MULTILATERAL DEVELOPMENT BANK MEETING ON DEBT ISSUES The World Bank, Washington, DC, July 8 & 9, 2009 Impact of the global financial crisis on developing countries: the IFAD experience in the agricultural sector.

Volatility of commodity and oil prices Source: UNCTAD and FAO data.

Agricultural supply and volatility problems due to: Lack of agriculture investment and consequent reduction in productivity growth 18% of development assistance went to agriculture in 1979, falling to less than 3% last year Transport, marketing and farm input price increases expanding as oil prices increase; Substitution of bio-fuels for food (for maize); Government policy deficiencies, panic in food markets 48 countries have imposed price controls, consumer subsidies, export restrictions (World Bank) Climate change and environmental degradation exacerbating the slow food production response By 2020 yields from rain-fed agriculture could be reduced from 10-20% in much of Sub-Saharan Africa (IFPRI)

The poor are rural (70% on average in developing countries, more in Africa) (World Development Indicators)

Impact on poverty on HIPC countries Balance of payment problems (food exports) for some countries — impact on ‘top-ups’ and DSA. Social and political unrest in some countries Sharply increasing cost for humanitarian programmes, particularly WFP Poorer families, both urban and rural, becoming more food insecure.

Donor Responses: short term Immediate increase in humanitarian and social protection resources Appropriate measures to assist worst-affected countries to adjust to the shock of high prices More and better attention to food security and agricultural development in country development programming Coherent attention to global policy issues and international institutional reforms

Donor Responses: longer term Be more flexible in objectives and instruments in order to partner with other donors, private sector partners and with sub-sovereign governments; Strengthened and more inclusive ownership (farmers & farmers’ organisations, rural CSOs, private sector) of policies/strategies & implementation/monitoring; – Capacity Development for all stakeholders; – Coherent and policies and strategies at national, sectoral and decentralised levels; – South-south learning networks, communities of practice. Development of results management methodology and indicators of progress in results monitoring for agriculture.

The UN System High Level Task Force on the Global Food Security Crisis The Comprehensive Framework for Action: Improving Nutrition and Reducing Hunger Food security for all people Functioning safety nets and social protection Sustained agriculture and rural development especially among smallholders Markets that work in the interests of poor people Fair Trading systems

“L’Aquila” Joint Statement on Global Food Security “L’Aquila Food Security Initiative”