INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
IFPRI
Scaling up:
Money… that’s what (we) want….
Eugenio Díaz-Bonilla
Head, Programa de ALC, IFPRI
CIAT 50th
Anniversary
November 8-9, 2017, Cali, Colombia

IFPRI
Where the money may come from?
 Seven options…
• a) development aid
• b) multilateral lending (non-concessional)
• c) public budgets in developing countries
• d) banking system and credit markets
• e) unconventional monetary policies
• f) financial markets and private wealth,
• g) controls on corruption, illegal financial flows,
and tax evasion.
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IFPRI
Public budgets in developing countries
 Government expenditures in emerging and developing
countries (2010s): about 8.5 trillion USD (developed
countries about 18.5 trillion USD). Share to agriculture in
developing regions:1.7-5.5% of total budget
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0.40
0.24
1.12
0.74
0.45
0.32
1.26
0.82
0.38
0.27
1.25
0.55
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Developing average Developing median Developed average Developed median
Agricultural Orientation Index
2000-2004 2005-2009 2010-2015

IFPRI
Public expenditures reviews
 With an expanded SDG2 focus (example IFPRI work
on Honduras): levels, components, efficiency, equity
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0.7
1.3
0.5
0.1
0.3
2.9
0.7
1.1
0.4
0.3
0.2
2.7
0
0.5
1
1.5
2
2.5
3
Agricultural
Development and
Value Chains
Rural and
Regional
Development
Safety Nets Health and
Nutrition
Climate Change
and Natural
Resources
Total FNS
Honduras: Public Expenditure Review for Food and
Nutrition Security
2015 2016

IFPRI
Credit Markets
 Credit to private sector from financial intermediaries in
developing countries, about 20.3 trillion USD (2010s)
(about 70.1 trillion USD in developed countries).
 Ag credit 4.1% of total credit (average), 2.6 (median) in
developing countries
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0.40
0.26
1.95
1.47
0.00
0.50
1.00
1.50
2.00
2.50
Developing average Developing median Developed average Developed median
Agriculture orientation index

IFPRI
Rural Financial Markets
 Studies. 1980s, Adams, Graham, and von Pischke (1984)
and World Bank 1986. Late 1990s, FAO and GTZ:
initiative “Agricultural Finance Revisited” and IFPRI’s
multi-country study on microfinance, poverty alleviation
and food security (Zeller and Meyer, eds 2002).
 More recently, G20 and working group on Global
Partnership for Financial Inclusion (GPFI).
 Need to expand the work looking at experiences in
developing countries and covering: 1) Macroeconomic
conditions and flow of funds, 2) Regulatory aspects; 3)
Institutions; 4) Instruments; 5) Delivery modes; and 6)
Farmers (constraints and behavior)
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IFPRI
Financial markets and private wealth
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Total Household Wealth (2015) 250 trillions
ESG investing (2015) 12.9 trillions
Impact Investors
Under Management (2016) 114 billions
Flow deal (2016) 22 billions
Green bonds (issuance 2016) 81 billions

IFPRI
Missing Link
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PARTNERSHIP
OPPORTUNITIES
POTENTIAL
FINANCING
?????

IFPRI
Pre-Investment Facility
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PARTNERSHIP
OPPORTUNITIES
PROJECT PREPARATION
POTENTIAL
FINANCING

IFPRI
Project Preparation and Support Facility
 To develop a pipeline of projects
 …to help design structures and financial vehicles
through which that liquidity can be invested…
 …to measure impacts…
 …to provide technical assistance…
 The CGIAR system, with 8000 scientists working
in more than 70 countries, is in a unique position
to help bridge that gap…
 IFPRI, CIAT working together to get funding for
the facility…
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IFPRI
Final comments on what to do…
 What needs to happen to construct food systems
that deliver inclusive, climate resilient,
environmentally sustainable and healthy diets for
all?
 1. Further work on public expenditure reviews with
focus on expanded FNS (or SDGs), to realign priorities
and expenditures…
 2. Review of rural financial markets and financing of
value chains to lift obstacles that impede financing the
needed changes in food systems…
 3. Creation of a facility to use CGIAR knowledge to
help prepare investment projects and alternatives for
partnerships with private investors…
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IFPRI
Thank you…..
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