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Government of Vietnam Ministry of Foreign Affairs, Denmark Danida Agriculture and Rural Development Sector Programme Support ARD SPS 2007 - 2012 Programme Document November 2007 Jr. Nr: 104.Vietnam.805-200 1 ARD SPS 2007-2012 2 Table of Contents List of Abbreviations 4 1 Executive summary 9 2 Introduction 12 3 Agriculture and Rural Development in Vietnam 15 3.1 Poverty in Rural Areas and Government of Vietnam’s Eradication Efforts 15 3.2 Key Sector Institutions 18 3.3 Donor Supported Programmes 21 4 Agreed Assistance - the Strategic ARD SPS Framework 24 4.1 Vision and Overall Objectives 24 4.2 The ARD SPS Approach and methodology 24 4.3 Poverty 31 5 Components 33 5.1 Central Component 33 5.2 Provincial Component 37 5.3 Technical Assistance Support and Exit Strategy for Advisers 47 5.4 Target Group Involvement 48 6 Budget 50 6.1 Provincial Component 53 6.2 Unallocated Funds 54 7 Management and Organisation 55 7.1 Overall Coordination 55 7.2 Central Component Management 55 7.3 Provincial Component Management 58 2 ARD SPS 2007-2012 3 8 Financial Management and Procurement 62 9 Monitoring, Reporting, Reviews and Evaluations 67 10 Assessment of Key Assumptions Sustainability Issues and Risks 72 10.1 Key Assumptions 72 10.2 Sustainability 73 10.3 Main Risks 74 11 Implementation Plan 76 11.1 Pre-inception Phase 76 11.2 Inception Phase 77 Table of Appendices Annex1 Annex 1 Organizational Charts Annex 2 Detailed budget of Central Component and Provincial Component Annex 3 Job Descriptions/Terms of Reference for Long-term Technical Advisers Annex 4 Tentative Indicators 3 ARD SPS 2007-2012 4 List of Abbreviations ASPS Agricultural Sector Programme Support ARD Agriculture and Rural Development CEM Committee for Ethnic Minorities CCU Component Coordination Unit CPRGS Comprehensive Poverty Reduction and Growth Strategy DANIDA Danish International Development Assistance DARD Provincial Department of Agriculture and Rural Development DCC District Coordination Committee DIF Department of International Finance DOF Provincial Department of Finance DKK Danish Kroner DPC District Peoples Committee DPI Provincial Department of Investment DONRE Provincial Department of Natural Resources and Environment DOST Provincial Department of Science and Technology DST Department of Science and Technology EOD Embassy of Denmark FIG Farmer Interest Group FFC Farmer Field Classes FMS Farm Monitoring System FU Provincial Farmers' Union GAP Good Agricultural Practice GSO Government Statistics Office GOV Government of Vietnam HHO Household Observatory HIV Humane Immune deficiency Virus IPM Integrated Pest Management IPSARD Institute for Policy and Strategies for Agricultural Rural Develop- ment ISG International Support Group JICA Japan International Cooperation Agency M&E Monitoring and Evaluation MARD Ministry of Agriculture and Rural Development MOF Ministry of Finance MOU Memorandum of Understanding NAEC National Extension Advisory Council NGO Non Governmental Organisation NTFP Non Timber Forest Products MPI Ministry of Planning and Investment NTFP Non Timber Forest Products ODA Overseas Development Assistance PEAC Provincial Extension Advisory Councils PMU Programme Management Unit SEDP Socio-Economic Development Plan SFE State Forest Enterprises SOE State Owned Enterprise SPS Sector Programme Support VDF Village Development Fund 4 ARD SPS 2007-2012 5 VAAS Vietnam Academy of Agricultural Sciences VASS Vietnam Academy of Social Science TOT Training of Trainers VNFU Vietnam Farmers Union VDG Vietnam‟s Development Goals VND Vietnam Dong WU Women Unions 5 ARD SPS 2007-2012 6 AGRICULTURE AND RURAL DEVELOPMENT SECTOR PROGRAMME SUPPORT DESCRIPTION Country: Vietnam Sector: Agriculture and Rural Development Title of SPS Document: Agriculture and Rural Development Sector Programme Support (ARD SPS), 2007-2012 Implementing Agency: MARD, Provincial People‟s Commit- tees, Dien Bien, Lao Cai, Lai Chau, Dak Lak and Dak Nong Duration: 2007-2012 Start Date: July 1st, 2007 General Budget Framework: DKK 230.00 million Description: The Agricultural and Rural Development Sector Programme Support in- cludes a Central and a Provincial Component. The provinces supported under the programme are Dien Bien, Lao Cai and Lai Chau Provinces in Northern Vietnam, and Dak Lak and Dak Nong Provinces in the Central Highlands. The main aim is to increase the income level and food secu- rity for poor upland farmers, in particular women and ethnic minorities, in a sustainable way, and hence reduce poverty. The ARD SPS has a clear division between the central policy and strat- egy guidance responsibilities and the field implementation level. The consequence of this approach is a central (national) component and a component implemented at provincial and lower levels. The Central Component consists of two outputs: (i) Policy and Strategy Development, and (ii) Innovative Approaches for Sustainable Upland Livelihoods. The Provincial Component includes support within four sub-components: (i) Demand based extension, information and training of farmers, (ii) Production, Storage, Processing and Marketing, (iii) Local Planning and Capacity building, iv) Land allocation (primarily in the Central High- lands). The expected result of the programme component will be an improved economic development for ethnic minorities in upland areas resulting from: 1) Dynamic policy development due to increased participation and consultation with ARD grass root organisations outside MARD. 2) New knowledge and insight from focussed and innovative need based research for improving the entrepreneurship and production technologies for up- land farming and in particular for ethnic minorities 6 ARD SPS 2007-2012 7 At the end of the programme period the poorest segment of the rural population in the selected districts within the programme provinces are able to manage their farms and other rural enterprises in a sustainable manner and with satisfactory profitability and food security. All relevant districts in the five cooperation provinces have been exposed to these new and innovative demand based approaches to agricultural and rural development as well as the achieved impacts. Finally, qualified feed back to the central policy level has been provided on issues relevant for upland poor farmers. General conditions Obligation to report on changes and irregularities The Government of Vietnam is obliged to immediately inform the Em- bassy of Denmark if any changes, including overspending of budget lines, or irregularities in the management of funds are foreseen or have occurred. The two parties of the component shall have to discuss and agree on the dealing with these changes and irregularities. Anti-corruption clause ALL persons involved in ARD SPS activities, be they MARD or DARD staff or support staff funded by the ARD SPS programme budget, are under strict obligation to report any suspicion on or actual cases of: - Fraud - Misuse of funds - Corruption - Breach of contracts - Court cases involving a larger amount of money - Loss of funds - Possible loss of funds - Qualifications or criticism in audit reports - and other instances or misuse of funds not mentioned here to the Embassy of Denmark with attention to the Finance Counsellor and CC to the Ambassador immediately. Reports can be made via mail, email email@example.com or telephoned to 04 823 1888, ext. 124 (English) or ext. 125 (Vietnamese). Reports can be made anonymously. The report should include the following information: - In which part of the organisation the case has taken place - Date (-s). - Description of the case, the extent of the case, and the how the case has developed - Information on steps, which have been taken (reported to the po- lice, audit investigation, suspension, removed, dismissed, changed control procedures etc.). - Assessment of the responsibility for the case 7 ARD SPS 2007-2012 8 Child labour Activities to be supported under the ARD SPS programme must not in any way involve the use of child labour. _____________________ ____________________ Government of Vietnam Government of Denmark 8 ARD SPS 2007-2012 9 1 Executive summary The Agricultural and Rural Development Sector Programme Support (ARD SPS) includes a Central and a Provincial Component. The Provin- cial Component supports Dien Bien, Lao Cai and Lai Chau Provinces in Northern Vietnam, and Dak Lak and Dak Nong Provinces in the Central Highlands. These Provinces are all dominated by hillside agriculture and the major- ity of the rural population is from different ethnic groups, implying a par- ticular challenge to develop adequate responses to the need of these farmers. Within each of these provinces two-three poor upland districts have been selected for pilot activities. The development objective of the ARD SPS is: "Reduction of rural poverty, especially among the ethnic minorities, through sustainable agricultural and rural development focusing on the uplands" The immediate objective of the ARD SPS is: "Sustainable growth in upland rural household welfare arising from im- provements in resources management, agricultural production and mar- keting, with focus on the poor upland farmers, in particular women and ethnic minorities" The Central Component of the ARD SPS will strengthen the capacity for evidence based policy development in ARD for ethnic minorities in upland areas. It will be linked to the provincial component by focussing the development of research instruments and support research that is di- rectly related to the rural livelihood in the ARD SPS five cooperation provinces. It will support the establishment of a “think tank” at MARD with the necessary instruments (reliable data collection and management, feed- back mechanisms, dissemination strategies), to strengthen the capacity for policy research and policy briefing in ARD related to upland areas with emphasis on the five ARD SPS cooperation provinces. 9 ARD SPS 2007-2012 10 Support is also provided to cutting research themes with creation of mul- tidisciplinary consortia of ARD research institutions/universities for spe- cific ARD research with peer reviews from international research organi- sations and representation from five ARD SPS cooperation provinces. The Central Component will focus on co-ordination and strengthening of: Policy research within Agriculture and Rural Development Policy Development based on lessons learned - in particular in the ARD SPS co-operation provinces Feed back to the national policymakers and researchers from pro- vincial and local level on: i) impacts of agricultural and rural devel- opment policies and legal frameworks; and ii) their perceived short- comings Innovative research on agricultural and rural development in upland areas Dissemination of information on upland cultivation and national re- sources management from source to farm level The component implementation will be sensitive to the requirement of gender focus and the special situation for the ethnic minorities. The envi- ronmental issues will be integrated through capacity building and train- ing in environmental issues and environmental impact assessments (EIA) for specific interventions. Furthermore, mainstreaming of climate change into implementation of the programme and a Strategic Environmental Assessment (SEA) of MARD operations will be carried out in the pro- gramme. The component will support MARD in preparing an HIV/AIDS strategy for the agricultural sector. The Provincial Component of the ARD SPS includes support within four sub-components: (i) Demand based extension, information and training of Farmers, (ii) Production, Storage, Processing and Marketing, (iii) Local planning and Capacity Building and, iv) Land allocation (pri- marily in the Central Highlands). It furthermore includes some support to preparation activities and TA. The basic strategy is the improvement of demand-based agricultural and rural development services, given on a group basis to secure maximum outreach, and with a heavy emphasis on Training-of-Trainers and Farmer-to-Farmer methodology. It furthermore has a strong emphasis on a series of cross cutting issues as environment, ethnicity, gender and HIV/AIDS. The target groups in the selected districts will be involved through the planning procedures, which will start at farmers groups and village level. Special emphasis will be made to ensure that the services systems will become more responsive to the farmers‟ needs. As the larger part of the target groups will belong to ethnic minority groups, there will also be various measures to ensure that language barriers do not prevent them from being involved and receive demands based services. 10 ARD SPS 2007-2012 11 A main thrust will be to build capacity in the public sector to facilitate the private sector to become service providers of farmer group organisa- tion e.g. training and provision of extension services of a technical na- ture. Local farmers already possess a wealth of knowledge in relation to farm- ing and forestry and the provincial component will try to integrate this knowledge in their information and training. It is important that this knowledge is acknowledged by the trainers, “activated” and transformed into a modern context. The inputs are four long-term international agricultural and rural devel- opment advisers, short-term consultancies, and funds for training, funds for village development funds, extension, research, facilitation and basic equipment. The budget for five year is 230 million DKK. The programme will have an overall Monitoring Committee, which will monitor the overall progress of the programme, while the main manage- ment responsibility will rest with six Steering Committees. There are five Provincial Steering Committees, one in each province, with a Vice-Chairman of the PPC as Chairman and a management unit (as requested by Vietnamese law) in DARD, and one Central Component Steering Committee with a Vice-minister MARD as Chairman and with a management unit (the Component Coordination Unit) hosted by IPSARD. Funds will be channelled through a special account in MOF to the im- plementing agencies during the initial period of one and a half year. Thereafter it will be channelled through the Treasury system, if an as- sessment of the system is found positive. There will be an emphasis on monitoring, using the Vietnamese system as far as possible and where other measures are found necessary it should be pilots for incorporating into the Vietnamese system, such as a system using household observatories. 11 ARD SPS 2007-2012 12 2 Introduction Vietnam and Denmark have cooperated in the agricultural and rural de- velopment sector since the early 1990s. A programmatic approach to this co-operation in the form of the Agricultural Sector Programme Support (ASPS) was launched in 2000 with a budget of DKK 450 million for a five-year period. Later the programme has been extended until mid 2007. The ASPS has been complex having six comprehensive and ambitious components with altogether 14 sub-components and 2 “special projects”. Geographically, the ASPS activities have been dispersed covering as much as 34 provinces, while management was anchored at the national level. As a first step towards the identification of the next generation Sector Programme Support, Ministry of Agriculture and Rural Development (MARD) and Danida initiated a joint assessment of the first phase of the cooperation in the beginning of 2005. The mission identified a scope for improvement within the following areas: Directly targeting the poor, women and ethnic minorities; Documentation of impacts and improved visibility; Building ownership including use of Vietnamese systems; Es- tablishment of more clear and efficient management guidelines; Focusing and limiting the levels of ambitions and/or interventions as well as within; and Synergy and coordination between components, part- ners/departments and provinces. However, the assessment mission also highlighted positive lessons learned on which to build the next phase of the cooperation. In summary, the previous co-operation has been successful in introducing participa- tory and bottom-up approaches at all levels, building relevant and appro- priate capacity, changing attitudes, focusing on the longer-term process of change, and patiently, but steadily contributing to the policy reform process. Based on some of these key findings, the Minister of Agriculture and Ru- ral Development recommended a stronger focus at the provincial and lower level for the next cooperation programme. It was decided between the GoV and Danida to operate within the Viet- namese system, to have a stronger emphasis on poverty alleviation, and to have a special emphasis on ethnic minorities in the highlands, which 12 ARD SPS 2007-2012 13 still have a very high poverty rate. It was further decided that the next generation of the cooperation programme would have a clear division between the central policy and strategy guidance responsibilities and the field implementation responsibilities. The consequence of this approach was to aim for a central component and a component implemented at provincial and lower levels. After visiting a number of provinces it was decided to include the follow- ing five provinces in the programme: Dak Lak, Dak Nong, Dien Bien, Lai Chau and Lao Cai. These provinces are among the poorest in the country and they all have a large proportion of poor ethnic minorities. Most of the poor farmers and among them especially the ethnic minori- ties are undertaking upland cultivation, but some are also dependent on other sources of incomes. In the support of the formulation process five thematic studies have been conducted in these provinces concerning some of the key issues for up- land poor farmers i.e.: Agricultural marketing; farmer organization; natu- ral resources management; upland cultivation & food security, and exten- sion and information services on dry land farming. A study in the flow of funds was also undertaken in Dien Bien province. From November 2005 till January 2006, identification missions were fielded to the central level and to the cooperation provinces to identify relevant options for the Agriculture and Rural Development Sector Pro- gramme Support, 2007-2011. Based on the above-mentioned preparatory activities, formulation mis- sions were undertaken at the central level and in all the cooperation prov- inces from March to May 2006. The missions met with a wide range of stakeholders at province, district and commune level. In line with the on- going coordination and dialogue with national partners, there has been conducted a meeting with all partners in Hanoi. Coordinating Committees and Working Groups have been established in each province consisting of involved institutions and lead by the Provin- cial Peoples Committees. These committees and working groups have been working closely with the identification and formulation missions. To consolidate the result of the formulation missions the Embassy con- ducted follow-up visits in June to all provinces and had extensive meet- ings with both the coordinating committees and working groups. An appraisal mission visiting Vietnam in September 2006 found that clarification of the activities with the central cooperating institutions in MARD and provincial authorities was needed. The internal structure at MARD was rapidly changing, indicating new developments to be inte- grated in the formulation. Another round of follow-up visits to the prov- inces took place in November and December 2006 and studies on poten- tial service providers in each province were conducted. Furthermore, cross-cutting issues have been promoted in the programme document and 13 ARD SPS 2007-2012 14 an environmental screening performed to accommodate the quality as- surance of Danida. 14 ARD SPS 2007-2012 15 3 Agriculture and Rural Development in Vietnam 3.1 Poverty in Rural Areas and Government of Vietnam’s Eradication Efforts Poverty is a widespread phenomenon in rural areas: 77% of the Vietnam- ese population and 90% of the poor currently live in rural areas of Viet- nam; and 70% of the income of rural dwellers comes from agricultural activities. Therefore, agricultural and rural development is a crucial ele- ment of Vietnam's previous Comprehensive Poverty Reduction and Growth Strategy (CPRGS) and in the present Socio Economic Develop- ment Plan 2006-10 (SEDP). Vietnam's poverty reduction target - as articulated in the CPRGS and re- cently in the SEDP - is to reduce the poverty rate according to the inter- national poverty line by two fifths by 2010 and according to the food poverty line by three fourths by 2010 as compared to the level of 2000. Within agriculture and rural development the overall policies and meas- ures to achieve the poverty reduction targets can be summarised as: Develop agriculture and the rural economy to achieve fast pov- erty reduction In general, Vietnam has achieved impressive results in poverty reduction from 58.1 percent in 1993 to 19.5 percent in 2004. Poverty reduction has, however, not been evenly distributed. The Northwest stands out as being particular poor with 59 percent of the population being poor and the North Central Coast and the Central Highlands have over 30 percent. One important sub-group of the population, the ethnic minorities, have experienced a much slower fall in poverty than the Kinh (Vietnamese) and Chinese population. In 2004, 14 percent of Kinh and Chinese were living in poverty while as many as 61 percent of the ethnic minorities were still below the poverty line. In other words, though ethnic minori- ties account for only 13 percent of the total population, the representation of ethnic minority groups among the poor was in 2004 alarmingly high at 38 percent. Finally the poverty of the ethnic minorities is also considera- bly deeper than the poverty for other groups. 