NORMATIVE FRAMEWORK

TCP PROJECT FORMAT

"Agricultural Policy Assistance"

(Explanatory Note: The following framework can be used for formulating projects in which agricultural policy assistance is the main activity, in view of addressing key issues arising from identified priority policy areas. It highlights aspects of the TCP Guidelines that are of particular relevance for addressing specific agricultural policy issues. It is not, however, a substitute for TCP Guidelines. Project formulators should take care to ensure that all the basic requisites set forth in TCP Guidelines are met. A set of minimal technically oriented guides specific for designing technical cooperation arrangements in the area of agricultural policy are presented below.)

I. PROJECT SUMMARY

This section contains a succinct statement of the project outcome (improved situations or expected changes) steaming from the problem statement (below) that is realized at the end of the project. In general terms, it is expected that the agricultural policy project would contribute to strengthened Government's capacity to develop the agriculture.

Data Needs:

• Main features of the project with emphasis on expected outcomes.

Data Sources:

• Individual chapters of the project document

II. BACKGROUND AND JUSTIFICATION

This section needs to identify and concisely describe, within the current macroeconomic and policy framework, the specific policy problem for which assistance is requested and provide clear evidence that all basic TCP criteria, which govern eligibility for TCP funding, are met (see TCP Guidelines).

The section needs to be completed with the assistance of the respective central Government agencies, which have the responsibility for agricultural policy formulation, monitoring, analysis and evaluation, mainly the relevant department(s) of the Ministry of Agriculture, often in cooperation with Ministry of Planning and Ministry of Trade, etc.

The text of this section should cover the following main aspects summarized in two subsections: "Country Description" and ''Rationale and Justification for FAO Assistance":

Country Description

- General overview of the country socio-economic and political situation including a brief analysis of the resilience of the economy in withstanding the impact of the global, regional as well as internal socio-economic and political events and natural calamities;

- Summary description of macroeconomic stabilization and structural reforms, assessment of their overall socio-economic effectiveness (i.e. achieved inflation, economic growth rates, unemployment rate, private sector contribution to the GDP, etc.) and of their impact on agriculture sector performance.

- Short overview of the economic and social role of agriculture in the national economy i.e., its share in GDP, in active population, in trade, etc., national food security and poverty situation (differentiated in urban/rural, if data are available), current trend in real income of the population and its impact on domestic demand for agriculture and food products.

- Short description of the structural and institutional setting relevant to agriculture including farm and food processing and agribusiness structures; land market, rural finance infrastructure, farm input supply and output market infrastructure; support services to agriculture (research, education and extension) Ministry of Agriculture and other relevant governmental institutions. How the current structural and institutional setting impacts on labor and land productivity, farm and food sector efficiency and competitiveness.

- Description and short analysis of the current Government's sector policy, strategies and programmes: agricultural and food prices policy, international trade policy and WTO matters, sectoral support measures, investment programme and international support to agriculture sector reform.

- Clear statement of the policy problem, explanation and estimation of its magnitude and socio-economic and environmental consequences if the stated problem will not be urgently resolved. Here there is a need for identifying those policy shortcomings (i.e., unclear objectives or ineffectiveness, unclear sequencing and inappropriate policy instruments, lack of long term vision, unclear implementation strategies and operational planning, unclear financing strategy, etc.). In addition, it is imperative to mention, in concise terms, other past, ongoing and planned activities to address the respective policy issue supported by the Government and other donor agencies associated with the agro-food sector. A succinct evaluation of the results of various projects relevant to the policy area in question should also be included in this section.

Rationale and Justification for FAO Assistance

- Justification as to why the TCP agricultural policy assistance is required, what policy shortcomings the technical cooperation project intends to address and how it will facilitate policy implementation. How the TCP policy assistance fits into Government's development plans and strategic vision should also be explained. Based on the recognized limited capacity within the Ministry of Agriculture for policy and strategy formulation under the requirements of a market driven economy here should be stated the need for capacity-building in order for the Government to cost-effectively react to or minimize future negative effects of the respective policy intervention.

