|The Courier N° 138 - March - April 1993 Dossier: Africa's New Democracies - Country Reports : Jamaica - Zambia (EC Courier, 1993, 96 p.)|
by Jan MULDER
Since the start of the European Development Fund in the early 1960s, considerable importance has been attached to the financing of rural development projects in Africa. The main emphasis has been on increased agricultural production, of which animal production is an integral part.
At the beginning of the 1980s, a division was created within the EC Commission with the job of evaluating in a systematic way, the various projects which had been the subject of EDF financing.
As regards animal production projects, the conclusions of the evaluation which was undertaken were set out in a document produced in 1984 entitled: 'Basic Principles of Livestock Development'. This contained numerous recommendations, amongst which were:
-Sectoral policy concerning the development of livestock
resources should be focused on the livestock producer and his family with
particular attention being paid to the role of women.
-The scale of financial resources to be allocated to such efforts must be in reasonable proportion to the livestock sector's potential and its current contribution to national wealth.
-Every possible effort should be made to promote and encourage private initiatives of all kinds in the provision of the goods and services - such as drugs, animal feed, credit and marketing of livestock products which are needed by the livestock producer.
-It is essential to formulate and implement a pricing policy for inputs and livestock products alike.
It was around the same time that the EDF was confronted with numerous demands to finance a vaccination campaign against rinderpest. In fact, one of the earliest EDF interventions in the development of African animal resources had been in this area, when the Community participated in the financing of 'Joint Programme 15'. Together with other donors, a vaccination campaign had been financed in several African countries over a period of about 15 years. Indeed, the programme envisaged the eradication of rinderpest in Africa and it almost succeeded. It was thought, when donor financing stopped towards the end of the 1970s, that rinderpest was under control, if not eradicated, but in the event, it was too early to claim victory.
During the early 1980s, it was clear that rinderpest outbreaks were occurring on a large scale in various African countries. What was the reason for the recurrence of this disease, despite the massive financial investments which had been made in the earlier campaign?
Several explanations were advanced although it was clear that these were not all applicable in the same way to each of the countries concerned. These included:
-The fact that the allocation of government budgets to
agriculture and, in particular, to livestock development, had not reflected the
importance of this sector's contribution to the national economy.
-The practice whereby all veterinary graduates were automatically recruited to the state veterinary service, the major part of whose budget was utilised for salary payments rather than operations in the field.
-The policy of almost all governments of carrying out vaccination campaigns free of charge and of subsidising to a large extent, other forms of veterinary intervention.
It was, therefore, concluded that the essential point was not to provide funds for a specific campaign against a specific animal disease, but rather to establish a policy directed at finding additional or alternative financing for the veterinary services. And it was not just these services that needed attention. There was also the question of better financing for livestock services, bearing in mind the object of increasing animal production in Africa to meet the needs of an expanding population. The problems of adequate nutrition and the overgrazing associated with it required no less attention than those arising from the outbreak of contagious animal diseases.
The Organisation of African Unity (OAU) and, in particular, its Inter-African Bureau of Animal Production proved to be an interested partner in the development of new policies which envisaged the establishment of better livestock services for farmers.
In 1986, a Financing Agreement was concluded between the OAU and the Commission of the EC. The agreement set out two approaches:
-Those countries which were confronted at that time with
outbreaks of rinderpest would be assisted immediately in stemming the spread of
-For all other countries, financing agreements for the purpose of rendering livestock services more effective would only be concluded after the successful conclusion of a policy dialogue aimed at making more adequate finance available for those working in such services.
The Financing Agreement set out five options for achieving the latter. These options, and subsequent experience with them may be summarised as follows:
Direct payment for services rendered This policy aims at a situation whereby farmers contribute to all services provided by the government. The degree of government subsidy can vary but should, in the course of a project period, be adapted.
This approach is now almost universally accepted in Africa, as far as the provision of drugs and non-compulsory vaccinations is concerned, although the degree of subsidy varies from country to country.
Proceeds from the sale of drugs and vaccines are put into a revolving fund. Sometimes, however, the operation of these funds is problematic. In certain countries, inflation is high and prices are not adapted accordingly, while the time which elapses between purchase and sale of new drugs can sometimes be too long.
