30. This section will present a discussion of an example of government policy intervention in the post-drought recovery of the livestock sector. It will specifically examine a number of current or completed credit programmes aimed at helping herders to reconstitute their livestock holdings following drought losses. In this connection, it will examine issues related to particular implementation problems involved in the schemes and questions of cost and return in considering alternatives to herd reconstitution.
31. Details of the credit programmes considered are summarised in Table 2. The availability of detailed data on these projects was poor. Consequently, much of the information in Table 2 refers to planned expenditure rather than the actual cost and livestock distribution per household. Sources for data in Table 2 are given at the end of this paper. All of the 9 schemes described in Table 2 involve the distribution of loans or of animals to herders, with the objective of restoring, at least partially, their livestock capital and their sources of income. Several of the projects were designed specifically for destitute herders who remained in famine relief camps through the lack of alternative sources of support. In most cases, livestock had been distributed on credit rather than on gift basis, but repayment performance has been poor and aggravated by continuing drought. In all but one case, relatively few animals were distributed per household, the stock being intended to supplement other sources of income rather than to be the single predominant income source.
32. Several important issues arise from a comparison of these schemes which relate to:
(i) the scale of the operation,(ii) the institutional framework within which it is carried out.
(iii) the alternatives available to governments, agencies and populations if a herd reconstitution programme is not carried out.
Table 2. Projects Giving Credit for Herd Reconstitution
|
Scheme |
Number of animals allocated per household and species Mix |
Average cost per no. of households |
Framework of scheme |
|
Tin Aicha |
1-3 cows, 1-3 sheep, depending |
US$165 for about |
Part of settlement scheme for |
|
NE Mali |
on size of household |
200 households |
destitute nomads |
|
Relance du Mouvement Cooperatif NE Mali |
5-10 small stock, largely goats |
US$75 for 5,000 households |
Part of programme to re-establish herder co-operatives, including setting up grain reserves, irrigation etc. |
|
Oxfam Gourma Mali |
20-30 small stock |
US$450 for 45 households |
Part of wider programme to establish herder associations grain stores, credit fund. |
|
Government of Niger |
Average of 1 cow, 1 sheep, 2 goats |
Average of US$ 140 per household |
Herd reconstitution scheme funded through the Caisse Nationale de Credit Agricole |
|
Oxfam/Habbanaae Niger |
2-3 cattle plus some small stock and transport animals |
US$ 150-160 for 300 households |
Project for destitute herders |
|
USAID Niger |
1-2 cattle |
US$ 75-150 for 200 pilot households |
Part of Niger Range and Livestock Project setting up co-ops, credit fund, etc. |
|
UNHCR SE Ethiopia |
1 cow, 1 donkey, 2-3 sheep & goats |
No data |
Re-settle refugee Somalis |
|
LMB NE Ethiopia |
2 cows, 2 camels, 12 sheep and 15 goats proposed |
US$ 300 for 5,000 households |
Redistribute post-drought livestock population, aid destitute |
|
Oxfam Kenya |
50-80 small stock, pack animals domestic equipment and grain |
US$ 1,200-1,300 for 70 households |
Pilot for more extensive project in 1985/6 |
Sources:Oxfam, Kenya: Hogg 1985.Tin Aicha, NE Mali: AFSC 1982,
Relance du Mouvement Coopératif, NE Mali: Marty, 1975 and Nieuwkerk, M. et al., 1983. Relance coopérative en 6ème et 7ème regions du Mali. Euro-Action Accord, London.Oxfam, Gourma, Mali: Mike Winter, personal communication. Oxfam/Habbanaae, Niger: Harmsworth, 1984.
UNSAID, Niger: Swift, J. and Maliki, A. 1984. A cooperative development experiment among nomadic herders in Niger. Pastoral Network Paper no. 18c, ODI, London.
Government of Niger: Document introductif au débat national sur l'élevage, Ministere du Developpement Rural, Tahoua, Avril 1985.
LMB, NE Ethiopia: LMB 1975.
33. The aim of reconstitution schemes is largely one of redistributing surviving animals, since they provide the finance for particular groups within the pastoral sector to acquire animals from other livestock owners in the same area or from neighbouring areas. Consideration must be given to the number of people a project is aimed at and the number of animals to be distributed per household. The costs per household of the credit schemes outlined in Table 2 vary greatly from a low of US$ 75-100 per household to over US$ 1,200 for an Oxfam project in Kenya. The difference in scale of project can also be seen in the number of animals transferred in each case, the lowest cost schemes involving relatively few stock, such as 1 or 2 cattle and/or several small stock. In such cases, the animals distributed are meant to supplement the income households earn from other sources. The most expensive scheme involved the transfer of 70 to 80 sheep and goats which it was hoped would provide for most of the household's needs.
