ISLAMIC DEVELOPMENT BANK (IsDB) - BANQUE ISLAMIQUE DE DEVELOPPEMENT - BANCO ISLAMICO DE DESARROLLO

Dr. Ahmed Mohamed Ali, President, Islamic Development Bank (IsDB)

I am honoured by the invitation to the World Food Summit and wish to express my grateful thanks to FAO for this. I am also delighted to deliver this statement on behalf of the Islamic Development Bank (IsDB), which has 50 Member States, to this important global gathering which addresses one of the most intractable problems facing humanity. I also wish to congratulate the Director-General of FAO for taking this very important initiative.

Deliberations in this Summit, I hope, will culminate in measures which will contribute towards eliminating hunger and food insecurity in the world, especially in the least developed countries. There is general agreement on the definition of food security that is concerned with the access of all people at all times to safe and nutritious food to maintain a healthy and active life. Despite the fact that the balance between aggregate food production and demand is maintained at the global level, it is an unfortunate truth in most of the developing countries, which include a number of IsDB member countries, that the situation with regard to food security is not only deteriorating but, in some cases, has also become alarming.

The number of people facing chronic malnutrition is increasing and may exceed 800 million by the year 2000 if urgent and adequate measures are not taken. Obviously, this contrasts with the fact that the right to accessibility to food, or to produce food to meet basic human needs, has been upheld universally and by all divine religions including Islam. The current crisis of food inadequacy is the result of the misallocation of resources between what the Creator has given in terms of land, water and resources and what has been assigned or distributed among individuals and nations. In other words, the crisis of food insecurity is undoubtedly man-made. The solution lies, therefore, in restoring social and moral order which would involve ceaseless human endeavour, extensive application of science and technology, and proper operation of the market system. This would ensure efficiency and fairness as the Koran enjoins: "weigh with a scale just and upright".

Of great concern to all of us is the global decline in unused arable land and the ever-increasing pressure on land use. It is, therefore, hoped that current research efforts will introduce new technology and should supplement the Green Revolution approaches, based on expansion of cultivated areas and introduction of high yielding seeds. This will need significant investment for applying new forms of intensification and making them profitable for farmers. Unfortunately, the increase in the number of people without access to adequate food has not been coupled with a corresponding growth in research, expenditure and assistance. In fact, there has been a decline in external assistance, both bilateral and multilateral to agriculture and food security in recent years. Therefore, it is hoped that this historic forum will help to devise ways and means for mobilizing enough resources, both domestic and foreign, for financing the substantial increases in investment needed to sustain agricultural growth particularly in the sub-Saharan African countries.

Besides agricultural research and investment, I should like to emphasize the importance of food trade and food aid within the framework of any food security strategy. A well-balanced food trade is vital to achieve food security, although there are good reasons to aim at food self-sufficiency at least for some developing countries. Least developed and net food importing developing countries are facing many constraints in importing basic foodstuffs on reasonable terms and conditions. Therefore it is important that the Uruguay decision on measures concerning the possible negative effects on them be implemented as quickly as possible.

Most of the IsDB member countries are facing difficulties in ensuring food security. During the last decade, while very few IsDB member countries have achieved an average annual growth rate of per capita food production of more than two percent, many other IsDB countries have registered a negative growth rate in the same area. The IsDB has always attached great importance to the agricultural sector, which is at the top of the priorities set under a strategic agenda for the medium term. The core element of the IsDB strategy in this sector is to adopt adequate food policies and programmes for helping its low- and middle-income member countries to increase the level of food production, providing food storage and relevant infrastructural facilities, and promoting agro-based industries. As far as IsDB high-income member countries are concerned, the Bank will emphasize areas where it can assist in further advancing their agricultural development.

From its inception to the present, the share of agricultural and food security projects in approved IsDB ordinary operations was around 18 percent. More than half of these projects are in the area of irrigation and rural development as in many member countries water scarcity and deteriorating infrastructure constitute major bottlenecks.

In addition to its ordinary operations, the Bank has also extended its assistance to the agricultural sector through its trade financing. Very recently, wheat, barley and rice were added to the list of eligible goods for import financing. Furthermore, the IsDB has undertaken certain key activities in the area of food security and agricultural development, including the organization of important symposia and seminars, the establishment of a Biosaline Agricultural Center and the implementation of a Programme for Locust Combat.

No doubt, achieving food security will continue to remain one of the major challenges of economic develoment and growth in most IsDB member countries. Many factors deter progress in this field and reduce the developmental impact of investments made in this sector. These obstacles are not specific to IsDB member countries and are subject of little disagreement. Besides climatic adversities which are beyond control, these obstacles include institutional factors such as inadequate national strategy for food security and lack of regional and sub-regional cooperation in this field.

More intensive efforts and new initiatives are needed in order to remove many constraints and to achieve food security. The IsDB, for its part, will explore ways and means to enhance its support to member countries aiming at implementing an adequate national strategy for food security. The IsDB will make efforts to strengthen the use of its technical cooperation programme and its cooperation with other concerned institutions in the area of capacity building. In addition, since private investment is crucial in this sector, the IsDB will enhance through its newly established Business Development Department, its assistance to food and agri-business conducted by the small- and medium-scale enterprises. The IsDB will continue to promote regional cooperation concerning agricultural development and food security, particularly in areas such as resource management, new technology and trade.

I wish also to reiterate the importance given by the IsDB to helping its member countries overcome the problem of hunger and food security. In this regard, I look forward to reinforcing the cooperation between the IsDB, FAO and all concerned institutions. It is evident that sincere and efficient cooperation is essential for the achievement of our shared goals.

I hope that the Summit will result in bold new initiatives which would give great impetus to the solution of this problem of food security at the national, regional and international levels. In this respect, besides individual country actions, global and regional actions are needed to overcome possible threats to world food supplies. This Summit will hopefully lay a solid foundation for the world community to adopt concentrated policies and actions leading to the eradication of hunger and malnutrition and the achievement of food security for all our long-cherished objectives. Mr. Chairman, our sincere thanks and appreciation to your country for hosting this very important Summit and for your generous hospitality and excellent arrangements.