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Ukraine: Agricultural and Rural Investment Strategy Second Draft June 2005 Review Workshop Kiev, 29 June 2005 What is the ARIS a strategic paper highlighting priority areas for investment in agriculture and rural development: public goods and how to attract private investment own by the Government and reflecting its priorities; Builds on the Agricultural Sector Review and Concretize its main recommendations; Still a First Draft which needs to be discussed and complemented by Consultations with Stakeholders Livelihood in Rural Areas Agricultural GDP was halved since independence 2.4 million jobs were lost, one third of labour force predominance of subsistence farming; Widespread Poverty Lack of Perspective Deteriorating Living Conditions What Happened ? Rural Life was organized by and Around Collective and State Farms; When they were dismantled, no new system replaced them Decreased Support and Investment in Agriculture; Rural Infrastructure not Taken care of » Conditions for the emergence of a viable agricultural sector not all met Lack of Economic and employment opportunities Deteriorating living conditions ARIS: Three components Support a viable agricultural sector Develop off-farm employment and rural businesses Maintain and Improve Rural Infrastructure and Services I. Support a Viable Agricultural Sector 1 / 2 Ask Key Strategic Questions Agree on a Stable Long Term Agricultural Policy Objectives, roles of agriculture; Build Local Capacities to Analyze, Design and Implement it; Ensure appropriate Funds (budget and other Funds) What type of agriculture should be promoted / supported Family-based vs. enterprises Big vs. small farms Economic vs. social efficiency I. Support a Viable Agricultural Sector 2 / 2 Develop Adapted and Sustainable Agricultural Services Complete Farm Restructuring Develop Adapted Advisory Services • Develop Adaptive Research and Updated Education Ensure Access to Markets Ensure Access to Rural Finance II. Create Off-Farm Employment and Rural Businesses Opportunities for Private Rural Businesses Upstream and Downstream of Agricultural Sector: input supply, marketing, processing Economic and Social Services Pro- Active Development to Assist the Development of these Businesses Information Campaigns Technical Support to Business Development Business Plans Access to Markets and Rural Finance III. Maintain Good Rural Infrastructure Services to Fight Rural Poverty and Enable rural economic development Rationalize the nature and Coverage and Target the Interventions • Set the Mechanisms for Local Management, priority setting and Partnerships Rehabilitation, Improvement and Development of Rural Infrastructure Thank you – Questions?