Responding to the global food crisis – trade, investment and commodity policies and measures Ralf Krüger Investment Analysis Branch Division on Investment and Enterprise UNCTAD Ralf Krüger Investment Analysis Branch Division on Investment and Enterprise UNCTAD

Comprehensive framework for action – the UN response

Analytical framework - Overview TRADEINVESTMENTCOMMODITYOTHER DEMAND/ SUPPLY PRODUCTIVITY SPECULATION/ EXPORT RESTRICTIONS ENERGY/ BIOFUELS COMPETITION TRADE RULES

Trade policies and measures Regional marketing and trading of food / trade facilitation Use of tariffs for agricultural development Reduce tariffs on agricultural inputs Reduce export subsidies and other domestic support measures Review barriers to trade in biofuels Review subsidies to biofuel and feedstock producers Regional marketing and trading of food / trade facilitation Use of tariffs for agricultural development Reduce tariffs on agricultural inputs Reduce export subsidies and other domestic support measures Review barriers to trade in biofuels Review subsidies to biofuel and feedstock producers Development of an endogenous trade policy Assessment of agreements and strategies Assistance in trade negotiations Promoting intergovernmental dialogue Promotion of South-South cooperation Introduction of food import policies Elaborating long-term food procurement agreements Analysis on liquidity constraints of LDCs and net food importing DCs Development of an endogenous trade policy Assessment of agreements and strategies Assistance in trade negotiations Promoting intergovernmental dialogue Promotion of South-South cooperation Introduction of food import policies Elaborating long-term food procurement agreements Analysis on liquidity constraints of LDCs and net food importing DCs Policies and measures UNCTAD support

International investment policies and measures Assess trade offs and mitigation measures Create a more favorable environment for investments into agriculture –Better incentives –More transparent and simpler rules Address undercapitalization of agriculture Assess biofuel investment prospects Pay special attention to competition issues Assess trade offs and mitigation measures Create a more favorable environment for investments into agriculture –Better incentives –More transparent and simpler rules Address undercapitalization of agriculture Assess biofuel investment prospects Pay special attention to competition issues Policies and measures UNCTAD support In-depth analysis of investment in agriculture, e.g. World Investment Report 2009 Identification and targeting of potential sources Promotion of policies and measures to attract private investment, e.g. Investment Policy Reviews Global Network of Exim Banks and Development Finance Institutions (G-NEXIS) to promote South-South investments and trade Design of competition policies In-depth analysis of investment in agriculture, e.g. World Investment Report 2009 Identification and targeting of potential sources Promotion of policies and measures to attract private investment, e.g. Investment Policy Reviews Global Network of Exim Banks and Development Finance Institutions (G-NEXIS) to promote South-South investments and trade Design of competition policies

Commodity policies and measures Agricultural commodity sector development policies are central Define mix between food and export crops Create early warning systems on food shortages and sources of food Assistance to smallholders Aid for commodity sector development Reduce transaction costs, e.g. through commodity exchanges Agricultural commodity sector development policies are central Define mix between food and export crops Create early warning systems on food shortages and sources of food Assistance to smallholders Aid for commodity sector development Reduce transaction costs, e.g. through commodity exchanges Policies and measures UNCTAD support Design of national agriculture commodity development policies to boost production Assistance in trade negotiations in relation to agricultural policies Analysis on subsidy modes Identification of agricultural sectors and support measures Aid coordination in agriculture Advise on commodity financing instruments / risk management Provision of market information Assessing and setting up commodity exchanges Design of national agriculture commodity development policies to boost production Assistance in trade negotiations in relation to agricultural policies Analysis on subsidy modes Identification of agricultural sectors and support measures Aid coordination in agriculture Advise on commodity financing instruments / risk management Provision of market information Assessing and setting up commodity exchanges

Technology and other policies and measures Food-related development aid Increase ODA for agriculture (infrastructure, R&D, rural finance, real-time information) Improving access to information and technologies / exchange of best practices Improve capacity to assess and modify technology Coordinated response to speculation Reconsider biofuel blending targets Consider diversification of sources for biofuels Food-related development aid Increase ODA for agriculture (infrastructure, R&D, rural finance, real-time information) Improving access to information and technologies / exchange of best practices Improve capacity to assess and modify technology Coordinated response to speculation Reconsider biofuel blending targets Consider diversification of sources for biofuels Policies and measures UNCTAD support Advisory and capacity-building support balancing urgent and long-term food security Food security in formulation, reform, or implementation of competition laws Choice of technological intervention Role of Science & Technology Suitable biofuel policies and strategies Analysis on speculation Advisory and capacity-building support balancing urgent and long-term food security Food security in formulation, reform, or implementation of competition laws Choice of technological intervention Role of Science & Technology Suitable biofuel policies and strategies Analysis on speculation

To move ahead… Interconnection of policy areas  mix depends on country situation Short vs. long run  a specific challenge How do individual counties’ responses fit into this framework? Interconnection of policy areas  mix depends on country situation Short vs. long run  a specific challenge How do individual counties’ responses fit into this framework?

More information Ralf Krüger UNCTAD Investment Analysis Branch tel: Related documents – df (UN comprehensive framework, July 2008) – 8_1_en.pdf (UNCTAD report with recommendations) – (UNCTAD policy brief) Ralf Krüger UNCTAD Investment Analysis Branch tel: Related documents – df (UN comprehensive framework, July 2008) – 8_1_en.pdf (UNCTAD report with recommendations) – (UNCTAD policy brief)