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Improving Institutional Capacity:

Strengthening Farmer Organizations in the OIC Member Countries

2

Organizational challenges

: FOs face technical challenges, including lack of access to

extension, research and post-harvest management, and limited ability to access markets.

They also face low institutional capacity from an organizational, legal, financial and human

capital (management skill) perspective. Finally, they suffer from a weak ability to advocate

for change, in terms of their ability to inform key policy issues and to act as champions for

smallholder perspectives and preferences.

This study parses these challenges into two key areas critical to fostering strong FOs in

the OIC, providing an overview of member countries’

(1) Enabling Environment

and

Current Farmer Organization Penetration

(government policies and structures that make it

easy for strong farmer organizations to form and grow), and

(2) Market Structure

(the

presence or absence of market actors and arrangements that make it easier for farmer

organizations to have power, with a specific focus on government control of important actors).

The enabling environment is found to be generally strong.

Across the OIC, many member

countries have national-level institutional arrangements in place to support FOs and a fair

amount of pro-FO policy experimentation. Based on the research covering 90% of OIC member

countries, findings include:

90% of OIC member countries

have a recognized co-operative law that gives legal

standing to farmer organizations and other co-operatives, likely making the OIC similar to

the world as a whole (though exact data is not available) on this metric

73% of countries

have a body within the government (usually within Ministry of

Agriculture) with an identifiable mandate to strengthen and work with farmer

organizations (this is true for 68% of Arab countries and 76-77% of Asian and African

countries)

The market structure is also generally positive.

Across the OIC, apex FOs exist largely

independent of governments (an important trait according to the International Labour

Organization and other FO-strengthening bodies), though comparatively more government

involvement was noted in Arab and Asian Group member countries than in African members.

81% of countries

have some sort of identifiable apex body for farmer organizations or a

national-level farmers’ union. Perhaps more importantly,

more than three-quarters of these

are independent

, as only 19% of countries have a government-linked apex body and 19%

have no identifiable apex body.

Yet FO membership still averages only one-quarter of the OIC’s total farming population

,

albeit with very wide variation across member countries. In general,

30% of farmers

are

estimated to belong to FOs

.

It seems likely that OIC member countries are within global norms

on this metric. Also, based on a limited comparison set, they may even be above average, as

low membership rates are a global problem. However,

lack of data is a significant issue in

determining FO penetration:

No data is available for 43% of countries researched

and in

19% of countries, only the number of farmer organizations (not total membership) is found.

This combination of significant numbers of unorganized farmers and generally strong enabling

environments (at least at a national level)

suggests opportunities for FO growth in the

coming years.

But it is important to note the context of these findings.

Numerous countries across the OIC

have implemented policies or programs aimed at strengthening FOs

, with a renewed

focus on rural organization promotion across the region, as well as a focus on FOs as an

economic diversification and environmental protection effort in Gulf states. African nations