15 ARD SPS 2007-2012 16 Consequently, Vietnam's poverty reduction efforts give special priority to stabilize and raise the living standards of ethnic minorities, which is also emphasized in the SEDP for 2006-2010. In order to meet these challenges, a new 5-year Agricultural Develop- ment Plan 2006 to 2010 has been developed. The Plan reflects well the CPRGS and recent SEDP. It emphasizes that poverty reduction should always be linked to quality growth i.e. solving poverty issue in the rural areas by: (i) investments to support directly the poor; and (ii) investments into sectors, regions from which the poor can directly benefit. Relevant sector policies, strategies and plans approved by the GOV are summarised below: The Comprehensive Poverty Reduction and Growth Strategy ap- proved 2002, which addressed the relevant development objectives and policy measures for economic development in general and in agricultural and rural development in particular. One of the three objectives of the CPRGS is to develop agriculture and the rural economy thereby reducing poverty and creating opportunities for the poor. A number of policy measures were included in the CPRGS to meet this objective. Vietnam‟s Socio Economic Development Plan 2006-2010 (SEDP) has followed the CPRGS. The Government of Vietnam decided to integrate the future poverty reduction strategy in the preparation of the Socio Eco- nomic Development Plan 2006-2010. This was a welcome development, which led to a considerable modernization of the traditional 5-year plan- ning process at all levels. The SEDP defines the overall objectives for the Vietnamese society in the next five years and identifies specific development targets and in- struments to be used in reaching the objectives. The overall goals are to boost the economic growth rate and achieve fast and sustainable devel- opment and reduce poverty. The GDP/capita target is to reach a level of USD 950 from the present USD 600 and to reduce the poor household rate (according to internationally recognized criteria) from 26 to 16 %. This is to be achieved through strengthened economic, administrative and legal reforms and improved social security. Improvements of the institu- tions supporting a market economy including the fight against corruption will also be important measures in achieving the goals of the SEDP. The plan has overall economical, social and political tasks accompanied by a number of precise targets and indicators linked to the Millennium Development Goals. The SEDP clearly defines development orientation for all sectors and fields and outline necessary policy measures and in- vestments in the following sectors and areas: Agriculture, industry, ser- vices, international economic integration, human resource development, science and technology, environment, population control, labour and em- ployment, social security, health, minority groups, religious freedom, gender etc. The SEDP has integrated the principles of the Poverty Reduc- tion Strategies by setting clear goals for poverty reduction and social de- 16 ARD SPS 2007-2012 17 velopment and by allocating resources from the state budget for its im- plementation. The national plans are supplemented with socio-economic development orientations for each of the country‟s regions. In the area of agricultural development the plan outlines the following objectives: diversification of the agricultural production, improvements in productivity and quality, transformation of agricultural and rural eco- nomic structures, application of scientific and technological advances, and development of modern rural infrastructure. More specifically, the plan aims at ensuring national food security through production increases as well as diversifying agricultural production and preserving and devel- oping native crop varieties and biodiversity in ethnic minority areas. In- frastructure development is prioritised along with decentralisation of production. With regard to ethnic minorities, it is planned to ensure that all com- munes have essential public works and to gradually narrow the „dispari- ties in terms of material and spiritual life‟ among ethnic groups. More specifically, this latter objective is to be achieved through policies of land allocation, processing of agricultural goods, training farmers through ex- tension services and prioritising access to education for ethnic minority people. It is mentioned, however, that poverty rates remain high among ethnic minority people. The plan and the sector strategies provides an overall basis for develop- ment co-operation for Denmark and other donors and will serve as the point of departure for alignment with the Government of Vietnam‟s overall development priorities and within the relevant sectors. There is also a special emphasis on providing residential and production land for ethnic minorities locally. Five-Year Plan (2006-2010) of Agriculture and Rural Development has as one of its specific objectives to improve the agricultural sector‟s capacity to successfully compete and integrate into the international mar- kets. Preparing to fully join WTO and implementation of accession commitments by the end of 2006 will have major implication for the sec- tor and MARD. Among the Plan‟s priority activities, there are some most relevant to the ARD SPS Program: (i) Focus investment to science and technology and agricultural-forestry extension services including the in- vestment to post-harvest and processing technologies to increase the competitiveness of the export agricultural products; (ii) Increase invest- ment to trade promotion for enhanced marketing capacity of agriculture; (iii) Promote off-farming activities in rural areas to transform labour structures from agriculture-based to off-farming. There is an emphasis on ensuring national food security and paying a special interest to the ethnic minorities in the mountainous and remote areas. The Public Administration Reform promotes further decentralisation from central to local governmental agencies. The Resolution No. 08/2004/NQCP issued by the Prime-minister in June 2004 on “Speeding- up State Management Decentralisation from the Central Government to 17 ARD SPS 2007-2012 18 Local Government of Centrally-affiliated Cities and Provinces” shows the strong commitment of the Government to further promote decentrali- sation in its public administration reform. The Resolution‟s main objec- tive is to improve the effectiveness of state management to better meet the needs and benefits of the people. Furthermore, recent policies also addresses the need to support the de- velopment of civil society and to set up an institutional framework for different parts of the civil society such as NGOs and mass organisations and for the private sector in providing services that used to be delivered by government to farmers. The services can cover a whole range from agricultural and rural extension to legal support services. The new De- cree 56 CP on Agricultural Extension promotes the concept of decentrali- sation, participation and pluralism in extension delivery system. 3.2 Key Sector Institutions Ministry of Agriculture and Rural Development (MARD) includes agriculture, forestry, salt industry, irrigation/water services and rural de- velopment, public services and State Owned Enterprises. MARD is implementing the policies directed by the Minister and the de- partments are developing the strategies and frameworks for the imple- mentation. MARD is divided into six functional departments (Legal, Planning, Sci- ence & Technology, International Cooperation, Finance, Organisation and Personnel) and twelve professional or technical departments, which provide regulation, inspection, quality control of services and products in relation to crops, livestock, veterinary services, plant protection, coopera- tive development, salt processing, dyke management, water, and forestry. MARD research institutes, National Agricultural Extension Centre (NAEC), and Information Technology and Statistics Centre for Agricul- ture and Rural Development (ICARD) are the prime public service insti- tutions under MARD. Department of Science and Technology (DST) is - within the sector - overall responsible for science, technology and product qualities. It in- cludes formulation of strategies and plans, development, guidance and implementation of standards, insurance of quality of science and technol- ogy research, monitoring and reviews of research results, management of genetic resources, registration of new crop varieties and animal breeds, international cooperation in science and technology, and overseeing the Agricultural Science and Technology Council. Agricultural Extension Service is at national level coordinated by the National Agricultural Extension Centre. The extension service operates on a least four levels: 18 ARD SPS 2007-2012 19 National National Agricultural Extension Centre (public service insti- tution under MARD) Provincial Provincial Agricultural Extension Centre (Reports to DARD) District District station (Reports to either District people committee or to DARD) Commune Commune extension worker (contract employed) The delivery of extension services has a strong technical orientation with the same delivery mechanism to all types of farmers. The new Decree 56 from 2005 on agricultural extension opens up for stronger target group orientation in the delivery of extension services, so new demand oriented area specific models for co-operation between extension service and farmers can be developed. Provincial Extension Advisory Councils (PEAC) are going to be estab- lished in 40 provinces, including all the ARD SPS cooperation provinces. The PEAC purpose is to: - Further strengthen the socialization of extension service - Increase the active role of the local level, farmers, mass organiza- tions and international/domestic extension organizations in defin- ing the extension needs, priorities, and suitable technical innova- tions - Develop extension orientations, policies and plans, suited to each locality‟s unique characteristics, organizing market information systems and agricultural business promotion to farmers. Research institutes Institute of Policy and Strategy for Agriculture Rural Development IPSARD was established in 2005, as part of the reorganisation plan for MARD research institutes. Its main function is to undertake research, provide strategic information, training, consulting, and transferring tech- nology. It is the intention to develop the institute into the think tank of the ministry. MARD is in the process of restructuring its research institutes. In addi- tion to IPSARD there will be 5 institutes organised along commodities and themes for crops (VAAS), engineering and post harvest, forestry, livestock, and water. There are many other ARD research institutions outside MARD compris- ing universities under the Ministry of Education, institutes under Viet- nam Academy of Social Science (VASS) and institutes under other min- istries, which have the same think tank function as IPSARD. Local Government and Institutions The province, district and commune have an elected assembly, the Peo- ple‟s Council, and an executive authority, the People‟s Committee, which is appointed by the People‟s Council. The planning and budgeting are hierarchical under which the commune and districts governments are ac- countable to its upper level. A dual system exists, whereby provincial 19 ARD SPS 2007-2012 20 departments, districts and communes report both to their local People‟s Committee and to the relevant parent sector ministry. The people‟s Committee undertakes coordination. At province level there are generally 25 departments, which to a large extent reflect the ministries at the central level, but the Provincial Peoples Committee coordinates them. Important departments are Provincial De- partment of Agriculture and Rural development (DARD), Department of Finance (DOF), Department of planning and Investment (DPI), Depart- ment of Natural Resources and Environment (DONRE), Department of Labour, Invalids and Social Affairs (DOLISA) in addition to the Com- mittee for Ethnic Minorities (CEM), Farmer‟s Union and Women‟s Un- ion. CEM is advising provincial offices on issues of ethnic minorities and religion. They manage projects for ethnic minorities within province and are executive member of national programmes of socio – economic de- velopment for ethnic groups. The ARD SPS will rely much of its support at the district level. After the restructuring of the local government by the Decree no. 172 September 29, 2004, all Vietnam‟s districts have a fairly similar structure. The district is coordinated and managed by the People‟s Committee. In most rural districts1 there will be the following 13 professional agencies working under the DPC: 1. The Offices of the district-level People’s Councils and People’s Committees assist the People‟s Councils and People‟s Committees. 2. The Section of Home Affairs, Labour, War and Social Affairs is re- sponsible for home affairs as well as labour, war invalids and social affairs 3. The Finance-Planning Section is responsible for finance, planning, investment and business registration 4. The Natural Resources and Environment Section is responsible for land resources, water resources, mineral resources and environment 5. The Economic Section is responsible for agriculture, forestry, fisher- ies, sedentarisation, new economic zones, science and technology, industry, cottage industry and handicrafts, trade, tourism and coop- eratives 6. The District Inspectorates perform the administrative inspection tasks and powers within the state management scope of the district- level People‟s Committees 7. The Education Section is responsible for district level regular educa- tion centres and general technical-vocational orientation centres 8. The Committees for Population, Family and Children is responsible for population, family and children 9. The Culture, Information, Sports Section is responsible for culture, information, physical training, sports, radio broadcasting and televi- sion 1 Urban districts also have the Economic Infrastructure Section 20 ARD SPS 2007-2012 21 10. The Health Section is responsible for care for, and protection of, people‟s health 11. The Justice Section is responsible for elaboration of legal documents, examination of legal documents, law dissemination and education, execution of civil judgments, authentication, civil status, legal assis- tance, reconciliation at grassroots level and other judicial work. 12. The Nationality Section - or Committee for Ethnic Minorities - deals with consolidation of the apparatuses performing ethnic work under the People‟s Committee 13. The Religion Section dealing with the consolidation of the appara- tuses performing religious work under the People‟s Committee (sometimes merged with Nationality section). Most of these sections will be involved with the programme. 3.3 Donor Supported Programmes The World Bank, ADB, Danida, SIDA, DFID and GTZ are the main do- nors in the agriculture and rural development sector in Vietnam. The major ARD development programmes are listed below: Amount Project Title Duration Source Objectives ($ Mil- lion) Agriculture Sector De- 2002–2006 ADB Support the Government's policy and institutional reforms 90.0 velopment Program to develop a favourable environment for market-based agri- (Loan) cultural growth and agro-industry development Tea and Fruit Develop- 2000–2006 ADB Increase farm income and raise the value of agricultural 40.2 ment Project production through tea and fruit development (Loan) Strengthening Agricul- 2006-2008 ADB Appropriate procedural documents for strengthened AST 0.7 ture Science and Tech- management system (Grant) nology Management Improved knowledge and capacity of key stakeholders in- volved in AST management Improved coordination between agricultural research and extension Appropriate M&E and reporting systems for AST activities Collaboration for Agri- Ongoing AusAID Increase productivity and competitiveness of smallholder 7.0 culture and Rural De- from 2004 agriculture and rural enterprises through support for agricul- (Grant) velopment (CARD) tural research and development Rural Income Diversifi- Ongoing IFAD Support for villages of ethnic minority population in upland 20.9 cation Project in Tuyen from 2002 areas to improve their access to rural infrastructure, health (Loan) Quang Province services, and finance. Support to IPSARD 2005 Ford Foun- 0.2 dation (Grant) 21 ARD SPS 2007-2012 22 Amount Project Title Duration Source Objectives ($ Mil- lion) SIDA MARD Coopera- 2006-2011 SIDA Support the implementation of the CPRGS into the sector of 5.0 tion Programme agricultural and rural development through institutional (Grant) capacity building within the MARD and its various partner- ships. The programme will be with International Coopera- tion Department. The programme will enhance the capacity of MARD for policy dialogue and coordination of donor support in order to further strengthen the integration and implementation of related aspects during the new 5-year socio-economic development plan of the sector of agricul- ture and rural development CHIA SE (Poverty Al- 2003-2008 SIDA The programme supports activities in the provinces: Ha 41.5 leviation Programme) Giang, Quang Tri, and Yen Bai with future inclusion of (Grant) Ninh Thuan and Soc Trang. The executing agency is MPI Support to Public Ad- Ongoing UNDP/ Improve public administration in the Ministry of Agricul- 3.9 ministration Reform from 2001 ture and Rural Development through capacity strengthening (Grant) Nether- Program lands in the use of information and communications technology Agriculture Diversifica- 1998-2005 World Help diversify and intensify agricultural production, thereby 66.9 tion Project Bank increasing farm income and rural employment through (Loan) promotion of rubber smallholders and improved livestock production Northern Mountains Ongoing World Promote community-based development activities through 132.5 Poverty Reduction pro- from 2001 Bank/ improvement of social and rural infrastructure. (Loan/ ject DFID Grant) Community Develop- 2006-10 Danida/VN Increasing efficiency of the ethnic minorities farming in ment Among Ethnic FU/ADDA mountain areas (Hoa Binh, Son La, Lai Chau, Dien Bien, (Grant) Minorities Nghe An and Ha Tinh) The Agricultural Sector Development Programme provides a loan of 60 mill US$ from 2003-2006 is funding investments in research, exten- sion and agro-business development. The programme also supports pol- icy and institutional reforms in MARD related to research reorganisation and development of participatory extension methods to reach poor and women farmers and ethnic minorities. The programme also supports the setting up of Provincial Extension Advisory Councils (PEAC) in 40 prov- inces, including all 5 ARD SPS provinces. The establishment is supported for two years until the council will be under the provincial budget. The second phase of the Targeted Programme 135, was approved in January 2006 for implementation from 2006 to 2010. The first phase cowered in the end a total of 2410 disadvantaged communes. The in- vestment was largely focused on developing commune level infrastruc- ture based by allocating 500 millions Dong to the communes every year. The second phase of P135 has been expanded so in to the same disadvan- taged communes it also cover the poorest villages in slightly less disad- 22 ARD SPS 2007-2012 23 vantaged communes. The programme will have four components: infra- structure development, production and livelihoods support, promotion of basic services and capacity building. It aims to shift the focus towards production and livelihoods promotion, although about 70% of the in- vestment will focus on infrastructure development at commune and vil- lage level. GOV funds covers 90% of the expenses and a consortium of donors will cover 10%. The programme will include communes and vil- lages in all districts supported by the ARD SPS programme. There is thus a potential and a need for synergy between Programme 135 and ARD SPS. 23 ARD SPS 2007-2012 24 4 Agreed Assistance - the Strategic ARD SPS Framework 4.1 Vision and Overall Objectives The vision for the Agriculture and Rural Development Sector Pro- gramme Support (ARD SPS), 2007-2012, is to support Vietnam in its efforts to reduce poverty and improve the living conditions of the rural population, with emphasis on the upland poor and vulnerable groups, e.g. ethnic minorities and women headed households. The development objective of the ARD SPS is: "Reduction of rural poverty, especially among the ethnic minorities, through sustainable agricultural and rural development focusing on the upland" The immediate objective of the ARD SPS is: "Sustainable growth in upland rural household welfare arising from im- provements in resources management, agricultural production and mar- keting, with focus on the poor upland farmers, in particular women and ethnic minorities" The immediate objective is the development objective of the ARD SPS Central and Provincial Components. 4.2 The ARD SPS Approach and methodology As the poorest segments of the upland farmers are facing a number of crucial livelihood challenges that often are interlinked, a household based approach must be applied when meeting these challenges. There are no simple solutions to the challenges they are facing. These marginalized groups must optimise both natural and human resources management in order to obtain food security and escape poverty. The approach to upland rural development - and consequently also the strategy of the ARD SPS - reflects this. 24 ARD SPS 2007-2012 25 The focus of the ARD SPS is, therefore, on upland natural and human resources management and the programme activities will have an inte- grated approach to agriculture and rural development with a very strong emphasis on food security. The ARD SPS has been developed according to the Government's priori- ties and plans as reflected in e.g. the CPRGS and the Socio-Economic Development Plan 2006-2010, a number of central, regional and provin- cial development plans and the 5-Year Plan for Agriculture and Rural Development for the Period 2006 –2010, and their related provincial and local plans. The ARD SPS supports these plans and has a focus on poverty reduction and coordination at the provincial and lower level as per the new Viet- nam-Denmark Partnership Strategy for Development Cooperation 2006- 2010. The ARD SPS has a clear division between the central policy and strat- egy guidance responsibilities and the field implementation level. The consequence of this approach is a central (national) component and a component implemented at provincial and lower levels. It is, furthermore, the intention of ARD SPS to operate in and through the existing structures and to avoid parallel structures. The immediate objectives of the Central Component are: "Research, policy formulation and information dissemination on upland agricultural and rural development is qualified and coor- dinated. Innovative approaches to sustainable upland livelihoods are de- veloped and applied in the provinces. MARD is in the process of change. Most of the traditional tasks that have currently been carried out, will no longer suit the challenges of a fast growing economy. Policy development and impact assessments will be given an increasing importance. The newly established Institute for Pol- icy and Strategy for Agriculture and Rural Development (IPSARD) is seen as the think tank and instrumental for these changes in MARD. Furthermore, there is a lack of relevance of past and ongoing ARD re- search for ethnic minority and upland areas. To assist GOV to improve the situation, the ARD SPS Central Component for 2007-12 will strengthen the capacity for developing evidence based policy and innova- tive livelihood models and approaches for upland areas and upland mi- norities. Furthermore the component will support the Department of Sci- ence and Technology (DST) to broaden the scope of research to fund ARD research with institutes outside MARD, and to encourage research, which incorporate both social and technical topics. Furthermore, Village Development Plans could incorporate appropriate research results to as- 25 ARD SPS 2007-2012 26 sure demands-based approach to research and take into account local conditionalities. The vision of the Central Component is a two-way effective feedback mechanism for agriculture and rural development policy and strategy de- velopment that stretches from the ethnic minorities in upland areas through the provinces to the national policy level. The Central Component of the ARD SPS will focus on co-ordinating and strengthening of: The function of IPSARD as a “think tank” at MARD with the necessary instruments (reliable data collection and analyses, feedback mechanisms, and dissemination strategies), to strengthen the capacity for policy research in ARD related to up- land areas with emphasis on the five ARD SPS cooperation prov- inces. Policy research within agriculture and rural development. Policy development based on lessons learned – in particular in the ARD SPS co-operation provinces. Feed back to the national policymakers and researchers from provincial and local level on: i) impacts of agricultural and rural development policies and legal frameworks; and ii) their per- ceived shortcomings. Applied research on innovative models and approaches on upland livelihoods. Support MARD Research Fund with a special programme for ethnic minority and upland areas. Support to cross cutting research themes with creation of multid- isciplinary consortia of ARD research institutions/universities for specific ARD research with peer reviews from international re- search organisations. Dissemination of information on upland cultivation and national resources management from source to farm level The Central Component will be linked to the Provincial Component by focussing on the development of research instruments, dissemination of information and support research that is directly related to the rural live- lihood in the five provinces. IPSARD will be the key partner in the Central Component with guidance from DST, who has the state management responsibility for science and technology for agricultural and rural development. With its independent position IPSARD can service professional and functional departments in 26 ARD SPS 2007-2012 27 MARD in research related to specific policy formulation and impact studies, but also through its network of ministerial research institutes provide services for other ministries with mandates in rural development. IPSARD is well positioned to be the “Think Tank” for the minister. The immediate objective of the Provincial Component is: "Improved food security and standard of living of poor upland farmers, especially ethnic minorities and female headed households, through im- proved natural and human resources management and upland farming techniques" In the efforts to achieve this objective, the following key issues will in particular be addressed: • Clear strategies on how to reach the target groups and secure impact at farm level • Mainstream gender equality and ethnic minority concerns in project planning and log-frames • Capacity building • Participatory and appreciative methods to human resource manage- ment • Local level planning including village plans • Demand based extension services • Farmer Interest Groups • Farmer Field School and Farmer Field Classes • Farmer to Farmer training • Farming systems approach • Sustainable natural resources management, organic farming and en- vironmental awareness methods • HIV/Aids awareness raising • Food security • Market access for poor farmers and ethnic minorities • Private sector involvement • Feed back to the national policymakers and researchers (Central Component) on: i) impacts of present agricultural and rural devel- opment policies and legal frameworks; and ii) their perceived short- comings. The implementation strategies, outputs and related activities are grouped in four sub-components, which are clusters of interrelated outputs and can serve as entities in coordination and learning between the provinces. 