Session 3: Targeting the Poor – Policies and Programmes Taking Action for the World’s Poor and Hungry People Beijing, China 17-19 October 2007 Session 3: Targeting the Poor – Policies and Programmes Investments to support hunger reduction Michael Wales, Principal Adviser, FAO Investment Centre

Plan of Action Commitment Six: World Food Summit Plan of Action Commitment Six: “... promote optimal allocation and use of public and private investments to foster human resources, sustainable food, agriculture, fisheries and forestry systems, and rural development, in high and low potential areas.”

International Alliance Against Hunger Wide range of stakeholders pledging to end hunger Twin-track approach: Focus on agricultural and rural development as engine of growth and Direct action against hunger Right to Food Message: Investment in agriculture is essential and can be effective

Priorities for investment FAO’s Anti-Hunger Programme: Improving agricultural productivity of small farmers Developing and conserving natural resources Rural infrastructure and market access Capacity for knowledge generation and dissemination Access to food for the most needy

Scale of investment needed? Anti-Hunger Programme: US$24 billion per year Benefits: US$120 billion per year Comprehensive Africa Agriculture Development Programme (CAADP): US$251 billion over 15 years US$13 billion per year incremental investment

FAO Programmes with governments National Programmes for Food Security: access availability utilisation 15 countries, US$1.2 billion committed Regional Programmes for Food Security: Policy & institutional environment 21 Regional Economic Organizations

Agricultural growth hunger reduction Lessons learnt Agricultural growth hunger reduction Hunger reduction development & poverty reduction Technology can contribute Trade can contribute Peace and stability are essential Public investment is essential Development assistance often misplaced

Quality of public spending Promoting profitable partnerships: Investment climate Public investment creating a favourable climate for private investment: legal frameworks grades & standards essential rural infrastructure Quality of public spending Promoting profitable partnerships: small farmers & cooperatives agribusinesses government

Small farmers the biggest investors Private investment Small farmers the biggest investors Obstacles: credit, land tenure, transport, low prices, outside supply chains, natural hazards Traders, agro-processors, transnational agribusinesses in value chain Obstacles: unpredictable business environment, poor infrastructure, high costs Foreign Direct Investment agriculture <1% of FDI to developing countries

Effective development assistance Effective partnerships: Government commitment of resources e.g Maputo Declaration 10% Donors committing resources to agriculture keeping agriculture on the agenda harmonization – national programmes aid effectiveness – Paris Declaration Non-traditional donors China, Brazil, India, Foundations

The 3 Pillars of the GDPRD Outreach Shared learning Aid effectiveness