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CONTENTS




117   How Pittsburgh can help Copenhagen on                141   Growing to meet future challenges
      climate change                                             Luis Alberto Moreno, president,
      Frank Loy, former US under secretary of state for          Inter-American Development Bank
      global affairs and former chief climate negotiator
                                                           144   Long-term commitment vital for
122   From conventional to creative energy                       Africa’s growth
      supply strategies                                          Donald Kaberuka, president, African
      Victoria V. Panova, Moscow State Institute of              Development Bank
      International Relations
                                                           148   Securing food and agriculture worldwide
126   Deploying carbon capture and storage                       Donald G.M. Coxe, chair,
      Nick Otter, CEO, Global CCS Institute                      Coxe Advisors LLC

131   Financing renewable energy technologies              152   Food security and the biofuels challenge
      and production                                             C. Ford Runge, Distinguished McKnight
      Raili Kajaste, Nordic Environment Finance                  University Professor of Applied Economics
      Corporation, and Risto Penttilä, Finnish Business          and Law, University of Minnesota
      and Policy Forum EVA
                                                           158   America’s global health support
Reinforcing development, food                                    for development
                                                                 Gloria Steele, head, Global Health, USAID
security & health
                                                           163   Health security from economic and
134   The G20, or the G200? A Commonwealth view
                                                                 environmental innovation
      on global development challenges
                                                                 Jeffrey L. Sturchio, president and CEO,
      Kamalesh Sharma, Commonwealth
                                                                 Global Health Council
      secretary general

137   Achieving interdependence                            Actors & stakeholders
      Haruhiko Kuroda, president,
      Asian Development Bank                               169   G20 leader profiles
REINFORCING DEVELOPMENT, FOOD SECURITY & HEALTH




Securing food and
agriculture worldwide
The G20 has the opportunity to tackle global food security and make historic changes
to the very politics of food supply




                    T
By Donald G.M.                     he global financial crisis and economic    oils – is reduced because of the recession, and grain
Coxe, chair, Coxe                  recession pushed the world food crisis    prices have sharply retreated. Nevertheless, grains
Advisors LLC                       off the world’s front pages only months   remain at higher prices than prevailed before the
                                   after the United Nations High-Level       global food crisis began, even if, among foodstuffs,
                                   Conference on World Food Security in      only sugar is now at near-record highs. The emerging
                                   Rome sought to marshal resources for      economic recovery will assuredly send grain and
                    the food crisis in June 2008.                            oilseed prices skyward, exacerbating the problems of
                       Unfortunately, the food crisis has not gone away.     the poorest people of the world.
                    More than 1 billion people suffer from serious              Why is there a world food crisis when global
                    malnutrition. World grain carryovers relative to         grain, meat and milk production has been growing
                    consumption remain at marginal levels, even though       throughout the decade? The answer lies in the longer-
                    consumption of high-protein foods – meat, milk and       term effects of the food policies of the major food-
REINFORCING DEVELOPMENT, FOOD SECURITY & HEALTH


