Rob Townsend, World Bank, Presentation at Seminar on“Informing the G20 Agenda: Actions to Address Food Price Volatility" at IFPRI on 14 June 2011

1. Key Instruments of International Development AgenciesPresentation at Seminar on“Informing the G20 Agenda: Actions to Address Food Price Volatility”

2. Outline CHALLENGES II. RESPONSE INSTRUMENTS Long-term Short-term III. COORDINATION

3. FOOD Demand + Production Shocks + Stocks = Food Price volatility 3 CHALLENGES World Maize, Wheat, Rice

4. CONSECUTIVE AND PRONOUNCED PRICE SPIKES Price Index, 2000 = 100 (Prices through to end May 2011) 4 CHALLENGES Source: World Bank

5. developing countries entered 2010/11 WITH higher production, more stocks, and deeper trade 5 CHALLENGES Cereals, % change 2009/10 to 2010/11 [FAO forecast] Developing countries Improved resilience in some countries, but not all Dampened pass-through of world prices so far in some countries but not all Developing Countries Production Developed countries Handicapped by lower production, stocks, trade Weather induced Account for 70% of world cereals trade Declines contributed to world food price increases … BUT MUCH MORE IS NEEDED Source: FAO

6. 6 CHALLENGES OUTLOOK RESPONSE Low and Middle Income Countries Exploit Opportunities Productivity growth Link farmers to markets Manage risks Coping strategies for most vulnerable Climate smart World food prices are expected to remain higher and more volatile than their pre-2007 levels Short term price volatility is increasingly becoming a long term phenomenon

8. Improving water management

9. Strengthening land tenure security and land markets

10. Improving livestock management

12. Investment project financing (country, regional, programmatic)

13. Analytical work (e.g. Rising Global Interest in Farmland) Rolling 10 year growth rates (%) 7

15. Safety nets and nutrition (contributing to the broader Bank Strategy on Social Protection)

17. Budget support (e.g. Sierra Leone)

18. Project financing (e.g. Niger, Liberia)

19. Analytical work (e.g. food prices)World Grain Price Index, 2000 = 100 (Prices through to end May 2011) 8

21. Co-financing

22. Analytical work

23. Regional level

24. CAADP

25. LCR Donor Platform for Rural Development

26. Global level

27. Global Agriculture and Food Security Program

28. Global Donor Platform for Rural Development