34. One constraint on the choice of scale is imposed by the total number of affected persons. Where a very large number of herders have been badly hit by drought, a choice must be made between distributing a small number of stock over a large number of households and providing sufficient animals for the complete reconstitution of a few households. Most projects have opted for the former policy, basing their decision on the desire to have an impact, albeit low, on as large a number of households as possible. Those households receiving a few animals must continue to pursue a wide range of income-earning activities, a strategy which will be easier for large extended family groups than for smaller households. A survey of Tin Aicha village in north east Mali, several years after the initial distribution of stock to households, found that those who had built up animal numbers and had prospered were those with sufficient labour, so that some members could be allocated to pasturing animals, some to cultivating the family's field and some to engage in trade. Small households had not found it so easy to look after the distributed stock in addition to farming and as a result their animals had not flourished (AFSC, 1982).
35. The continued pursuit of a variety of activities by the household may be the best means by which to protect overall income from the risks attached to each single sector. There may be a certain price to pay, in terms of lower productivity in each sector, when these activites are combined in the same household enterprise than if they were to be pursued individually. For example, herders who combine farming with caring for their stock are likely to experience lower levels of crop and animal productivity than if each one had been pursued as a separate activity, unconstrained by the labour demands of the other. However, the benefit of combining these different sources of income may be considerable in terms of reducing the risk to household income from dependence on one source of income alone.
36. Thus, in planning a herd credit project, account must be taken first of the extent to which other income-earning activities are available and could be encouraged to provide a household with a mixed livestock-farming-trade based enterprise. Where such mixed strategies are not possible, or are pursued only at great cost, due to environmental constraints, it may be preferable to provide sufficient animals to create a viable herd for a limited number of households and to help the rest of the population to move and re-establish themselves elsewhere.
37. Two further constraints on choice of scale for a herd credit project are imposed by the availability of stock for distribution and the condition of pastures in the post-drought period. Where all herds have been gravely affected by drought losses, few animals will remain in the local region which are available for purchase and redistribution. However, stock may be available after a lesser drought in the hands both of herders and of other livestock owners, such as farmers or traders. Where stock are bought locally, there is no increase in overall stocking rates, the existing animals being redistributed among producers. The number of stock available locally will determine the level of prices which must be paid. As noted earlier, the prices of livestock in general and of breeding stock in particular are likely to be high in the few years following a drought. Those producers who have been able to carry some of their animals through the drought period will benefit from this post-drought price increase. The setting-up of a herd credit programme will lead to further upward pressure on prices. If there are few animals available for purchase locally, the project must consider the possibility of buying significant numbers of animals from less-affected regions where prices are lower.
38. The advisability of bringing in livestock from outside the region depends greatly both on the suitability of stock from a different area and possibly a different ecological zone and one the speed with which pastures are expected to recover after the drought. Where livestock losses have been very heavy and where rainfall returns to normal levels in the post-drought period, some pastoral areas will find themselves with insufficient animals to make use of the available grazing. This represents a waste of resources and a loss in potential meat, milk and herd growth of particular significance if livestock are kept under less favourable conditions in other parts of the country. In such circumstances, there would be a strong case for a herd reconstitution programme which involves the movement of animals from more to less crowded areas through a re-stocking scheme, such as that carried out by the Livestock and Meat Board in Ethiopia in the post-1974 period (LMB, 1974). However, movement of stock from one region to another would not be advisable where the effects of a prolonged drought on pastures has been so severe that a few years should be allowed to elapse before encouraging a substantial growth in herd numbers. In addition, animals from outside the region may not be suited to the ecological conditions in the area to be re-stocked.
39. Consideration should be given to the optimal institutional structure within which to carry out a herd reconstitution programme. First, several writers have emphasized the importance of a close knowledge of the community which it is intended to aid. They argue that projects should aim to support local strategies for adapting to harsh climatic conditions and periodic drought (Harmsworth, 1984). Turton and Turton (1984) note that one must not overlook "those qualities of resilience, technical sophistication, inventiveness and sheer human determination [of the community to be aided] to survive which must be tapped, rather than ignored, if intervention in their affairs is to be anything other than counterproductive".
