The World Bank seeks more investment in agriculure in developing nations.

Investing in Agriculture – The World Bank Response to Climate Change and Food Security

 

As world leaders prepare to travel to Copenhagen to discuss a new treaty on Climate Change, the World Bank (WB), the UN and NGOs are preparing a lobby to have the predicted catastrophe in food prices and supply - food security – squarely on the agenda.

A conference between the World Bank, UN representatives and politicians is being held in London this week in advance of Copenhagen to look at climate change, water shortages and population growth; factors that drive down the supply of food and increase prices. Already 1bn people are living in food poverty according to the UN Food and Agriculture Organisation.

 

 The World Bank wants money to fund direct investment in sustainable agriculture in the developing world.

 

Concern over food security was further highlighted by the publication last month of a paper on climate change and its effect on Africa by the respected Imperial College scientist, Sir John Conway. He predicts that Africa with get both hotter and wetter with periods of drought and flooding, suffering a stronger effect on its climate due to global warming than other regions. He thinks the world can help by building the resilience of African agriculture. He is cautiously optimistic and feels that with investment, African farms can adapt to the challenges of climate change.

 

Another pressure on food security comes from a reduction in food production as land is turned over to growing bio fuels. Jeffrey Currie, head of commodities research at Goldman Sachs Bank, predicts that biofuel production will sharply increase as oil prices go upwards, suggesting that once the $72 per barrel level is exceeded then biofuels become financially attractive to governments and landowners. Brent Crude is $78 per barrel today.

 

The result of global supply shortages has been a recent big increase in food prices, reversing a long period of falling costs. These rises have also fuelled speculative dealing in commodities such as food and raw materials by financial traders and the banks, further inflating prices.

 

Whilst the governments of developing countries often concentrate on economic growth and the problems of urbanisation (90% of urban growth is in the developing world) the Bank is urging a refocusing on agriculture. Such investment is very effective. The WB Development Report of 2008 claimed that for the poorest people, GDP growth originating in agriculture is four times more effective in raising incomes of extremely poor people than GDP growth outside the sector.

 

An example of the World Bank’s work can be seen in a project funding the Senegal Agricultural Research Institute which is accessing technical support and disseminating sustainable agriculture and land management techniques in the country. The WB working with a local partner.

 

Climate change and population growth are now acknowledged as immediate threats to food security. The WB and UN will be at Copenhagen, arguing that greater investment in agriculture is needed now to prevent widespread famines and the disease and political fallout they bring.