This document discusses the important role that emerging countries play in global food security. It argues that emerging countries, through their strong economic growth, dominant role in food production and trade, and increasing foreign investment and aid, should be more strongly integrated into the global food security agenda. It proposes five ways to do so: 1) improve food security within emerging countries, 2) promote mutually beneficial trade, 3) increase pro-poor foreign investment, 4) improve coordination between donors, and 5) support mutual learning of development experiences.
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Agriculture has the potential to serve as a strong
With a new decade just around the corner, the future has never been brighter for the agriculture industry.. The integration of the agricultural supply chain is adding value to the entire sector, and rapid development in emerging markets such as those of Latin America has had a tremendous impact on production. Demand for agricultural goods continues to rise, especially in Asian markets, and changing dynamics in developed markets like the US and the EU are reshaping the face of the industry. As we enter the 2020's, there has never been a better time to pursue opportunities in the agricultural sector.
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Role of Emerging Countries in Global Food Security
1. Role of Emerging Countries in Global Food Security Shenggen Fan IFPRI Board of Trustees Meeting Brasilia, Brazil May 2010
2. Key messages Global food security is under stress Emerging countries have an important role to play in global food security Agenda for enhancing food security should integrate emerging countries more strongly
3. Hunger MDG is not on track Source: FAO 2009 and author’s calculations Note: MDG1 target is based on halving the world’s share of hungry from 16% to 8%
4. Stress factors Population growth and demographic changes Land and water constraints Biofuel production Climate change
5. Rapidly growing population and demographic change World population reaches 9.1 billion by 2050 Most growth to come from developing and emerging countries All growth to come from urban areas Source: FAO 2009 Larger and more urban population will demand more and better food
6. Land and water constraints: high and rising Land degradation, 1981-2003 Projected water scarcity in 2025 Source: Bai et al. 2007 (LADA, FAO/ISRIC) Source: IWMI 2000
7. NCAR A2a Source: M. Rosegrant (IFPRI) 2009 Climate change: additional pressure on food production systems Climate change impact on production of rainfed maize, 2050 Global production = -16%
8. Emerging countries: strong economic and agricultural performance GDP growth (%) Agricultural GDP growth (%) Source: World Bank 2009 Strong growth through diverse development pathways
9. Emerging countries: stronger role in global economy Share of world GDP (%) Projection of the world’s largest economies: China 2nd, India 3rd, and Brazil 8th Source: World Bank 2009 and IMF 2009
10. Emerging countries: dominant role in global staple food production Share of global crop production in 2007 (%) China & India: largest shares of wheat and rice production China, India, & Brazil: among top 6 producers of maize Source: FAO 2009
11. Emerging countries: increasing role in global trade Value of Brazil’s total trade (exports and imports), US$ millions China, India and Brazil rank as Africa’s 2nd, 6th and 10th largest trade partners Source: UNCTAD 2009
12. Emerging countries: increasing role in global trade Exports from Brazil to developing countries, US$ millions Imports to Brazil from developing countries, US$ millions Possible impacts: Complementary and Competitive Goal: Achieve “win-win” outcomes Source: UNCTAD 2009
16. Food insecurity remains high in emerging countries Number of undernourished Source: FAO 2009 Most alarming: rising number of hungry in India
17. 5 proposals for integrating emerging countries more strongly
18. Improve food security of emerging countries 1 ! Safety nets Ex ante and ex post risk management through conditional cash/food transfers, public works, insurance for poor, etc. Improve smallholder productivity Promote access to productive assets, inputs, & services Increase agricultural R&D (“frugal innovations”) to address future constraints; enhance extension services Link smallholders to market Improve infrastructure and information technologies Support new institutional arrangements for vertical coordination
22. Improve coordination between emerging countries and other donors 4 ! “Competition is good for business”? Major consequences on bargaining power of recipient states -> alternative sources of financing Engage emerging donors in dialogue at multilateral, regional, and sectoral levels Promote inclusive process with emerging donors on setting common standards in aid system Share key experiences on what has and has not worked Use existing and new institutional structures
23. Support mutual learning of development experiences 5 ! Diverse development experiences of emerging countries more accurately reflect current geo-economic and -political landscape Alternative to Washington Consensus and its successors: Emerging countries have shown importance of Broad-based agricultural development (China) Pragmatic and evolutionary trial-and-error approach (China) Network of targeted social protection programs (Brazil)
24. Toward a food security agenda with increased engagement of emerging countries
Editor's Notes
Est.=estimated
As more data become available in the years to come, itshould be possible to provide a more robust analysis of South–South flows.Greater efforts to collect data are essential to progress.