Program to support diversification of Dominica”s agricultural sector, and reduce the country”s dependence on banana exports for foreign exchange. Program funds will be used for U.S.imports, while local currency generations will provide budget support to the Government”s agricultural diversification program. Conditionality will focus on the development and implementation of an Agricultural Diversification Strategy (ADS). Key features of the ADS, studies or analyses for which will be funded through the West Indies Tropical Produce Support Project (5380163), include: (1) a policy agenda; (2) a vertically integrated, private-sector led market system; (3) an action program to implement the ADS; and (4) a sub-sectoral item in the Ministry of Agriculture budget to promote agricultural diversification. Amendment of 8/92 funds a second phase of the agricultural diversification program; while the first phase focused on development of the ADS, this phase will focus on its implementation, including activities such as nontraditional crop extension and training, small farm mechanization, demonstration projects, test marketing, and development of storage and transport infrastructure. Conditionality includes measures to: (1) increase private sector involvement in management of the agricultural diversification program; (2) broaden access to services for producers and market agents of nontraditional crops; (3) identify constraints to investment in the general economy; and (4) evaluate local currency projects funded under the program. (PD-ABF-489)
