Improving Institutional Capacity:
Strengthening Farmer Organizations in the OIC Member Countries
28
Mozambique, Saudi Arabia, Turkey and Yemen) are outlined in order to give a
representative overview of the type of actions being carried out across the OIC. Recent policy
shifts across the OIC and their intended effect on FOs are then highlighted, with interventions
mapped to archetypical challenges faced by farmer organizations. Finally, the role of intra-OIC
bodies and development agencies in advancing the development of farmer organizations is
scrutinized, concluding with an analysis of some developments in financial services for farmer
organizations within the OIC.
2.2.1. Examples of recent policies enacted in support of FOs in OIC member
countries
Egypt
FOs have had a long and varied history in Egypt. Cooperatives’ contribution to Egyptian
development took a great leap forward in the 1950s, through the “Agrarian Reform”, when
150,000 landless households became owners of small farms.35 Cooperatives then became an
important way of supporting the social, economic and political objectives of these new
farmers. FOs received direct supervision from the Ministry of Agriculture and Agrarian
Reform. However, it was later felt that this structure could be improved, and the government
moved towards liberalisation of the sector. Then, during liberalisation FOs were
overshadowed by NGOs who were tasked with the delivery of rural community services,
including extension. Groups like the Brookings Institute and the Egyptian Regulatory Reform
and Development Agency argue that central planning and state involvement (for example in
leadership elections), have not always contributed to strong, independent FOs36.
Recently, the government has made strong steps to become a leader in supporting FOs, as legal
changes have given the Egyptian farming community and its representative organisations the
opportunity to regain significant organizational independence. The 2014 Constitution, in
Article 37, has prohibited the dissolution of cooperatives. The same article goes further to
guarantee that the state shall, “give due care to co-operatives and the Law shall guarantee their
protection, support and independence”. In a move to ensure that smallholders are represented
in the decision-making platforms in FOs in Egypt, Article 42 of the Constitution stipulates that,
“the law shall regulate the representation of small farmers and craftsmen with a minimum
representation of 80% in the boards of directors of agricultural, industrial and handicraft
cooperatives”.37
This legislative commitment to cooperative development has been accompanied by new
strategic partnerships and initiatives. One such initiative is the new marketing strategy for
wheat, developed by the Ministry of Agriculture and Land Reclamation, the Principal Bank for
Development and Agricultural Credit (PBDAC), and farmer organisations. The strategy
stipulates that the PBDAC will make available funding to FOs before the wheat supply season,
and the FOs will then refund the granted amount after marketing their output.38 The Ministry
of Agriculture also suggested a committee for the marketing of various agricultural products
be set up to design marketing plans and oversee marketing contracts.
35 Nawar, M and Abdel-Hakim,T. Current Status of Prospective Farmers Unions and Syndicates in Egypt. International Centre
for Advanced Mediterranean Agronomic Studies. October 2013
36 Kharas, H. Regulatory Reforms Necessary for an Inclusive Growth Model in Egypt. Policy Paper 2012-05. Global Economy
and Development, Brookings Institution.
37 The Constitution of the Arab Republic of Egypt
38 Farld, D, Minister of Agriculture reveals new strategy for marketing wheat. Daily News Egypt, 22 February 2014