Transcript Slide Title here

Taking Action for the World’s Poor and
Hungry People
Beijing, China
17-19 October 2007
Session 3: Targeting the Poor –
Policies and Programmes
Investments to support hunger
reduction
Michael Wales, Principal Adviser, FAO
Investment Centre
FAO Investment Centre
World Food Summit
Plan of Action Commitment Six:
“... promote optimal allocation and use of
public and private investments to foster
human resources, sustainable food,
agriculture, fisheries and forestry systems,
and rural development, in high and low
potential areas.”
FAO Investment Centre
International Alliance Against
Hunger
Wide range of stakeholders pledging to
end hunger
Twin-track approach:
– Focus on agricultural and rural development as
engine of growth
and
– Direct action against hunger
Right to Food
Message: Investment in agriculture is
essential and can be effective
FAO Investment Centre
Priorities for investment
FAO’s Anti-Hunger Programme:
• Improving agricultural productivity of
small farmers
• Developing and conserving natural
resources
• Rural infrastructure and market access
• Capacity for knowledge generation and
dissemination
• Access to food for the most needy
FAO Investment Centre
Scale of investment needed?
Anti-Hunger Programme:
• US$24 billion per year
– Benefits: US$120 billion per year
Comprehensive Africa Agriculture
Development Programme (CAADP):
• US$251 billion over 15 years
• US$13 billion per year incremental
investment
FAO Investment Centre
FAO Programmes with
governments
National Programmes for Food Security:
– access
– availability
– utilisation
– 15 countries, US$1.2 billion committed
Regional Programmes for Food Security:
– Policy & institutional environment
– 21 Regional Economic Organizations
FAO Investment Centre
Lessons learnt
• Agricultural growth
hunger
reduction
• Hunger reduction
development &
poverty reduction
• Technology can contribute
• Trade can contribute
• Peace and stability are essential
• Public investment is essential
• Development assistance often
misplaced
FAO Investment Centre
Investment climate
Public investment creating a favourable
climate for private investment:
– legal frameworks
– grades & standards
– essential rural infrastructure
Quality of public spending
Promoting profitable partnerships:
– small farmers & cooperatives
– agribusinesses
– government
FAO Investment Centre
Private investment
Small farmers the biggest investors
– Obstacles: credit, land tenure, transport,
low prices, outside supply chains, natural
hazards
Traders, agro-processors, transnational
agribusinesses in value chain
– Obstacles: unpredictable business
environment, poor infrastructure, high
costs
Foreign Direct Investment
– agriculture <1% of FDI to developing
FAO Investment Centre
countries
Effective development
assistance
Effective partnerships:
• Government commitment of resources
– e.g Maputo Declaration 10%
• Donors
–
–
–
–
committing resources to agriculture
keeping agriculture on the agenda
harmonization – national programmes
aid effectiveness – Paris Declaration
• Non-traditional donors
– China, Brazil, India, Foundations
FAO Investment Centre
The 3 Pillars of the GDPRD
• Outreach
• Shared learning
• Aid effectiveness