Your VITA newsletter for March.

DevelopNet News (mailto:dnn@VITA.ORG)
Thu, 29 Feb 1996 19:11:40 EST

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Date:         Thu, 29 Feb 1996 19:11:40 EST
From: DevelopNet News <mailto:dnn@VITA.ORG>
Subject:      Your VITA newsletter for March.
To: Multiple recipients of list DEVEL-L <mailto:DEVEL-L@AMERICAN.EDU>

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       March 1996                                 Volume 6, No. 3

IN THIS ISSUE

AGRICULTURE WATCH

New Farm Exports to Reduce Poverty

LITERATURE REVIEWS

The Missing Element: Operation and Maintenance

Legacies of Yesterday's Technology

After Beijing: The Role of Women

ORGANIZATIONS

Rescuing Families From Poverty

African Development Foundation

VITA PROJECTS

Global, On-Line Agriculture Conference

ANNOUNCEMENTS

Telecommunications in Africa

Technology Policies and Sustainable Development

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DevelopNet News is published monthly by Volunteers in Technical Assistance (VITA) in Arlington, Virginia, USA. For additional information, please see the end of this newsletter.

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A g r i c u l t u r e W a t c h

NEW FARM EXPORTS TO REDUCE POVERTY

Major international lending institutions are starting to encourage non- traditional agricultural exports (NTAEs) as a way to reduce poverty, increase income, and diversify risk. The banks are encouraging NTAEs in Latin America and many African nations.

The idea of NTAEs is to promote labor-intensive agricultural exports of crops that are nontraditional. NTAEs vary from country to country, but may include winter vegetables, nuts, exotic tropical fruits, and orna- mental plants and flowers. NTAEs are considered keys to economic growth because of their high intrinsic value (high value added through proces- sing) and their ability to command high prices at a time when prices for other products stagnate or decline.

NTAEs, poverty reduction, and job creation

Failed agricultural growth feeds poverty where poverty already exists. The Overseas Development Council finds that nontraditional agricultural exports seem to be an ideal way to reduce rural poverty. NTAEs not only hold the promise of higher income but, given the varying climate and seasonal requirements, they give farmers a greater choice of what to cultivate and can create significant new employment. In fact, NTAEs assist in alleviating poverty in these ways: (1) When poor farmers intercrop nontraditional with traditional crops they earn extra income. (2) New jobs are provided to landless farm workers during harvest time. For example, a 1992 study by the U.S. Agency for International Develop- ment (USAID) showed in 1992 that in Guatemala alone, the NTAE sector had created the full-time equivalent of 35,000 jobs. (3) Farmers recover their initial investments early because nontraditional crops tend to mature relatively quickly.

So it is not surprising that, at least in Latin America, nontraditional crops seem to have become a necessary part of successful medium- and long-term development strategy. This is particularly true because the production of the traditional corn and beans for local consumption seems to offer less and less chance of alleviating poverty. While the popula- tion grows much faster than crop yields per hectare, countries are increasingly turning to NTAEs for opportunities to reduce poverty and improve living conditions. Consider Guatemala, which has been struggling to recover from unstable international prices for its traditional agri- cultural produce since the 1980s. Now it is turning from its traditional reliance on coffee for its foreign exchange to miniature vegetables, flowers, and other NTAEs for new sources of revenue. Costa Rica, after the 1991 collapse of world coffee prices, also shifted its focus from the production of coffee and other traditional crops to intensified promotion of cassava, papaya, melons, strawberries, eggplants, pimentos, macadamia nuts, ornamental plants, and cut flowers. If current trends prevail, in 1996 alone the country's fruit and vegetable exports will surpass the combined total of its major traditional agricultural exports of coffee, sugar, bananas, and beef.

Meanwhile, NTAE promotion continues to be heavily supported by interna- tional donors. Last November, Ecuador received $690,000 in nonreimburs- able funding from the InterAmerican Development Bank to open new inter- national trade opportunities for its nontraditional exports. And USAID is funding at least two major NTAE projects in Central America and the Eastern Caribbean.

The down side of NTAE promotion

If not introduced and managed properly, strategies focusing on NTAE promotion can increase poverty and inequity, create food import depend- encies, and result in uncertain export markets for producers of the new crops as well as environmental damage from new cropping patterns.