- Statement as to how the Government and the Ministry of Agriculture/ Department of Policy Analysis intends to build upon the technical assistance provided in specified agricultural policy area. That implies to state what sustainable advantage/benefits are expected to result from the requested TCP assistance, on the one hand, and what the Government's contribution to realizing those advantages would be, on the other.

Data Needs:

• Country location, population, area, agricultural endowment (climate and land resources, including irrigated land), existing agricultural resource base (available agricultural land per inhabitant), agricultural land use pattern, main arable crops and livestock number and production, country's main hard currency earning agricultural and food products and destination markets; main agro-food imports and originating markets.
  
• Main food security and poverty indicators: self-sufficiency situation (% of the country's total food requirements covered by domestic production), average real national income of the population, trends in food consumption.
  
• Agriculture sector share in GDP, in active population and total trade, private sector contribution to the Gross Agricultural Output (GAO) and foreign direct investment in agriculture and food-processing sector; current trends in GAO, in crop production and livestock population and production, average farm size, the extent of subsistence farming versus commercially oriented farm structure.
  
• Government agricultural policy, strategies and programmes. Externally financed projects and technical assistance addressing the agricultural policy in question.

Data Sources:

• FAOSTAT time series data on country population, urban/rural population/ land resources, irrigated land, agricultural land use; crop and livestock production and indexes; agro-food trade time series, food balance sheets indicators
  
• The World Bank (www.worldbank.org/data)
  
• Ministry of Agriculture/Department of Policy Analysis, Ministry of Planning, Ministry of Finance, Ministry of Trade, Ministry of Environment
  
• National Statistics Office, Regional/District Administration Offices
  
• Government policy statement and policy documents and laws, relevant reports produced by foreign agencies and donors

III. OBJECTIVES OF THE ASSISTANCE

"This section will state briefly but in specific terms, the particular objective(s) which the project is expected to achieve. The project objective is defined as a specific aim to be achieved and formulated as the expected future improved situation after the successful completion of the project. The statement should be drafted wherever possible in terms permitting subsequent verification of project accomplishments." (TCP Guidelines)

A concise statement is needed of what status of the targeted policy area is to be reached by the end of the project. This status would normally include halted agriculture sector economic/social/environmental deterioration and resumed/accelerated growth. Quantitative indicators should be stated that would allow verification of (i) having reached the recovery/development of the agriculture sector's status, and (ii) achieving the expected outputs (results) at the end of the project (see section below).

Training (and equipment) inputs should result in improved capacity of the national staff capable of carrying out agricultural policy diagnosis and formulation, monitoring and evaluation and cost-effectively respond to external pressures/shocks for future policy changes.

IV. PROJECT OUTPUTS (RESULTS)

"Outputs (results) to be defined in this section, are the specific products of activities undertaken, the combined use of which by project beneficiaries will achieve the objective of the project, provided assumptions about external factors are correct. They should be defined in terms that permit their verification in quantity, quality and time, and should be consistent with the project objective and design, and provide the basis for the elaboration of a clear, detailed work plan." (TCP Guidelines)

This section provides, using quantitative terms, a simple bullet-point listing of tangible outputs expected from the project. For example, the number of staff trained, of workshops held, of central/field staff equipped for undertaking a specific task related to the project's policy area, number, names and types of training manuals and/or reports prepared and the like.

Data Needs:

• Quantitative and qualitative indicators to monitor, evaluate the effectiveness/efficiency of the agricultural policy intervention in question.

Data Sources:

• Ministry of Agriculture/Department of Policy Analysis, Ministry of Planning and other relevant central/provincial institutions

V. WORK PLAN

After defining the project outputs, it is required to draw up a logical sequencing of all projects' activities and inputs required to produce all specified outputs. The timetable, which may be annexed to the project document, should be sufficiently specific and detailed, to serve as a practical guide for both national experts and consultants on what activity should be carried out, at what time and place and to be implemented by whom. This Annex should also serve as an instrument for monitoring project implementation and achievement for both the counterpart Government agency and FAO.

