US Assistance to International Agricultural Development and
Food Security: Some Trends and Reflections
Christopher B. BarrettCornell University
Presentation at Congressional Research ServiceWashington, DC
December 6, 2010
The United States has historically played a key role in international agricultural dev’t and food assistance:
Twin track approach:Longer-term horizon:
• agricultural R&D (CGIAR, USAID CRSPs, etc.)• developing skilled human capital• champion of market-led, trade-based solutions
Shorter-term horizon:• global food aid to respond to disasters
A generation of inattention has led to a pronounced short-term bias in USG policy in this area.
Feed the Future and related recent initiatives look to rebalance and to push more country-led strategies.
Historical and current leadership
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1984 1987 1990 1993 1996 1999 2002
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Source: World Bank (2007)
Why is this important? Two big reasons:
Agricultural development: The key driver
1) Persistent poverty and food insecurity are closely tied to agricultural stagnation
Cereals yields and extreme poverty move inversely due to both income effects for farmers/farm workers and price effects for poor consumers.
South Asian progress Sub-Saharan African stasis
2) Agriculture’s demands on strategically important renewable natural resources are huge and growing.- 70% of worldwide water use is for irrigation, (82%
in LDCs), with 15-35% of withdrawals unsustainable (WBCSD).
- Conversion into cropland is the main cause of deforestation worldwide; fuelwood use is second. Huge impact on climate and on biodiversity.
Agricultural development: The key driver
Advancing international agricultural development and food security is important in economic, environ-mental, humanitarian and national security terms.
1)Emergency response to protect the lives and livelihoods of the poor and vulnerable
US has always been the global leader in food aid. US food aid programs have improved markedly over past generation. But still too many constraints. Must use food aid for its best purpose: emergency response. Food aid is a clumsy tool for pursuing long-term development objectives.
Five main pillars
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Figure 2: U.S. Food Aid Programs, FY1980-2009
PL 480 Title I PL 480 Title II Other (Title III, Food for Progress, IFEP, 416b, etc.)
Data sources: U.S. Dept. Of Agriculture, General Accounting Office, Bureau of Economic Analysis
2) Improving Agricultural ProductivityBilateral aid to agriculture fell >70% early-1980s to early-2000s. US went from >1/3 of aid to agriculture in mid-late 1970s, to less than 10% in mid-late 1990s. Sharp recovery in recent years, back >25% and $1 bn. But still less than half as large as the food aid budget!
Five main pillars
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Source: OECD International Development Statistics
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)USG Support to CGIAR
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2) Improving Agricultural Productivity (continued)
CGIAR funding (esp. key unrestricted funding) also fell >50%(>75%). Starting to recover, but not fully.
-Constant dollar USAID CRSP funding to US universities also fell to 2008. Slowly recovering (to ~$30 mn).
-Essential research investments paltry compared to food aid. Productivity growth is slowing as a direct result.
Five main pillars
3) Skilled human capital formationAs US relies increasingly on bilateral aid to developing country governments and on country-led programs, need a cadre of technically skilled advisers and decision-makers.
Past neglect of these essential human capital investments will hamper country-led programs for a decade or more. And, with reduced R&D, has hurt productivity growth.
Five main pillars
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USAID-supported Masters/Ph.D. training(3 year centered moving average)
Source: TrainNet reports, 2006. Courtesy of M.Maredia, Michigan State University
USAID-supported graduate trainingdown 93%, 1989-2005
4) Promoting pro-poor, market-led growth
There is no feasible path out of extreme poverty without significant private sector investment. For example,
•$2/day pc poverty gap in Sub-saharan Africa ~ $230 bn.
•2008 net ODA to region ~ $42 bn (~$7bn from US)
Aid flows cannot come close to closing gap on their own. Must crowd-in private investment (value chains, etc.). Improved risk management is critical: innovative new tools may help crowd in credit and provide catastrophic insurance, even relieving need for food assistance.
Access to global markets is essential: WTO Doha Round
Access to domestic markets even more important!
Five main pillars
5) Country leadership in formulating good policy
USAID technical capacity has declined sharply (~80% reduction in staff over past 35 years). No capacity to do it from Washington.
Externally-led strategies of the 1980s/90s largely failed, both economically and politically.
Therefore, must be country-led strategies … need full local ownership and plans appropriate to context. Must support technical capacity dev’t/maintenance in countries that rise to the challenge. Must support coherently from Washington (whole-of-government approach).
Five main pillars
International attention to, and USG leadership around, international agricultural development waned for about a generation. Now recovering.
Still heavily dependent on food aid, an essential component of a twin-track strategy of ensuring security and fostering productivity growth.
But need to: -continue to reform US food aid policies. -Restore CGIAR unrestricted and CRSP funding
-Reinvest in skilled human capital formation -Resume WTO trade negotiations on agriculture
Conclusions
Thank you for your time, interest and comments!
Thank you
