achieving sustainable food security: new trends and emerging agenda

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Achieving Sustainable Food Security: New Trends and Emerging Agenda Shenggen Fan Director General International Food Policy Research Institute Wageningen University, Wageningen, The Netherlands, April 13, 2010

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Wageningen University, Wageningen, The Netherlands, April 13, 2010

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Page 1: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen FanDirector General

International Food Policy Research Institute

Wageningen University, Wageningen, The Netherlands, April 13, 2010

Page 2: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

Key messages

• Achieving the MDG1 goal of cutting hunger is not on track

• Emerging trends present further challenges for the future

• Agenda for enhancing food security is urgently needed

Page 3: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

The number of hungry needs to fall by 73 mil. per year to meet MDG1

Page 4: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

29 countries have “alarming“/“extremely alarming” levels of hunger (2009 GHI)

GHI components:• Proportion of undernourished• Prevalence of underweight in children• Under-five mortality rate

Source: von Grebmer et al. 2009.

Page 5: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Food prices fell from peaks, but remain high

Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

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0

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140MaizeWheatRiceOil (right scale)

US

$/m

etri

c to

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$/b

arre

l

Source: Data from FAO 2009 and IMF 2010.

Page 6: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Domestic prices often increased, even when global prices fell

Maize prices, 2007-2009

Source: World Bank 2009.

Page 7: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

Non-food factors continue to influence food prices

Energy: Oil prices have reached a 19-month high; Biofuel production is still growing, even though at a slower pace

Trade: Some export restrictions have been extended to 2010

Finance: Credit availability not yet restored to its pre-crisis level

Page 8: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

Emerging trends

Population growth and demographic changes

Land and water constraints

Climate change

Page 9: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Rapidly growing population and demographic change

World population reaches 9 billion by 2050

All growth to come from urban areas

Most growth to come from developing countries

Source: FAO 2009.

Larger and more urban population will demand more and better food

Page 10: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

Natural resource constraints are high

Source: IWMI 2000.

Projected water scarcity in 2025

Page 11: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Source: M. Rosegrant (IFPRI) 2009.

NCAR A2a

Climate change pressure on food production systems

Climate change impact on production: Rainfed maize, 2050

Global production = -16%

Page 12: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

Climate change impact: Child malnutrition

South Asia

East Asia and Pacific

Europe and Central Asia

Latin America and Caribbean

Middle East and North Africa

Sub-Saharan Africa

0 10 20 30 40 50 60 70 80 90

2050 NCAR No CF

2050 No climate change

2000

Million children under 5 years of age

Source: Nelson et al. (IFPRI) 2009..

Page 13: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

Successes show that rapid food secuirty improvement is possible

Asia: Green Revolution (1965-85)

China: land reform (1978-84); higher rice yields (1977-now)

India: seed marketing (mid-1960s-now), dairy sector development (1970-96)

Kenya: unlocking fertilizer and maize markets (1990-2007)

Nigeria, Ghana, and Uganda: pest- and disease-resistant cassava (1971-89)

Vietnam: Exiting from collective agriculture (1988-93)

Source: Spielman and Pandya-Lorch 2009.

Page 14: Achieving Sustainable Food Security: New Trends and Emerging Agenda

New agenda for food security needed

1. Invest in agriculture and improve smallholder productivity

2. Keep trade open

3. Promote productive safety nets

4. Invest in climate change adaptation and mitigation

5. Improve institutions and capacities

Page 15: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

1. Invest in agriculture and improve smallholder productivity

Increase agric. spending, improve access to inputs and services, secure land rights, invest in rural infrastructure

1980

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16SSA China

Agric. expenditures as % of agric. GDP

Source: IMF GFS yearbook (various years).

Page 16: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

2. Keep trade open

Eliminate harmful trade restrictions and refrain from imposing new ones

Complete the Doha Round • if tariffs increase to their current WTO limits (bound

level): 11.5% loss of developing country exports US$353 billion loss in world welfare

Potential costs of failed Doha Round could be high

Source: Bouet and Laborde 2009.

Page 17: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

3. Promote productive safety nets

Scale up safety nets to: Secure and smooth food consumption Enable saving and investment Build and diversify assets

Types of interventions e.g.: Conditional cash/food transfers Maternal and child health/nutrition programs Public works Insurance for the poor

Source: Adato and Hoddinott 2008.

Programs depend on needs, capacities, and resources

Page 18: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

4. Invest in climate change adaptation and mitigation

Sub-Saharan Africa

South Asia

Developing countries

Agric. research 314 172 1,316

Irrigation expansion 537 344 907

Irrigation efficiency 187 999 2,158

Rural roads 2,015 17 2,737

Total 3,053 1,531 7,118

Annual expenditure to counteract climate change effects on child nutrition by 2050 (million 2000 US$)

Source: Nelson et al. (IFPRI) 2009.

Page 19: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Shenggen Fan, IFPRI, April 2010

5. Improve institutions and capacities

Build up existing institutions and improve evidence-based policy making

• Increase gradual implementation after careful experimentation as in Asian reform process (esp. China)

• Increase investment in information gathering, monitoring, and evaluation

Strengthen human and administrative capacities through increased investment in education and training

Page 20: Achieving Sustainable Food Security: New Trends and Emerging Agenda

Rapid hunger reduction is achievable with effective

country-led and country-owned actions