70th Session of the United Nations General Assembly - 2nd Committee - Item 18 - Macroeconomic policy questions, and Item 19 - Financing for Development

 

 

70th Session of the United Nations General Assembly - 2nd Committee

Item 18 on Macroeconomic policy questions and Item 19 on Financing for Development

Statement by the Food and Agriculture Organization of the United Nations

Delivered by the Director of the FAO Liaison Office to the UN, Carla Mucavi

28 October, 2015, United Nations 

 

 

Thank you for giving me the floor. The debate on macroeconomic policy questions and financing for development has raised many important issues. Allow me to contribute to the discussion highlighting a few points, focusing on the food commodity markets.

 

The FAO Food Price Index has fallen over the past 18 months. In September 2015, the FAO Food Price Index averaged nearly 20 percent less than one year ago. This is mainly due to large inventories, generally good crop prospects and weaker increases in demand.

 

Nevertheless, food prices remain higher than the years preceding the 2007-2008 spike and are projected to continue at a higher plateau.

 

Allow me to highlight that not only the direction of food prices poses challenges. So does the speed in which they move, that can allow poor consumers and producers little time to adjust.

 

Addressing excessive food price volatility is one of the most challenging issues facing policy makers. Collaboration between international organizations and governments on agricultural commodity issues is vital for effective responses. FAO hosts part of the international architecture that provides forums for intergovernmental consultation and policy dialogue, focusing on changing market conditions and institutional factors that affect commodities.

 

The Agricultural Market Information System (AMIS), a G20 initiative launched in 2011, is also part of this framework. AMIS brings together importing and exporting G-20 and non G-20 countries that together, represent over 80 percent of the global trade of wheat, maize, rice and soybeans. It has contributed to increasing transparency of international food markets and encouraging coordination of policy action in response to market uncertainty.

 

Ladies and gentlemen,

 

As a result of falling international food prices, food import bills are also falling. Low-income food-deficit countries are expected to pay 22 percent less on food this year. This is positive news for poor consumers.

 

Nevertheless, declining prices may weaken investment in agriculture. Attention should be given to this because over 75 percent of the world’s poor and food insecure population live in rural areas of developing countries. Many of them depend on agriculture for the better part of their livelihoods.

 

Let me conclude by pointing out that food prices are not an abstraction: their movement affects the lives of millions of people worldwide. They can help bring us closer or move us away from reaching the Sustainable Development Goals.

 

This situation requires action at the global and local levels. Improving policy coordination and transparency of global markets is an important part of this process.

 

National efforts and international cooperation must also reach the vulnerable population at the local level, strengthening social protection, increasing their resilience, boosting local production, and supporting their productive inclusion.

 

In the lead up to the Financing for Development Conference, held in July in Addis Ababa, FAO, IFAD and WFP published a report that estimates the additional financing needed to sustainably end hunger by 2030. The additional investment necessary is of only 160 dollars annually for each person living in extreme poverty. This is a small price to pay for us to become the zero hunger generation and advance towards the future we want.

 

Thank you for your attention.