Financing For Development Interactive Debate

 

 

 

Financing For Development Interactive Debate
The link between financing for development and achieving the MDGs: the road to the 2010 High-level event
Toshihiko Murata, Liaison and Executive Officer, FAO Laison Office with the United Nations in New York

I am pleased to share FAO’s views at this informal interactive dialogue which greatly contributes to the preparation of the 2010 High-level Plenary Meeting on MDGs in September 2010.

FAO aligns itself with the views expressed by previous speakers on the need to scale-up predictable funding in support of results-oriented national plans in order to reach the MDGs. More specifically, in order to reach MDG1- namely the eradication of poverty and hunger - adequate attention should be given to the investment in Agriculture and rural development.

The G8 commitment to mobilize $22 billion over three years through the L’Aquila Food Security Initiative (AFSI) made at the 2009 G8 Summit in L’Aquila,is a step in the right direction, particularly since it’s aim is to increase food production, improve access to food and empower smallholder farmers to gain access to enhanced inputs, technologies, credit and markets.

Also, at the World Summit on Food Security held in November 2009 in Rome, world leaders unanimously agreed to work to reverse the decline in domestic and international funding for agriculture and promote new investment in the sector.

During the past three years, hunger has increased everywhere in the world on account of soaring food prices, the oil price shock and the financial crisis. The gravity of the food crisis is the result of 20 years of under-investment in agriculture and neglect of the sector. Directly or indirectly, agriculture provides the livelihood for 70 percent of the world's poor. The share of agriculture (including forestry and fisheries) in Official Development Assistance (ODA) has dropped from 17% in 1980 to about 5% today.

To feed the planet’s 9.1 billion inhabitants in 2050, food production must rise by 70% in the world and double in the developing countries, which are home to about 500 million agricultural smallholdings supporting around two billion people. On average, agriculture in these countries accounts for 10% of GDP and 50% of employment. It could do much more if modernized.

To eradicate hunger and malnutrition in the world, agriculture in the developing countries requires about 44 billion US dollars per year of ODA to invest in infrastructure, modern inputs and technologies. Reducing hunger and undernutrition will be critical to the success of the other MDGs, particularly those related to education, gender, and health.

Several countries of Africa, Latin America and Asia have succeeded to substantially reduce the prevalence of hunger and the number of undernourished people. Even some countries that were importers of agricultural commodities have become net exporters in just a few years. This shows again that we know what to do to defeat hunger. The time for talk has long past, and the moment has come for resolute action.

The Initiative on Soaring Food Prices, launched by FAO in 2007 facilitated access by small farmers to indispensable inputs. This initiative allowed FAO to mobilize 420 million US dollars and to implement projects in different regions of the world. This includes a total of 301.6 million dollars that has been provided by the European Union under its “Food Facility Programme”, for which FAO expresses its appreciation.

FAO is aware of the magnitude of the task ahead but is also confident that it is not impossible, because we know what needs to be done. And if the necessary financial resources, as promised, are made available, then we will win the great global battle against poverty and hunger.

I thank you for your kind attention.