Rural Development Projects Review (Pakistan)

A. Basic Data
1. Activity Title: Rural Development Projects Review (Pakistan)
2. Project Officer: C. Holmemo, CWAE
3. Request Date: June 8, 2007
4. Executing Agency: Asian Development Bank, CWAE
5. Implementing Agency: Ministry of Food, Agriculture and Livestock, Pakistan
6. Types of Interventions: Targeted Assessment
7. Amount Requested: $200,000
8. Period this funding request will cover: September 2007 – February 2008
9. Region/Country: Pakistan (NWFP, Punjab, Sindh)
B. Description of Executing and Implementing Agency: N/A
C. Proposed Project
1. Background and Rationale:
Despite a rapid decline in the incidence of poverty in Pakistan between 2000/01 and
2004/05, rural poverty continues to be a significant concern as 28.1%TPF

of people in rural
FPT

areas live in poverty. While agriculture remains the foundation of Pakistan’s rural
economy, the growth rates achieved by agriculture in the past decades did not translate
into lower poverty incidence. Furthermore, the poorest segments of the population are
not benefiting equally from economic growth, illustrated by a 2001 Gini coefficient of
0.42. There is therefore a need to look anew at the agriculture sector and the context in
which it operates. In particular, rural non-farm income sources have become increasingly
important over time and on the average poverty incidence is higher in non-farm than
farm households. Furthermore, social inequalities persist and are manifested in the lack
of control of economic resources, political disenfranchisement, and disempowerment of
certain groups.
Over the years, ADB has supported rural poverty reduction in Pakistan by financing a
series of rural development projects, 8 of which are currently ongoing. TPF

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These projects
FPT

have typically either combined investments in rural infrastructure, community

empowerment, and livelihood development, or focused on investments in agricultural
development. However, the projects and the approaches used have received mixed
reviews. While some are considered successful, mainly based on their effective delivery
of infrastructure and other outputs, others have experienced problems in sustainability,
replicability and in implementation itself. ADB and other donor agencies now recognize
that growth and development of the rural economy as a whole is essential to reduce rural
poverty, including on-farm and off-farm employment, connectivity to markets, access to
capital, technology and information, improved governance and public sector
management, service delivery, and partnerships between public and private actors.
Furthermore, as many of the agriculture and rural development related functions have
been devolved to the local governments there is a need to build and enhance the
institutional capacity at the local level to ensure that delivery of public goods and
services in rural areas are accountable, efficient, and demand-driven.

However, to effectively design and implement “new-generation” rural development

initiatives, it is necessary to develop a stronger understanding of what worked and what
did not in past interventions and to find sound solutions to the previous problems of
effectively delivering outputs. In addition, new actors and the ongoing devolution process
means that more research is needed to develop efficient implementation arrangements
for rural development projects.
The Government of Pakistan (GoP) has asked the ADB to support them to better
understand the critical farm to nonfarm linkages and the priority constraints and key
interventions required to improve the impact of rural development projects. They have
also asked that ADB address the above issues in the upcoming Country Partnership
Strategy (CPS). As such, the proposed Rural Development Projects Review has strong
relevance to ADB’s ongoing and future initiatives to help Pakistan address the issues of
rural poverty. It will also help address the recommendations in the recent draft Country
Assistance Program Evaluation (CAPE) for Pakistan, which emphasized the importance
of strengthened analytical sector work to ensure more efficient resource allocation to
support rural growth and poverty reduction and to enhance the impact and effectiveness
of ADB development support.
2. Objectives:
The objective of the Rural Development Projects Review is to improve the effectiveness
and efficiency of ADB’s and the Government of Pakistan’s support to rural development.
By developing a framework to guide policies and investment decisions in rural
development, the study will assist the national and provincial governments to identify
strategies to
1) improve local governance , particularly of rural development services (infrastructure,
U U

markets, finance, employment); and

2) support inclusive growth, addressing rural poverty and the widening urban-rural gap
U U

The primary audience for the study will be Pakistan government agencies at national and
province levels designing and implementing rural development operations. The study will
also greatly benefit ADB staff supporting such operations.
3. Scope of Work/Description of Proposed Approaches:
The study will be the first comprehensive review of ADB’s rural development operations
in Pakistan. The review will assess the performance of rural development projects in
delivering outputs and identify the core elements of those projects that have been
successfully implemented. Based on this assessment, a framework detailing the key
elements required for efficient, inclusive and cost effective rural development will be
prepared for integration into future rural development programs and projects. The
assessment and framework will incorporate social impacts and safeguards (resettlement,
indigenous peoples), gender and environment impacts, and required interventions.
The Review will:
A) Study key rural development issues where significant knowledge gaps remain,
including i) Sources of income and livelihoods strategies in rural areas; ii) Sources of
growth in the rural economy and future prospects; iii) Governance of rural institutions
and public service delivery in rural areas under devolution;

