The World Bank Agriculture and Rural Development: Hunger and Malnutrition Kevin Cleaver World Bank Seminar Series 18 January 2006

Background 800 million people suffer from hunger and malnutrition MDG 1: eradicate extreme poverty and hunger Two types of malnutrition Under-nutrition due to a lack of food quantity or quality Overweight and obesity

Scale of malnutrition Under-nutrition About 20% of the total population in developing countries are under-nourished 60% of the under-nourished are in Asia – 28% are in Africa Very modest decrease in under-nutrition over the last decade, globally 1/3 of all children < 5 years old in developing countries are stunted due to under-nutrition Main cause of child mortality is under-nutrition Overweight and obesity About 115 million people in developing countries suffer from obesity-related problems Growing obesity trends in medium income countries Obesity is a risk factor for non-communicable diseases such as type II diabetes, cardiovascular diseases, certain types of cancer etc. Economic impact Ex. China: Non-communicable diseases related to obesity cost 2% of GDP per year

The Agriculture and Food Supply Dimension Individual person level: Food availability depends on Household income For farmers: Farm food supply  hunting - grazing - gathering Intra-household distribution of food Consumption choices Household level: Food availability depends on Total household income and food prices (for food purchases) Farm production for consumption Consumption choices National level: Food availability depends on National income or GDP (for imports of food purchased on the world market) National food production Food stocks and food aid Regional and global food availability

The Agriculture and Food Supply Dimension continued Many controllable factors influence the above Developing country government’s agriculture and trade policies Industrial countries’ agriculture and trade policies (trade protection and subsidies) Developing country government’s investment in agriculture and rural infrastructure International agricultural research and technology Agricultural and nutrition education Donors’ agricultural assistance and food aid Uncontrollable factors Weather conditions International food prices fluctuations International transport costs and competitive practices Consumption tastes

Food Aid Pro: if food availability is insufficient (e.g. humanitarian emergencies), donors should send food Con: Food aid is a disincentive to invest in agriculture and reduces farmer’s income in the recipient country School Food Programs Con: earlier intervention from pregnancy to the 1 st two years of life is more effective in dealing with under- nutrition in children. School feeding is too late. Pro: easiest and fastest way to get food to children Agricultural biotechnology - GMOs Pro: (1) food & nutritional benefits, (2) increased production, (3) reduced post-harvest losses Con: (1) environmental risks and expensive, (2) innovation has most benefited large farmers Lack of capacity to regulate in many developing countries Controversy and alternate views

Controversy and alternate views continued Trade reform All agree on the need for industrial countries to remove agricultural trade protection and agricultural subsidies Issue: should developing countries also reduce agricultural trade protection and agricultural subsidies? Pro: this would reduce food prices to consumers and stimulate agricultural trade between developing countries Con: this would invite dumping of agricultural products by industrial countries Land tenure Issue: land quality and size are typically highly unequal in distribution. Are re-distribution programs the answer? One view: re-distribution of land from market-based to radical approaches will help poor farmers. Otherwise marginal farmers will stay marginal, poor and under- nourished Another view: Government’s land distribution programs are usually political and don’t succeed. Best is to invest directly in small farmers or to encourage rural employment

Controversy and alternate views continued Government’s intervention in agricultural markets Pro: Governments are the main instruments of change in conservative societies. Government’s investments in agricultural research, extension, education, credit and infrastructure are vital for development in rural areas – leading to income growth and nutrition improvement. Con: Governments botch it. Leave it to the market.

Key actions Domestic policies and investment Economic growth must be pro-poor Need for a multi-sector approach to improved food security and need to mainstream food security Increase public funding to agriculture & rural sectors Removing barriers to agricultural trade Low income countries represent only 0.5% of global trade Reduce access restrictions by industrialized countries Improve regional cooperation & integration Strengthening agricultural & nutritional research Need to focus more on the conditions of poor farmers Recommendation of 2% of agricultural GDP to double research funding

Key actions, continued The international community Human right to adequate food & nutrition  Legally binding conventions & declarations  Declaration of Human Rights (1948)  Conventions of the Rights of the Child (1990)  World Declaration on Nutrition (1992)  Rome Declaration on World Food Security (1996) Concrete targets: UN Millennium Summit (2000)  MDG 1: reduce by 50% the prevalence of underweight among children < 5 y ( ) Financial commitment: Monterrey (2002)  Increase development aid from 0.2 to 0.7% of GNP Increase donor coordination and efficiency

World Bank’s response Funding for agriculture and rural development US$ 2.1 billion lending to agriculture in FY 05 US$ 8.7 billion to all rural development activities in FY05 “Reaching the Rural Poor” rural development strategy Alignment with World Bank’s poverty reduction focus  Economic growth in rural areas as the main objective Appropriate macro-economic & agricultural - rural policies at country level  Ex: removal of trade barriers, phasing out of subsidies Improved agricultural productivity and growth  Agriculture as the main source of rural economic growth Increased non-farm economic growth  Essential element for achieving increased rural incomes and food access at household level Gender considerations More sustainable management of natural resources