27 ARD SPS 2007-2012 28 Sub-component 1: Demand based extension, information and training of Farmers This component will be arranged around Farmer Interest Groups (FIGs) and Farmer Field Classes (FFCs). The FIGs consist of 10-25 members who share an interest related to agri- cultural production, processing and marketing or natural resources man- agement and have needs for training. FIGs shall in principle be organised by the farmers themselves. The key principles guiding the extension and provision of training of FIGs are: (i) the training shall be demand-driven; (ii) the training shall to a high degree be based on Training of Trainers (ToT); (iii) farmers shall be trained as trainers using Farmer to Farmer (FtF) methodology and (iv) training shall discover valuable local knowl- edge and positive experiences of farmers. In the Central Highlands there will in addition to the FIGs also be general farmers, so-called Farmer Field Classes (FFC). FFC consist of about 25 members from the same village. Professionals will train them and the farmer trainers will emerge in the groups during the training. Special attention will be given to gender issues. Gender will be main- streamed into the training programmes, including separate training ses- sions on gender issues. Priority will be given to securing women‟s par- ticipations in the FIGs and FFCs. As a way to make sure women‟s par- ticular needs are taken into account, technical themes particularly rele- vant for women, according to the prevailing division of work in the farmers families, shall be grouped together (e.g. small live-stock and hor- ticulture (“home gardening”)). Consequently the groups can be gender segregated or mixed. Sub component 2: Production, Storage, Processing and Marketing The group-based approach and integrated farming system will be overall guidance for this sub-component‟s activities. In close dialogue with advanced and innovative FIGs and FFCs, the Component will support development and testing of new approaches to production in different agro ecological zones. These approaches might be new in the provinces while they could be well proven in other parts of Vietnam or in the region. If they are found applicable for the local condi- tions they should (together with improved practices) be introduced to other areas and incorporated into planning. The approach to agricultural extension and development of improved farming systems will be to look at the farm as an integrated unit, and take point of departure in the farming system rather than in a single crop or livestock. This implies a holistic view on the present farming activities, how these interact and how new methods, livestock and crops influence on these systems, including the production of food for seasonal house- hold availability of labour. 28 ARD SPS 2007-2012 29 Sub-component 3: Local Planning and Capacity Building The village planning will be overall guidance for this sub-component‟s activities. The provinces have little experience and weak capacity at district, com- mune and village levels, related to participatory bottom-up planning and delivery of demand-based services. Therefore, capacity building at pro- vincial, district and commune levels will include participatory methods, training needs assessments, appreciative inquiry methods, bottom-up planning and delivery of demand-based services as well as understanding the effectiveness of the methods and tools. Officials will be trained to comply with the needs for services as articulated by the poor farmers and interest groups e.g. in the commune and village development plans. During the main implementation stage village level planning will become a cornerstone in programme implementation. The planning process will start at the village level or among the various interest groups, then be in- tegrated into the Village Development Plan, the Commune and District Development Plans and finally into the Province Development Plan. Consequently, planning will be coordinated with the overall planning calendar so local and village plans can be integrated in commune and provincial plans. Village Development Funds will be established for funding of post train- ing activities at the village level. For practical reasons, the village will have an account at commune level for the fund, which will be managed by the villages in cooperation with the commune. The Village Develop- ment Fund is a supplement to assistance already given to the participat- ing villages from e.g. various government sources and shall not lead to any reduction in such support. Sub-component 4: Support to Land Allocation (in the Central High- lands This component will focus on participatory land allocation. In the Central Highlands lack of agricultural land and forest allocation is a major obstacle for capturing the production potential of local communi- ties. The process of classifying and allocating land has been slower than anticipated due to a number of technical and social reasons. The Provincial Component will support an accelerated land allocation process through support to training, information sharing as well as provi- sion of technical assistance. The focus will be on introducing participa- tory processes and procedures for land allocation to ethnic groups. To avoid further misunderstandings it is deemed necessary, that all land allocation shall be done through a participatory process where: i) the lo- cal population and the appropriate local customary institutions are in- volved and ii) rights and obligations as well as alternative possibilities 29 ARD SPS 2007-2012 30 for land ownership such as communal ownership, group ownership etc. are clearly explained. Stages Implementation will fall in four stages: 1) an inception stage of 6 months; 2) an early implementation stage of one year before the planning and budgeting procedures are in place; 3) the main implementation stage, and finally 4) the phasing out stage. During the Inception stage (autumn 07) the activities will be planned, detailed implementation plans developed, the final procedures for the further implementation set up, identification of training institutions and training of core groups of implementers will be undertaken. Many of these tasks will be undertaken by consultants, who for convenience will be hired by the Embassy, but after approval in the steering committees. The provinces will be important units and decisions will be undertaken at province level. The coordination committees at district level will be set up, and the final division of labour between province and district will be settled. Research institutions in the Central Component will be selected. During the early implementation stage (January 2008), activities will start based on plans and budgets approved by the Steering Committees. This stage will in the provinces be dominated by a very intensive training of the farmer trainers. At this stage training needs related to the identified village/group re- quirements and their opportunities for development as well as the capac- ity building needs of the participating institutions and organisations can be determined. Following this (June 2008), there will be training of villagers. The ac- tivities will start in communes selected where both poverty figures, per- centage of ethnic minorities, and readiness to work within the pro- gramme will be important. While a part of the activities will be under- taken on the basis of perceived needs, village planning (and fully demand driven activities) will start under this stage, including the complete set of procedures of planning activities ranging from village to commune to district. There will be a large emphasis on identifying and training ser- vice providers. Important in activities at this stage will be the District Coordination Committee, representatives from the participating adminis- trative sections and service providers like Farmers Union, Women‟s Un- ion, CEM, training institutions and possible institutions. The programme will introduce itself in the villages/groups and present the programme vision and objectives. It is advisable to go through the village leadership in respect of traditional structures and customs. A very basic socio-economic survey should be undertaken by the Districts col- 30 ARD SPS 2007-2012 31 lecting basic livelihood information, customs, ethnicity etc., necessary for later differentiation of the approach. During the main implementation stage, village planning will be an ex- tremely important vehicle for implementation. Decision making has been delegated from district to commune level in some instances. Village Plans will be developed in a growing number of villages, while commune and district authorities will be increasingly capable at support- ing these. For the village planning a participatory resource assessment is a central part of the process and will include determination of all the resources available to the village/group (livestock, land cover and land use, infra- structure etc.) in order to gain an overview of the “assets” and therefore opportunities available to the beneficiaries, and to start the appropriation by the villagers of planning skills. Capacity building of extensionists, private service providers and mass organisations will support the plans. As the conditions for joint donor arrangements are not yet present (i.e. a Sector Wide Approach (SWAP) to agricultural and rural development) coordination and cooperation with relevant donors will be on bilateral basis, and there will be an emphasis on alignment to Vietnamese proce- dures and cost norms. The adoption of a SWAP to agriculture and rural development in Vietnam will be closely monitored as SWAP provides an opportunity for all major donors in the sector to harmonise efforts and approaches. 4.3 Poverty With the SEDP 2006-10 the Vietnam Development Goals (VDGs) and many other plans, the policy framework and plans for the coming 5 year in Vietnam places an emphasis on poverty reduction and poverty allevia- tion. The ARD SPS programme follows this trend. The programme is directly poverty oriented by focussing on some of the poorest districts in Vietnam, and within them on the poorest communes. The strategy will be poverty oriented, acknowledging that the poor and the ethnic minorities are marginalized in relation to mainstream society. The programme is directed particularly towards improving farming prac- tices relevant for poor farmers, as e.g. dry-land farming, small-scale irri- gation, and small livestock. In addition their collection of non-timber for- est products, forestry activities and diversification into handicrafts will also be supported. This will be done at a small scale with inexpensive technologies that can be managed by poor farmers. Presently extension models have a bias towards high input crops that necessitate a high de- pendence on marketed inputs of seed and fertilizer 31 ARD SPS 2007-2012 32 Many surveys have shown that the extension system and many other ser- vices do not reach the poor – and especially the poor ethnic minorities. The formation of farmer interest groups at village level for increased visibility of poor farmer needs will change this situation. An accessible extension package with a menu of options that relates to the realities of poor upland farmers should be developed from existing and new training materials. The awareness of extension demands of the poor upland farm- ers will be increased through a decentralized participatory planning proc- ess. Similarly community participation in the planning processes will be strengthened for more effective poverty reduction. 32 ARD SPS 2007-2012 33 5 Components 5.1 Central Component As defined in chapter four, the immediate objective of the Central Com- ponent is: "Research, policy formulation and information dissemination on upland agricultural and rural development is qualified and coordinated" 5.1.1 Component Structure, Strategy and Main Outputs There is a lack of sufficient relevance of past and ongoing ARD research for ethnic minorities in upland and remote areas. To assist GOV to im- prove the situation, the ARD SPS Central Component for 2007-12 will strengthen the capacity for evidence based policy development in ARD for ethnic minorities in upland areas. The component will focus on the following: Developing the Institute for Policy and Strategies for Agricultural Ru- ral Development (IPSARD) to be a “think tank” at MARD with the nec- essary instruments (reliable data collection and management, feedback mechanisms, and dissemination strategies) and strengthening of IPSARD‟s capacity for policy research in ARD related to upland areas with emphasis on the five ARD SPS cooperation provinces Supporting the Department of Science and Technology (DST) in MARD to develop cross cutting research themes with the creation of a collaborative and multidisciplinary consortium of ARD research institu- tions/universities for research on sustainable upland livelihoods with peer reviews from international research organisations. The central component is closely linked to the Provincial Component by focussing on the five cooperation provinces when developing research instruments and supporting research that is directly related to the liveli- hood of the poor upland household. The vision of the component is a two-way effective feed back mecha- nism for agriculture and rural development policy and strategy develop- ment that stretches from the ethnic minorities in upland areas through the provinces to the national policy level. 33 ARD SPS 2007-2012 34 The expected result of the component will be improved economic devel- opment for ethnic minorities in upland areas. This will come from an im- proved policy development with increased participation and consultation with ARD grass root organisations outside MARD and from the devel- opment of new knowledge and insight from focused research in order to make policies responsive to the special needs in upland areas and also innovative research to improve the entrepreneurship and production technologies for upland farming. The derived result of the component is the creation of the provincial dia- logue facility serving as the link to the national level with Science and Technology Advisory Board, to the district and commune level and sideward links to relevant departments at province level. To achieve these results the Central Component will - within the context of upland rural development - provide support to the national research, policy formulation and information network. The component has two outputs. - Output 1 aims at supporting Policy and Strategy Development within MARD. - Output 2 supports Innovative Approaches for Sustainable Upland Livelihoods. The following activities will support relevant MARD Departments, espe- cially the Institute for Policy and Strategies for Agriculture and Rural Development (IPSARD) and the Department of Science and Technology (DST), Agricultural and Rural Development Universities within the cen- tral component. For a more elaborate description of the activities than summarized below, please refer to the Central and Provincial Component programme document. Activities related to Output 1: Policy and Strategy Development This output seeks to strengthen capacity of IPSARD to serve as a "think tank" for MARD in formulating and communicating policies in the agri- cultural and rural development, particularly with regards to upland areas and ethnic minorities. To this end, the following activities are designed and are summarised below: Activity 1.1. Develop Institutional Development Strategy and Upgrade Research facility and Human Resources for IPSARD. Activity 1.2: Conduct Policy-related research Activity 1.3: Set up Policy dialogues and linkages Activity 1.4. Develop and disseminate policies and strategies by MARD Departments 34 ARD SPS 2007-2012 35 Activity 1.5. Support to the establishment of a rural households database at MARD for policy purpose. This consists of i). Rural households sur- veys and ii) Farm monitoring systems (FMS) Activity 6: Support to Component Coordination Unit (CCU) at IPSARD to coordinate the activities of the Central Component and to facilitate the activities of the Programme Monitoring Committee. Support to institutional development strategy and upgrade research facil- ity and human resources for IPSARD will include institutional diagnostic analysis of IPSARD as well as a needs assessment of IPSARD focusing on policy research and analytical skills. Based on the results of the analy- sis, a strategy and action plan for IPSARD will be supported together with necessary upgrading of research facility and capacity building of human resources. Support specific to policy-related research at IPSARD will include provi- sion of fund to finance such research. It is envisaged that IPSARD will team up with policy and strategy research institutes in other ministries (the Network of Policy and Strategy Institutes) and the private sector to conduct research supported in this output. As Vietnam's economy is growing and integrating more and more into the global economy, the range of topical issues vis-à-vis ARD policy research becomes more complicated and multidimensional in nature. Therefore, linkages with institutes outside MARD and private sector are vital to leverage capaci- ties for research and result dissemination. Support specific to policy dialogues includes setting up a provincial facil- ity for policy dialogue, information, knowledge exchange and dissemina- tion in each of the five cooperation provinces. IPSARD will set up and provincial authorities will gradually take over. The intention is that les- sons are learned from policies implemented and local practices. The les- sons will provide essential inputs to MARD for the next policy formula- tion cycle as well as feedbacks from households and government offi- cials. Support given to MARD departments to disseminate and scale up the positive lessons learnt from the implementation of the current ASPS and to further the reform of the extension system, e.g. Sustainable Upland Seed and Breed Development Strategy; the IPM programmes and the Post Harvest Strategy as well as other best participatory agricultural ex- tension practises for upland and remote areas. Support specific to establishment of a rural households database at MARD include two activities. One is a Rural Households Survey con- ducted every other year departing from 2006 in the five cooperation provinces and conforms to the survey by General Statistics Office. The other is a Farm Monitoring System (FMS) to be piloted in two coopera- tion provinces. The vision is to capture data more regularly and to be able to gauge farmers‟ responses to changed agricultural policy and external influences like natural disasters, climate change, diseases or price fluc- 35 ARD SPS 2007-2012 36 tuations. In the long term, the FMS will be transferred to provinces for management; however, the analytical work is still to be done by IPSARD for policy purpose. The analyses derived from the rural surveys will be essential information to policy makers and researchers and stakeholders in the provinces and at central level. Support specific to the Component Coordination Unit (CCU) located at IPSARD will entail a budget lines for running costs and salary for two positions namely an accountant and an interpreter. The staff will com- prise of five nationals and a long-term international adviser. CCU is ex- pected to provide support to coordinating the Component activities and facilitating the functions of the Programme Monitoring Committee. Activities related to Output 2: Innovative Approaches for Sustainable Upland Livelihoods Two main activities are designed to establish research facilities and pro- mote information on innovative approaches for sustainable upland liveli- hoods. These activities mainly involve the Department for Science and Technology (DST) and the Science and Technology Advisory Board (S&TAB) within MARD. Activity 2.1: Support to Upland Livelihood Research Programme on in- novative livelihoods approaches for upland areas and ethnic minorities. This activity will include the establishment of a Research Fund for Up- land Livelihoods and dissemination of Research Results. Activity 2.2. Support to the functioning of the Science and Technology Advisory Board (S&TAB) and DST on its secretariat role. Support to Uplands Livelihoods Research programme will focus on in- novative livelihood approaches for upland areas and ethnic minorities. Relevant ARD centres and institutes, inside and outside MARD will be invited to join the programme or to bid with research proposals for the Upland Livelihoods Research Fund. The Science & Technology Advi- sory Board functions as an advisory board to MARD Minister and the S&TAB will approve research proposals to be supported by the Research Programme. 