Investment needs, sources and instruments

Challenge Population 34% Change in diets ag. production 70%investments ? Current investment in agriculture Meeting demand in 2050 Eliminating hunger by 2025 ODA Developing government FDI Developing private Investing in agriculture to eliminate hunger, gross, US$ per year FAO estimates

Challenge

Issues 1. What is “investment” ODA Commitments for ARD and Short Term or Emergency Food Aid in SSA, (millions of 2006 US$) based on OECD data India: Agricultural public spending, ,000 1,500 2,000 2,500 3, ARD commitments Dev. food aid/food security commitments Emergency food aid commitments

Issues 2. Investment priorities MALAWI. Public Expenditure: Health, Education, Agriculture IMF data base

Issues 3. Investment priorities WB AgInvestSourceBook Returns of agricultural public investments and impacts on poverty reduction in China and India

Issues 3. Investment mobilization mechanisms Investment friendly political and institutional climate? Public investment into infrastructure/institutions? Public investment into production? Subsidies to investors? Intergovernmental agreements on FDI? ????

Issues 4. FDI into agriculture New trends last 3-4 years (“Outsourcing’s Third Wave”) : cross-boarder investment in primary agriculture increasingly directed towards land acquisition from recourse-poor countries to developing resource-rich countries in order to develop agrifood exports under bilateral inter-gvt agreements Benefits: technology transfer, employment creation, infrastructure, development and export earning Threads –for host country rural employment, access to ag. resources to loc al population food insecurity –for international trade non transparent, less liberal markets and investment