 The World Bank support to rural development in East Asia and Pacific reflects the multiple developmental challenges and the varied rural conditions found across the region. While the key principles of Bank support to rural development are consistent across countries (see topic brief), approaches need to be flexible and respond to local needs to support the development of robust, inclusive and sustainable rural economies. The Bank has financed numerous analytical studies and investment operations in the region. Below is a summary of some of the results of the Bank’s work across the region. |
Agriculture and Achieving the Millenium Development Goals
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Cambodia | China | Indonesia | Lao PDR  | Mongolia | Philippines | SamoaÂ
 Timor-Leste | Vietnam Cambodia  Supported under an IDA Learning and Innovation Loan, the Northeast Village Development Project introduced participatory, poverty-focused rural development approaches in some of the most underserved areas of Cambodia. Under the project, participatory rural planning, project implementation and evaluation was successfully undertaken with local communities in four provinces of Northeast Cambodia, leading to the successful implementation of 120 sub-projects. Village Development Committees were established in the 120 target villages, with women constituting 40 percent of VDC membership. Villagers contributed cash and labor to the sub-projects.
The Flood Emergency Rehabilitation Project restored the economic and social infrastructure of the country damaged by the 2000 floods while indirectly supporting a recovery in rural production and incomes. It also assisted the government in formulating a long-term strategy aimed at reducing the country's vulnerability to flooding and to identify priority interventions to restore the natural drainage capacity of the Mekong basin within Cambodia. The main objective was achieved through the restoration of damaged rural roads in 162 communes of 46 districts, benefiting 227 thousand families or two million people. Irrigation systems and flood control works were rehabilitated impacting 43 thousand hectares, 355 villages and 34 thousand families. Education benefited through restoration of 376 damaged schools attended by 180 thousand. Back to top China The Bank’s work in China is widely recognized as having contributed to the reduction of absolute poverty in rural areas. The Bank’s support for rural development and management of natural resources has focused on those provinces where the majority of the rural poor reside, and where the environment is most vulnerable. Some of the notable completed projects are mentioned below:  The Qinba Mountains Poverty Reduction Project was implemented in 26 of the very poorest counties in Sichuan, Shaanxi and Ningxia provinces. Through a multi-sectoral rural development approach that included greater community participation, a new micro-finance mechanism serving poor households, and improved rural infrastructure, poverty incidence in the area reduced drastically from 26.7 percent in the project villages in 1997 to 4.6 percent by the end of 2003.
Under the Heilongjiang Agricultural Development Project, a series of new agricultural production and processing technologies have been widely adopted and expanded rural employment and increased incomes. The project has contributed significantly to women’s empowerment since over 70 percent of the beneficiaries are women. The Tarim Basin Projects have resulted in higher incomes for poor farmers through irrigated agricultural development coupled with sustainable river basin management. The Second Tarim Basin Project succeeded in lifting average annual incomes by 29 percent, while reducing the total volume of irrigated water used.  The Loess Plateau Watershed Rehabilitation Projects (I and  II) reversed environmental destruction (most notably soil erosion) through a watershed management approach. The projects have helped over 2.5 million, mostly poor people, and have fundamentally improved the ecological environment in the region. From 1999 to 2004 the average per capita incomes of project households more than doubled.
The Irrigated Agricultural Intensification II Project increased agricultural production and farmers' incomes through land management, irrigation and agricultural intensification interventions on 1.5 million ha of the Huang-Huai-Hai Plain. Overall irrigation efficiency improved by 9percent, total crop production increased by 37percent, and 88,000 hectares of forest shelter belt were established. Farmers' incomes increased by between 38 percent (better-off farmers) to 68 percent (low-income farmers) compared with non-project areas.  The Smallholder Cattle Development Project reduced rural poverty through improved smallholder livestock production in four provinces with large crop by-product surpluses. Cow-calf raising by 128 thousand households, cattle fattening by 10 thousand households, and dairy cow raising by 3.7 thousand households improved through use of new feed and breeding practices, which were integrated with support to marketing and processing to raise product quality and food safety. Farm household income increased 64 percent over the project period, with two-thirds of this attributable to project-supported activities. Economic returns overall for the project are estimated at 25 percent, with financial returns across farmers' supported activities ranging on average between 20 and 35 percent.
 The Guanzhong Irrigation Improvement Project improved irrigation performance on 563 thousand ha in the Guanzhong Plain in the Wei River Valley of Shaanxi Province, resulting in increased agricultural production and higher net incomes of project farmers, positively benefiting a population of about 5.5 million poor rural people. Crop yields increased substantially for the main crops of wheat, maize and vegetables, by 27, 34 and 35 percent respectively, accompanied by diversification into higher value-added crops. Along with physical investments in irrigation infrastructure, the project achieved strengthened organizational, technical, and financial management of the irrigation systems, and successfully demonstrated the value of greater farmer participation through water user associations for operations and maintenance. The overall economic rate of return is estimated at 19 percent.
