Commentary: Hunger Reduction with Agricultural R&D and Policy Change

Commentary: Hunger Reduction with

Agricultural R&D and Policy Change

Joachim von Braun

International Food Policy Research Institute

The Chicago Initiative on Global Agricultural

Development - Report Release Symposium

February 25, 2009

Joachim von Braun, IFPRI, February 2009

RECOMMENDATIONS: RENEWING ATTENTION TO

AGRICULTURE IN U.S. DEVELOPMENT POLICY

1: Increase support for agricultural education and

extension at all levels in Sub-Saharan Africa and

South Asia.

2: Increase support for agricultural research in

Sub-Saharan Africa and South Asia.

3: Increase support for rural and agricultural

infrastructure, especially in Sub-Saharan Africa.

4: Improve the national and international

institutions that deliver agricultural development

assistance.

5: Improve U.S. policies currently seen as harmful to

agricultural development abroad.


Food prices: higher levels and the spike

0

200

400

600

800

US

$/t

on

Corn Wheat Rice

Price spike

Source: IFPRI, Data from FAO 2009 and IMF 2009.


Food protests and food prices

0

5

10

15

20

25

0

100

200

300

400

500

600

700

800Jul-

07

Aug

-07

Sep

-07

Oct-

07

Nov-0

7

Dec-0

7

Jan

-08

Feb

-08

Mar-

08

Ap

r-08

May-0

8

Jun

-08

Jul-

08

Aug

-08

Sep

-08

Oct-

08

# o

f riotsU

S$/t

on

Maize

Wheat

Rice

Riots (right)

Source: J. von Braun based on data from FAO 2009 and news reports.


Further stress for agriculture and the poor:

Financial crisis and depression

• Less capital for agriculture now

• Higher debt burden for farmers who invested in

agriculture expansion

• Reduced employment and wages of unskilled

workers

• Reduced remittances


Actions for smallholder agriculture

are central !

1. Access to finance and inputs

(rural banks and micro-finance, seeds, fertilizer,

animal feed, veterinary drugs)

2. Investment in rural infrastructure

(e.g. rural roads, electrification, irrigation)

3. Agricultural productivity (R&D, extension,

education)


RECOMMENDATION 2: Increase support for agricultural

research in Sub-Sahara Africa and South Asia

a. Provide greater external support for agricultural scientists

working in the national agricultural research systems.

b. Provide greater support to agricultural research conducted

at the international centers of the Consultative Group on

International Agricultural Research

c. Provide greater support for collaborative research between

scientists from Sub-Saharan Africa and South Asia and

scientists at U.S. universities

d. Create a competitive award fund to provide an incentive for

high impact agricultural innovations to help poor farmers


Central for long-term agric. growth:Double agric. R&D to impact poverty

CGIAR investment to rise from US$0.5 to US$1.0

billion as part of this expansion

Source: von Braun, Shenggen Fan, et al. 2008.

R&D allocation

(mil. 2005 $)

in # of

poor (mil.)

2008-2020

+ Agr. output

growth (% pts.)

2008-20202008* 2013

SSA 608 2,913 -143.8 2.8

S Asia 908 3,111 -124.6 2.4

Devel.ing

World 4,975 9,951 -282.1 1.1


Approach (mil $) mil ppl

Revitalizing yield growth in intensive cereal systems of Asia 150 3,000

Ensuring productive & resilient small-scale fisheries 73.5 32

Controlling wheat rust 37.5 2,900

Developing vaccine for East Coast Fever in cattle 10.5 32

Developing drought-tolerant maize for Africa 100 320

Scaling up biofortification 125 672

Increasing CO2 sequestration & improving forest livelihoods 45 48

Conducting climate change & adaptation research 127.5 1,200

Combining organic & inorganic nutrients for crop productivity 55 400

Promoting sustainable groundwater use 24 261

Enhancing germplasm exchange 15 Global

Improving market information & value chains 10.5 45

Including women in extension & innovation 30 200

Exploiting agriculture-health links to benefit the poor 75 Global

1b. CGIAR “Best Bets”

Food, Environment, Policy for People


125

150

175

200

225

250

275

0

50

100

150

200

250

2005 2010 2015 2020

Millio

n

US

$/t

on

Non-recession

Same-investment

Low-investment

Maize price

(left )

Malnourished children (right)

Recession scenarios with and without agric.

investment action

Source: von Braun, Rosegrant, IFPRI IMPACT, Oct. 2008.

16 mln more malnourished children with

recession and low investment


Food

retailers

top 10: $1,042

bln

• Wal-Mart

• Carrefour

• Tesco

• Metro G

• Kroger

C o

n s

u m

e r s

$4

,00

0 b

lnThe global food business chain –

involve all actors

Food

processors

and traders

top 10: $426 bln

• Nestle

• Cargill

• Unilever

• ADM

• Bunge

Agricultural

input

industry

top 10: $55 bln

• Syngenta

• Monsanto

• Bayer C

• Dupont N

• Mosaic

Farms

Agricultural

value added:

$1,674 bln

No. of farms:

ca. 450 mln

Size distr.

>100 ha: 0.5%

< 2 ha: 85%

Source: von Braun 2008, updated.


Major pledges and investments

to address the food crisis (2008)

Donor organization/country Pledge (bil.$) Month

World Bank 1.2 May

EU (EC & national) 5 + May-July

USA 5 June

Increase in public budgets on agric. and social protection

bil. $US % change

China 23 +27%

India 6 +24%

Source: IFPRI, compiled from news sources and government budgets.

Donors’ investment components too small


What and how of US co-leadership –

government , private, foundations, NGOs

US leadership in agricultural development with

partnership

1. China, India, Africa, LAC, EU as partners

2. UN “Global Partnership on Agriculture and Food

Security”

3. Shape the G8 and G20 agendas on food security

in 2009

Commentary: Hunger Reduction with Agricultural R&D and Policy Change

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