The first prerequisite for the successful promotion of NTAEs is the decision of farmers to switch to nontraditional crops. For these deci- sions, farmers must have information on seed selection, cultivation requirements, yields, markets, and pricing. Unfortunately, access to this type of detailed information on NTAEs is largely generated in the devel- oped world and its distribution elsewhere is limited. In most developing countries, agricultural extension services are inadequately funded and often irrelevant to the needs of small farmers. As a result, the infor- mation is often accessible only to medium- to large-scale well-to-do farmers who have the large holdings and the money to acquire it. The information doesn't reach small farmers at the village level until large growers and their intermediaries find they need to establish supplier networks.

Another impediment to the successful adoption of NTAEs is their high initial capital investment needs. For example, in 1992, USAID estimated that using traditional methods a Honduran grower of corn or beans needed to make an initial investment of only $130 to $160 per hectare, whereas the cost of growing such alternative crops as grapefruit, pine- apple, and cucumbers, could require as much as $1,000. Such investments are well beyond the means of the smaller producers and thus create inequities.

Switching to nontraditional agricultural crops can damage the environ- ment. Because of the need to yield higher quality produce acceptable in foreign markets NTAEs often require more intensive use of pesticides. Although many traditional crops such as cotton, bananas, and coffee have long been associated with higher levels of pesticide use, farmers in many developing countries use more pesticide than necessary. This behav- ior has been largely the result of insufficient education and training; it underscores the need to ensure education and the wide dissemination of information.

Finally, NTAEs run many of the risks of traditional commodity exports. Because of diversity, a drop in the price of one or two commodities may not have a devastating effect on the economy as a whole. But NTAEs are often severely hampered by protectionism in the targeted export markets. These problems can be minimized if the promotion of nontraditional agri- culture doesn't focus exclusively on international markets but also pro- motes production for domestic and regional uses.

The future of nontraditional crops

The experiences of such countries as Costa Rica in the promotion of non- traditional agricultural exports make a strong case for the long-term benefits of NTAE promotion. As in all strategic decisions, however, a country must weigh many things before adopting this type of export-led growth. For one thing, if it is adopting the strategy as part of its effort to reduce poverty, it must carefully consider the existing land and income distribution patterns among its farming population. It must design its export promotion strategy to benefit the majority of small farmers. Similarly, as a strategy, investment in nontraditional exports will yield the greatest results if they are not seen as a way of accessing only international markets but domestic and regional markets as well. Finally, as with all other new endeavors, in order to succeed and have minimal adverse effects, nontraditional agricultural export should be accompanied by the dissemination of needed information and training.

L i t e r a t u r e R e v i e w s

THE MISSING ELEMENT: OPERATION AND MAINTENANCE

Nocolette Wildeboer (ed.), 1995. "Operation and Maintenance Today: Con- straints and Trends." Water Newsletter (The Hague), No. 236/237 (October).

It is widely understood that technology transfer involves more than just making a technology available. The missing element is often "operation and maintenance" (O&M), crucial for the successful management and sus- tainbility of most technologies. This issue of Water Newsletter contains short articles about the O&M of water supply and sanitation systems, but the ideas presented are equally applicable to a large variety of other technologies.

Often, governments and support agencies focus on capital construction and expansion, which are highly visible "results" of technical support. Said otherwise, policymakers often give low priority to O&M, and it thus suffers from a low profile. Other management shortcomings, if present, just make things worse; they include lack of clear policy, political interference, inappropriate technology, inadequate access to data and field experience, and inappropriate management at the community level.

Wildeboer argues that "O&M is not just a technical issue -- it encompas- ses social, gender, economic, institutional, political, managerial, and environmental aspects."

LEGACIES OF YESTERDAY'S TECHNOLOGY

George R. Heaton, Jr., R. Darryl Banks, and Daryl W. Ditz, 1994. Missing Links: Technology and Environmental Improvement in the Industrializing World. Washington, D.C.: World Resources Institute.

This brief, well produced report describes seven ways to accelerate the use of environmentally superior technologies in the developing world. The authors say, "Pollution and global warming are legacies of yester- day's technology -- products, processes and systems designed in an age when environmental concerns were largely ignored." But prospects for environmentally superior technology in most developing countries are weakened by inadequate technical capabilities, a low demand for new technologies, and absent financial resources. The "missing link," the authors say, is the failure of governments, firms, and nongovernmental organizations to cooperate.