The Southwest Poverty Reduction Project focused on rural poverty reduction and on facilitating a ‘market friendly’ increase in labor mobility from poor areas to more prosperous rural and rapidly growing urban areas in 35 of the poorest counties in Western China. Incidence of absolute poverty declined from 32 percent to 13 percent between 1995 and 2001 in the project area while the per capita net income increased by 51 percent to Y 1422. The percentage of population with per capita grain production of less than 150 kg/per year reduced from 18 percent to 4 percent by the end of the project. Overall economic returns for the project are estimated to be around 34 percent. Back to top
Indonesia The Bank has a long history of cooperation in rural development with the Government of Indonesia, dating back to support for the development of the agricultural research and extension services from the 1960s. More recent support has focused on improving the sustainable management of the country’s natural resources and supporting the Government’s decentralization policy. Recent completed projects include:  The Water Resources Sector Adjustment Loan was prepared in the wake of the financial crisis in the country in the late 1990s. This adjustment loan supported the development of the institutional and regulatory framework for the water sector, including the enactment of the Water Resources Law and the establishment of new organizations for river basin and irrigation management.
The Indonesia Second Agricultural Research Management Project strengthened a network of regional agricultural technology assessment institutes in fourteen provinces, expanded research in priority areas and commodities, and improved physical facilities and researcher capacities - 428 scientists receiving long-term training and 5,445 staff receiving short-term training - to conduct agricultural research. An increased number of approved technologies were developed and adopted by farmers and fishers, resulting in a project economic rate of return estimated at 15 percent. The research organizational structure and institutional culture transformed towards a demand-driven, farmer-first strategy. The Indonesia Coral Reef Rehabilitation and Management Project Phase I (COREMAP) helped protect, rehabilitate, and achieve sustainable use of coral reefs and associated ecosystems in Indonesia, in turn enhancing the welfare of coastal communities. Key stakeholders accepted the COREMAP strategy as a guideline for the second phase of the project (COREMAP II) and a ministerial decree was issued on coral reef management. Compliance rates increased by 10 percent in pilot sites with the introduction of monitoring, control, and surveillance, accompanied by a 50 percent reduction in number of violations per 100 patrols. The project achieved a 14 percent economic rate of return with the financial rate of return estimated at 39 percent.  The Indonesia Decentralized Agricultural and Forestry Extension Project enhanced farmers’ capacity to participate in and lead extension activities, and strengthened the capacity of the district-level integrated agricultural and forestry extension system to promote economically feasible, environmentally sustainable and socially acceptable farming practices, so as to increase farmers’ incomes in 16 pilot districts. Participating villages numbered 680, involving 177,000 households. 93 percent of participating farmers have adopted new/improved farming practices. 50 percent of farm households in participating villages joined in group and network activities, with 37 percent of participants being women and youth. Training was extended to 190,757 farmers (35 percent were women) and 2,020 farmer technicians (34 percent women) on priority topics. Overall income increases ranged between 15 and 80 percent while productivity increases ranged between 19 percent and 50 percent in a sample of participating districts.
 The Indonesia Bengkulu Regional Development Project alleviated poverty through rural development and by generating growth in rural areas of Bengkulu. This was achieved through village infrastructure and community-managed revolving funds. Participating villages numbered 369, and 64,000 families benefited from individual loans that supported activities in agriculture, fisheries, trading, small industry and services. On-time repayment on individual loans was 82 percent overall; 30 percent of village credit groups had repayment above 95 percent; and poverty incidence fell from 45 percent in 1998 to 14 percent in 2004. While not all of this is attributable to the project, income per household increased by 41 percent in project villages and by 8 percent in non-project villages. The economic rate of return was 37 percent.
The Indonesia Land Administration Project improved efficiency and equity of Indonesia’s land administration as an important measure to reduce conflicts over land, increase security of tenure, and alleviate poverty in 10 districts of Java. Over 2 million mostly rural and poor people received a clear title to their land for the first time at little or no cost and without long delays. 70 percent of beneficiaries reported they believed that the land certificates increased their tenure security. Title recipients used their titles as collateral to access credit and had increased levels of agricultural investment. The overall economic rate of return for the project is 33 percent. Back to top Lao PDR  The District Upland Development and Conservation Project helped farmers in the three pilot villages of Ban Navang, Ban Nak Feuang, and Ban Teung located in the upland watershed zones in Nakai district to adopt more intensified agricultural practices which improved their livelihoods while conserving the biodiversity of a high-priority protected area. The area under wet rice cultivation increased to 47 percent while the area under dry rice cultivation increased to 16 percent. Out of 160 households in the three pilot villages, 94 percent engaged in demonstrations of different types. School attendance increased from 33 percent to 83 percent while adult literacy rates jumped from 48 percent to 63 percent.
