| World Bank investments in agriculture are stable at | | | | access to investment capital, business advisory |
| around $2 billion for FY06. This year marked a | | | | services, and enforcement of commercial law and |
| notable lending increase in the Africa region, with | | | | regulations - is critical to facilitate private sector |
| investments rising from $295 million in FY05 to $685 | | | | development and improve services. |
| million in FY06. The increase represents the highest | | | | Providing rural financial services. Rural financial services |
| level of lending in agriculture since FY90 for | | | | are critical to developing the rural economy and |
| Sub-Saharan Africa. | | | | helping the rural poor build assets that can decrease |
| Strategic Priorities for Agriculture and Rural | | | | their vulnerability to shocks. These investments |
| Development | | | | remained around $350 million a year over the FY05 to |
| The most recent strategy for agriculture and rural | | | | FY06 period. |
| development, Reaching the Rural Poor, was endorsed | | | | Promoting reforms. The policy and institutional |
| by the World Bank's Board of Executive Directors in | | | | environment is still distorted in many developing |
| 2002. Currently, a large team of Bank staff and | | | | countries. Thus, the Bank has emphasized the need |
| external experts from around the world are working | | | | to improve policy and institutional environments for |
| on the 2008 World Development Report - a | | | | rural and agricultural development through a significant |
| Bank-wide flagship research product which will focus | | | | amount of lending for policy and institutional |
| on Agriculture for Development. Due to be published | | | | improvements. |
| in October 2007, the report describes the role of | | | | Promoting trade in agriculture. In the last two |
| agriculture as an engine for growth and development | | | | decades, agricultural exports from developing |
| across different developing countries. | | | | countries actually fell, partially because agricultural |
| Separately, another team is assessing what the Bank | | | | protection and subsidies has remained high. The Bank |
| has done over the past four years with regard to | | | | continues to analyze and advocate for global |
| the strategy laid out in Reaching the Rural Poor. The | | | | agricultural trade reform by both developed and |
| objectives of that strategy, selected underlying | | | | developing countries. The Bank has invested over |
| issues, and recent activities are given below. | | | | $581 million since FY01 in agricultural trade policy |
| Fostering Broad-Based and Sustainable Rural Growth | | | | reform and about $152 million to address sanitary and |
| On and Off the Farm | | | | phytosanitary and food safety standards that directly |
| Supporting the rural investment climate. Formal | | | | impact access to export markets. |
| commercial activity in rural areas - market linkages, | | | | |