2017年-世界发展银行全球_Increasing_the_Impact_of_Public_Spending_on_Agricultural_Growth___Myanmar_Agricultural_Public_Expenditure_Review_164页_9mb

Summary of Increasing the Impact of Public Spending on Agricultural Growth – Myanmar Agricultural Public Expenditure Review (June 20, 2017)

Core Content

This report provides an in-depth analysis of public spending on agriculture in Myanmar, focusing on how to enhance its impact on agricultural growth and development. It is the first Agricultural Public Expenditure Review in the country, covering the period from 2009/10 to 2016/17, and evaluates the allocation, efficiency, and effectiveness of agricultural public expenditures at the national and regional levels, alongside donor contributions.

Main Views

• Agricultural Growth in Myanmar
  Myanmar's agricultural growth averaged 2.5% during the review period, significantly lower than that of neighboring countries like China and Thailand at similar stages of economic development. The sector remains a key contributor to GDP (29%), employment (50%), and exports (30%), yet its low growth rate hinders poverty reduction, nutrition improvement, and job security.

• Challenges in Agricultural Performance
  The poor performance of Myanmar's agriculture is attributed to inadequate and low-quality public services, ineffective institutional reorganization, and weak regulations for private sector investments. These issues limit the potential for growth, even though opportunities exist, such as closing yield gaps, producing higher-value crops, and boosting fishery production.

• Global Experience as a Benchmark
  The report draws on global experiences to highlight that public spending is critical for agricultural growth, especially when it is directed towards research, extension, and complementary programs. These areas have shown high returns on investment globally, and their underfunding in Myanmar is a major constraint.

• Fiscal and Budgetary Context
  Agricultural public spending in Myanmar has increased significantly, tripling from 268 billion Kyats (US$267 million) in 2009/10 to 790 billion Kyats (US$667 million) in 2016/17. Despite this, the share of agricultural spending in the Union budget decreased from 8.4% to 5.3%, while the share in GDP increased slightly from 0.77% to 0.93%.

• Functional and Economic Composition of Expenditures
  The majority of public funds were allocated to irrigation and mechanization, with significant emphasis on rice-related activities. However, other critical areas such as agricultural research, extension services, and climate-smart agriculture received minimal funding, limiting the diversification and sustainability of agricultural growth.

• Implementation Efficiency
  The effectiveness of public programs is constrained by limited capacity, poor design, high unit costs, and weak coordination. These factors reduce the impact of even well-justified initiatives and highlight the need for improved implementation processes.

• Role of Donor Funds
  Donor contributions have become increasingly important, especially in areas not adequately funded by the government. The report recommends strategic engagement with donors to support underfunded programs and improve the overall impact of public spending.

Key Information

Public Expenditure Trends

• Total agricultural public spending in Myanmar tripled from 2009/10 to 2016/17.
• The Union budget for agriculture increased from 268 billion Kyats to 619 billion Kyats.
• Donor funds for agriculture have grown in significance and are essential for supporting underfunded areas.

Budget Composition

• Irrigation: Over half of the MOALI budget was allocated to irrigation.
• Agricultural Mechanization: Increased from 6% to 18% of the budget.
• Agricultural Finance and Crop Programs: Each averaged 15% of the budget.
• Underfunded Areas: Research, extension, nutrition, climate-smart agriculture, and gender-sensitive programs received very small shares of the budget, with agricultural research being the most underfunded.

Economic Composition

• The budget was relatively balanced between wage, non-wage recurrent, and capital expenditures.
• Capital expenditures were heavily skewed towards irrigation and mechanization, neglecting other productive areas such as irrigation management and mechanization training.

Donor Contributions

• Donor funds are increasingly important, especially in supporting R&D, extension services, and climate-smart agriculture.
• The report suggests that donor funds should be realigned to support more impactful programs and that strategic coordination is needed to maximize their benefits.

Recommendations

• Improve Allocative Efficiency: Shift funds from irrigation infrastructure development to research, extension, and infrastructure management.
• Enhance Implementation Efficiency: Strengthen capacity, improve program design, and ensure better coordination and financial management.
• Leverage Donor Funds: Focus on attracting donor support for underfunded programs and aligning it with national agricultural strategies.
• Diversify Agricultural Focus: Move away from a rice-centric approach and invest in non-rice crops, livestock, and fisheries to promote sustainable growth.

Conclusion

The report emphasizes that increasing the impact of public spending on agricultural growth requires a strategic reallocation of resources, improved implementation, and better coordination with donor funds. It serves as a baseline for the Agricultural Development Strategy and Investment Plan (ADSIP) and highlights the need for a more balanced and effective use of public funds to achieve long-term agricultural development and poverty reduction.