36 ARD SPS 2007-2012 37 Support to DST also include upgrading of the management of the Re- search Programme and the Research Fund, preparation of guidelines for management of the framework agenda and establishing a peer review panel with international participation to secure a high quality of research. Finally, dissemination of results to policy makers and through profes- sional channels and to stakeholders in the provinces will raise awareness of issues pertaining to upland livelihoods. The S&TAB is in the process of restructuring to be more responsive to the needs of the ARD sector. Its secretariat located in DST will support the working modalities and key activities. The Component will support DST in functioning as the secre- tariat of S&TAB. 5.1.2 Inputs to the Central Component Inputs from Danida will be long and short-term technical assistance, cost of facilitation (meetings, workshops, translation), skills training of staff in counterpart organisations, funds for research and simple equipment for research. The inputs of the Government of Vietnam will be counterparts, support staff, secretariat in IPSARD and DST personnel remuneration (all sala- ries and allowances) and administrative expenses (utilities, communica- tion, electricity etc.) of all counterpart staff. Furthermore duties and taxes on imported equipment and vehicles, and tax relief for international ad- visers and their imported personal belongings, if requested. 5.2 Provincial Component As defined in chapter four, the immediate objective of the Provincial Component is: "Improved food security and standard of living of poor upland farmers, and especially ethnic minorities, through improved natural and human resources management and upland farming techniques" 5.2.1 Component Structure, Strategy and Main Outputs The provincial component will focus on decentralised support to agricul- tural and rural development. The component will be anchored in the Peo- ple‟s Committee of the cooperation provinces and selected target dis- tricts. The five-year development plans 2006-2010 (both for each prov- ince in general and for the agriculture and rural development sector) serve as key guidance for the initiatives to be supported at local level. Within these provincial priorities, the component activities will be tar- geted at 2-3 poor districts in each province. The overall strategy of the Provincial Component is that all activities supported will be integrated in the general planning for the Province and the participating districts, communes and villages. In other words, the 37 ARD SPS 2007-2012 38 services provided under the programme would be demand based in line with local development plans. The target districts are dominated by upland agriculture and the majority of the rural population is from different ethnic groups. A special effort will be given to develop adequate responses to the need of these farmers. The main thrust of the Component is in organisation and training at farmer level. In Dak Lak and Dak Nong, the Provincial Component will assist and facilitate an accelerated agricultural land and forest allocation, as this area is crucial for the enhancement of the production potential of farmer groups and local communities. The main action of the programme will be in training of local farmers and rural entrepreneurs in technical and in marketing and planning is- sues. Training of planning and management staff at village, commune, district and province level will be carried out in order to accommodate interfacing between local level and higher level planning. The component supports the five target provinces through the existing Provincial Government structures, with the aim of improving services delivered to the poorest rural population. The component will strengthen: • Local communities‟ ability to define and demand appropriate ser- vices from governmental as well as from private sector suppliers of know-how and technical in-puts • Private and public service providers‟ abilities to support farmers‟ and other rural entrepreneurs‟ demands in relation to business and market development, farming systems development, marketing, im- plements and other inputs etc. The planning process will ideally start at the village level or among the various interest groups, then be integrated into the Village Development Plan, the Commune and District Development Plans and finally into the Province Development Plan. At each level programme activities shall be fully coordinated with other activities to achieve optimum benefit from the total range of activities and exploit possible synergy effects. It shall be stressed that programme support shall not exclude the participating villages from other support – rather it shall be used to maximise benefit from such support. The planning will be in accordance with the general planning calendar of the Vietnamese government system. It is expected that working in FIGs rather than as individuals will facili- tate and strengthen the farmers access to a broad range of services includ- ing training and extension. Through these processes different groups of ethnic minorities have become more active participants in Vietnam‟s economy, and local planning system. 38 ARD SPS 2007-2012 39 Furthermore, activities at local level can be linked to new innovative re- search projects and, thus, establish the first opportunity for feedback to policies made at the central level. The expected situation at the end of the programme period is one in which the rural – mainly minority - population in the selected districts within the programme provinces are able to manage their households and farms, and other rural enterprises in a more sustainable manner and with enhanced profitability and food security. This is achieved by male and female farmers having organised themselves in farmer groups trained in technical and managerial aspects. They are visible to the authorities, par- ticipate actively in bottom-up planning and competitively utilize a broader range of service providers from both inside and outside the gov- ernment sector. They practice an improved natural resources manage- ment, crop production, animal husbandry, agro- forestry and forestry - also employing their successful local (indigenous) knowledge. They un- derstand better how to operate and increase production in fragile upland environments through knowledge of local landscape dynamics. They util- ize better marketing of the products and some traditional products are branded and labelled. They have reduced post harvest losses and have higher quality products, which are easier to market. They have an im- proved handicraft production and a more diversified income. They are better to plan and participate with their respective communes in the yearly planning activities, resulting in a more demand-driven planning process from village to provincial levels. In the central highlands people have been trained in land use classification and can undertake participa- tory land allocation. They have obtained land use certificates for forest- land and fallow lands. The province, district and commune authorities have an enhanced capac- ity to facilitate the utilization of the private and other service providers. These authorities, as well as other involved agencies, appreciate diversity in ethnicity, gender, environment and local knowledge and integrate these in facilitation and bottom-up planning. Men and women are involved in demand-driven planning and rural de- velopment activities according to their capacities and division of labour in the households. Take the diversity of farmers and their different needs and demands into account when planning of extension – and other ser- vices: Ensure that female-headed households, HIV/AIDS affected house- holds and land-poor households participate in training needs assessments and planning of extension activities in the villages – on equal terms with better-off farmers, and a budget is allocated to their special training and extension services. Allocate minimum 50% of the total village budget for female farmers‟ activities, and approximately 10% for HIV/AIDS af- fected and other vulnerable households‟ specific needs. The programme has thus contributed to the transformation from house- hold based farms, managed with inadequate technical knowledge, with fragmented and un-linked operations and with little attention to long term planning into a more modern, coherent household/group based rural en- 39 ARD SPS 2007-2012 40 terprises fully engaged in and operating under market conditions. Fur- thermore, it is expected that present overexploitation of natural resources for short term gains will decrease and that hitherto unprofitable forest lands will be managed in a more sustainable and profitable manner. Leaders and staff at all levels have been supported to upgrade technical and managerial skills. To meet the immediate objective of the Provincial Component and based on the Component strategy four Sub-components have been defined: 1 Demand based Extension, Information and Training of Farmers 2 Production, Storage, Processing and Marketing 3 Local Planning and Capacity Building 4 Support to Land Allocation (primarily in the Central Highlands) The main impact of the Component is - Poverty in the Component districts reduced by 50 % from 2002 to 2012 according to the new poverty line. - Improved achievements of the calorie needs in the families, resulting in stunted children under 5 reduced by 50 % from 2002 to 2012. The overall achievements of the four sub-components are: 1. At least 50,000 poor upland households in the target districts have organised themselves for training, for better visibility, and for com- mon action, and have been trained in agriculture, forestry, gender policy and natural resources management. 2. At least 70,000 poor upland households in the target districts of the five provinces have improved their food security and achieved higher and stable income through improved natural and human resources management (e.g. more appropriate cultivation technology, sustain- able cultivation and forest management methods, introduction of more suitable and/or diversified crops, improved management of small livestock, improvement of local plant and livestock species). 3. At least 5,000 poor upland households have improved their income from traditional and new products by reducing post-harvest losses and by improving quality, branding and market channels for their products. At least 30 new products have been labelled. 4. At least 120 Province, 300 District and 1,000 commune staff in the five provinces have increased their capacity and participated in short- term and long-term bottom-up planning. At least 75,000 households 40 ARD SPS 2007-2012 41 have participated in the development of at least 300 local yearly commune plans and/or 900 village plans. 5. At least 140 service providers (including WU and FU) have been trained at province level at least 300 at district level and 600 at com- mune level, and have improved their capacity in servicing, training and organising the farmers. 6. At least 1,000 village leaders in the five provinces have increased their capacity and participated in short-term and long-term bottom-up planning for 900 villages, and are able to co-manage VDF with the commune staff. 7. In Dak Lak and Dak Nong Province, administrative staff is able to carry out participatory forest land allocation and - land use certifi- cates for a total area of 10,000 ha have been issued on an intensive pilot basis, and as an up-scaling process – land use certificates for additional 30,000 ha have been issued. Farmers and other rural entre- preneurs can manage their natural resources safely within the law and have been introduced to all relevant administrative procedures in re- lation to e.g. change of land use classification, transfer of ownership etc. The following activities have been identified in order to achieve the de- fined outputs. A number of the activities will be interrelated and will be implemented accordingly. All activities will be revised and further tai- lored to meet the defined outputs during the component implementation and in particular during the inception phase. Outputs and Activities related to Sub-component 1: Demand based extension, Information and training of farmers The ARD SPS Provincial Component has a strong emphasis on strength- ening the capacity of both farmers and local government staff from vil- lage level to provincial level in agriculture and management of human and natural resources using bottom up and participatory approaches. To this end, the following outputs are expected: Output 1.1: The farmer groups have increased their capacity based on their expressed needs; Output 1.2: Local knowledge of natural resources management is pre- served; Output 1.3: The farmer groups have increased their capacity to read and write and perform simple arithmetic; Output 1.4: Information and training materials and libraries are made available to villagers; 41 ARD SPS 2007-2012 42 Output 1.5: Capacity of provincial and district authorities to deliver de- mand-based extension increased; Output 1.6: Local service providers at provincial, district, commune and village levels (including FU and WU) have increased their capacity / out- reach to provide demand based services to farmers; Output 1.7: Programme participants aware of crosscutting issues. The use of the bottom up approach requires that the capacity building for farmers start from forming farmer groups, in the ARD SPS context Farmer Interest Groups (FIGs). When organised in groups, farmers are ready to voice up their demands and increase their visibility to both pub- lic and private service providers. FIGs will serve as convenient set up for organising training events. Local mass organisations like FU and WU will assist the formation and function of FIGs and other groups. The farmers organised in FIGs will go through assessment of training needs, elaboration of training plans and materials. Training topics will include various technical issues such as basic crop production, animal husbandry and forestry together with literacy training, simple arithmetic and crosscutting issues. For non-Kinh speakers (the ethnic minorities) scripts are made available in their own language when necessary, so they can participate effectively. In addition, this issue can be effective dealt with, as the training shall to a high degree be based on training of trainers (ToT) and farmers to farmers (FtF) methodology. In the Northern provinces, competent farmers emerging from FIGs- both males and females of preferably local ethnic minority groups - will be a selected to be trained as trainers. In the Central Highlands young, dedi- cated male and female farmers of mainly ethnic minority origin, engaged in full time farming, will be trained as “master trainers” in all basic agro- nomic subjects including farm management. Gender issues and other cross cutting concerns such as HIV/AIDS, man- agement of natural resources in fragile environments will be supported. Trainers with relevant knowledge will be deployed to inform the farmers and farmer trainers of these various issues. The farmers and service pro- viders will be encouraged to take these concerns into consideration throughout the local planning process. Village and commune libraries will be established, and materials will be updated and procured. Materials regarding local knowledge related to farming and forestry will be compiled and documented. In addition, to help services of the government, mass organizations and private providers towards more demand-based and sustainable services, the Component will support capacity building in bottom-up planning, facilitation skills and participatory approaches for officers at the relevant local agencies and, to a lesser extent, business people. 42 ARD SPS 2007-2012 43 Outputs and activities related to Sub-component 2: Production, Storage, Processing and Marketing This output seeks to improve the productive, management and marketing capacity of households and small-scale enterprises in the cooperation provinces. Therefore it aims at increasing profitability and incomes of the upland farmers. The following outputs are expected: Output 2.1: Improved models of technical practices based on a farm sys- tem approach and applicable to local conditions have been developed and tested in the target districts Output 2.2: Marketing chain and market potential of produces and prod- ucts from the target districts are identified and promoted Output 2.3: Post-harvest handling and storage improved Output 2.4: Traditional handicraft production has improved in quality and quantity Output 2.5: Improved production and income practices especially bene- fited to the poor are supported through the support from Commune or Village Development Funds Output 2.6: The operation and maintenance of small-scale irrigation in- frastructure in the cooperation districts has improved This sub-component take the group-based approach and integrated farming system as a point of departure in designing its outputs and associated activi- ties. Productive, management and marketing capacity of the target groups will be upgraded through the introduction of technologies, "models" and practices that work well in other parts of the country. Potential technologies, "models" and practices will be selected and piloted in the local conditions regarding climate, topography, soil quality, transportation and other socio- economic and cultural aspects. Improved practices and „models‟ may in- clude areas such as natural resources management, farming systems, for- est management, varieties, breeds, post harvest handling. Specific support vis-à-vis marketing includes commissioning marketing feasibility studies, training of farmer groups in market related subjects and in business development and branding of produces and products which may include local rice varieties, maize, soy bean, plums, chutney processing, pineapple processing, tea, non timber forest products, wood processing, local pig, poultry, cattle breeds, and handicraft. Support spe- cific to small-scale businesses may include forming cooperation in pro- duction and marketing, building up of trade marks and brands, trade promotion and support to local marketing initiatives for promising agri- cultural products, forest products and handicrafts. Support specific to post-harvesting may include group training and training of individuals, support to post harvest handling including storage facilities and on-farm 43 ARD SPS 2007-2012 44 processing through the FIGs, FFCs and CDF or VDF and dissemination of successful models by incorporation into local planning. Experiences from the ASPS post-harvest component and the ARD SPS central com- ponent will be disseminated to farmers, local authorities and other in- volved agencies and integrated into planning as appropriate. Support specific to local traditional handicraft includes study on existing skills and market potentials, retrieving existing handicraft skills and us- ing them in the training and combining with outside technologies (bam- boo knit, weaving, brocade, etc) and provision of tools and equipment for the groups (from the CDF or VDF). Support specific to the operation and maintenance of small-scale irriga- tion infrastructure includes establishment of user groups with their inter- nal regulations and user fees and training of the members. Dissemination of successful technologies, "models" and practices will be made by incorporation into local planning process. Outputs and activities related to Sub-component 3 – Local Planning and Capacity Building This output seeks to facilitate the active participation and ownership of the farmers into the implementation process of the Component through local planning via CDFs and VDFs. As this is a new approach, capacity building for local government officers and farmers is an essential part of this sub-component. Expected outputs include: Output 3.1: Government officers at all levels (from village, commune, district and province) have increased its capacity, particularly in bottom- up planning. Output 3.2: Demand-driven planning implemented at all levels and up- graded every year. Output 3.3: Planning capacity at household level improved. [Only in the Central Highlands]. Output 3.4: Lessons learnt and experiences are disseminated Support specific to capacity building, particularly in bottom-up planning for government officers at all levels include training needs assessment, training in bottom–up planning and participatory approaches, study tours to other communes, districts or provinces to learn from experiences in natural resources management, agriculture and forestry bottom-up plan- ning will also be supported. The communes‟ equipment can be upgraded after an assessment. In addition, bottom-up planning procedures at local level, regulations for approval and overall guidance of the provincial planning authorities will be developed together with a system for feed- back of information from communes, villages, FIGs and FFCs. In paral- 44 ARD SPS 2007-2012 45 lel, CDF and VDF will be established together with their rules and pro- cedures for application, approval and use of the fund. The operations of the CDFs and VDFs will be incorporated into the local planning system. . Lessons learnt and experiences should be documented and disseminated via organising study tours among the 5 provinces and conduct workshops with other provinces and with research institutes and MARD‟s depart- ments. Outputs and Activities related to Sub-Component 4 - Support to land allocation (in the Central Highlands) This sub-component support the acceleration of land allocation process in Dak Lak and Dak Nong provinces through support to training, infor- mation sharing as well as provision of technical assistance. Expected outputs include Output 4.1: Farmers knowledge in participatory land allocations and leg- islation related to natural resources management and land uses manage- ment improved Output 4.2: Land use certificates allocated to small landholders Specific support to training and information sharing includes short train- ing in the legal and administrative framework and procedures provided to all interested households. It includes introduction to laws and regulations for environmental protection, forest protection, land use classification etc. The training will also introduce relevant administrative procedures relating to change of land use purposes, temporary or permanent transfer of ownership or user rights, inheritance etc. In addition, training of farm- ers and local technical staff on the economic potential of agricultural and forest land allocation, various ownership forms and participatory land allocation procedures including identification and allocation of individual plots, demarcation, mapping etc. Support specific to technical assistance in piloting allocation of land use certificates to small landholders includes identification of potential land (including fallow land) for allocation, demarcation and registration of 5,000 ha land allocated in a participatory approach. If the pilot land allo- cation is successful a further 15,000 ha will be allocated. Development of a manual for participatory land allocation based on experiences gained through the pilot phase and revise official procedures for land allocation and registration. 