World Bank Document

54. 
Increasing the adoption rate of improved agricultural technologies requires improving the enabling 
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As of October 2019, the project supported more than 800 of such beneficiaries. 

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The World Bank 
Agriculture Modernization Project (P158372) 
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environment. This includes the following policy elements: (i) removing policy biases against agriculture, which has been 
the main reform effort of the GoU since 2017; (ii) increasing market access to enable increased farm profitability and 
removing barriers for technology adoption; (iii) increasing farmer capacity through investments in human capital 
delivered in the form of extension/advisory services and trainings. These allow farmers to better evaluate technology 
opportunities and manage technology-related investments. In line with findings from the WB’s Human Capital project, 
the average attainment levels and the quality of schooling in rural areas trail that of urban areas. This is particularly the 
case for women, who form a large part of the agricultural workforce and often manage their own farms; and (iv) 
increasing the flow and quality of information to farmers to increase technology adoption. 
55. 
The project builds on the experience from WB-supported productive partnerships. Global experience suggests 
that being part of a value chain contributes to farm productivity increases and higher output prices. In addition, there are 
positive spillover effects for non-value chain members in terms of technology learning, but also in terms of a 
demonstration effect in incentivizing similar contracting mechanisms in other crops. Supporting value chain development 
and making them more inclusive require: (i) promoting collective action through capacity building and access to suitable 
finance; (ii) providing incentives for lead agribusiness firms to build productive partnerships with farmers and farm groups 
under credible contracting arrangements; and (iii) extending essential infrastructure such as agro-logistics to create 
markets and increase value added from primary production. The global experience also suggests a range of options and 
approaches for fostering partnerships. In Latin America, for example, the WB has been successful in supporting 
productive partnerships using the bottom-up approach and matching grants for linking farm group with agribusinesses
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In East Asia, especially in China and Vietnam, the WB has used a mix of subsidized credit, matching grants, and technical 
assistance to encourage agribusiness enterprises to enter into production partnership with smallholders
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