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Investment needs, sources and instruments. 600. ODA. Population 34%. 500. Developing government. ag. production 70%. FDI. 44.0. investments ?. Developing private. Investing in agriculture to eliminate hunger, gross, US$ per year FAO estimates. 400. 75.7. 7.6. 300. 11.6. 57.9.
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600 ODA Population 34% 500 Developing government ag. production 70% FDI 44.0 investments ? Developing private Investing in agriculture to eliminate hunger, gross, US$ per year FAO estimates 400 75.7 7.6 300 11.6 57.9 4.4 200 7.9 351.5 39.3 3.0 204.1 100 138.8 0 Current investment in Meeting demand in Eliminating hunger by agriculture 2050 2025 Challenge Change in diets
3,000 ARD commitments Dev. food aid/food security commitments 2,500 Emergency food aid commitments 2,000 1,500 1,000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 Issues1. What is “investment” India: Agricultural public spending, 1975-2002 ODA Commitments for ARD and Short Term or Emergency Food Aid in SSA, 2001-2007 (millions of 2006 US$) TCI based on OECD data http://www.donorplatform.org/component/option,com_docman/task,doc_view/gid,597/
Issues2. Investment priorities MALAWI. Public Expenditure: Health, Education, Agriculture. 1987-2004 IMF data base
Issues3. Investment priorities Returns of agricultural public investments and impacts on poverty reduction in China and India WB AgInvestSourceBook
Issues3. Investment mobilization mechanisms • Investment friendly political and institutional climate? • Public investment into infrastructure/institutions? • Public investment into production? • Subsidies to investors? • Intergovernmental agreements on FDI? • ????
Issues4. FDI into agriculture • New trends last 3-4 years (“Outsourcing’s Third Wave”) : • cross-boarder investment in primary agriculture increasingly directed towards land acquisition • from recourse-poor countries to developing resource-rich countries in order to develop agrifood exports • under bilateral inter-gvt agreements • Benefits: • technology transfer, employment creation, infrastructure, development and export earning • Threads • for host country • rural employment, access to ag. resources to loc al population • food insecurity • for international trade • non transparent, less liberal markets and investment