Each of the seven proposals is expanded to about two pages of explana- tion -- probably not enough. One of them, "Proposal 7. Build Capacity for Technological Innovation," is based on these four principles: envi- ronmental technologies that are developed outside Third-World countries are incomplete; the technologies should be developed cooperatively by persons from inside and outside the country; knowledge and skills devel- opment must be a component of all technology development and technology adaptation; and long-term connections between users and sources of tech- nology need to be established. Proposal 7 lists initiatives for provi- ding site-specific expertise.

The report is the result of joint effort by the World Resources Insti- tute, Japanese counterparts, and a consultative body in Latin America. Consultations involved industry, government, and nongovernmental organi- zations, much the same organizations that would be responsible for car- rying out the recommendations.

AFTER BEIJING: THE ROLE OF WOMEN

News and Views; A 2020 Vision for Food, Agriculture, and the Environ- ment, 1995. 6 pages. Washington, D.C.: International Food Policy Research Institute (October).

This issue of IFPRI's newsletter contains short articles on the role of women in agriculture in developing countries. Gender issues were empha- sized in Beijing last September, during the Fourth World Conference on Women and the associated Nongovernmental Organization Forum. The resul- ting "Declaration and Platform for Action" covers some areas considered critical for reform, by experts on the role of women in agriculture, food security, and nutrition. The areas include women's lack of access to appropriate technology, exclusion from most agricultural extension programs, and fewer educational opportunities than men.

This newsletter issue contains an interview with James Gustave Speth, administrator of the UN Development Programme. His comments are summar- ized as follows: The Beijing conference produced the strongest declara- tion so far on the role of women in economic and political decision- making. It included equal rights to inheritance, recognition of unpaid work, and condemnation of violence against women. It preserved the agreements reached by the Cairo International Conference on Population and Development. The UNDP can help achieve the goals of the Beijing Declaration by assisting countries in the follow-up strategies and to "put the gender perspective and the advancement of women at the heart of all our programs."

O r g a n i z a t i o n s

RESCUING FAMILIES FROM POVERTY

The Foundation for International Community Assistance (FINCA) is an international nonprofit organization that aims to support the upward transformation of families trapped in severe poverty. To accomplish this, the organization creates "village banks," peer groups of 20 to 50 members --predominantly women -- who receive (1) working capital loans to finance self-employment activities, (2) a safe place to accumulate savings and (3) mutual support for personal growth. Loans are backed by the collective guarantee of all members for each other. Village banks are run by their members, who elect management committees, draft their own by-laws, manage funds, supervise loans and are collectively respon- sible for repayment. FINCA has programs in Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Kyrgyzstan, Malawi, Mexico, Nicaragua, Peru, Uganda and the United States.

Information: Foundation for International Community Assistance, 901 King Street, Suite 400, Alexandria, Virginia 22314; tel. +1 (703) 836-5516; fax +1 (703) 836-5366.

AFRICAN DEVELOPMENT FOUNDATION

For 10 years, the African Development Foundation has provided direct assistance to small businesses, supporting them "in their own efforts, to design and implement their own strategies, to resolve their own prob- lems, to promote their own economic progress." ADF concentrates on achieving attainable goals, alleviating poverty, and creating small- scale market economies in desperately poor, mostly rural areas of Africa where no such economies previously existed. During this period, ADF assisted some 300 projects in 23 countries. Forty-three percent of the projects were agriculture related.

Proposals are initiated by prospective grantees, which must be nongov- ernmental organizations. Proposals are evaluated according to published criteria by a network of African professionals. ADF is a small foreign- assistance agency of the U.S. government with an annual budget of $17 million. Funding of each project is subject to approval by the U.S. Congress to ensure that it meets broad U.S. foreign-policy objectives.

In 1993, ADF initiated its own 10-year self-assessment in which a sample of 26 of the supported projects was studied by outside experts and in- country assessment teams. The projects were located in Cameroon, Ghana, Guinea, Senegal, Tanzania, and Zimbabwe. More than two-thirds of the projects had produced increased income or provided needed services for the participants. Participants' skills and knowledge were increased. Participants were actively involved in implementing the vast majority of projects. Most projects produced, or appeared likely to produce, bene- fits long after ADF funding ceased.