producing members of the Organisation for Economic
Co-operation and Development (OECD).
    Since the 1950s, the farm programmes of the                    The Asian economies
United States, Canada and Europe have been driven
by the seemingly endless surpluses of grains,                   leading the recovery
particularly feed grains. President John F. Kennedy
introduced the feed grain programme in 1961 to deal            must not be stopped by
with what he called the challenge of abundance. That
legislation, and its successors and imitators across         food shortages and soaring
most of the OECD in later decades, sought to control
grain production and provided for aggressive export
                                                                 grain prices
programmes aimed at what were called emerging
economies, funded by loans at low rates. What ‘rich
people’ could not consume would be sent to the                 When the new middle class in China, India and
‘poor people’ to prevent starvation. The policies were     southeast Asia, collectively responsible for soaring
the awkward spawns of the intimate relationships           oil and metals prices, began to change its diet of
between farmers and agribusiness, on the one hand,         subsistence levels of bread and rice to include meats
and the deeply felt charitable impulses of the majority    and milk, the arithmetic of protein conversion began
of OECD voters, on the other.                              to change the global supply and demand ratio for
    Those policies were, in effect, backed by the World    grains. It takes roughly seven units of vegetable
Bank and the International Monetary Fund (IMF),            protein to produce a unit of beef protein, five units for
which structured their long-range programmes to            pork and milk, and nearly three for poultry. But the
strengthen economies throughout the developing             number of hectares of grain production worldwide
world by building viable urban industrialised              has been growing by only 1.5 per cent in the last
societies along developed market models. They              decade, whereas consumption was rising at 3.5 per
ignored the insights of such intellectual giants as        cent until the global recession hit. Industrialisation,
Mohandas Gandhi that most of the poor lived in rural       urbanisation, pollution and overdrawn aquifers have
areas and that the sustained dumping of grains meant       limited the growth of reliable arable land worldwide.
that most farmers in the developing world could never      What is needed now is a swift, sustained increase
achieve the earnings needed to support their families      in per-hectare yields worldwide, particularly in the
and generate surpluses for urban dwellers. Only in         emerging economies.
recent years has the World Bank begun to reshape               That means permanent changes in the politics of
its strategies to provide the irrigation, technology       food worldwide.
and fertilisers needed to produce adequate food                As the world emerges from this recession, the
supplies in emerging economies. Today, roughly two         Asian economies leading the recovery must not be
thirds of India’s population still live on farms and in    stopped by food shortages and soaring grain prices.
villages, and most families have plots so tiny that they   Already, some wealthy countries are engaged in large-
can barely meet their own needs – let alone supply         scale ventures – such as offshore farming – designed
bourgeoning urban demands.                                 to ensure their food security. They fear that in the next
    The European Union’s Common Agricultural               food crisis, they might not be able to buy adequate
Policy, which consumes roughly 40 per cent of the          supplies of food at almost any price.
EU’s budget, has been conspicuously successful in              Technology and reasonably good governance
protecting its own farmers’ incomes. But the advent        were at the core of the industrialisation that made
of genetically engineered (GE) seeds threatened to         North America and Europe wealthy – and reduced
disrupt this tenuous balance by expanding grain            the percentage of farmers in the population to single
outputs, creating even greater surpluses that must         digits, while continuing to expand food output to help
somehow be funded to protect price levels. While           drive the growth of cities and prosperity. The G20 has
there is a legitimate debate about the potential longer-   a historic opportunity to launch that model across
range risks of using new technologies to expand food       the world.
output, the experience of the US, Canada and other             Time could be running out. Weather conditions
GE-using food giants has forced the overwhelming           have been generally favourable – compared with long-
majority of scientists to endorse their supervised use.    term historical records – across most of the world’s
The US has been so successful in expanding corn            major food-producing regions in recent decades.
production through GE seeds that it has decided to         Recent erratic weather conditions, which have
deal with its surpluses by mandating the allocation        triggered late planting seasons in temperate zones,
of one third of its corn output for ethanol production.    may signal climate change conditions that could have
The EU’s biofuels programme has been so successful         catastrophic effects on global food supplies.
that it was recently blamed by a coalition of Asian            The world can no longer take cheap, readily
countries for driving up the prices of soybean and         available food for granted.
palm oil to levels that threaten their urban poor.
    When Keynes was challenged for changing                This article is drawn in part from the keynote address
his mind on a policy issue, he replied, “Sir, the          to the 78th annual conference of the Couchiching
facts have changed. How do you respond when the            Institute of Public Affairs on ‘The Politics of Global
facts change?”                                             Food’ on 6 August 2009.

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G20 Summit Pittsburgh 2009-Coxe