40. Second, the overall structure within which livestock production takes place needs to be considered in order to identify existing groups or create new institutions through which herder credit can be channelled. Four of the schemes for herd reconstitution in the Sahel formed part of a wider project aimed at building up co-operative structures in pastoral areas. These herder co-ops are hoped to provide not only a channel for current development work but, more importantly, a framework within which producers can generate initiatives and guide future interventions by governments and external agencies.
41. Third, the advantage of giving credit in the form of cash or in livestock should be investigated. Cash has the advantage that the herder can then choose the stock he wants, rather than having to accept those bought by others. As was noted for the Tin Aicha scheme in north-east Mali, project staff made several mistakes in the choice of animal species bought (sheep and cattle had been purchased rather than hardier goats) and in the particular beasts purchased (AFSC, 1982). Some animals were sterile females and others were so young that they could not be expected to calve for two or more years. These mistakes would have been reduced had the recipients been involved in stock-buying as they are likely to have greater experience in recognising the qualities of animals suited to their ecological area. The disadvantage of giving cash for herders to buy their own animals is the possibility of fraud, with recipients using the money for some other purpose. However, the risk of this can probably be kept fairly low by requiring that all animals be brought for inspection and marking them after purchase.
42. Fourth, all herd reconstitution projects face the problem of which households to select as recipients of stock. The target group is likely to be composed of those households who have lost most if not all of their animals but who have access to sufficient labour and skills to be able to care for the animals received. In two of the Sahelian schemes, the recipients were totally destitute herders who had remained in famine relief camps after the end of the drought and who had no resources, apart from their labour with which to re-establish themselves. In other cases, it is less clear from the project literature how those gaining credit were actually chosen. There is always the risk that those with economic and political power will be able to divert resources from such a project to their own benefit, so that the project does not in fact reach the smaller herd-owner for whom it was originally intended.
43. Fifth, the choice must be made between distributing stock on credit or as a gift. Where herd reconstitution forms part of a wider programme, the development of a credit scheme serves the purpose of establishing a revolving fund potentially available for other uses and may help develop the managerial skills required in the development of a co-operative. Some writers argue that gifts destroy a people's self-reliance and should therefore be avoided. Others note that the gift of food or cash may be the best way of helping a society cope with a temporary inability to feed itself. If loans are to be used, the length of time and terms of repayment must be specified. A very short repayment period obliges the recipient to repay before the animals have had much chance to grow in numbers. Too long a period deprives other potential recipients of the chance of a loan, where a revolving credit fund is in operation. Thus, Marty (1975) recommends a 3-year loan period in the case of small stock, given their rapid rates of reproduction while a longer period of 4 to 6 years would be necessary for cattle and other large stock. The traditional "habbanaae" system of animal loans among the Wodaabe of West Africa works on the basis of the number of offspring produced whilst in the recipient's care, rather than there being a fixed number of years for the loan. Under these loans, a cow is lent for the period required for her to calve three times before being returned to her owner, the borrowing household keeping the three calves. The advantage of "habbanaae" loans is that repayment takes place only once the recipient has gained replacement animals. Where credit is to be used account must to be taken of repayment obligations in the event of livestock losses. Recurrent drought or an epidemic outbreak may make it impossible for recipients to repay and debts may need to be cancelled under those circumstances. Action to be taken in the event of occasional animal losses is less clear; some schemes have demanded that the loan be repaid regardless of loss, whereas other cancel the debt. The free distribution of animals to households, in place of a system of loans, has the advantage of incurring zero costs associated with collection of debts. Where administrative skills are scarce and where repayments are likely to run into numerous difficulties, due for example to a high risk of drought losses in the future, the option of outright gifts of stock should be very seriously considered.
44. In the face of heavy livestock losses and the resulting impoverishment of pastoral areas and groups, there are a number of options which governments and outside agencies can pursue. One alternative is to take no action, leaving the affected population to their own devices or continuing to provide famine relief to the destitute. The provision of food relief at a basic 0.5 kgs of grain per adult per day implies a total of 900-1,000 kgs of grain per year for a household of 7 people, containing 5 adult equivalents. The cost of providing this grain ration depends on the price of grain, the size of transport costs and on who pays the bill. For example, grain provided free to a particular government for distribution as food aid will cost the government little or nothing, depending on who is responsible for its transport and distribution within the country. By contrast, grain which must be bought on the world market will be much more expensive and will cost the government dear in foreign exchange and transport charges. The price of grain used in this paper is US$300-400 per ton. i.e. to cover the cost either of buying local grains or of buying world market grain plus transport costs to local markets. The latter are often as high as US$150-200 per ton for landlocked states with poor road networks (FAO, 1985). A year's supply of grain to support an average household thus costs US$300-400, which may be compared with the range of from US$75-100 to more than US$1,200 per household for herd reconstitution projects. The cost per household for the most expensive reconstitution project thus represents the most basic grain ration over a period of 3 to 4 years.
