Module 1 - Adjustment Lending for Agriculture Policy Reform

• Look for highly visible borrower commitment to and ownership of a definite reform plan. 

  Box 1.25 Potential investments Design of adjustment program reforms and implementation plans, including identification of unambiguous and realistic conditions. Situation and problem analysis to identify key thematic issues to be addressed and possible reform options. Building ownership and administrative capacity of the borrower through training and education programs. Program budget support. Source: Authors

  Conditionalities should be kept to a minimum, be realistic, and clearly indicate the expectations of the borrowing country.
  
  
• Identify what should be analyzed at donors’ expense and what governments themselves, with technical assistance, should analyze.
  
  
• Progress in a logical sequence and disburse funding via appropriate tranching that requires that higher priority conditions be met first. Efforts to reduce price and other sector distortions should cover both outputs and inputs.
  
  
• Consider appropriate increases in investment lending to complement adjustment lending, and in particular, to overcome infrastructural constraints faced by producers.

Selected Readings

Asterisk (*) at the end of a reference indicates that it is available on the Web. See Appendix 1 for a full list of Websites.

Easterly, W. 2001. “The Effect of International Monetary Fund and World Bank Programs on Poverty.” Policy Research Working Paper 2517. World Bank, Washington, DC*

Jayarajah, C., and W. H. Branson. 1995. Structural and Sectoral Adjustment: World Bank Experience, 1980-92. Operations Evaluation Study. Washington, DC: World Bank.*

World Bank. 1994. Adjustment in Africa: Reforms, Results, and the Road Ahead. New York: Oxford University Press.

World Bank. 2001. Adjustment Lending Retrospective: Final Report, Operations Policy and Country Services. Washington, DC: World Bank.

World Bank. 2003. A User’s Guide to Poverty and Social Impact Analysis. Poverty Reduction Group (PRMPR) and Social Development Department (SDV). Washington, DC: World Bank.* 
 

References Cited

Feder, G., and J. R. Anderson. 2003. “Review of Agricultural Adjustment Lending: FY1996 – FY2002.” Agriculture and Rural Development, World Bank, Washington, DC. Processed.

Jayarajah, C., and W. H. Branson. 1995. Structural and Sectoral Adjustment: World Bank Experience, 1980-92. Operations Evaluation Study. Washington, DC: World Bank.

World Bank. 2003. “A User’s Guide to Poverty and Social Impact Analysis.” Poverty Reduction Group (PRMPR) and Social Development Department (SDV). Washington, DC: World Bank.*