New multi-donor trust fund to promote direct contact between developing countries to exchange knowledge and expertise in fighting poverty
Facility attracting traditional and new donors
First grant linking Indian and African farmers to share knowledge on how to replicate India's dairy revolution in Africa
October 11, 2008—During a period of 25 years (1970-1996), a unique program, popularly known as Operation Flood, transformed a chronically milk-deficient India into the largest producer of milk and milk products in the world.
Can this phenomenal turnaround-which has since become the stuff of legend-happen elsewhere? When can the experience in one country be replicated in another?
Under a new multi-donor trust fund, practitioners from the small town of Anand in the state of Gujarat are visiting Tanzania and Uganda to demonstrate first-hand how to replicate India's "white revolution."
This innovative exchange of practical experience is being funded through the South-South Experience Exchange Facility, officially launched by World Bank President Robert B. Zoellick during the World Bank-IMF Annual Meetings.
"In their quest to accelerate growth and improve living standards, policy makers in the developing world are constantly in search of innovative ideas. They see the experiences of their counterparts in emerging economies as increasingly relevant," says Zoellick.
"Knowledge is key to development, and the World Bank Group can share not only its own knowledge but also the expertise and experience of other developing countries with our clients."
Seven donors (China, India, Mexico, Denmark, the Netherlands, Spain, and the UK) have already pledged support to the fund, and others have expressed strong interest.
Ngozi Okonjo-Iweala, World Bank Group Managing Director, whose work on reforms in Nigeria benefited from this kind of developing countries' exchange, said: "The South-South Experience Exchange Facility is an exciting initiative that will help policy makers and practitioners in low-income developing countries-who face serious problems and cannot afford the luxury of long time lines to receive support-to benefit from the first-hand experience of their counterparts in other developing countries."
The visitors tour the state-of-the-art Amul milk processing plant at Gandhinagar.
Milk Makes its Mark
The Indian model was first introduced to Africa by interested practitioners from Ethiopia, Tanzania, and Uganda who visited India.
"Dairying is a very good means of improving livelihoods, especially for poor farmers," says Simon Bell, World Bank sector manager in the South Asia region.
"In both East Africa and India, most rural families-even the landless ones-own at least one or two cows and buffaloes, and it is generally the women who look after them," says Bell.
"With rising food prices, milk can play an important role in improving the diets of the poor."
"Linking profitable, privately run enterprises with these people at the bottom of the pyramid can produce real win-win situations for the rural poor, as well as for the business sector."
Cooperative Structure Succeeds
India's "white revolution" happened because a highly efficient supply chain allowed small producers to participate successfully in the marketplace, via a cooperative structure, and hence through private sector institutions, to the Indian consuming public.
Anand is the headquarters of the Gujarat Cooperative Milk Marketing Federation, which includes 2.7 million small farmers and, in turn, owns the famous Amul brand. Anand is also home to India's National Dairy Development Board (NDDB).
The African delegation came away impressed that Indian small farmers had guided and influenced policy from the bottom up, and it opened their eyes to the enormous possibilities in their own countries.
According to Medhin Aregay Dubale from Ethiopia, non-interference by the government in the formation and control of cooperatives was a key element of the Indian success.
"We thought we needed large herds of high-quality cows. But now we've seen it can work if a lot of people bring in a little milk each," says D.K. Mmari from Tanzania, who plans to start producing enough milk in his own dairy to supply the fast-growing city of Dar es Salaam.
Medhin Aregay Dubale from Ethiopia looks at the quality of cattle feed.
The 'South-South Experience'
By bringing together Indian and African dairy experts, the facility will help support this type of work and move forward South-South collaboration.
"The dairy industry is a good place to start, as it has considerable and important nutritional benefits for the poor," says Okonjo-Iweala.
"India's dairy sector has grown over the past two decades to make it the largest milk-producing country, by including the poorest as producers and consumers. This is valuable experience toward achieving the MDGs."
Examples of areas suited for this financing include managing commodity windfalls; fiscal sustainability such as efficient tax systems; pension reform; information communication and technology for ICT-enabled growth; social programs targeting the poor, including conditional cash transfers and safety nets; rural credit; and trade integration and investment climate.
An "experience exchange library" is also being built to share knowledge on the exchanges.
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