45. A second alternative lies in the development of other income-generating activities for drought-affected groups. Given the aridity of many of the areas concerned, proposed alternatives have usually involved some form of irrigated agriculture, although a variety of other options have also been suggested, such as the re-settlement of herders elsewhere or the establishment of industries making use of local resources. Irrigated agriculture has long been considered an obvious solution to providing a livelihood for those living in semi-arid regions. However, irrigation schemes in sub-Saharan African have not been an unparalleled success due to severe technical problems and very high capital and maintenance costs. For example, the capital costs of irrigated agricultural settlement schemes in northern Kenya are put at between US$17,000 and US$ 60,000 per hectare (Hogg, 1985), with running costs often exceeding the expected value of annual output. Such large figures imply a capital cost alone of establishing a household in irrigated agriculture of between US$ 9,000 and US$ 20,000, a sum far in excess of the re-stocking alternative taken up by Oxfam in Kenya costing US$1,200 per household. Two of the schemes in northeast. Mali included a component for small-scale crop irrigation using very simple techniques and costing relatively little. While these provide a supplementary source of food, they are insufficient to cater for the family's total food needs. However, a number of agencies are now investigating the potential for developing small-scale water-harvesting techniques in semi-arid areas and this option may provide greater prospects for supporting an impoverished pastoral population in the future.
46. Re-settlement of herders elsewhere is put forward by many writers as the only long-term solution for the pastoral zone, given rising human populations, high risks of drought and livestock loss and a declining resource base (Perrier, 1985). Movement by the poorest members of pastoral society into agriculture has been taking place in the absence of government intervention over many centuries, as work among the Basseri of South Persia (Barth, 1961), among the Oromo of southern Ethiopia (Legesse, 1973) and north African pastoral groups (Johnson, 1973) has shown. Turton and Turton (1984) document the spontaneous settlement in farming of one-fifth of the Mursi population of south-west Ethiopia following the droughts of the 1970s and contrast the success of this settlement with "the widespread failure of externally organised agricultural settlement schemes for pastoral nomads in Africa". They go on to point out that "it may be that the only sensible role for outside authorities in the settlement of pastoral nomads is that of facilitating local initiatives, on the assumption that the only successful settlement schemes will be those... which have been initiated by the settlers themselves".
47. An alternative to the settlement of pastoralists, either in irrigated agriculture or in dryland farming in higher rainfall zones, lies in the development of income-earning activities based on locally available resources. The extent to which viable alternatives to livestock production can be set up depends on the resources available and the cost of exploiting them. The development of natural resources in pastoral areas has rarely benefited the herding community. Indeed, in several cases, resource development has reduced the viability of the pastoral system, as when game parks have been carved out of a herding group's territory. Some projects, such as the fishery project on Lake Turkana in northern Kenya, were established with the explicit aim of providing those who had lost their livestock with another source of income. However, this does not seem to have provided a promising alternative to pastoralism for the Turkana (Hogg, 1985). Further options that have been considered, such as leather and horn craft-work, provide at best a means to supplement incomes but are not likely to enable many people to support themselves solely on the proceeds from these alternative activities.
48. Thus, it can be seen from the above discussion of herd credit projects that the scale of the programme must take into account the extent to which households can successfully combine the care of stock with other activities. This will differ from one pastoral area to another, as will the availability of suitable animals for re-stocking in the post-drought period. Re-stocking is an obvious programme to pursue where the post-drought distribution of livestock is very uneven and does not make effective use of large areas of available pasture. Participation of the recipient community in planning and implementing the credit scheme may have important advantages in the short-term by reducing administrative costs and in the long-term by consolidating the role that existing indigenous or new institutions can play in channelling resources and ideas. The choice between livestock loans and gifts should be made on various grounds and should include the relative cost of administering the collection of repayments and what should be done in case of deaths among distributed stock. The costs of herd reconstitution programmes are equivalent at most to providing a basic grain ration to the household over 3 to 4 years. They are substantially lower than the costs of establishing pastoralists in major irrigation settlement schemes. Alternative income-earning options should also be considered, such as small-scale irrigated agriculture and craft production.
