Taking Action for the World’s Poor and Hungry People Beijing, China 17-19 October 2007

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


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.”


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


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


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 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


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


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


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


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

Taking Action for the World’s Poor and Hungry People Beijing, China 17-19 October 2007

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