  • 2. CONTENTS 117 How Pittsburgh can help Copenhagen on 141 Growing to meet future challenges climate change Luis Alberto Moreno, president, Frank Loy, former US under secretary of state for Inter-American Development Bank global affairs and former chief climate negotiator 144 Long-term commitment vital for 122 From conventional to creative energy Africa’s growth supply strategies Donald Kaberuka, president, African Victoria V. Panova, Moscow State Institute of Development Bank International Relations 148 Securing food and agriculture worldwide 126 Deploying carbon capture and storage Donald G.M. Coxe, chair, Nick Otter, CEO, Global CCS Institute Coxe Advisors LLC 131 Financing renewable energy technologies 152 Food security and the biofuels challenge and production C. Ford Runge, Distinguished McKnight Raili Kajaste, Nordic Environment Finance University Professor of Applied Economics Corporation, and Risto Penttilä, Finnish Business and Law, University of Minnesota and Policy Forum EVA 158 America’s global health support Reinforcing development, food for development Gloria Steele, head, Global Health, USAID security & health 163 Health security from economic and 134 The G20, or the G200? A Commonwealth view environmental innovation on global development challenges Jeffrey L. Sturchio, president and CEO, Kamalesh Sharma, Commonwealth Global Health Council secretary general 137 Achieving interdependence Actors & stakeholders Haruhiko Kuroda, president, Asian Development Bank 169 G20 leader profiles
  • 3. REINFORCING DEVELOPMENT, FOOD SECURITY & HEALTH Securing food and agriculture worldwide The G20 has the opportunity to tackle global food security and make historic changes to the very politics of food supply T By Donald G.M. he global financial crisis and economic oils – is reduced because of the recession, and grain Coxe, chair, Coxe recession pushed the world food crisis prices have sharply retreated. Nevertheless, grains Advisors LLC off the world’s front pages only months remain at higher prices than prevailed before the after the United Nations High-Level global food crisis began, even if, among foodstuffs, Conference on World Food Security in only sugar is now at near-record highs. The emerging Rome sought to marshal resources for economic recovery will assuredly send grain and the food crisis in June 2008. oilseed prices skyward, exacerbating the problems of Unfortunately, the food crisis has not gone away. the poorest people of the world. More than 1 billion people suffer from serious Why is there a world food crisis when global malnutrition. World grain carryovers relative to grain, meat and milk production has been growing consumption remain at marginal levels, even though throughout the decade? The answer lies in the longer- consumption of high-protein foods – meat, milk and term effects of the food policies of the major food-
  • 4. REINFORCING DEVELOPMENT, FOOD SECURITY & HEALTH producing members of the Organisation for Economic Co-operation and Development (OECD). Since the 1950s, the farm programmes of the The Asian economies United States, Canada and Europe have been driven by the seemingly endless surpluses of grains, leading the recovery particularly feed grains. President John F. Kennedy introduced the feed grain programme in 1961 to deal must not be stopped by with what he called the challenge of abundance. That legislation, and its successors and imitators across food shortages and soaring most of the OECD in later decades, sought to control grain production and provided for aggressive export grain prices programmes aimed at what were called emerging economies, funded by loans at low rates. What ‘rich people’ could not consume would be sent to the When the new middle class in China, India and ‘poor people’ to prevent starvation. The policies were southeast Asia, collectively responsible for soaring the awkward spawns of the intimate relationships oil and metals prices, began to change its diet of between farmers and agribusiness, on the one hand, subsistence levels of bread and rice to include meats and the deeply felt charitable impulses of the majority and milk, the arithmetic of protein conversion began of OECD voters, on the other. to change the global supply and demand ratio for Those policies were, in effect, backed by the World grains. It takes roughly seven units of vegetable Bank and the International Monetary Fund (IMF), protein to produce a unit of beef protein, five units for which structured their long-range programmes to pork and milk, and nearly three for poultry. But the strengthen economies throughout the developing number of hectares of grain production worldwide world by building viable urban industrialised has been growing by only 1.5 per cent in the last societies along developed market models. They decade, whereas consumption was rising at 3.5 per ignored the insights of such intellectual giants as cent until the global recession hit. Industrialisation, Mohandas Gandhi that most of the poor lived in rural urbanisation, pollution and overdrawn aquifers have areas and that the sustained dumping of grains meant limited the growth of reliable arable land worldwide. that most farmers in the developing world could never What is needed now is a swift, sustained increase achieve the earnings needed to support their families in per-hectare yields worldwide, particularly in the and generate surpluses for urban dwellers. Only in emerging economies. recent years has the World Bank begun to reshape That means permanent changes in the politics of its strategies to provide the irrigation, technology food worldwide. and fertilisers needed to produce adequate food As the world emerges from this recession, the supplies in emerging economies. Today, roughly two Asian economies leading the recovery must not be thirds of India’s population still live on farms and in stopped by food shortages and soaring grain prices. villages, and most families have plots so tiny that they Already, some wealthy countries are engaged in large- can barely meet their own needs – let alone supply scale ventures – such as offshore farming – designed bourgeoning urban demands. to ensure their food security. They fear that in the next The European Union’s Common Agricultural food crisis, they might not be able to buy adequate Policy, which consumes roughly 40 per cent of the supplies of food at almost any price. EU’s budget, has been conspicuously successful in Technology and reasonably good governance protecting its own farmers’ incomes. But the advent were at the core of the industrialisation that made of genetically engineered (GE) seeds threatened to North America and Europe wealthy – and reduced disrupt this tenuous balance by expanding grain the percentage of farmers in the population to single outputs, creating even greater surpluses that must digits, while continuing to expand food output to help somehow be funded to protect price levels. While drive the growth of cities and prosperity. The G20 has there is a legitimate debate about the potential longer- a historic opportunity to launch that model across range risks of using new technologies to expand food the world. output, the experience of the US, Canada and other Time could be running out. Weather conditions GE-using food giants has forced the overwhelming have been generally favourable – compared with long- majority of scientists to endorse their supervised use. term historical records – across most of the world’s The US has been so successful in expanding corn major food-producing regions in recent decades. production through GE seeds that it has decided to Recent erratic weather conditions, which have deal with its surpluses by mandating the allocation triggered late planting seasons in temperate zones, of one third of its corn output for ethanol production. may signal climate change conditions that could have The EU’s biofuels programme has been so successful catastrophic effects on global food supplies. that it was recently blamed by a coalition of Asian The world can no longer take cheap, readily countries for driving up the prices of soybean and available food for granted. palm oil to levels that threaten their urban poor. When Keynes was challenged for changing This article is drawn in part from the keynote address his mind on a policy issue, he replied, “Sir, the to the 78th annual conference of the Couchiching facts have changed. How do you respond when the Institute of Public Affairs on ‘The Politics of Global facts change?” Food’ on 6 August 2009.