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

2. 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.”

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

12. The 3 Pillars of the GDPRD
Outreach
Shared learning
Aid effectiveness