described above. This investment can be estimated as equivalent to the annual cost of three to five additional staff per year, depending on the growth of the project portfolio of each Regional Department. This is certainly a minor cost compared to the expected benefits of gradual but sustainable development of the sector. It is also anticipated that part of the additional technical work arising from increased demand for resources by the countries can be carried out through working agreements with specialized technical agencies. Success in implementing this strategy, and the monitoring mechanism to measure that success, will be based on the following indicators: (i) annual growth of the project portfolio (number of projects and amounts of financing); (ii) quality of the programs measured by the actions prepared in section 4.1 and 4.2, and (iii) progress reports and adjustments proposed in the Annual Report of the Rural and Agriculture Sector. The priority investment areas and the action plan for this strategy will be updated in 2005 and the strategy as a whole in 2010. The agriculture sector in Latin America and the Caribbean has a promising future, but there are important challenges to be met. As the main financing agency in the region, the Bank can play an essential role in supporting countries in the modernization and development of their agriculture sectors. A proactive role in mobilizing funds for strategic investments, systematic policy review through dialogue and dissemination of ideas and best practices, and the development of programs combining economic reforms, institutional strengthening and investment projects in priority areas would have a fundamental impact on the region’s economic and social development. This is the institutional challenge for the coming decade.
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