The purchase of new drugs and vaccines may also pose difficulties as not all African currencies are easily convertible into those currencies that are required for buying new inputs. In addition, there is sometimes the problem that drug importing is the exclusive responsibility of a state company which is saddled with old debts, although a solution to this could be found in encouraging the establishment of private companies. EDF financing can be used for both purposes.
There are, however, countries that prefer to continue with the provision of services which are subsidised or free of charge. The latter is sometimes the case with compulsory vaccination campaigns. If the budgetary resources of the government are insufficient, it cannot simply be left to the donor to fund these subsidies on a permanent basis. Instead, a system could be developed in line with the other 'dialogue points' from the OAU-EC Financing Agreement.
Direct or indirect taxation for services rendered. In several countries, taxes levied on the livestock sector already exist. For various reasons, however, the sums collected are not put back into the sector itself. There are good reasons for adhering to the principle of a consolidated fund (unified finance) for government budgets. However. in some countries and under certain conditions. it should be possible to introduce specific taxes and levies to be used to finance specific actions. For example, it might be possible to form a livestock development fund. If such a fund were set up at national level, it could suffer from the same problems as those which characterise existing revolving funds (for example. complex administrative procedures). A better approach might be to establish these funds at regional or even district level, in order to simplify procedures. It is important, after all, to ensure that where a farmer is paying special taxes, he can see the benefit in the form of better services. And when special funds are developed at a local level, the next step, as outlined in the 'dialogue point' of the Financing Agreement which follows, is a small one.
Development of farmers' associations, pastoral associations or cooperatives. Instead of the Government being responsible for the provision of veterinary or other services, farmers themselves could be encouraged to organise the provision of these services. An obvious precondition is that the law must permit the formation of such associations and cooperatives. The law must also regulate the conditions under which these organisations can be formed and should protect their members.
has only limited experience of encouraging the organisation of livestock services in this way. Elsewhere, the picture is somewhat different. By way of example, the responsibility for maintenance of watering points constructed in dry areas has increasingly been laid on the shoulders of the users.
EDF funds can be used to provide better veterinary infrastructure for the benefit of members of societies who, in turn, are obliged to recruit qualified personnel for veterinary and extension services.
This is one step in the direction of privatisation. The ´dialogue point' which follows suggests moving towards this goal in a more general way.
Privatisation of the veterinary profession. Of all the 'dialogue points', this is the one that has attracted the most attention. There is considerable enthusiasm for it. The establishment of the system in practice, however. has proved to be a long and cumbersome process, although the prospects in some regions are still thought to be good. There is, after all. no reason to believe that in Africa, contrary to the situation elsewhere in the world, it is impossible for private veterinarians to earn a living in rural areas.
Experience has shown that a number of conditions are helpful in starting a privatisation programme. In the first place, it is necessary to have a national professional organisation with powers to decide who should be allowed to set themselves up in veterinary practice and to regulate their activity. It is the profession itself that must control the quality of the services it provides. Secondly, the legislative framework must exist to allow private veterinarians to operate. There must also be an assurance from the government that there is not unfair competition from their own services which are often subsidised.
The role of the donor is in the provision of credit. It can form a fund which guarantees the loans that banks provide to selected veterinarians and could also consider giving premiums to encourage veterinarians to leave government service and establish themselves. The donor might also give loans for associated activities in recognition of the fact that, at the outset, it might not be possible to generate sufficient income solely from the practice or from veterinary pharmacy.
Of course, it is also essential for the development of private practice that the market generates an income for farmers which is sufficient to allow them to pay for the services they receive. The OAU-EC Financing Agreement recognises this in the last 'dialogue point'.
Imposing a special levy on imports of animal products which distort the local market. This points addresses the problems which arise from the dumping of animal products on African markets. A levy should prevent this from happening. Ideally, the proceeds of such a levy should be used to finance services provided by the government but the principle of 'unified finance' prevents this in most countries.