Data Needs:

• Logical sequence of the major project activities and estimate of the input needs and associated costs

Data Sources:

• Ministry of Agriculture/Department of Policy Analysis, Ministry of Planning and other relevant central/provincial institutions

VI. CAPACITY BUILDING

The project document should include a distinct paragraph in which description as to how national policy experts and consultants will be used to achieve project objectives, on the one hand, and how the use of such experts and consultants will contribute to building national capacity in the recipient institution/country, on the other.

Data Needs:

• Number of central and/or local staff to be trained in policy formulation, monitoring, evaluation
  
• Number of central and/or local staff/team to be equipped with hardware/software for undertaking policy analysis, design, monitoring and evaluation
  
• Number of workshops to be held
  
• Names and types of training manuals or technical reports to be prepared

Data Sources:

• Ministry of Agriculture/Department of Policy Analysis, Ministry of Planning and other relevant central/provincial institutions

VII. INPUTS TO BE PROVIDED BY FAO

The description of needed inputs should give a clear relationship between each of them and the respective project activity which each input supports. (For detailed information see TCP Guidelines, Annex I, pages iii-vi.) This section needs to clearly describe the number, type and cost by input specified under each budget line item. The project budget structure is itemized as below.

a) Personnel services

Technical services of international and/or national experts/consultants
- International consultants/experts
- FAO Advisory Technical Services (ATS)
- National experts and consultants
- International expertise under Partnership Programmes (i.e. TCDC/TCCT or Retired experts and consultants)
- Administrative support
- Supervisory Technical Services (STS)

Important Notes:
Project drafters are advised to contact the TCP Unit before preparing the staffing inputs and corresponding budgets in order to consult and apply the UN established rates for the use of international expertise, which are bounded at specific limits. It is also of utmost importance that, in obtaining personnel services for TCP projects, priority and preference should be given to the employment of competent experts under the FAO Partnership Programmes (use of TCDC/TCCT experts and Retired experts) in those countries that have signed those types of agreements with FAO.

b) Official travel
c) Contracts, Letters of Agreements or Contractual Service Agreements
d) General operating expenses (GOE)
e) Materials, supplies and equipment:

- Materials and supplies
- Equipment

f) Direct operating cost (DOC)
g) Training:

- Study tours
- In-country workshops
- Fellowships and academic training
- Young Professionals for on-the-job training

Sufficient details on each sub-category input under each budget line should be provided, including numbers of participating staff, of items, of internal trips, etc., and the cost of each item (DSA rate, monthly consultant rate. etc.). The sum of resulting amounts by sub-category under each budget line should add up to the total of the line item. Materials, Supplies and Equipment line items can be detailed, item by item, in an annex in which the number and the estimated costs of each item to be procured need to be shown.

Data Needs:

• Number, type and cost of each input (numbers of participating staff, of items, internal trips, cost per day, DSA rate, monthly consultant rate, etc.).

Data Sources:

• Ministry of Agriculture/Department of Policy Analysis, FAO, UNDP, local suppliers, etc.

VIII. REPORTING

Reporting is an integral and a very important part of any TCP project (see for details the TCP Guidelines, Annex I, pages iv and v). All reports need to be submitted to the operating unit in electronic format for ease of editing and distribution. It is essential that the TCP document specify who is to prepare the reports and at what intervals.

Reporting work consist of the following type of reports:

Periodic and Mission reports are required for operational monitoring of project implementation. They give a TCP project a required flexibility to meet changing needs and are used to make decisions about project extension and budget revision. Thus operational reporting must be comprehensive such that those technical and operational divisions in FAO responsible for its successful execution can analyze how the inputs are delivered and to what extent they are absorbed and utilized at the national level.

