FAO statement at Informal Briefing on the 2023 Financing for Sustainable Development Report - Global Economic Context Chapter

          Informal Technical Briefing on the 2023 Financing for Sustainable Development Report
Session: Global Economic Context Chapter

As prepared for delivery

Excellencies, Distinguished Delegates, Ladies and Gentlemen, All protocol observed.

I am pleased to take part to this Informal Technical Briefing on the 2023 Financing for Sustainable

Development Report on behalf of the Food and Agriculture Organization of the United Nations.

FAO agrees with the overall assessment of the Global Economic Context Chapter of the FSDR. there is concern that the Global Economic Outlook remains fragile and highly challenging especially for low income countries and countries in food and protracted crises.

FAO recognizes that the expected modest rebound in growth in 2024 and the assessment that inflation is expected to have peaked represent two encouraging signs. However, this should not detract our attention from the several factors which challenge the functioning and sustainability of global and national food systems. 

Firstly, in the last three years food systems were hit by two consecutive shocks consisting of unprecedented COVID-19 induced supply chain disruptions followed by severe food and fertilizer shortages and energy price increase, including those related to the war in Ukraine. Those disruptions will challenge the ability of more vulnerable countries to finance development and pay their debts but also meet internationally agreed objectives on food security and nutrition.

Higher prices have increased the global food import bill to an estimated all-time high surpassing USD 1.94 trillion, adding an additional USD 180 billion over the previous record, stressing further the balance of payments, especially for net-importers of food.

In addition to this, this situation has led to the highest number on record of people suffering from acute food insecurity. As of September 2022, up to 222 million people were estimated to face acute food insecurity and to be in need of urgent assistance in 53 countries and territories. These numbers are the highest number recorded in the seven-year history of the Global Report on Food Crisis, highlighting the toll that the Global economic context has had on Global food security. The gap between women and men facing moderate and severe food insecurity is also growing rapidly as a result of the crisis.

Secondly, the challenges faced by food systems have been compounded by the worsening effects of one of the key issues of our time, namely climate change. Here, the increase in frequency and intensity of extreme weather events such as heat waves, floods and droughts have affected countries differently. Specifically, they have disproportionately affected countries that are reliant on the agriculture sector, , Between 2008 and 2018, 26 percent of the overall effects of climate change loss and damages affected the agriculture sector – including agriculture, forestry and other land uses as well as fishery and aquaculture.

Thirdly, the COVID-19’s induced increase in debt levels together with the lower growth prospects are likely to further hamper the mobilization of domestic and international financing necessary to face the challenges posed by the current global context. This includes the fundamental and long overdue increase in financing needed to bring food systems on a sustainable path, promote inclusive structural transformation, mitigate and adapt to climate change and reduce food insecurity, malnutrition and rural poverty. 

FAO stands ready to explore new approaches and strategies on how to bring the role of finance for development on mitigating and preventing food crises and promoting food systems transformation.

Thank you.