of donors active in rural development including DFID, WB, USAID, France, Swiss, and CIDA.

IFAD

Under its new Strategic Framework 2007-2010, IFAD has established a new focus for its programmingon supporting the poor and marginalized rural population. This includes artisanal fishers. The approach is to support methods for rural people to have better access to and the skills and organization they need to take advantage of opportunities. One element of this is “improved agricultural technologies and effective production systems”. IFAD’s focus will be on: promoting the development and dissemination of improved agricultural technologies; emergence of locally, demand driven production services; and improvement in technologies and services to enhance productivity. This includes fisheries productivity.

In the past, IFAD has supported some fisheries projects. Many of the IFAD projects, however, have fisheries development and livelihoods within broader initiatives to support agricultural development. For example, the Rural Livelihoods and Economic Enhancement Programme in Malawi includes agriculture, livestock and fish production and provides support from improving production to marketing. The Market Infrastructure Development Project in Charland Region Bangladesh is also an integrated project. The largest potential most recent opportunity (which was communicated late last year to directors involved) was the – Integrated Agricultural Rehabilitation Program for DRCongo. A major component of this $44M project will work to assist in agricultural production rehabilitation of crops, animals and fish. The project illustrates IFADs move toward more integrated projects.

Japan

Late in 2008, the Ministry of International Affairs announced restructuring to form the ‘New JICA’ and its key priorities. The new JICA is one of the largest bilateral aid agencies equipped with all three aid modalities: technical cooperation, grants, and ODA loans. The new JICA is now capable of making more focused and timely cooperation tailored to the diverse needs of developing countries, from supports for large-scale infrastructure developments to community-based grass-root cooperation. Japan announced 2 development priorities: Improving agricultural productivity, climate change and disaster prevention.

Building on Japanese expertise strong support is being given to rice, and significant investment is flowing to the CG for ongoing development of new rice varieties to address the challenges of climate change. High on the agenda is support for Africa and Japan committed $100M over the next 5 years for a comprehensive program from fertilizer to markets and capacity building aimed at doubling the production of rice in the next 5 years. Opportunities potentially exist here for WorldFish related to rice-fish.

Japan’s Climate change focus was covered under the earlier analysis on climate change.

Netherlands

Netherlands organizes its programs into 3 categories of partner countries:

  • Profile 1 countries have a focus on MDG programming support and include Ghana, Bangladesh, Tanzania, and Mozambique
  • Profile 2 countries face security and stability issues and support is provided here to countries such as DR Congo and Pakistan.
  • Profile 3 countries are at a more advanced stage and the development cooperation is only one element of the relationship. This includes Indonesia, Vietnam and Egypt

The Netherlands has provided some funding to support fisheries and will continue in a limited number of countries primarily Vietnam. The focus, however, will be on supporting trade and investment as well as capacity development. Since Vietnam is a Profile 3 country the support is part of an integrated package that goes beyond development assistance. Other programming being undertaken relates more to environmental issues such as fishing in coastal waters of Western Africa or how to promote sustainable production in the fisheries sector.

In general, the Netherlands is moving away from funding of specific productive sectors to more of a focus on economic growth in general. This includes support to more general investment climate issues (such as contributions to the Investment Climate Facility in Africa) or budgetary support for growth and equity initiatives. New funding has been announced for agriculture but this will focus on strengthening international research in the light of climate change and globalization, supporting the development of agriculture in fragile states like Afghanistan, supporting farmers’ organisations and cooperatives, and improving the financial sector. Although are best opportunities for funding are bilateral, given our recent profile in Climate Change it might be timely to try to re-engage with Netherlands on this global issue, in concert with the CGIAR or fisheries climate change consortia.