Source: Sustaining Development at the Grassroots; the African Develop- ment Foundation, Lessons Learned 1984-1994, 1995. Washington, D.C.: The African Development Foundation, 1400 Eye Street, N.W., Tenth Floor, Washington, D.C. 20005. Tel. +1 (202) 673-3916, fax +1 (202) 673-3810.

V I T A P r o j e c t s

GLOBAL, ON-LINE AGRICULTURE CONFERENCE

Last month, VITA announced plans for a global, on-line conference among experts in renewable energy and sustainable agriculture. It will take place in a few weeks from now and will address such questions as the following: Is there a useful niche for information exchange among such experts, using the Internet? How can people in developing countries benefit from this practical knowledge on a regular basis?

The full electronic linkage for the conference will be achieved in steps. At first, the network will link the University of Cape Town (South Africa) with the International Rice Research Institute (Los Banos, The Philippines). Later it will be extended through gateways, built and exclusively managed by VITA, that pass messages between VITA- sat and the Internet grid in those countries and in Chile, and Norway. The use of VITAsat, VITA's low earth orbiting satellite for developing countries, permits electronic mail to and from areas of the world that are not yet connected to the Internet.

The conference will be based on messages between the invited partici- pants and the moderator. Other persons can access the conference results and exchange messages with the moderator.

Design of the conference is based on a variety of skills of, and contin- uing cooperation among, VITA, the Winrock International Institute for Agricultural Development (Arlington, Virginia), and the Center for Renewable Energy in Sustainable Technology, the Renewable Energy and Energy Efficiency Training Institute, and the U.S. Export Council for Renewable Energy (all of Washington, D.C.)

Information: Joe Sedlak <mailto:jsedlak@vita.org>.

A n n o u n c e m e n t s

TELECOMMUNICATIONS IN AFRICA

The Fifth U.S.-Africa Telecoms and Broadcasting Conference (AFCOM96) will take place 3 to 5 June in Herndon, Virginia, close to Washington, D.C. Its theme is "Interconnecting in the Global Village;" it aims to provide private-sector and government officials the opportunity to learn about the current status of telecommunications and broadcasting in Africa from leaders who are responsible for guiding policies and trends in those sectors. The conference will be immediately followed by a spe- cial two-day forum and hands-on training seminar, designed for top offi- cials from the telecommunications sectors in Africa, and entitled, "Global Internet Connectivity for Africa."

AFCOM96 is organized by AFCOM International, publishers of Africa Com- munications magazine.

Information: AFCOM International, Inc., 10560 Main Street, Suite 510, Fairfax, Virginia 22030; tel. +1 (703) 691-3570, fax +1 (703) 691-3572, e-mail <mailto:afcom@us.net>.

TECHNOLOGY POLICIES AND SUSTAINABLE DEVELOPMENT

>From 8 to 10 October the International Association for Technology
Assessment and Forecasting Institutions (IATAFI) will hold its second international conference, in Brussels. The theme of the conference is sustainable development. The conference will explore what can be done to successfully link science and technology policies with sustainable development; clarify the technology assessments and forecasting models that can be used to aid sustainable development; seek to illustrate the main challenges in developing nuclear, space, and environmental technol- ogies; and discuss the cultural, demographic, and ethical aspects of technological innovation.

The conference is expected to benefit policy makers and government offi- cials of both developed and developing countries, as well as scientists and engineers.

Information: IATAFI96 Secretariat, c/o Statoil, 5020 Bergen, Norway. E- mail <mailto:iatafi@hibinc.no>.

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DevelopNet News is an electronic newsletter published monthly by Volun- teers in Technical Assistance (VITA), a private, nonprofit, interna- tional development organization located in Arlington, Virginia. The newsletter needs your stories: you are invited to send them to the edi- tor in electronic form. Your redistribution of DevelopNet News is encouraged. Kindly send us a message on the approximate size of your mailing list; it will be helpful in our planning. Back issues can be downloaded gratis from VITA's on-line information services.

President: Henry R. Norman <mailto:hnorman@vita.org> Editor: Vicki Tsiliopoulos <mailto:vickit@vita.org> Editorial Assistant: Rafe Ronkin, VITA Volunteer <mailto:rronkin@vita.org>

VITA specializes in information dissemination and communications tech- nology. It offers services related to sustainable agriculture, food processing, renewable energy applications, water sanitation and supply, small enterprise development, and information management. It has pro- jects in 6 African countries.

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