45 ARD SPS 2007-2012 46 5.2.2 Inputs to the Provincial Component Inputs of Danida: Sub-Component 1: Funding for facilitation of farmer groups; training of FIG by farmer trainers; training of FIG and FFC by professional trainers in technical fields and crosscutting issues as well as training material. Training needs assessment and subsequent conduction of training pro- grammes for existing and potential local service providers will be funded. Gender consultants will be recruited to plan and conduct gender sensitivity training and to train local gender specialists. HIV/Aids con- sultants will be recruited to assess the need for HIV/Aids awareness, ac- tivities and local capacity building. Environmental awareness, e.g. on forest protection and land degradation, will be inherent in the training. Sub-Component 2: Funding for testing, piloting and documenting im- proved technical practices; feasibility studies and other studies; Com- mune or Village Development Funds. Funds will also be made available for developing training materials for the most successful technologies to be introduced on a larger scale. With regard to irrigation schemes in the target districts, irrigation management consultants will be funded to carry out surveys to identify potential schemes for establishment of user groups and subsequently to train the group members. Sub-component 3: Funding for facilitation of bottom-up planning and participatory approaches, study tours, improvement of equipment, shar- ing experience initiatives. Sub-component 4: Funding for training, consultancy in land classification & registration, pilot demarcation and registration of 10,000 ha land and another 30,000 ha land if pilot is successful. Substantial Technical Assistance (TA) will be mobilised from national resources, mainly outside the province (and possibly some by interna- tional TA). Preference will be given to use of national consultants re- cruited under contracts with institutions or consultancy firms. During the inception phase provinces and especially districts need substantial tech- nical assistance from national and international short-term consultants. Initially, and subject to assessment after one year, in each province one Support Officer, who will support the Province Co-ordinator, an ac- countant and a secretary cum interpreter will be funded. In each district one District Support Officer will be funded. The salaries will follow the- salary structure of the Government of Vietnam. In the Provincial Component's there is budgeted with 50 person-months international and regional consultancies. There can be some more inter- 46 ARD SPS 2007-2012 47 national – and especially regional consultancy or training inputs to the training, capacity building and piloting. There will be a few local consultancies undertaken by consultants under individual contracts – often linked to the regional and international con- sultancies, while most local consultants and trainers will be contracted through institutions, and such contracts will constitute a large part of the budgets for training and capacity building. Inputs of the Government of Vietnam: Duties and taxes on imported equipment and vehicles, and tax relief for international advisers and their imported personal belongings, if re- quested. At the provincial and district level Peoples Committees at province and district level will provide: Office facilities in DARD for the adviser and the Steering Committee management unit, personal emoluments (all salaries and allowances) and administrative expenses (utilities, communication, electricity etc.) of all counterpart staff. 5.3 Technical Assistance Support and Exit Strategy for Advisers The Central Component's technical advisory inputs are a long-term inter- national agriculture and rural development sector adviser and short-term international and local consultancies. The Provincial Component's technical advisory inputs are three long- term international rural development advisers and short-term interna- tional and local consultancies. It is assumed that there will be a fairly heavy input of local and national consultants in preparing administrative and financial procedures, training accountants etc. Furthermore it is fore- seen that the provinces and especially districts may need technical assis- tance from national and international short term advisors in devising ad- ministrative procedures, preparing Terms of Reference for the various activities, assessing proposals and carry out internal monitoring and qual- ity control. The role of the international TA is principally to facilitate international best practices to the areas, which generally are rather isolated and has relatively little experience with participative methodologies, demand- based training and technical assistance, and participation of the private sector. It is considered that this TA will be crucial to make sure that the support will not simply be “business as usual”, just with more funding, but that it will also imply a qualitative lift in the activities. An important role for the adviser will be to help the province identify suitable short- term TA, international, regional and national. 47 ARD SPS 2007-2012 48 The advisers will in particular support the processes of local level plan- ning, exchange of information and experiences between provinces and between the provinces and the central level. However, one key task will also be to motivate all counterparts to take responsibility and interest in the culture and indigenous knowledge of the ethnic minorities. It is a key responsibility of all long-term advisers that they see their role as giving technical assistance and act as facilitators in the processes sup- ported by the ARD SPS. Due to the complexity of the introduction of new processes of bottom up planning and demand based public and private service deliveries all three long-term advisers are deemed needed for the full period. The adviser in the central component will support IPSARD in a capacity building process which includes: developing the institute‟s strategy, hu- man resource development of staff, and investment in new ARD policy and strategy research mechanism and instruments. The adviser will also support DST to introduce new modalities of re- search as collaborative research management across institutions inside and outside MARD and focussed research on policy and strategy devel- opment under the Science and Technology Advisory Board. Such functions and mandates are new to Vietnam. However, DST and IPSARD management have clear views and strong aspiration to develop IPSARD into an ARD policy and strategy “Think Tank” and to develop collaborative research programmes for upland faming, which can be sup- plemented and turned into action with the assistance of an international adviser. The adviser could stay up to 4-5 years to support for the programme and then be phased out. ASR will do an assessment of this after 3 years. It is thus envisaged that all four advisers will be needed for the full pe- riod, the central adviser could, however, be phased out after four years. The annual review during the 3rd year of implementation will look espe- cially at the issue of the exit strategy for the central adviser and at the scope of work for the advisers in general. 5.4 Target Group Involvement The target groups will be involved through the planning procedures, which will start at farmers groups and village level. Special emphasis will be made to ensure that the services systems will become more re- sponsive to the farmers‟ needs. As a large part of the target groups will belong to ethnic minority groups, there will also be various measures to ensure that language barriers do not prevent them from being involved. Thus training material will take into account that only a small proportion of the main target groups speak and understand Vietnamese sufficiently well to benefit from conventional training. Furthermore, many, especially 48 ARD SPS 2007-2012 49 women, are illiterate. Training and information material used by the pro- gramme must take this into account and in most instances new material will be produced or translated. On the other hand extension workers and trainers must acknowledge that local farmers possess a wealth of knowledge in relation to farming and forestry and try to integrate this knowledge in their information and train- ing. It is important that this knowledge is acknowledged by the trainers, “activated” and transformed into a modern context. In order to support consultations involving all otherwise, marginalized groups, the component will emphasise planning at the village level, where the villages, even in ethnic complex communes, often will consist of one ethnic group and consist of people who are ready to cooperate, although some segmentation exists also at this level. The village must be seen as the basic unit for community involvement, in order to promote participation. The formation of the FIGs is an important element of the implementation strategy. Being organised in these groups driven by of common interests will empower the poor farmers to formulate their demands for services and to receive the training they are demanding. In other words, it is ex- pected that working in FIGs rather than as individuals will facilitate and strengthen the farmers access to a broad range of services including train- ing and extension. Through its group approach linked to bottom-up planning, the ARD SPS emphasises to make marginalized groups visible and give them voice in relation to the local government at commune and district level. 49 ARD SPS 2007-2012 50 6 Budget The total budget of ARD SPS is 230 million DKK. Main budget lines are as follows. OVERALL PROGRAM, ARD SPS 2007 – 2012 PROGRAM Mill DKK Mill USD Mill VND % of Total Central Component 28.11 4.53 72,542 12.22 Provincial component 162.04 26.14 418,168 70.45 Dak Lak 32.88 5.30 84,852 14.30 Dak Nong 25.86 4.17 66,735 11.24 Lao Cai 32.64 5.26 84,232 14.19 Lai Chau 33.65 5.43 86,839 14.63 Dien Bien 37.01 5.97 95,510 16.09 International Advisers 20.00 3.23 51,613 8.70 Program level Monitoring Committee and 0.30 0.05 774 0.13 Program management unit Annual review and monitoring 3.00 0.48 7,742 1.30 Special auditing 0.70 0.11 1,806 0.30 Consultancies 1.05 0.17 2,710 0.46 Unallocated 14.80 2.39 38,194 6.43 TOTAL BUDGET 230.00 37.45 593,548 100 50 ARD SPS 2007-2012 51 The Annual planned expenditure is as follows OVERALL PROGRAM, ARD SPS 2007 – 2012 Million DKK PROGRAM 2007 2008 2009 2010 2011 2012 Sum Central Component 1.34 9.31 5.88 5.73 3.28 2.58 28.11 Provincial component Dak Lak 3.05 7.77 8.63 6.58 4.92 1.93 32.88 Dak Nong 2.27 7.20 6.76 5.16 3.79 0.67 25.86 Lao Cai 2.51 7.79 8.32 6.81 5.35 1.85 32.64 Lai Chau 2.71 7.87 8.58 6.86 5.52 2.11 33.65 Dien Bien 2.90 8.85 9.17 7.13 6.05 2.91 37.01 International Advisers 2.00 4.00 4.00 4.00 4.00 2.00 20.00 Program level Monitoring Committee and 0.05 0.05 0.05 0.05 0.05 0.05 0.30 Program management unit Annual review and monitoring 0.50 0.50 0.50 1.00 0.50 3.00 Special auditing 0.10 0.10 0.10 0.10 0.10 0.20 0.70 Consultancies 0.00 0.30 0.30 0.30 0.15 1.05 Unallocated 14.80 TOTAL BUDGET 17.43 53.74 52.29 43.72 33.71 14.3 230.00 The contribution to the budget from the Vietnamese Government will mainly be in terms of salary for personnel as well as expenditures for of- fices and maintenance. The Ministry of Finance will reconcile and allo- cate counterpart funds for the programme annually. The counterpart funds for the overall programmes are: Provincial comp. Central comp. Total Budget (Mill) VND DKK VND DKK VND DKK Personnel remuneration 12,905 5.00 1,329.5 0.51 14,234.5 5.51 Administrative expenses 8,684 3.37 2,965.5 1.14 11,649.5 4.51 Total 21,589 8.37 4,295.0 1.65 25,884 10.02 51 ARD SPS 2007-2012 52 Central Component The budget for 2007 to 2012 is 28.11 million DK as shown below. De- tailed budget is in Annex 2). Budget for Central component, ARD SPS 2007- 2012 Outputs Mill DKK Mill USD Mill VND % Output 1-Policy and strategy development 16.20 2.61 41,806 56 Output 2- Innovative approaches for sustainable upland live- 7.53 1.21 19,432 28 lihoods Implementation 2.33 0.37 6,013 8 Total activities and implementation 26.06 4.21 67,251 92 Contingency (10%) 2.06 0.33 5,316 8 Total 28.11 4.53 72,542 100 Budget for Central Component by year, ARD SPS 2007- 2012 Budget Sub-components & Outputs 2007 2008 2009 2010 2011 2012 Mill DKK Sub-component 1- Policy and strategy 0.88 5.53 3.05 3.35 1.63 1.78 16.20 development Sub-component 2- Innovative approaches 0.38 2.70 1.80 1.30 0.98 0.38 7.53 for Upland livelihoods Implementation& administrative support 0.03 0.58 0.53 0.58 0.38 0.23 2.33 Consultancies - 0.30 0.30 0.30 0.15 - 1.05 Annual review 0.20 0.20 0.20 0.20 0.20 1.00 Audit & Value for Money Audit 0.03 0.08 0.03 0.08 0.03 0.03 0.28 Total activities and implementation 1.28 8.81 5.38 5.23 2.98 2.38 26.06 Contingency 0.06 0.50 0.50 0.50 0.30 0.20 2.06 Total 1.34 9.31 5.88 5.73 3.28 2.58 28.11 The Component Coordination Unit (CCU) budget covers only running costs while staff cost will be paid by IPSARD, except one accountant and interpreter positions will be financed from the ARD SPS programme. 52 ARD SPS 2007-2012 53 The budget is based on estimated cost of technical assistance and activi- ties related to facilitation and research grants to achieve the two outputs. The budget is indicative and therefore the actual disbursement will be based on annual work plans with detailed cost estimates calculated on the basis of cost norms agreed between GOV and EOD. The counterpart funds of the central component: IPSARD DST Total Budget (Mill) VND DKK VND DKK VND DKK Personnel remuneration 600.5 0.23 729.0 0.28 1,329.5 0.51 Administrative expenses 1,721.9 0.66 1243.6 0.48 2,965.5 1.14 Total 2,322.4 0.90 1,972.6 0.76 4,295.0 1.65 6.1 Provincial Component The budget for 2007 to 2012 is 162.04 million DKK as shown below. Dak Lak Dak Nong Lao Cai Lai Chau Dien Bien Budget Mill. % of Mill. % of Mill. % of Mill. % of Mill. % of Mill % of Sub-components DKK Total DKK Total DKK Total DKK Total DKK Total DKK Total Sub-Component 1: Demand based Extension, 8.89 27.04 7.14 27.61 10.43 31.95 11.48 34.12 13.78 37.23 51.72 31,92 Information and Training of Farmers Sub-Component 2: Pro- duction, Storing, Process- 10.67 32.45 8.28 32.02 11.70 35.85 11.72 34.83 11.79 31.86 54.16 33,42 ing and Marketing Sub-Component 3: Capac- ity Building and Local 3.64 11.07 2.60 10.05 2.35 7.20 2.33 6.92 2.45 6.62 13.37 8,25 Planning Sub-Component 4: 4 Sup- port to Land allocation 1.20 3.65 1.14 4.41 - - - - - - 2.34 1,44 (primarily in the Central Highlands) Preparation activities 0.60 1.82 0.60 2.32 0.60 1.84 0.60 1.78 0.60 1.62 3.00 1,85 TOTAL ACTIVITIES 24.99 76.00 19.76 76.41 25.07 76.81 26.13 77.65 28.62 77.33 124.57 76,88 Implementation and ad- 4.90 14.90 3.75 14.50 4.60 14.09 4.47 13.28 5.03 13.59 22.75 14,04 ministrative support Contingency 2.99 9.09 2.35 9.09 2.97 9.10 3.06 9.09 3.36 9.08 14.73 9,09 TOTAL Mill DKK 32.88 100 25.86 100 32.64 100 33.65 100 37.01 100 162.04 100 Detailed budget in Annex 2 53 ARD SPS 2007-2012 54 Budget for Provincial Component, ARD SPS 2007- 2012 The yearly expenditure will only be provided in the provincial annexes. The counter funds of the provinces are: Dak Lak Dak Nong Lao Cai Lai Chau Dien Bien Budget (Mill) VND DKK VND DKK VND DKK VND DKK VND DKK VND DKK Personnel re- muneration 2,039 0.79 2,384 0.92 4,037 1.56 2,279 0.88 2,166 0.84 12,905 5.00 Administrative expenses 1,461 0.57 891 0.35 294 0.11 3,699 1.43 2,339 0.91 8,684 3.37 Total 3,500 1.36 3,275 1.27 4,331 1.68 5,978 2.32 4,505 1.75 21,589 8.37 6.2 Unallocated Funds DKK 14.80 million will remain unallocated at the start of the ARS SPS. The unallocated funds are reserved for new activities. It has been the ex- perience that a set-up like the present ASPS has been able to respond very fast to specific needs in combating the Avian Influenza. The unallo- cated funds can also be used to respond rapidly on eventual instant needs in the future similar to way the present programme has been able to fight the avian influenza. The Programme Monitoring Committee decides over the unallocated funds. 54 ARD SPS 2007-2012 55 7 Management and Organisation 7.1 Overall Coordination Management of the ARD SPS will take place on an overall level and on daily level. The Monitoring and Steering committees are overall structures, whereas Programme Management Units (PMU), District Coordination Units, Commune Coordination Units and Village Development Councils are daily management structures. Monitoring Committee A Monitoring Committee consisting of MARD leadership (co-chair), the Ambassador EOD (co-chair) and representatives from MPI, MOF and the 5 participating provinces will monitor the programme. The monitoring committee will only be responsible for overall monitor- ing of the progress, distributions of unallocated funds and possible real- location of funds between the components and between the provinces. Reallocation between provinces will only take place in critical situations. The Monitoring Committee will meet at least once per year. In accordance with the Government of Vietnam requirements, MARD establishes a Programme Management Unit (PMU) to manage, coordi- nate and implement the program on a daily basis at the central level. This PMU is í the same as the Component Coordination Unit (CCU) and will be referring to MARD for both the central and provincial components. The CCU will support the committee and will be responsible for compil- ing necessary documentation for monitoring of progress and for decision- making regarding essential changes and critical situations. 7.2 Central Component Management Central Component Steering Committee Basically all management issues will be decided at component level, only essential changes of the component shall be taken to the overall ARD 55 ARD SPS 2007-2012 56 SPS Monitoring Committee. Such changes could be reallocation of budgets between components due to different paces of progress. Reallo- cations between components will only take place in critical situations. A Vice-Minister of MARD will co-chair the Central Component Steering Committee together with EOD and the Director of IPSARD will be sec- retary. Members of the Steering Committee shall include representatives from MARD, IPSARD, ARD SPS Provinces, HAU, MoNRE, MOST, and Committee for Ethnic Minorities (CEM). The Steering Committee shall as a minimum meet twice a year. The Mandate of the Steering Committee is to: • Provide overall guidance to the central activities based on the Com- ponent Description and in line with national and provincial devel- opment plans. • Be responsible for and take all major decisions related to the imple- mentation of the Central ARD SPS Component including: - Semi-annual and annual progress plans - Yearly activity plans and budgets - Major revisions and alterations of existing plans e.g. realloca- tion of budgets between sub-components depending on imple- mentation capacity - Monitoring of yearly activity plans and budgets - Accumulate from districts and provide feedback to the central policy level Central Component Coordination Unit The director of IPSARD will be the Central Component Coordinator and host the Component Coordination Unit (CCU) that serves as a secretariat for the Central Component Steering Committee and the Monitoring Committee as well as the coordination unit for DST. CCU will prepare annual work plans (with inputs of IPSARD and DST for their respective managed Outputs), and will be responsible for reporting and monitoring for the Central Component. CCU will also be responsible for the aggre- gation of work plans and consolidated budgets from the ARD SPS prov- inces to present in monitoring reports, progress reports, to the monitoring committee and on request. CCU has no responsibility for the quality of the input from provinces. Assigned regular staff of IPSARD will operate the unit. The CCU will be responsible for coordination of the planning and im- plementation of all activities in the Central Component. One international adviser (terms of reference in annex 3) will assist IPSARD and DST with implementation and capacity building. Technical assistance will be made available to IPSARD, DST or other MARD department for advisory purposes only. In practical terms, short- 56 ARD SPS 2007-2012 57 term technical assistance (national and international) will be provided upon Vietnamese request supported by specific terms of reference. The management structure is outlined below: - The Central Component ARD SPS Steering Committee will approve progress reports, annual work-plans and budgets prepared by CCU. - Take appropriate action on audit reports. - Accounts are prepared by IPSARD for output 1 and DST/DOF in MARD for output 2 and consolidated by CCU before submission to MOF. - The CCU will collect and aggregate the monitoring reports, semi- annual progress reports, annual reports, quarterly consolidated fi- nancial reports, indicators and other programme level documentation for both the Central Component agencies and Provincial Component Provinces. The CCU only collects and aggregates these inputs, while the individual provinces have the responsibility for the quality and timeliness of inputs. - The CCU will facilitate annual Planning of activities of the Central component. - The CCU can facilitate activities that are general to both the Central and Provincial Component - The research programme for the Upland Livelihoods Research Group (ULRG) is submitted by the ULRG for approval by Science and Technology Advisory Board and the funds allocation will follow Science and Technology Advisory Board‟s normal procedures. Ap- proved activities are managed directly by the relevant department or leading collaborative research institute. In Annex 1 the organisational chart for whole ARD SPS is presented. Content Management The Central Component will have two distinct sub-components. While there are some differences in the contents and nature, the modality of op- eration shares several common issues, especially regarding research for- mulation and implementation process. This commonality of two sub- components makes it reasonable to design a unified mode of manage- ment as follows: Most of the activities in the component will be closely related to IPSARD capacity building and policy support within MARD. Therefore, IPSARD is the focal point for the central component management. The Department of Science and Technology will also be involved. IPSARD will be in charge of Output 1. The Department of Science and Technology will be in charge of Output 2. For Output 2.2, the Science and Technology Advisory Board will undertake research guidance, ap- proval and evaluation. 