In the preparation of EDF interventions in the livestock sector, all of the above 'dialogue points' need to be considered, but it should be recognised that there is no solution which is universally applicable. Solutions will always have to be adapted to the specific conditions of the country or region or perhaps even the individual location concerned. The European Commission has an open approach on this which is aimed at finding the best system in each case. J.M.
by Achim KRATZ
Silence, discovery, mobilisation and consolidation. These are the four stages of the AIDS control campaign so far, says the World Health Organisation (WHO).
The first of them, which began in the mid-1970s, was the time of the 'silent pandemic' during which HIV took hold in almost every continent, with barely anyone noticing.
In 1981, a description of AIDS signalled the end of this era of silence during which the human immuno-deficiency virus and its methods of transmission had been identified.
In phase three, which began in 1986, the human resources to run the campaign were mobilised first of all in the form of emergency aid and then as medium-term structured aid.
Yet another phase, consolidation, has just begun in which emergency aid is giving way to longer-term activities which are more structured, better thought-out and better coordinated, both nationally and internationally. The Commission's programme is being reorganised to reflect the urgency of operations and there is long-term planning and a drive to ensure that all the national partners in the different sectors concerned take an active part in the national programmes.
This means that specific AIDS control schemes have to be better coordinated and integrated in the EC's development aid programmes, particularly with the health components of the national indicative programmes and the counterpart funds (mainly accruing from the structural adjustment programmes).
The prime aim, now and in the coming years, is to prevent the sexual, intravenous and perinatal transmission of AIDS.
Prevention is undeniably the most important aspect of international strategy, because it is the only way of limiting the human consequences and social and economic cost of HIV infection. But it is, alas, highly unlikely that any efficient, affordable vaccine will be available by the end of the century, so yet another job in the coming years is to reduce the individual, social and economic impact of the advancing pandemic.
EC priority is on completing and consolidating the ongoing operations and making plans to extend them if this is called for. There are two important criteria for new AIDS control projects. Firstly they must be part of health schemes which the countries are running with EC cooperation and, secondly they must be part of national AIDS control campaigns-which all ACPs now have.
The Commission aims to spend at least ECU 50 million of LomV funds on AIDS, of which at least ECU 30m is to come from the ACP States' national indicative programmes and ECU 20m from the regional funds for all ACPs. This is new, because the ECU 39m of the previous Convention were entirely financed from the regional monies, a decision which the Commission took at the beginning of the AIDS programme, in 1987, for two main reasons.
First of all, it was vital to get over the political and psychological hesitations about the programme in the ACP countries, since some of them even refused to admit that there was any trace of the pandemic on their territories. The addition of regional funds to the national programmes was enough of a financial incentive to overcome this.
Secondly, the AIDS operation was something entirely new, and uniform design and action were vital from the outset to ensure that the right strategy could be developed, on the basis of experience gained.
Once this was achieved, there was no longer any need to go on financing the whole of the AIDS control programmes from the all-ACP regional funds. There were financial reasons for this (i.e. there was a limit on the all-ACP action funds), but the most important thing was that ACP government leaders were now fully aware of the gravity of the situation and financing AIDS campaigns from indicative programmes gave the governments more responsibility for actually running the projects. This is important because the EC drive can never do more than back up the national efforts of the individual States.
In the emergency phase which began in 1987, these activities were new, the Commission lacked expertise and so the AIDS Task Force was set up outside to identify, define and set up specific AIDS control operations. Given the advance of the pandemic and the fact that the disease is clearly a long-term problem, the Commission of the European Communities' role in the AIDS campaign was stepped up and the Task Force maintained as it stood.
A special AIDS campaign coordination and monitoring unit is now being set up in the Commission to oversee coordination with the Member States and other funders (especially the WHO) and ensure that AIDS-specific activities are consistent with health and development schemes in general. The unit will represent the Commission in international meetings and conferences on the pandemic and establish contact with research institutes, consultants and specialised NGOs.
On 1 January, the AIDS Task Force became a technical assistance group, based in Brussels, to back up the new unit and help the ACP countries define national and/or regional AIDS control policies and prepare and help run specific projects to be submitted for Commission financing. A.K.