FAO Investment Centre Taking Action for the World’s Poor and Hungry People Beijing, China October 2007 Session 3: Targeting the Poor – Policies and Programmes Investments to support hunger reduction Michael Wales, Principal Adviser, FAO Investment Centre

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.”

FAO Investment Centre International Alliance Against Hunger Wide range of stakeholders pledging to end hunger Twin-track approach: –Focus on agricultural and rural development as engine of growth and –Direct action against hunger Right to Food Message: Investment in agriculture is essential and can be effective

FAO Investment Centre 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

FAO Investment Centre 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 Investment Centre 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

FAO Investment Centre 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

FAO Investment Centre Investment climate Public investment creating a favourable climate for private investment: –legal frameworks –grades & standards –essential rural infrastructure Quality of public spending Promoting profitable partnerships: –small farmers & cooperatives –agribusinesses –government

FAO Investment Centre 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

FAO Investment Centre 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