B) Review and assess past rural development interventions. The review will look at i) if
and how the projects have evolved over time; ii) whether and in what they have been
successful; iii) whether the mechanisms used were the most effective/appropriate
and what adjustments should have been made; and iv) whether they were
undertaken with a thorough analysis of the binding constraints.
C) Provide recommendations for more effective project design. This will focus both on
the modality of interventions for inclusive rural growth and the effectiveness of standalone
investments vs. a mix of investments, policy, and institutional interventions. It
will also include i) the institutional set-up and key features of project management,
including staffing; ii) arrangements for overall policy and strategic directions; iii)
arrangements for provision of inputs such as consultant selection and procurement
decisions; iv) funds flow and financial management; v) accounting, auditing and
reporting; vi) extent and level of community participation; and vii) monitoring and
evaluation.
D) Recommendations for more effective project implementation. Specifically, the study
will make recommendations for addressing the ongoing process of devolution and
the implication for the continued use, if any, and structure of Project Management
Units (PMU) and their linkages with higher (central) authorities as well as lower
(local) authorities.
4. Workplan and Reporting
The following specific tasks will be undertaken as part of the Rural Development Projects
Review:
1. Background studies on i) Sources of income and livelihoods strategies in rural areas;
ii) Sources of growth in the rural economy and future prospects; iii) Governance of
rural institutions and public service delivery in rural areas under devolution:
September-October 2007;
2. Analytical assessment on the concept of rural development and typology for rural
development projects to describe i) the core elements/characteristics of these
projects and ii) their objectives: September-October 2007;
3. Review of relevant project and evaluation documents within and outside ADB.
Comparison and analyses of design and implementation arrangements of ADB’s
ongoing rural development projects: October – November 2007;
4. Key informant surveys to further assess design and implementation arrangements
identified in 3.
5. Consolidation of findings and analysis of lessons learned; development of rural
development framework: December 2007 – January 2008
6. In-country workshop to present and discuss findings and recommendations: January
2008
7. Report dissemination and presentation of findings: January-February 2008.
5. Expected Outputs and Outcomes
Outputs:
- Knowledge dissemination: report presenting current situation in rural economy
and evaluation of Rural Development Projects;
- Framework detailing the key elements required for improved design,
implementation, and effectiveness of rural development projects;
Outcome:
- Enhanced analytical base to improve the institutional framework and design of
rural development operations

6. Project Evaluation and Information Dissemination

This targeted assessment will enhance the analytical base for policy dialogue on rural
development in Pakistan. The report will go through a careful consultation and review
process and a group of experts will be formed to provide guidance throughout the
process of this work. Publication of the evaluation paper, and in-country workshop and
ADB learning events such as brown-bag lunches will facilitate information dissemination.
7. Scope of Replication/Use in other DMCs
This is the first comprehensive review of Rural Development Projects in Pakistan. In
addition to providing insights to government agencies, ADB staff, other donors and civil
society organizations in Pakistan, the findings will also be of great use to other DMCs
that are seeking answers to many of the same questions, particularly in South Asia
where rural development remains critical to generate inclusive growth and reduce
poverty. Countries such as India, Bangladesh, Nepal and Sri Lanka all have large
investments in rural development and dissemination of lessons learned will facilitate
knowledge exchange and adoption of lessons learned.
D. Cost Estimate and Disbursement Schedule
Item Total Cost
1. Rural Development Projects Review
International Consultant
- Remuneration and Per Diem 60,000
- Travel 10,000
Local Consultant/assistant
- Remuneration and per diem 9,000
- Travel 2,000
Survey implementation 50,000
2. Background studies (3)
Consultants (3)
- Remuneration and Per Diem 24,000
- Travel 6,000
3. Information dissemination and Capacity
Building
- In-country Workshops 20,000
- Publications 7,000
4. Contingency 32,000
Total Expenses 220,000
GOP will provide counterpart contribution in
kind (office space and staff), exact value to
be confirmed.

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E. Proposed Project Management System
The Rural Development Projects Review will be executed by the Agriculture, Environment,
and Natural Resources Division of the Central and West Asia Department, in close
cooperation with the Pakistan Resident Mission (PRM). The Ministry of Food, Livestock, and
Agriculture (MINFAL) will be the Implementing Agency. The Provincial governments of
Punjab, Sindh and NWFP will play a key role in the analytical work, particularly as relates to
identifying improved implementation arrangements for rural development operations.
3 person-months of international consulting services and 9 person months of national
consulting services will be required. Individual consultants will be recruited by ADB in
accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time
to time). The consultants will be managed by CWAE. Outline terms of reference for the
consultant services are provided as an appendix to this proposal.