|
Overview
of Institutional Development Program
IFDC
has been successfully
implementing projects in this field for over 25
years. Through these projects, IFDC has been
increasing private sector participation and
investment in agricultural markets improving the
efficient supply of yield- and income-enhancing
agricultural technologies to farmers. IFDC has
demonstrated a comparative advantage in fostering
agribusiness development by drawing on its uniquely
integrated structure and multidisciplinary staff to
tackle problems simultaneously and in a holistic and
hands-on, client-responsive manner.
In
carrying out market development projects, IFDC nurtures
input and output marketing systems and trade
associations that work, because they are grounded in
economic interests. Success in agribusiness
development and crop diversification such as that
demonstrated by IFDC in its many projects requires a
complex mix of training, technical assistance,
applied research and experimentation, working along
backward and forward linkages, effective
public-private cooperation, institutional capacity
building, and policy reform, integrating the various
components in a synergistic formula that generates
higher value products in a profitable and
environmentally sustainable manner.
The
result, as demonstrated in the range of IFDC
projects, is the ability to strengthen the technical
and financial capability of farmers and agribusiness
enterprises. This is carried out through various
activities geared to promote their diversification
into higher value production, develop agro-industry
clusters and sustainable business support services,
create a policy environment that will encourage
expansion of agribusiness, engage public and private
organizations and NGOs as effective partners in
technology transfer, take advantage of research
findings, leverage resources, and build
institutional capacity. In many cases this has been
accomplished through the development, nurturing, and
strengthening of trade associations, which empower
the individuals through the power of numbers.
Some
other specific activities that are also used by IFDC
in the implementation of development projects are:
Policy
Reform
IFDC
projects have achieved great success in removing
constraints to agribusiness growth, such as tariffs
on critical inputs, subsidies in Bangladesh, and
easing entry into business. During the 1980s, IFDC
guided Bangladesh in significant reforms that
privatized the fertilizer distribution system. The
result was better service for farmers, substantial
savings from the removal of subsidies, and an
increase in fertilizer use that helped make the
former "basket case" country
self-sufficient in rice. The project dismantled a
governmental bureaucracy.
Called
upon to recommend improvements in the Japanese
Second Kennedy Round grant program of agri-inputs,
IFDC has been able to convince the authorities in
Albania to consult with trade associations in
determining the products and to auction them in a
transparent manner. An auction program for EU
fertilizer in Kosovo strengthened the private dealer
network and generated a revolving credit fund for
agribusiness.
Agro-Input
Regulatory Systems
A
recognized expert in establishing fertilizer
regulatory systems in developing and transitional
countries, IFDC has introduced improved systems for
seed and crop protection products (CPP). In addition
to drafting legislation and designing inspection and
testing programs, IFDC has implemented the upgrading
of fertilizer and seed testing laboratories and
training of staff to implement regulations
effectively. IFDC helped develop the seed industries
in Bangladesh and Albania, including the national
seed-testing unit.
Market
Information Systems
IFDC
has developed a range of market information systems
for agri-inputs as an integral part of its projects
in Albania, Bangladesh, Kosovo, and sub-Saharan
Africa. A comprehensive fertilizer monitoring and
analysis program was developed for the Government of
Bangladesh in 1995 and successfully handed over in
1999 to the MOA, where the unit that was trained
under the project continues to function.
Credit
and Finance
A
key to the success of the IFDC-integrated
agribusiness development model is the ability to
obtain access to credit and finance for clients.
IFDC helped dealers in Albania obtain US
$18 million in critical bank and mercantile
credit. They shifted to supplier credit and now
finance over 70% of their requirements themselves.
IFDC clients in Bangladesh obtained access to new
bank credit and self-investment of over US
$250 million during a recent 5-year project.
IFDC
has been able to assist the clients by building good
rapport with local, regional, and international
financiers by providing comprehensive training in
agribusiness lending practices and policies to local
bankers, by prescreening borrowers for lenders, and
by providing a solid foundation for entrepreneurs in
business and technical training.
For
more information about IFDC’s Institutional
Development Program and Projects, click here: PDF
of IFDC and Its Capabilities.
Return
to Market Development Division Main Page...
|