Technical Reports and/or Field Documents may be the main outputs of a TCP project and must be approved by the FAO technical divisions through an appropriate review process. They add to the body of technical knowledge about specific policy area, sector/subsector performance under current policy, effectiveness and efficiency of current policy, assessment of needs for policy changes. Technical Reports and Field Documents should be of high quality and accurate in their facts and presentation and require the approval by the FAO technical unit responsible for technically supporting the project.

Terminal Statement report summarizes the project's main findings and conclusions in addition to FAO's recommendations to the Government. Within one year after completion of the project, the recipient Government should submit a brief report on action taken on the main recommendations resulting from the project.

Data Needs:

• Operation-related data/information on specific agricultural policy area and technical and methodological information illustrating legislative and/or institutional improvements, improved capacity in agricultural policy design, analysis, monitoring and evaluation etc., project findings and facts relevant to the policy area investigated. Consultant's geographic and institutional itinerary, persons met, terms of reference, lists of additional equipment, etc.

Data Sources:

• Project records, project staff, records from Ministry of Agriculture/Department of Policy Analysis, Ministry of Planning and other relevant central/provincial institutions, existing participatory rapid rural appraisal reports and sector surveys data and results.

IX. GOVERNMENT CONTRIBUTION AND SUPPORTING ARRANGEMENTS

This section needs to contain a clear statement of cash contributions, physical facilities (buildings, office space and local transport) and counterpart staffs which the Government intends to make available in support of the project. Designation of Government responsibility for arranging for clearance of experts, customs clearance of equipment, tax-free local purchase of project equipment and supplies, full access of FAO and international experts to the field, which may be under provincial or district authority, all need to be included in this section as they might apply.

Each project should be supervised by a National Project Coordinator nominated and paid by the Government. Projects whose major activity is the preparation of a sector study, of policy advice, of documentation for a round table, etc. by a team of international and national consultants should be supervised by a Project Steering Committee whose membership should include senior officials of the technical ministries concerned.

National Project Professional Personnel or consultants recruited by FAO are fully accountable to FAO and cannot be on the Government payroll at the time of their assignment. They may not be recruited from the counterpart institution/cooperating agency.

To expand this section, see, in addition to TCP Guidelines, Annex 1, page vii, the following quotes extracted from the Annex 4a:

Request must "be accorded high priority by the Government, which must also ensure that the required local support facilities and services will be available and that follow-up action will be taken'' (...);

Request must "provide assurance of the fullest possible participation of the Government in project execution, through such means as the use of national institutions, personnel and resources".

Data Needs:

• Government contribution in terms of cash, personnel time, facilities, vehicles, laboratories, building and office space (for workshops, project staff and others), secretarial and translation/interpretation expertise.

Data Sources:

• Ministry of Agriculture/Department of Policy Analysis, Ministry of Planning and other national central institutions associated with agricultural policy area in question

X. PROJECT BUDGET

The project budget covering the FAO contribution is prepared by FAO, based on elements received from the requesting country.

Data Needs:

• Numerical details on FAO contribution in US$ by budget line.

Data Sources:

• Government, FAO, UNDP, suppliers of equipment, travel agents, etc.

XI. ATTACHMENTS TO PROJECT AGREEMENT

1. Description of the training programme.
2. Description of Advisory Technical Services and Supervisory Technical Services.
3. Description of services to be provided under contracts.
4. Itemized list of equipment.
5. Itemized list of materials and supplies.
6. Terms of reference including description of required qualifications for each international and national consultant/expert and where appropriate for the National Project Coordinator.

Data Needs:

• Quantitative estimates and descriptions/specifications as relevant to the above attachments.
  
• Terms of Reference (TORs) for each national and international project staff member including FAO technical staff members contributing to the project. TORs for short-term staff inputs (weeks to several months) need to describe precise, time bound activities and outputs expected. Longer-term staff inputs should be more generally phrased to allow some flexibility and cover unforeseen occurrences.

Data Sources:

• National and international project staff, Ministry of Agriculture/Department of Policy Analysis