57 ARD SPS 2007-2012 58 7.3 Provincial Component Management A Steering Committee will be set up in each province for the overall management of the component. A Vice-Chairman of the Peoples Provin- cial Committee will co-chair the Steering Committee together with EOD. Members of the Steering Committee shall include representatives from DARD, DoNRE, DOST, DPI, DOF, CEM, the Province Treasury, FU, WU and the Chairpersons of the participating districts. The Department of Agriculture and Rural Development shall function as administrative secretariat of the Steering Committee. The Steering Committee shall as a minimum meet twice a year. The Mandate of the Steering Committee is to: • Provide overall guidance to the provincial activities based on the Provincial Component Description and in line with national and provincial development plans. • Be responsible for and take all major decisions related to the imple- mentation of the Provincial ARD SPS Component including: - Yearly activity plans and budgets - Major revisions and alterations of existing plans e.g. realloca- tion of budgets between sub-components and between districts depending on implementation capacity • Monitoring of yearly activity plans and budgets • Approve progress reports and take appropriate action on audit re- ports • Accumulate from districts and provide feedback to the central policy level • Facilitate participation of other provinces in activities on issues of general interest, e.g. lessons learned. Provincial Programme Management Units In accordance with the Government of Vietnam requirements, DARD establishes Programme Management Units (PMU) to manage, coordinate and implement the program on a daily basis at the provincial level. Staff: DARD shall assign staff for daily management of all activities in the provincial component in coordination with the central component and the other provinces. The staff will be assigned according to the commitment by counterpart funds but will not be limited to this amount. 58 ARD SPS 2007-2012 59 Detailed management structure for each province is described in the an- nexes and further in the organizational manual for ARD SPS. The secretary for the Steering Committee, typically the Director or Vice- director of DARD will serve as the leader of the PMU and be the ARD SPS Province Coordinator. Support staff: Based on the training needs assessment findings, each province is offered the initial support of an accountant, a support officer and a secretary cum interpreter. After one year an assessment will be made to establish whether the support of the staff reimbursed by the program should con- tinue. In addition to this the program will fund an international adviser to support implementation. A key task for the support officer will initially be to help strengthening the existing monitoring and evaluation system at province and district level. The accountant shall assist a chief accountant appointed by the province. The secretary cum interpreter will mainly support the adviser and fulfil other supporting functions. DARD shall employ the three staffs under ordinary national contracts but salaries shall be reimbursed by the Component. To ensure that the PMU can work effectively and efficiently it may need the assistance of local, national and international consultants in preparing administrative and financial procedures, preparing Terms of Reference for the various activities, assessing proposals and carry out internal moni- toring and quality control. The international adviser, which in all cases except Dien Bien will be shared with another province, shall refer to the Province Coordinator. Responsibilities: 1. The PMU will manage, coordinate and implement the four sub- components of the provincial component and its activities. 2. The PMUs are responsible for preparing the work plans, the progress reports, consolidated financial reports, monitoring reports, etc. The Central Component Unit (CCU) will aggregate these reports, but the provincial PMUs have the responsibility for the quality and timeli- ness of the inputs. 3. It is also the responsibility of the PMU to ensure participatory moni- toring of ARD SPS and to ensure gender and ethnic minorities eq- uity, environmental issues and practice good governance. It must also be a priority of the PMU to ensure an equal participation of males and females from stakeholder organisations/units in the monitoring 59 ARD SPS 2007-2012 60 activities and decision-making meetings on all levels. The PMU should coordinate and harmonise with other programs, donors, GoV departments, NGOs and service providers on monitoring and evalua- tion systems in order to avoid duplication and be more effective. 4. The PMU shall assist the Steering Committee as well as the Districts Coordination Committee (DCC) in planning, reporting, development of standards and procedures, monitoring, evaluation, consolidation of accounts etc. 5. The PMU provides the Steering Committee‟s members with meeting agenda, relevant documents at least one week before the meeting date. 6. The PMU is responsible for recording the minutes of the Steering Committee meetings and send the minutes to the members within 7 working days after the meeting date. District and Local Level At district level a District Coordination Committee (DCC) (correspond- ing to a District Programme Management Unit) shall be set up in each of the participating districts. The DCC shall be headed by the chairperson or Vice-chairperson of District Peoples Committee and include a leader of the Economic Section (function as District Coordinator), a chief account- ant, representatives of the participating communes, Financial and Plan- ning Section, District Extension Centre, DoNRE, Farmers Union, Women Union and a support officer for initial support (continued support to be assessed after one year). Except one initial support officer is reim- bursed from the programme using the government salary structure, other positions of the DCC is paid from the counterpart funds.The recommen- dations of the training needs assessment will be incorporated in the de- tailed ToR for the DCC staff. The DCC shall be responsible for coordination and aggregation of com- mune and village plans and initiate, manage and monitor activities re- lated to these plans. Furthermore, the DCC is responsible for preparing district wide inputs to the PMU and Provincial Steering Committee. The DCC shall meet every month or if necessary more often. Detailed re- sponsibilities, work procedures etc. shall be developed during the pre- inception phase. Furthermore, the DCC shall facilitate communication between vil- lage/commune level and the district level, and between the district level and the province level. The DCC shall also provide relevant feedback to the Central Component/national policy level. The international adviser will spend most of his/her working time by providing assistance to the district DCCs. Furthermore, it is anticipated that the DCC may need technical assistance from national and international short-term consult- ants in devising administrative procedures, preparing Needs Assessments for the various activities and carry out internal monitoring and quality control. 60 ARD SPS 2007-2012 61 It is assumed that the local administration at village and commune level shall be able to accommodate planning and execution of component ac- tivities. It is foreseen that the communes shall create a commune based coordination committee. At the village level, a Village Development Council could be established to coordinate village development plans, farmer interest groups and other interests of the village people. All management and administrative units involved in the Provincial ARD SPS Component will be managed strictly according to national rules and regulations. These entities will not in anyway involve Danida and will only in exceptional cases obey special rules (possibly within procure- ment). Management charts are attached in Annex 1. 61 ARD SPS 2007-2012 62 8 Financial Management and Procurement With two exemptions, it is the goal to budget and channel the funds un- der the ARD SPS through the Vietnamese financial system as described below. The exemptions are international and individual local consultants that are recruited by the EOD to support for the programme. Danida‟s anti-corruption policy2 must be adhered to. Mismanagement of funds as defined in Danida‟s policy shall be refunded by the relevant government institution and brought to the Central Steering Committee for mismanagement on the Central component and to the relevant Pro- vincial Steering Committee for mismanagement on the Provincial com- ponent for possible further action. The overall ARD SPS Monitoring Committee must be informed about all such cases and follow-up action taken. Funds will be transferred through the Vietnamese financial system i.e. funds will be transferred to the Central State Treasury and from there to IPSARD‟s and Office of MARD‟s (for DST) account in Treasury and Provincial State Treasury in the five provinces respectively. Budget approval Procedures ARD SPS will follow the Vietnamese system i.e. the budget should be incorporated into MARD‟s budget and thus be part of the state budget. Due to the Vietnamese budget cycle, where the budget process starts in March, it will only be possible for the ARD SPS budget to be fully in- corporated into the normal state budget planning and approving cycle as of 2009 until then the budget will be considered as additional budget. During the first six months of the Inception period of the Programme (end of 2007 and beginning of 2008), the programme will not have ap- proved work plans. The work plans and budget for the inception period and the budget of 2008 including counterpart funds will be prepared in the pre-inception period, and then approved by the first Steering Com- mittee meetings in the different components and provinces. After the ap- proval in the Steering Committee the budgets will be consolidated into 2 Danida Action Plan to Fight Corruption, 2003-2008 62 ARD SPS 2007-2012 63 the programme budget by the CCU and sent to MARD – Department for Finance that will then send to the Ministry of Finance for subsequent ap- proval by the Vietnamese Government. The CCU and Provincial PMU should update the budget at least twice a year and submit the budget to the steering committees for approval. The annual budgets will be prepared in VND. However, the total budget in VND for the whole programme period cannot exceed the committed programme funds in DKK. Accounts, Flow of Funds and Financial Reporting Central State Treasury (CST) will open a capital account for the whole programme. Funds will be transferred to capital accounts within CST with regards to IPSARD and DST and within Provincial State Treasury with regards to the provinces. During the inception funds can be trans- ferred to the accounts awaiting the process of approving the additional State Budget Plan. The procedure for transfer and flow of funds through the Vietnamese Government system is as follows: 1. The Embassy of Denmark will transfer funds to Central State Treasury (CST) semi-annually based on the approved budgets. The fund transfer will be made in VND. After receipt CST will transfer funds to the relevant Provincial State Treasury (PST). 2. CST will make the actual payments of the IPSARD‟s and DST‟s expenses based on payment vouchers approved by the depart- ment and forwarded to CST. CST will control and pay if the ex- penses are within the approved budget. With regards to the prov- inces PST will perform the same duties as CST. 3. Accounting and budget control for the received funds will be the responsibility of components and the provinces respectively. An accounting system, compatible with the requirement of the Viet- namese Authorities and the Embassy of Denmark must be used for all recording of expenses. 4. Financial reporting is to be made quarterly. 5. Over the life of the programme, financial and compliance audit shall be carried out every year at all levels, following interna- tional standards. Counterpart funds shall be included in the budgets for approval biannu- ally at the Steering Committee meetings and shall be included in the quarterly budgets and budget control reports. 63 ARD SPS 2007-2012 64 Any interest earned from the deposit of Danida funds will be returned to the Embassy. Detailed financial management guidelines (FMM) will be developed in the pre-inception phase. For province component the guidelines will in- clude the operations of the Village Development Funds. For the Central component guidelines will include the operations of the Policy Research Consortium and the Upland livelihoods Research Fund through IPSARD and DST respectively. Procurement of goods Up to the end of February 2008 procurement will follow the Danida guidelines. Small procurements up to VND 125,000,000 will follow the existing government procurement system. As of 1st March 2008 the programme will follow the Vietnamese Law on Procurement. However, the components and the provinces will be sub- jected to procurement audit. The Province Component The expected procurement of goods can be divided into two categories: (i) some minor (initial) investment in equipment as part of the capacity building effort from Commune to Province level; and (ii) the Village De- velopment Fund, which will be administered by the communes. Ownership and Handing-over of Danida-financed Equipment Danida-financed equipment used in programme implementation, e.g. ve- hicles, computers etc. will remain the property of Danida during pro- gramme implementation. However before or at the end of the 5-year im- plementation period, Danida and GoV will jointly agree on the handing- over and future ownership of assets, which are not foreseen used in a next phase of the ARD SPS. Equipment, required for continuing activi- ties in a next phase, will continue to be the property of Danida and serve the purpose of the ARD SPS. Procurement of Services in the Province Component All delivery of services will be based on demand and needs of the bene- ficiaries. The District Coordination Committee (DCC) and Provincial PMUs will in cooperation with prospective beneficiaries develop Terms of Reference including detail description. The DCC and the PMUs may need the assistance of the advisers or consultants in formulating TORs. The extension systems and other provincial and district authorities and eventually lower levels will be used to facilitate competitive (bidding where possible) services provided by public and private service provid- ers. Tendering for major services should be used where feasible. If the nature of the service indicates that only a single institution will be able to carry 64 ARD SPS 2007-2012 65 out the work at a sufficiently high professional level, direct negotiations shall be initiated. Prospective service providers include local and regional universities, na- tional and regional training and research institutions, NGOs and private companies/consultants. International institutions and companies may be included for specific purposes, including curriculum development, ToT, quality assurance etc. It must be assured that service providers are inde- pendent of any other interest that may affect their performance. The contracting agency/department cannot be service provider. Procure- ment of services will follow local (if have) and national rules and proce- dures to the extend possible e.g. thresholds will be according to Danida procurement rules until full appliance with government public financial management system. Costs must follow Vietnamese cost norms. For individual national short-term consultants the EU-UN cost norms (dated 1.9.07) apply until further notice. For contracting international short term consultants Danida guidelines will apply, and EOD will make the contracts. Studies should generally be contracted and paid for by the Province level. Cost Norms The support will follow local costs norms and it is assessed that this should be viable. In some areas precise costs norms are lacking and have to be established. Possible revisions of the costs norms should be general, not limited to the Danida support. Audits The Programme is subject to a financial and compliance audit once a year. The audit shall be carried out at all levels. The external auditor will also perform unannounced visits to the different levels in order to check the cash and bank holdings (incl. reconciliation) and other assets; verify if the procedures are followed according to the Financial Manual and other regulations; and the accounts including budget are up-to-date. The first review shall recommend whether this auditing shall be taken over by the Vietnamese State Auditors. In addition to the financial and compliance auditing it is recommended that at least one of the activities shall be selected for a thorough “value for money” auditing and tracking studies every year. “Value-for-money” audit is currently not standard practise in the institutions but shall be sought incorporated into the auditing and evaluation system of MARD. The audit will be performed in accordance with the Terms of Reference of the audit services, which will be approved by the SC. These will in- clude a requirement for the auditor to prepare a management letter, de- scribing weaknesses and other issues identified with the audit and pro- posing practical solutions. The auditor, which has to come from a recog- nized company, will be appointed through tender process. 65 ARD SPS 2007-2012 66 As procurement will be according to the Vietnamese Law on Procure- ment it is recommended, that each sub-component and province will be subjected to procurement audit. The audit will be performed by a pro- curement specialist or a consultant appointed by the Embassy of Den- mark through tender process. 66 ARD SPS 2007-2012 67 9 Monitoring, Reporting, Reviews and Evaluations The monitoring of the defined ARD SPS targets, also being the objec- tives of the new 5-year Agricultural Development Plan, will be aligned and coordinated with the national system of SEDP and VDG monitoring and evaluation. Impact and outcome will be monitored through bi-annual surveys, which follow a baseline survey undertaken in 2006 in conjunc- tion with household surveys in the BSPS. The monitoring and evaluation of SEDP is planned to include 3 main points: (i) monitoring and evaluating the effectiveness of economic growth and poverty reduction; (ii) progress made in resource mobiliza- tion and implementation; (iii) assessment of impact of policies and pro- grams on poverty reduction; and socio-economic impact of programs that affect the poor. Based on their analysis and assessment, MARD, research institutes and provinces will prepare and make public thematic and summary reports of the 5-year plan implementation within their sectoral or provincial scope. The monitoring of the ARD SPS targets will in particular be aligned with and support these activities in the cooperation provinces. However, this monitoring will need to be supplemented by baseline surveys and moni- toring activities directly targeting and measuring poverty reduction im- pact in the target communes of the provincial component. The ASPS plans in cooperation with the BSPS to establish a baseline for the ARD SPS target provinces through an additional household survey in 2006. The M&E system will be developed in the inception phase and it will include a needs assessment of M&E staff for both Central and Provincial component. Central Component The monitoring system for the component will be a sub-set within the ARD SPS monitoring system as described in the programme document. The indicative component monitoring indicators will be identified before the inception phase of the component. 67 ARD SPS 2007-2012 68 The central component will also as one of its outputs coordinate the es- tablishment of a representative household/farm network for qualitative observation and reporting on upland farming. This network will be estab- lished in cooperation with the 5 provinces as a pilot. If successful MARD will through IPSARD make it into a general monitoring network. The central component will prepare an inception report within three months and subsequently report progress in semi-annual progress reports and annual reports and prepare a draft final report 6 months prior to completion. The component will submit quarterly financial reports to the Steering Committee. Province component The Steering committees at Province Level will have the overall respon- sibility for securing that activities are monitored. The monitoring will be an integrated part of the existing general monitor- ing system for the village, commune, district and province levels. At present a large number of data is collected by the various administra- tive levels at a regular basis and used for regular monitoring by the au- thorities. These data may be included in the Programme‟s monitoring system. However, existing monitoring is mainly focussing on number of activities completed and not on the quality and the impact. A system for quality monitoring shall be sought integrated in the contracts with the service providers (in case of training, e.g. in the form of tests of trainees, trainees‟ evaluation reports etc.) and results aggregated by the district. Minor independent evaluations done by district staff may be needed to supplement this. A system for impact monitoring, focussing on impact of the main activi- ties shall be created and impact monitoring be carried out at regular in- tervals. To facilitate impact monitoring, a fixed baseline-group of some 2-3% of the participating households shall be identified and used as main source for impact information. These households will be part of the above mentioned representative household/farm network for qualitative observation and reporting on upland farming. The same data shall be col- lected each year from the same baseline group in order to follow actual development in the group‟s social and economic situation and thus indi- cate the impact of the Programme‟s activities. Survey data shall be tightly connected to the identified programme indicators and include in- formation on population, production and income, access to resources etc. Part of the information collected will be reflected in regular local and national surveys, e.g. the National Census which may function as general reference. Once developed and tested, the impact monitoring shall be sought included in the regular monitoring system of the Province. Some additional data, not collected systematically at present, may need to be collected and consolidated, e.g. on the village groups FIGs and 68 ARD SPS 2007-2012 69 FFC. It is important, however, that also this additional data collection gradually is integrated in the general monitoring system. As a principle, the village groups, FIGs and FFC will periodically have to make an evaluation of the training carried out, and these evaluations should be consolidated at District level and be used, when making new contracts with service providers to secure the quality of the training. As part of the regular yearly planning process, a review and evaluation workshop shall be organised at each of the relevant administrative levels. Results of the evaluation shall be reflected in the planning of future ac- tivities. A particular system for reporting and evaluating the Farmer Trainers ac- tivities should be established, and an annual inventory should be made of the Farmer Trainers and their capacity and activity level. This system may be initiated by the District Coordination Committee but should eventually be maintained by the District Extension Station. Indicators The indicators have only been fixed at a conceptual level indicating the direction of change. They will have to be elaborated in more detail dur- ing the pre-inception phase, including the expected quantitative change (when possible), and the possibilities for verifying the indicators will have to be analysed. The result of this analysis may in some cases be either a change of indicator or inclusion of concrete activities to make possible the verification in an institutionalised monitoring system. A general base line study will be undertaken in 2006 and the findings will be available before the start of the programme. The general indica- tors are based on the Vietnamese Government 5 year Agricultural and Rural Development Plan. The overall indicators of the Province component are indicators for the fulfilment of the development objective of the provincial component em- phasising poverty reduction and improved standard of living. The overall indicator for the central component is inputs to policy formulation. General - Poverty in the Component districts reduced by 50 % from 2002 to 2012 according to the new poverty line. - Stunted children under 5 reduced by 50 % from 2002 to 2012. The main indicators for the Central Sub-components are: Sub-Component 1: Policy and Strategy Development 69 ARD SPS 2007-2012 70 - At least one policy or strategy to facilitate rural development or ag- ricultural extension for upland farmers, particularly ethnic minorities and women developed and disseminated per year. Sub-Component 2: Innovative Upland Models and Approaches - Number of innovative approaches for upland livelihoods developed and applied in the provinces. The main indicators for the Provincial Sub-components are: Sub-Component 1: Demand based extension, information and training of farmers. - At least 70,000 poor upland households in the target districts of the five provinces have improved their food security and achieved higher and stable income. Sub-Component 2: Production, Storage, Processing and Marketing - At least 5,000 poor upland households have improved their income by 30% from traditional and new products. Sub-Component 3: Local Planning and Capacity Building - Demand driven planning is endorsed and integrated in ordinary planning and monitoring system every year in 14 districts, 151 communes and 920 villages in component provinces. Sub-Component 4: Support to Land Allocation (primarily in the Central Highlands) - In Dak Lak and Dak Nong Provinces, at least 10,000 ha of forested upland has been successfully allocated to rural households or com- munities and managed safely within the law. Reporting Programme report will follow regulations in the Decree 131 and copy to the Embassy. For the central component, an inception report will be prepared within three months and subsequently report progress in semi-annual progress reports and annual reports and prepare a draft final report 6 months prior to completion. The component will submit quarterly financial reports to the Steering Committee. Similar requirement will be applied for the provincial component. The overall semi-annual and annual report of the programme will be ag- gregated by the CCU with inputs from IPSARD, DST and all provinces. The reports will include both financial and narrative reports, using the established monitoring system. 