Agriculture

Although G8 communiqués from 2005 to 2007 recognised the importance of supporting increased agricultural productivity in Africa, there were no concrete commitments until 2008 and 2009. At the 2008 summit in Hokkaido, G8 countries reiterated individual commitments from earlier in the year to direct $10 billion in funding to address the global food crisis, and also committed to reversing the decline in funding in the agriculture sector.
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In 2009 in L’Aquila, the G8 and other donors committed to provide $20 billion (since revised to $22 billion) over three years for the L’Aquila Food Security Initiative. Through the initiative, donors committed to develop and fund comprehensive food security plans and encourage donor coordination, together with support for country-led processes including initiatives such as the Comprehensive Africa Agriculture Development Programme (CAADP), a focus on smallholder and women farmers, and the use of multilateral institutions whenever possible.

ONE interprets the 2009 commitment to mean that the G8 and other donors will deliver $22 billion in funding for global food security initiatives over three years. If these new resources are mobilised and applied strategically and in accordance with the principles laid out in L’Aquila, this investment will assist in revitalising the agriculture sector in developing countries, and will help developing countries better feed themselves, increase incomes and generate widespread economic growth. However, in order to ensure long-term, sustainable global food security and to reduce the number of people living in hunger and poverty, donors will need to make further long-term commitments to support agriculture and food security.

The L’Aquila pledge represents the most robust commitment to agriculture, but because the most recent development assistance data are from 2008 (and do not reflect 2009 commitments), the DATA Report monitors G8 progress towards fulfilling the 2008 commitment to reverse the decline in global agriculture funding and also tracks the proportion of that funding channelled towards sub-Saharan Africa.

Progress since Gleneagles

Despite increased global attention, progress towards food security and poverty reduction through agriculture has been slow. Smallholder farmers, who are responsible for most food production in developing countries, still face many barriers. Insecure land tenure makes many smallholders reluctant to invest in their land. Farmers struggle to obtain credit to finance their farming and often have difficulty repaying loans if crops fail. They lack sustainable, affordable access to inputs such as improved seeds, tools and fertilisers that allow them to be productive. In addition, farmers lack access to markets in which to sell their goods. Facilitating a demand-driven process to address these challenges – one in which smallholder farmers get to be a part of designing the necessary solutions – will improve farmers’ productivity, combat undernourishment and increase incomes.

Perhaps the most troubling signs of slow progress in agriculture are that the number of hungry people in sub- Saharan Africa has remained relatively unchanged and the proportion of the population in developing countries considered to be undernourished is on the rise after a 35-year decline. In 2008, approximately 32% of sub-Saharan Africa’s population was undernourished – the highest of any region. This proportion has barely changed since 1990, partly due to donors’ prioritisation of emergency food assistance over long-term agricultural development. These challenges came to a head during the 2008 food crisis, which caused prices of staple foods to increase by more than 80% The food crisis contributed to an increase of approximately 100 million undernourished people globally between 2008 and 2009, putting the total number of undernourished people worldwide at 1.02 billion – 265 million of whom live in sub-Saharan Africa. The sector’s long-time neglect of the sector left developing countries ill-equipped to deal with the global food and financial crises. While investments in agriculture are on the rise and global commodity prices have since dropped, this decrease has not been reflected in local markets, where high and volatile prices still put increased pressure on poor families trying to feed themselves.

Beyond 2010

In order to achieve long-term global food security, the G8 must start by providing short-, medium- and long-term investments totalling at least $22 billion in accordance with the L’Aquila principles, which stipulate that all initiatives implemented must be country-owned, coordinated and transparent. Furthermore, L’Aquila only extends through 2011 or 2012 (depending on the country). A longer-term framework is needed to achieve meaningful change in terms of food security. Lastly, the G8 and other donors must clarify how this funding is being spent and ensure that it truly serves those at whom it is targeted. In particular, the G8 and other donors should:

DELIVER ON QUALITATIVE PRINCIPLES

The five principles outlined in L’Aquila are critical to a successful long-term plan, but they must be put into operation so that they represent more than just rhetoric. All programmes and projects financed with funding from the L’Aquila pledge must support country-owned initiatives (including CAADP), adhere to a comprehensive approach that addresses all aspects of food insecurity, require donors to work together, leverage multilateral institutions and provide multi-year project financing. Progress will also depend on how effectively, accountably and transparently funds are used, and specific attention should be given to address the needs of smallholder farmers and women and the impact of climate change on agriculture. The global community should also develop clear, comprehensive, universal metrics by which to measure the success of these initiatives and to hold themselves accountable.

FULFIL THE L’AQUILA COMMITMENT

While the most recent DAC data only cover commitments to the end of 2008, some progress has already been made towards the 2009 commitment. Some countries, like the US, have already requested budget funding that will fulfil their L’Aquila commitments. In addition, the US, Canada and the European Commission are in the process of constructing government plans to coordinate their bilateral agriculture programming and provide a policy framework for food security that will enhance cooperation on increasing farmer incomes and productivity. The US, Spain, Canada, South Korea and the Bill and Melinda Gates Foundation have also pledged funding for the global food security trust fund overseen by the World Bank, which was launched in April 2010. The Global Agriculture and Food Security Programme (GAFSP), as the fund is called, totals just under $900 million, which will be spent over three years.

Most countries, however, have yet to clarify their L’Aquila commitments, including the years of funding they will count, whether they will include money already in the pipeline for agricultural programming and how much of the pledged funding will be used for emergency assistance.

1 in 6 lack food security