Ghana: Review of bank assistance to the agriculture and rural development sector, 1997-2001

Date: 14/12/2005
Type: Country strategy and program evaluation
Sector(s): Agriculture & Agro-industry
Status: Completed
Ref.: CA10033

Evaluation Team

This study was carried out by Dr. A. Falusi and Dr. E. Nyakotey (Consultants), under the supervision of Mr. E.K.N. MPANDE, Principal Post Evaluation Officer, Operations Evaluation Department

Objective

The review was commissioned in order to assess:  

(a) the quality of design of the Bank Group assistance strategy; 

(b) whether the original assistance strategy development effectiveness (DE) objectives were correctly identified and aligned to the relevance of the over-all country sector DE goals; 

(c) how far the DE objectives of the assistance have been realised in terms of their effects on the development of economic activities and the consequent improvements in the well-being of target groups in the projects’ areas; 

(d) how far the project DE objectives have been aligned to the sector DE objectives and contributed to poverty reduction and the consequent improvements in the well-being of target groups in the projects’ areas. 

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In addition to the above broad objectives, the study is also to examine: 

(e) whether the Bank Group assistance strategy has had the desired impact on cross-cutting issues of improved food security, accelerated economic growth, natural resource management, environmental protection, gender balance, private sector promotion, regional integration, as well as human capacity building and institutional development, which are the main aims of Bank Group intervention assistance strategy; 

(f) the overall development effectiveness of the Bank Group assistance strategy to Ghana’s agriculture and rural development sector and thereafter to reflect on good practices and draw lessons and make recommendations based on the conclusions of the study.

Main Lessons

  • Much as relevance to the country's development objectives is necessary for Bank interventions; it is not sufficient for satisfactory project performance. Quality at Entry, which focuses on technical feasibility of the interventions as well as competence of staff are necessary for project’s satisfactory performance
  • An enabling macro-economic policy environment is needed for successful project implementation.
  • A participatory approach involving both project beneficiaries and the Bank in the identification, formulation, appraisal, and selection of projects with well defined specific and monitorable objectives is necessary for successful project outcome
  • Good implementation of an agricultural project relies, firstly, on the farmers supporting the project concept, given that they are the main actors and beneficiaries. It also relies on the Borrower’s capacity to honour the financial commitments to the project and follow Bank rules and procedures

Main Recommendations

Recommendation(s) to the Beneficiary:

  • A participatory approach involving all stakeholders should be adopted at all phases of the project cycle to ensure that project beneficiaries participate in the identification, formulation, and appraisal and in the definition of objectives and the choice of priorities
  • There is the need to cut down on the time lag between loan approval, signing and effectiveness. The Ministry of Finance(MOF) should be pro-active by initiating and co-ordinating activities within the executive (MDAs –MOF, MOJ, MOFA and EAS) and between the executive and legislature. The Agriculture and Rural Development Committee of the National Assembly should be informed and participate actively in all the stages of the programme/project cycle. This should shorten the time between presentation and approval by Parliament
  • Project supervision, monitoring and evaluation should begin at the early stages of project implementation and should continue throughout the implementation period. Project implementation performance evaluation should be undertaken early after project completion to avoid loss of valuable data.

Recommendation(s) to the Bank:

  • Bank Group assistance to the agricultural and rural development sector should be based on projects/programmes appraised against the background of sector studies and reliable data. Project objectives should be clearly defined and targets to be achieved should be set against an established baseline to permit evaluation of project performance as well as impact assessment
  • The socio-economic environment as well as the legal and economic framework and institutions including the land tenure system within which Bank assisted projects are to be implemented should be given sufficient study before project approval
  • The Bank Group should intensify its policy dialogue with GOG to develop new and strengthen existing partnership with the private sector. The private sector should be more involved in designing and implementing projects
  • although there has been poverty reduction overall during the time period, there are still pockets of poverty the reduction of which will require better targeting, both geographically and by identifying and promoting remunerative activities in the affected areas. Rural areas, where the most vulnerable poverty group live, should receive focus in the design of ADB projects to target these groups
  • The portfolio of investment in Ghana has been lopsided in favour of agriculture (crops). There is the need to support fresh initiatives in forestry/agro-forestry and fishery

Recommendation(s) to the Bank and beneficiary:

  • As the multi-donor sector investment programming becomes firmly established in the agricultural sector, the issue of monitoring performance becomes of urgent importance. Clear performance indicators, which effectively guide implementation, should be agreed and implemented. The indicators themselves should be evaluated and revised regularly to ensure that they provide timely and effective information