70 ARD SPS 2007-2012 71 Reviews The programme will normally be reviewed every second year, and tech- nical reviews will, when deemed necessary, be undertaken as a prepara- tion for the reviews. The EOD will take the initiative to the reviews, while technical reviews will be prepared in cooperation between the cen- tral and different provincial management units and the Embassy. The reviews, including the technical reviews will normally include several of the provinces. A more thorough mid-term review will be carried out in the first half of 2010. 71 ARD SPS 2007-2012 72 10 Assessment of Key Assumptions Sustainability Issues and Risks 10.1 Key Assumptions Some of the basic assumptions for the Programme are as follows: • MARD and provincial authorities fully accept and support local level implementation. • Modalities for transfer of funds within the Vietnamese system, which are acceptable to both parts, can be found. • IPSARD continues to receive government support to fulfil its man- date. It is assessed that this will be fulfilled. The assessment is based on the fact that the restructuring of MARD research institutes is gaining more momentum, which demonstrates the GOV commit- ment to support the new institutes resulting from this process. • MARD‟s plan for Science and Technology Advisory Board estab- lishment remains and that its charter is revised to broaden the scope of the board beyond approval of research projects, so it can have an advisory role in relation to extension and policy development. • The formal extension services are willing to shift their services to- ward a demand responsive and facilitating role • Other service providers are able to take up the role assigned to them • The modalities for local management are at provincial level • Traditional ways of undertaking extension can be replaced by the practices of demand-led services, bottom-up planning, ToT and FtF methods • The farmers will be empowered though being organised in interest groups These assumptions will be monitored carefully throughout the Pro- gramme implementation. 72 ARD SPS 2007-2012 73 10.2 Sustainability There are sustainability issues at farmer, farmer group and at different institutional levels. At all levels there are questions of technical, financial and organisational /institutional sustainability. At farmer level it essential that introduced methods and technologies are sustainable. This implies that they are not dependent on subsidies which will not be available in the longer run, that the inputs needed – including technical assistance - are available at a regular basis at market price, that the market channels are established and functioning on a sustainable ba- sis. This will be kept in mind when detailed activities are planned. At Farmer Group level the sustainability depends on the role of the group, which should not only be to function as vehicle for the training activities. Group sustainability depends on the group‟s ability to take broader responsibilities i.e. as management of collective assets, as inter- mediary for supply of inputs, as intermediary for collection of harvest, as provider of technical assistance, as a vehicle to give marginalized farm- ers visibility etc. The training of the individual farmer group will, there- fore, along the way be adapted to the actual role the group is expected to take on in the future. At institutional level, the provincial component gives considerable sup- port to elevate the capacity at all levels: village, commune, district and province level, with the main emphasis at commune level. Here the main problem will be related to financial sustainability, as the financial capac- ity of the districts and the provinces and not least the communes is lim- ited. Taking into account the rapid economic growth that the country is experiencing, this capacity will probably increase even within these poorer provinces. But even so, it is not expected that the province and the districts will be able to provide training and technical assistance to the farmers at the level planned for the present support. This is, however, not a major problem as long as sustainability is achieved at farmer and at Farmer Group level. Thus it emphasises the large importance of the farmer groups for the sustainability of the processes. At central level the capacity building process is an investment to develop IPSARD to function as an innovative policy and strategy research insti- tute and “Think Tank”. The institutional sustainability is established, as the institute is a result of the ongoing reform of the research institutes under MARD. The financial sustainability will be achieved through op- erating with autonomy and independence as a result of Decree 115 with its supporting legislation. As regards the research, the result of research should have a higher social and economic value than the cost. However, the sustainability and in par- ticular replicability should also be considered in relation to maintaining a focus to invest in research for poor farmers in upland areas with limited 73 ARD SPS 2007-2012 74 market access. The return from this investment has to be considered in longer-term perspective. The Programme will be implemented within the existing structures, thus not leaving separate structure to be “maintained” after completion. Coun- terparts will not receive special allowances for working with the compo- nents, as their activities are planned and financed within the existing government structure. Therefore the sustainability of the components de- pends on whether the implementation is done with sufficient high quality to inspire leaders to mainstream the component outputs into the normal operations. 10.3 Main Risks The main risk for the success of the Programme described below will be monitored very carefully throughout the Component implementation. If the risks turn into a treat to the success of the Programme, the Compo- nent must initiate efforts to eliminate these risks. Commitment at Central Level There is a risk that the overall progress will be slow due to the general progress in preparing the necessary institutional and administrative re- forms in the public sector for decentralisation. This risk can be mitigated by close monitoring and with a high degree of flexibility in planning and implementation. There is a risk that some of the activities may not materialise due to limi- tations in the Government cost norms. However, it is envisaged that staff training by international trainers and hiring international consultants for research and peer views will be under contracts made by EOD. Awarding contracts to research institutes outside MARD may not be pos- sible under the regulations of the budget law. There is still a grey area of responsibilities between MOST (and its newly proposed changes) and MOF. If this is not possible, the research fund will not be supported. Commitment of the Provincial and District Level The Province and District authorities have articulated their sincere inter- est and capability in changing the traditional way of extension, i.e. em- bracing the principles of demand-led extension based on bottom-up plan- ning. 74 ARD SPS 2007-2012 75 Should this not be the case, the risk is that the objectives will not be achieved. To mitigate this risk, a strong technical assistance, national and international, is planned for the inception period. This technical as- sistance shall support the local authorities in following these new princi- ples as outlined in the "Grass Root Democracy Decree" and also in the increasing willingness of the government at all levels to follow local level planning procedures. Capacity Building of Farmers There is a risk that some of the minority farmers do not have the capacity for the required radical changes involving thinking, doing, and evaluating with respect to achieving an immediate increase in household income, particularly within the scope of existing resources available to the house- hold. To mitigate this risk, a strong focus is put on demand based service de- liveries securing that the pace and volume is known to / defined by the farmers. There is a risk that farmer groups could be formed because the Compo- nent Description defines a need for them, and not so much because the farmers request them. To mitigate this risk the Component will include group formation dy- namics in the general training of staff in both the public and private sec- tor. Mass organisations and farmers will be made aware of the opportuni- ties and advantages of forming groups. Implementation Capacity and Provincial and District Level The Provincial Component implies a shift in the way support is provided, as the support will be channelled through the local government structures using existing procedures and regulations. Some flexibility will be lost and it will be difficult to disburse funds rapidly at the beginning of the programme until capacity has been developed at district and commune level and amongst potential suppliers of services. As the Provincial ARS SPS Component will imply a sudden and large increase in funds for Agricultural and Rural development, implementa- tion capacity at Province and District level as well as within the private sector will be a main constraint. It is clearly a limitation in the cooperation provinces that only few ser- vice providers are available outside the Province and District Govern- ments and the mass-organisations. This will probably constitute a bottle- neck for the implementation. The existing cost norms will probably put some limitations also on the capacity to attract service providers from outside the Province. However, it is assessed that these risks will be re- duced significantly as the component implementation gets consolidated 75 ARD SPS 2007-2012 76 11 Implementation Plan There will be a pre-inception period where as many of the unsettled is- sues as possible will be solved so the real inception period can concen- trate on the real issues: setting up detailed administrative guidelines and procedures, and a detailed plan of implementation. 11.1 Pre-inception Phase During the pre-inception phase a number activities will be initiated to support the starting up of the Provincial Component. In particular man- agement and administrative guidelines and procedures will be developed with financial support directly from the EOD through the present ASPS. The most urgent pre-inception activities to be conducted during the sec- ond part of 2006 and beginning of 2007 are: • Detailed funding procedures both at programme and at province level • Draft financial guidelines and Financial Manual • Draft Management guideline including detailed responsibilities, work procedures etc. for the DCCs. • Further refinement of the indicators and the M&E system when the Baseline Survey has been undertaken. • Identifying the service providers who can operate in the provinces • In Dak Lak and Dak Nong, conduct a study on how to incorporate northern minority immigrants into programme activities. • Training needs assessment of administrative staff from local institu- tions and identification of possible training facilities. This would es- pecially be relevant for accounting staff at province and district level and include procurement capacity assessment and procurement course in cooperation with the Danida approved Procurement Agent. • Models for rules and by-laws for the village and commune devel- opment funds shall be drafted in order to secure fast and effective 76 ARD SPS 2007-2012 77 implementation (while the actual rules can only be drafted and ap- proved just prior to the establishment of the individual Village de- velopment funds). • Prepare manuals and guidelines for - Facilitation of Farmer Interest Groups - Training methodology and approach - Use of local knowledge • A study to make collaborative research consortium for innovative research in upland with a thematic framework • If requested from MARD a consultancy to develop the proposals for policy development with focus on upland areas within Agricultural extension, post harvest, IPM, seed sector development and livestock development. • As an implementation plan has not been included in the central component description, it will be made during the early pre- inception period. 11.2 Inception Phase To ascertain that funds are available at the start of the programme where initial investments in establishing offices etc. are high, it is suggested that the relevant authorities well in advance of programme start shall approve the budget for the inception phase. Funds can then be transferred to the province right at programme start and disbursed when needed. Implementation starts with a six-month‟s inception phase in the second half of 2007, where a series of preparation activities are undertaken. These activities include: Central Component The component will have an inception phase for six month to establish the management, to develop terms of reference for support to MARD Departments, establish the procedures for research funding and make the plan for the 5 years, and a detailed plan for the first year For output 2 (Innovative Research) 30-50 pct. of the research fund will be agreed on already during the inception phase. The other part will be decided during the project implementation and on an open bidding basis. Research institutions can be inside or outside MARD, public on non- public. The Scientific Board and the Peer Review Panel (to be appointed during the inception phase) will decide which proposal will be approved based 77 ARD SPS 2007-2012 78 on criteria set up by a Guidance to be developed at the early stage of the project implementation and approved by the Steering Committee A clear guidance that maps out priority setting and selection criteria for innovative research proposals will be established during the inception phase and strictly monitored and evaluated during the program imple- mentation. Provincial Component • Final preparation of administrative systems. • Final general management procedures could be drafted together with regulations and by-laws for the commune and village development funds • Preparation of major service providers in order to give them time to identify and mobilise possible trainers. • ToT training needs assessments • ToT training of a group of core staff from the province, the districts and private sector (including the mass organisations), which will then be part of the group of trainers and facilitators in the future. This group should include governmental and non-governmental staff. As indicative numbers the following should be trained: 30 from the province level, 15 from each of the target districts and 5 from each of the non-target districts, for a total of 85 persons. This training will be in participative training methodology, FtF method- ology (Farmer Field Schools), training planning, bottom-up planning and specific technical topics. It will include visits to other provinces with positive experiences in these issues. • Elaboration of implementation plans for the whole 5-year period, including a detailed plan and budget for 2008. In this elaboration and in the refinements of activities and approaches for the different outputs the material produced during the preparatory process should be used. There are details and specific guidance in the formulation reports, and especially in the 5 studies mentioned in the introduction. However, it should be kept in mind that some of the proposals for- warded in the formulation reports have been altered. • Elaboration of detailed indicators • Setting up of a monitoring system • Selection of communes in the target districts for initiating the pro- gramme • Selection of a service provider for starting organisation of FIGs in selected communes • Start of the organisation of the FIGs and initiation of the training • Baseline survey 2006/07 for monitoring purposes 78 ARD SPS 2007-2012 79 The strategy should be to gradually expand the number of communes integrated in the activities, continuously adjusting the implementation strategy to the lessons learned. 79 ARD SPS 2007-2012 80 Annex 1 Organizational Charts Programme-wide: Overall Management Chart Notifying Approved Budget Plan Notifying Disbursement MPI MOF Appraisal, Approval of Programme Budget Planning Budget Planning Agreement MARD EOD Disbursement and Financial Control Transfer of Funds DAK LAK DAK NONG LAO CAI LAI CHAU DIEN BIEN Policy Links Planning and Allocation PROVINCE CENTRAL Disbursement and Financial Control COMPONENT Programme Monitoring Committee Overall monitoring of the programme ARD SPS 2007-2012 81 Programme-wide: Management Flow Chart IPSARD - Research Consor- Research tium; MARD S&T Depart Fund - MARD institutes; - Outside institutes; Steering Committees - PMUs Other MARD - Universities; departments - Induvidual specialists District Farmer Groups Coordination Committees- DAK LAK District Farmer Groups DAK NONG District Farmer Groups LAO CAI LAI CHAU District Farmer Groups DIEN BIEN District Farmer Groups Agreement , six-monthly meetings PROVINCE District Farmer Groups CENTRAL District Farmer Groups COMPONENT Farmer Groups District Embassy of Denmark ARD SPS 2007-2012 82 Annex 2 Detailed budget of Central Component and Provincial Component Budget for Central component, ARD SPS 2007- 2012 Budget Outputs and Activities 2007 2008 2009 2010 2011 2012 Mill DKK Output 1: Policy and Strategy Development 0.88 5.53 3.05 3.35 1.63 1.78 16.20 Activity 1.1. Develop Institutional Development Strategy and up- 0.25 0.60 0.23 0.23 0.10 - 1.40 grade research facilities and HRD for IPSARD · Develop Institutional Development Strategy 0.03 0.03 0.13 0.13 - - 0.30 . Upgrade research facilities 0.13 0.38 - - - - 0.50 . Training activities 0.10 0.20 0.10 0.10 0.10 - 0.60 Activity 1.2. Policy-related research conducted by IPSARD 0.25 1.00 0.50 0.50 0.50 0.05 2.80 ARD SPS 2007-2012 83 Budget Outputs and Activities 2007 2008 2009 2010 2011 2012 Mill DKK Conduct an assessment the coherence of prevailing policies related to upland ARD to 0.20 0.30 - - - - 0.50 identify any weakness in harmonisation and policy gaps Formulated research programmes which in- clude a plan for dissemination of research 0.05 0.20 - - - - 0.25 findings Fund for conducting approved research pro- - 0.50 0.50 0.50 0.50 0.05 2.05 gramme Activity 1.3. Policy dialogues and linkages 0.03 0.28 0.48 0.48 0.48 0.58 2.30 Linkages to private sector and policy research 0.10 0.30 0.30 0.30 0.30 1.30 institutes and universities outside MARD Policy dialogues with 5 cooperation provinces 0.03 0.18 0.18 0.18 0.18 0.28 1.00 Activity 1.4. Policies and strategies developed and disseminated - 1.30 0.35 0.35 0.20 0.10 2.30 by MARD Departments On request develop terms of reference and support implementation of policy aspects of - 0.25 0.25 0.25 0.20 0.10 1.05 present ASPS components related to upland cultivation Support to SEA - 0.75 - - - - 0.75 Support to HIV/Aids Strategy - 0.30 0.10 0.10 - - 0.50 ARD SPS 2007-2012 84 Budget Outputs and Activities 2007 2008 2009 2010 2011 2012 Mill DKK Activity 1.5. Support to the establishment of a rural households 0.20 2.10 1.35 1.65 0.20 0.90 6.40 database at MARD for policy purpose Rural household survey 0.80 0.80 - 0.80 2.40 Support of UoC 0.70 0.65 0.65 - - 2.00 Farm monitoring system 0.20 0.60 0.70 0.20 0.20 0.10 2.00 Activity 1.6. Implementation support and Component Coordina- 0.15 0.25 0.15 0.15 0.15 0.15 1.00 tion Unit Sub- Total 0.88 5.53 3.05 3.35 1.63 1.78 16.20 Output 2: Innovative Approaches for Upland Livelihoods 0.38 2.70 1.80 1.30 0.98 0.38 7.53 Activity 2.1. Set up A Upland livelihood Research Programme on innovative livelihoods approaches for upland areas and ethnic 0.20 2.53 1.73 1.23 0.93 0.33 6.93 minorities among agricultural and rural development research institutes Establish an Upland livelihoods Research Group and conduct field survey in ARD SPS 0.05 0.15 0.05 0.05 - - 0.30 provinces to identify research needs Prepare a guidelines for research application, assessment, financial and accounting man- 0.10 - - - - - 0.10 agement, and monitoring and evaluation in accordance with ARD SPS objectives; ARD SPS 2007-2012 85 Budget Outputs and Activities 2007 2008 2009 2010 2011 2012 Mill DKK Establish a research peer review panel with an international research organisation, provin- 0.18 0.18 0.18 0.18 0.18 0.88 cial representation. Prepare a framework agenda for an Upland livelihood Research Programme for approval 0.05 0.20 - - - - 0.25 of MARD Minister at the recommendation of the S&TAB. Earmarked research fund for Upland Liveli- 1.00 0.45 0.40 0.10 0.05 2.00 hoods Research Group Bidding Research fund (50% for MARD and 1.00 1.00 0.50 0.50 0.05 3.05 50% for non- MARD institutes) Dissemination of Research Results 0.05 0.10 0.15 0.05 0.35 Activity 2.2. Support to the functioning of the Science and Tech- 0.18 0.18 0.08 0.08 0.05 0.05 0.60 nology Advisory Board (S&TAB) Support to activities of the Science and Tech- 0.03 0.03 0.03 0.03 - - 0.10 nology Advisory Board Support facilities for DST to carry out its role 