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FAO Investment Centre
Taking Action for the World’s Poor and Hungry People
Beijing, China17-19 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.”
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International Alliance Against Hunger
Wide range of stakeholders pledging to end hunger
Twin-track approach:– Focus on agricultural and rural
development as engine of growthand– Direct action against hunger
Right to FoodMessage: Investment in agriculture
is essential and can be effective
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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
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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
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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
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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
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Investment climate
Public investment creating a favourable climate for private investment:– legal frameworks– grades & standards– essential rural infrastructure
Quality of public spendingPromoting profitable partnerships:
– small farmers & cooperatives– agribusinesses– government
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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
countries
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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
The 3 Pillars of the GDPRD
• Outreach• Shared learning• Aid effectiveness