DUSHANBE, June 10, Asia-Plus — The World Group has suggested a 10-point plan for food crisis.
An article released by the World Bank notes that first, the sides should agree in Rome to fund fully the World Food Program”s emergency needs, support its drive to purchase food aid locally and ensure the unhampered movement of humanitarian assistance. Second, the sides need support for safety nets, such as distributing food in schools or offering food in return for work, so that we can quickly help those in severe distress. The World Bank, working with the World Food Program and the Food and Agriculture Organization, has already made rapid needs assessments for more than 25 countries. In Rome we should agree on coordinated action.
Third, seeds and fertilizer are needed for the planting season, especially for smallholders in poor countries. Together, the FAO, the International Fund for Agricultural Development, regional development banks and the World Bank can expand this effort by working with civil society groups and bilateral donors. The key is not just financing, but fast delivery systems.
Fourth, it is necessary to boost agricultural supply and increase research spending, reversing years of agricultural underinvestment. The Consultative Group on International Agricultural Research has been receiving about $450 million a year. It is necessary to double this investment in research and development over the next five years.
Fifth, there needs to be more investment in agribusiness so that we can tap the private sector”s ability to work across the value chain: developing sustainable lands and water; supply chains; cutting wastage; infrastructure and logistics; helping developing country producers meet food safety standards; connecting retailers with farmers in developing countries; and supporting agricultural trade finance.
Sixth, there needs to develop innovative instruments for risk management and crop insurance for small farmers.
Seventh, action is needed in the US and Europe to ease subsidies, mandates and tariffs on biofuels that are derived from corn and oilseeds. The US”s use of corn for ethanol has consumed more than 75 per cent of the increase in global corn production over the past three years. Policymakers should consider “safety valves” that ease these policies when prices are high. The choice does not have to be food or fuel. Cutting tariffs on ethanol imported into the US and European Union markets would encourage the output of more efficient sugarcane biofuels that do not compete directly with food production and expand opportunities for poorer countries, including in Africa. It is needed to find ways to advance to second-generation cellulosic products.
Eighth, it is necessary to remove export bans that have led to even higher world prices. India has recently relaxed its restrictions.
Ninth, it is necessary to a Doha World Trade Organization deal in order to remove the distortions of agricultural subsidies and tariffs and create a more adaptable, efficient and fair global food trade.
Tenth, there should be greater collective action to counter global risks. The interconnected challenges of energy, food and water will be drivers of the world economy and security.
To support this agenda, the World Bank is launching a global food crisis response facility and will fast-track $1.2 billion to address immediate needs arising from the crisis, including $200 million of grants for especially vulnerable countries such as Haiti, Djibouti and Liberia for seeds, fertilizer, safety net programs and budget support. Overall, the World Bank Group will expand assistance for agriculture and food-related activities from $4 billion to $6 billion over the coming year.
The document was signed by Mr. Robert Zoellick, president of the World Bank Group.
The article first appeared in the Financial Times.