0.10 0.05 - - - - 0.15 of secretariat to the Board Short training courses on issues required to perform as a secretariat for S&TAB and man- 0.05 0.10 0.05 0.05 0.05 0.05 0.35 agement of the research fund Sub- Total 0.38 2.70 1.80 1.30 0.98 0.38 7.53 ARD SPS 2007-2012 86 Budget Outputs and Activities 2007 2008 2009 2010 2011 2012 Mill DKK Implementation& administrative support 0.03 0.58 0.53 0.58 0.38 0.23 2.33 Consultancies - 0.30 0.30 0.30 0.15 - 1.05 Annual review 0.20 0.20 0.20 0.20 0.20 1.00 Audit & Value for Money Audit 0.03 0.08 0.03 0.08 0.03 0.03 0.28 Sub- Total 0.03 0.58 0.53 0.58 0.38 0.23 2.33 Total activities and implementation 1.28 8.81 5.38 5.23 2.98 2.38 26.06 Contingency (10%) 0.06 0.50 0.50 0.50 0.30 0.20 2.06 Total 1.34 9.31 5.88 5.73 3.28 2.58 28.11 ARD SPS 2007-2012 87 Budget for Provincial component, ARD SPS 2007- 2012 Million DKK 162.04 Sub-components & Outputs DakLak DakNong LaoCai LaiChau DienBien 32.88 25.86 32.64 33.65 37.01 Sub-Component 1: Demand based Extension, Information and Training of 8.89 7.14 10.43 11.48 13.78 Farmers Output 1.1: The farmer groups have increased their capacity based on their ex- 4.03 3.36 6.93 8.26 8.85 pressed needs Forming Farmer Interest Groups (FIGs) and Farmer Field Classes FFCs 0.10 0.07 1.02 1.29 1.28 Training of F/M trainers 0.67 0.67 1.88 1.82 2.44 Improving capacity for the farmer groups 3.26 2.62 4.03 5.15 5.14 Output 1.2: Preservation of local knowledge on natural resources management 0.20 0.20 0.20 0.20 0.20 Output 1.3: The farmer groups have increased their capacity to read and write and perform simple arithmetic 0.16 0.14 0.30 0.16 0.16 Output 1.4: Information and training material and libraries are made available to villagers 1.02 1.03 0.63 0.62 2.33 Output 1.5: Capacity of provincial and district authorities to deliver demand-based extension increased 2.35 1.51 0.85 0.85 0.90 Output 1.6: Local service providers at provincial, district, commune and village levels (including FU and WU) have increased their capacity / out-reach to provide 0.23 0.17 0.59 0.47 0.41 demand- based services to farmers Output 1.7: Programme participants aware of crosscutting issues 0.90 0.74 0.93 0.92 0.92 ARD SPS 2007-2012 88 Sub-components & Outputs DakLak DakNong LaoCai LaiChau DienBien Gender awareness and sensitivity training at all levels (including FIGs and FFC). Incorporation of gender issues in the yearly village, commune, district and prov- 0.27 0.23 0.26 0.26 0.26 ince planning process Improving knowledge by local population on how to prevent HIV infection and how to mitigate the impacts of AIDS improved 0.40 0.30 0.40 0.40 0.40 Environmental &NRM awareness and practical training 0.23 0.21 0.26 0.26 0.26 Subtotal 8.89 7.14 10.43 11.48 13.78 Sub-Component 2: Production, Storing, Processing and Marketing 10.67 8.28 11.70 11.72 11.79 Output 2.1: Improved models of technical practices based on a farm sys-tem ap- proach and applicable to local conditions have been developed and tested in the 1.00 0.80 1.15 1.16 1.16 target districts Output 2.2: Marketing chain and market potential of produces and products from the target districts are identified and promoted Feasibility studies on marketing 0.74 0.64 0.18 0.19 0.20 Support to small-scale businesses 0.43 0.35 1.24 1.24 1.28 Output 2.3: Post-harvest handling and storage improved 0.55 0.36 0.78 0.78 0.80 Output 2.4: Traditional handicraft production has improved in quality and quan- 0.16 0.16 0.16 0.16 0.16 tity Output 2.5: Improved production and income practices especially benefited to the poor are supported through the support from Commune or Village Development 7.60 5.78 8.00 8.00 8.00 Funds Output 2.6: The operation and maintenance of small-scale irrigation in- 0.19 0.19 0.19 0.19 0.19 frastructure in the cooperating districts has improved Subtotal 10.67 8.28 11.70 11.72 11.79 ARD SPS 2007-2012 89 Sub-components & Outputs DakLak DakNong LaoCai LaiChau DienBien Sub-Component 3: Local planning and Capacity Building 3.64 2.60 2.35 2.33 2.45 Output 3.1: People at all levels (from village, commune, district and province) have increased its capacity, particularly in bottom-up planning 1.52 1.05 1.18 1.16 1.29 Training and study tours for capacity building in bottom- up planning and par- 1.38 0.95 1.04 1.02 1.16 ticipatory approaches, equipment upgrade if any Develop bottom-up planning procedures at local level 0.09 0.06 0.09 0.09 0.08 Develop rules and procedures for the Commune and Village Development Funds 0.05 0.04 0.05 0.05 0.05 Output 3.2: Demand-driven planning implemented at all levels and upgraded 0.90 0.51 0.90 0.90 0.90 every year Output 3.3: Planning capacity at household level improved 0.95 0.77 - Output 3.4: Lessons learnt and experiences are disseminated 0.27 0.27 0.27 0.27 0.27 Subtotal 3.64 2.60 2.35 2.33 2.45 Sub-Component 4: 4 Support to Land allocation (primarily in the Central High- 1.20 1.14 - - - lands) Output 4.1: Farmers knowledge in participatory land allocations and legislation related to natural resources management and land uses management improved 0.39 0.34 - - - Training in the legal and administrative framework and procedures that govern the use of natural resources 0.14 0.10 - Training of farmers and local technical staff on the economic potential of agricul- tural and forest land allocation, various ownership forms and participatory land 0.26 0.23 - allocation procedures Output 4.2: Land use certificates allocated to small land holders 0.80 0.80 - Subtotal 1.20 1.14 - - - ARD SPS 2007-2012 90 Sub-components & Outputs DakLak DakNong LaoCai LaiChau DienBien Preparation activities 0.60 0.60 0.60 0.60 0.60 - TOTAL ACTIVITIES 24.99 19.76 25.07 26.13 28.62 Implementation and administrative support 4.90 3.75 4.60 4.47 5.03 Car for adviser 0.26 - 0.26 - 0.26 International and regional consultants 1.05 0.85 1.05 1.05 1.05 Audit & Value for Money Audit 0.28 0.28 0.28 0.28 0.28 Implementation 3.30 2.62 3.01 3.14 3.43 Subtotal 4.90 3.75 4.60 4.47 5.03 - Contingency 2.99 2.35 2.97 3.06 3.36 - TOTAL 32.88 25.86 32.64 33.65 37.01 ARD SPS 2007-2012 91 Annex 3 Job Descriptions/Terms of Reference for Long-term Technical Advisers Job description/Terms of reference for an Agricultural and Ru- ral Development Sector Management Adviser for the Central Component. The adviser will assist IPSARD and DST with Achieve the component outputs and plan the relevant activities in line with the Component Description and Programme Document and AMG Support to Develop the strategy for IPSARD The establishment and functions of the Science and Technology Advisory Board with DST Establishment of provincial policy dialogue facilities in the ARD SPS prov- inces Establishments of linkages for to private sector and ARD oriented organisa- tions outside MARD for improved policy development Establish a household/farm economic data sampling/observatory network in ARD SPS provinces in cooperation with GSO Upgrade facilities for policy research and networking Upgrade staff research skills through short-term courses On request develop terms of reference and support implementation of policy aspects related to upland cultivation On request draft terms of reference for short term consultancies to support im- plementation Facilitate with DST the establishment of the research committee Facilitate with DST the formulation of guidelines for research grants Facilitate the coordination with other development programmes Preparation of inception, progress and annual reports Gender, HIV/Aids, environment, and good governance issues receive high priority during implementation. Liaison between the provincial component and central component of ARD SPS Documentation and monitoring of component progress Support in setting up mechanisms and guidelines for undertaking strategic en- vironmental impact assessment Liase with other relevant development programmes including SPS in Water and Fisheries Prepare short term training programmes in policy and economic research skills Background The adviser shall have a background in agriculture or rural economics with strong understanding of the agricultural sector, which is characterised by a strong interac- tion between the public and private sector, the social dimensions in rural develop- ment, the Agricultural Science and Technology systems with links between farmer, extension and research. ARD SPS 2007-2012 92 Job Description for Long-term Technical Advisers for Province Component Responsibilities The International long term (senior) Adviser shall assist and advise the Provincial Steering Committee management unit and in particular the District Coordination Committees (DCCs) on the overall planning, organisation and implementation of Component activities. The Adviser shall provide advisory services to other provin- cial and target districts authorities and other involved institutions. The Adviser shall advise on strategies and actions either directly or indirectly linked to Compo- nent activities and on management and implementation in general. Furthermore, the Adviser shall assist the management unit in Component monitoring and report- ing according to established requirements and procedures. Tasks In close collaboration with the management unit, DCCs as well as other provincial institutions and the private sector including the mass organisations, the Adviser shall with reference to the management unit be responsible for but not limited to the following tasks: • Advise and assist the management unit and DCCs in coordination of Compo- nent activities, including the preparation of detailed work plans and budgets for approval by the Provincial Coordination Committees. • Advise and assist the management unit and DCCs on institutional develop- ment issues for Component activities at the provincial, district and lower lev- els. • Advise and assist the management unit and DCCs on the preparation and for- mulation of approaches for addressing bottom up planning, demand-led exten- sion, community development and formation of Farmer Interest Groups (FIGs). • Advise and assist the management unit and DCCs to collect, analyse, adopt and disseminate experiences related to agricultural and rural development models appropriate for upland areas. Especially the experiences gained by the Danida supported ASPS 1 and the Fisheries Programme as well as relevant in- ternational experiences. • Advise and assist the management unit and DCCs in developing capacity in the provincial and district administrations to facilitate involvement of the mass organisations, co-operatives and other private sectors in formation and training of FIGs. • Advise and assist the management unit and DCCs to build capacity in the pri- vate sector to facilitate FIG formation and carry out management training as well as extension services on technical issues for these groups. ARD SPS 2007-2012 93 • Advise and assist the management unit and DCCs in the development of ca- pacity in the public sector to plan and implement work plans, training pro- grammes, technical guidelines, study tours and other activities. • Advice and assist the management unit and DCCs in identify appropriate pri- vate sector service provider partners within and outside the provinces. • Advice and assist the management unit and DCCs to integrate issues concern- ing gender, ethnicity, environment, climate change and HIV/Aids in planning, training, management and other relevant implementation activities. • Advise and assist the management unit and DCCs in the procurement of ser- vices and supplies to the Component. The Adviser shall support the manage- ment unit and DCCs in local tender evaluation procedures and advise and support the management unit and DCCs in coordination and preparation of consultancy inputs. • Support the management unit and DCCs in preparation of the Component in- ception report and progress reports throughout the Component implementa- tion period. The Adviser shall also assist in the preparation of a Component Completion Report for submission to the authorities. • The Adviser will advise and assist the management unit and DCCs in devel- oping liaison and coordination with the provincial implementation in the other four Danida supported provinces and the Central Component. As two of the advisers have to divide their work between two provinces and all three have to cover from three to six districts, they have to make yearly outlines for their planned activities and quarterly work plans. The Steering Committee Chairmen and EOD will monitor the advisers. Qualifications The Adviser shall have extensive knowledge and experience in the field of rural development and upland farming as well as knowledge of design and implementa- tion of community based planning and participatory processes. The Adviser shall have a solid background in implementation and management of donor-supported interventions in developing countries. The Adviser must be fluent in English and preferably have a good working knowl- edge of Vietnamese. Conditions of Employment There will be three Advisers. They will be assigned to: Lao Cai and Lai Chau Dien Bien Dak Lak and Dak Nong ARD SPS 2007-2012 94 The contract period is 2 years with a potential extension to the full 5 Year Compo- nent implementation period. The Adviser shall be contracted according to Danida rules and regulations applicable to long-term advisers. Duty Station The Duty Stations will be: Lao Cai or Sa Pa in Lao Cai Province with frequent travel to Lai Chau Province. Dien Bien Phu, Dien Bien Province. Buon Ma Thuot, in Dak Lak Province with frequent travel to Dak Nong province. ARD SPS 2007-2012 95 Annex 4 Tentative Indicators Description Key indicators Development Objective: Poverty in the component districts reduced by 50 % "Reduction of rural poverty, especially among the from 2002 to 2012 accord- ethnic minorities, through sustainable agricultural ing to the new poverty and rural development focusing on the upland" line*. Stunted children under 5 reduced by 50 % from 2002 to 2012*. Immediate Objective: "Sustainable growth in upland rural household welfare arising from improvements in resources management, agricultural production and mar- keting, with focus on the poor upland farmers, in particular women and ethnic minorities" * Indicators marked with * are part of the indicators of the five year Vietnamese Government Agricultural and Rural Development Plan. ARD SPS 2007-2012 96 Central Component Immediate Objective: Research, policy formulation and in- formation dissemination on upland agricultural and rural development is qualified and coordinated Innovative approaches to sustainable upland livelihoods are developed and applied in the provinces. Output 1: Policy and strategy de- At least one policy or strategy to fa- velopment cilitate rural development, agricul- tural extension especially for upland farmers and ethnic minority people developed and disseminated per year. Activity 1.1: Support to implement - IPSARD staff is capable in data Institutional Development Strategy analysis and provide strategic ad- and upgrade research facilitates and vice on rural development policies HRD for IPSARD for the MARD. Activity 1.2: Conduct policy related research Activity 1.3: Set up Policy dialogues - Feed-back mechanism between up- and linkages land areas and national level are es- tablished. - Policy dialogues with private sec- tor and organization outside MARD set up. Activity 1.4: Support to other - Policies for upland areas and ethnic MARD Departments to develop and minority developed and dissemi- disseminate policies for the upland nated. and remote areas; Activity 1.5: Support to the estab- - Rural household database estab- lishment of a rural households data- lished and managed by IPSARD. base at MARD for policy purpose; Activity 1.6: Implementation support to Component Coordination Unit ARD SPS 2007-2012 97 Output 2: Innovative approaches Number of innovative approaches for for Upland Livelihoods upland livelihoods developed and ap- plied in the provinces Activity 2.1: Set up an Upland - All research results are dissemi- Livelihoods Research Programme nated in a form appropriate to re- on innovative livelihoods ap- searchers, relevant agencies and all proaches for upland areas and farmers. ethnic minorities. - Innovative approaches for rural Activity 2.2: Support to the Science livelihoods are implemented in the and Technology Advisory Board cooperation provinces. (S&TAB) and DST to manage the Up- land Livelihoods Research Fund ARD SPS 2007-2012 98 Provincial Component Immediate Objective: Improved food security and stan- dard of living of poor upland farm- ers, especially ethnic minorities and female headed households, through improved natural and hu- man resources management and upland farming techniques. At least 70,000 poor upland households Sub-component 1: Demand in the target districts of the five prov- based extension, information and inces have improved their food security training of farmers and achieved higher and stable income Output 1.1: The farmers/farmer - 2,975 functioning FIGs and 730 groups have increased their capac- FFCs established ity based on their expressed needs. - 832 farmer trainers trained and func- tioning in targeted districts. - At least 72,000 poor upland farmers (% Female and % male) in the target districts have participated in training. - No. of farmers actually changed their behaviours because of the training. Output 1.2: Local knowledge on - Results are discussed in workshops natural resources management is and included in training material preserved Output 1.3: The farmer group have - 14,000 farmers can read and write increased their capacity to read and and perform simple arithmetic in tar- write and perform simple arithme- geted districts. tic Output 1.4: Information and train- - - 390 Village libraries established ing material and libraries are made and operated available to villagers. - - Training materials are updated and developed to be friendlier with mi- nority people, women users and low literacy level. - Output 1.5: Capacity of provincial - 120 provincial and 322 district staffs and district authorities to deliver are improved capacity in demand – demand-based extension increased. based extension. - Demand –based extension approach is implemented in the targeted dis- tricts. ARD SPS 2007-2012 99 Output 1.6: Local service provid- - At least 150 service providers (in- ers at provincial, district, commune cluding WU and FU) have been and village levels (including FU trained at province level at least 285 and WU) have increased their ca- at district level and 635 people at pacity / outreach to provide de- commune level, and have improved mand based services to farmers. their capacity in servicing, training and organising the farmers. Output 1.7 Programme participants - At least 1000 people at province and are aware of cross-cutting issues district level and 28,000 farmers have improved gender awareness. - 28,000 people are trained in the HIV/AIDs prevention - 28,000 people have improved envi- ronmental awareness At least 5,000 poor upland households Sub-component 2: Production, have improved their income by 30% storing, processing and from traditional and new products. marketing Output 2.1: Improved models of - No. of technical practices tested and technical practices based on a considered suitable for local applica- farming system approach and ap- tion in targeted districts. plicable to local conditions have - No. of farmers applying new techni- been developed and tested in the cal practises. target districts. Output 2.2: Marketing chain and - At least 30 new products have been market potential of produces and labelled products from the target districts - Increase in value and diversity of se- are identified and promoted. lected products in component dis- tricts compared with other districts Output 2.3: Post-harvest handling - No. of farmers trained or attending and storage improved. training (disaggregated on gender and ethnicity), - Reduction in post-harvest losses, - Improved product quality processing levels. Output 2.4: Traditional handicraft - Farmer Interest Groups set up within production has improved in quality handicraft (target), and quantity - Increase in no. of handicraft produc- tion units, - No of people (disaggregated on gen- der, age and ethnicity) involved in production of handicrafts. - Output 2.5: improved production - No. of people (female/male) bene- and income practices especially fited from the VDF supports benefited to the poor are supported through the support from Com- ARD SPS 2007-2012 100 mune or Village Development Funds. Output 2.6: The operation and - irrigation systems in the targeted dis- maintenance of small-scale irriga- tricts functioning adequately tion infrastructure in the cooperat- ing districts has improved. Output 2.7: Preservation of local - local knowledge/practices have been knowledge on natural resources documented and disseminated. management Sub-component 3: Local plan- Demand driven planning is endorsed ning and capacity building from and integrated in ordinary planning village to province level and monitoring system every year in 14 districts, 151 communes and 920 vil- lages in component provinces. Output 3.1: People at all levels - At least 120 Province, 300 District, (from village, commune, district 800 commune and 1,600 Village and province) have increased its staff in the five provinces have in- capacity, particularly in bottom-up creased their capacity and partici- planning. pated in short-term and long-term bottom-up planning. Output 3.2: Demand-driven plan - Demand driven planning is inte- implemented at all levels and up- grated in ordinary planning and dated every year. monitoring system every year in 14 districts and 151 communes and 920 villages. Output 3.3: Rules and procedures - 318 Commune Development Fund for the Commune development established to cover 450 villages in fund developed the 3 Northern provinces and ? in the Central highland. - Rules and procedures for the Village Development Fund developed. - At least 1,000 village leaders in the five provinces have increased their capacity and are able to co-manage village development funds with the commune staff. Output 3.4: Planning capacity at - 4200 households are improved ca- household level improved. [Only pacity in the family production plan- in the Central Highlands]. ning. - 10,000 people are trained in the pro- duction planning in which 7,000 people can be able to disseminate and share experience with their neighbours. - Output 3.5: lesson learnt and ex- - No. of workshops organised periences are disseminated - No. of training materials developed Sub-component 4: Land alloca- In Dak Lak and Dak Nong Provinces, ARD SPS 2007-2012 101 tion (primarily in the Central at least 10,000 ha of forested upland Highlands) has been successfully allocated to rural households or communities and man- aged safely within the law. Output 4.1: Farmers knowledge in - 10,000 households are trained in leg- participatory land allocation and islation and natural resources man- legislation related to natural re- agement. sources management and land - 10,500 farmers and 400 staff are uses management improved. trained in participatory land alloca- tion - In Dak Lak and Dak Nong Province, administrative staff is able to carry out participatory forest land alloca- tion. Output 4.2: Land use certificates - Land use certificates for a total area allocated to small landholders of 10,000 ha have been issued on an intensive pilot basis, and as an up- scaling process – land use certificates for additional 30,000 have been is- sued.
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