Back to top Mongolia Bank support for rural development in Mongolia has responded to the challenges of a rural economy characterized by remote communities largely dependent on the livestock sector, which itself is highly vulnerable to mis-management of pasture resources and severe weather.  The Sustainable Livelihoods Project has resulted in increased community participation in identifying, selecting and monitoring local infrastructure, improved pasture management by strengthening local institutions, including herder groups, and support to the development of the rural financial sector and access to credit by poor households. As of October 2006, 2842 sub-projects (mostly for small scale infrastructure works in the education and health sectors) have been approved for a total of US$11.68 million; 460 wells rehabilitated and 264 loans provided to herder groups for pasture management projects; and a total of 22,609 sub-loans have been disbursed, of which 39% have been to households below the poverty line.
Back to top Philippines The Philippines Mindanao Rural Development Project was designed as a targeted poverty reduction program for the rural poor and indigenous communities of Mindanao, aimed at improving incomes and food security in the targeted rural communities within the 25 provinces of Mindanao. It has been instrumental in introducing vital change toward decentralization and community participation in local decision making. As a result of infrastructure rehabilitation and construction, and improved technical support for agriculture and fisheries, average production per farm has increased by 86 percent (wet season) and by 76 percent dry season, leading to higher incomes.  The Land Administration and Management Project is the first stage in a long term program to improve the Philippines and administration system. In pilot demonstration areas, the time required to issue land titles has been reduced from 36 to 4 months, while onsite processing of titles has reduced conflicts and overlapping titles.
The Philippines Agrarian Reform Communities Development Project assisted the Government to strengthen farmers’ organizations in Agrarian Reform Communities in 10 provinces to undertake development activities in order to increase their incomes and pursue opportunities for sustainable growth. The project enabled about 73,000 Agrarian Reform Beneficiaries to improve their livelihoods, helped increase net household income in 98 of the participating 102 ARCs by 63 percent (equivalent to about 10 percent per year), increased construction and/or rehabilitation of access roads to 827 kilometers, reduced transport costs by 25 to 50 percent, and helped irrigate 10 thousand ha. The realized economic rate of return is estimated at 26 percent. Back to top Samoa  The Samoa Marine Biodiversity Protection and Management Project empowered local communities in the Aleipata and Safata districts to effectively protect and manage coastal marine biological diversity and help them achieve sustainable use of marine resources. Live coral cover increased by 20 percent over a 10 year period; there was at least a 50 percent decrease in Damaged Coral Index in No-Take Zones; no decrease in current area of mangroves; significant increases in the abundance and size of target fish species; and no decrease in the population of threatened species and in number of turtle nests over a 20 year period.
Back to top Timor-Leste 
The Second Agriculture Rehabilitation Project focused on improving the food security of rural families and increase agricultural production in poor areas of Timor-Leste. As a result of the project, paddy rice production increased by 3,000 tons per year. Furthermore, critical institutional capacity was built, for example in the establishment of a country wide livestock vaccination system, and water user associations for irrigation management. Back to top Vietnam  The Vietnam Irrigation Rehabilitation Project restored or established irrigation services in seven irrigation schemes covering 130,000 ha located in the southern, central and northern regions of Vietnam, introduced institutional development through transfer of technology and strengthening delivery services, and resettled families whose land or assets were acquired by the state for the project. 338,388 families benefited (108 percent of the appraisal estimate); the area rehabilitated has increased by 103 percent to about 134 thousand ha; rice production increased by 179 percent to about 926,229 tons per year; overall net farm income increased on average by US$66.8 per annum per household. The project’s overall economic rate of return achieved 19 percent.
The Vietnam Rural Finance Project improved living conditions in rural areas by encouraging private sector investments, strengthening banks’ capacity to finance private sector investments, and increased access of the rural poor to financial services. The project financed about 600,000 sub-projects of about 260,000 sub-borrowers and enabled about 357,000 rural households to have access to formal financial services. 30 percent of sub-borrowers were women and for another 35 percent of sub-projects, women actively participated in the decision to borrow and how the borrowed funds were used. The project benefited small and medium enterprises by assisting them to expand their business operations which in turn created about 3,000 new jobs and expanded participating financial institutions’ lending operations, particularly for financing medium and long term investments. Back to top February 2006
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