Ideas to Action:

Independent research for global prosperity

Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

Signs of Hope for Reforming Energy, Ag Subsidies?

Rising commodity prices and tight government budgets are adding to pressures to reduce subsidies for energy and agriculture in many countries. Two new reports, including my recent paper on agricultural and biofuel subsidies, provide fodder for this debate by documenting the extent of subsidies in these sectors and analyzing their negative effects, particularly for developing countries and the poor.

Key Farm Bill Amendments: Food Aid and (More) Market-Oriented Price Targets

There are many, many problems with the House farm bill being debated this week but there are two amendments that would make significant improvements. The first (#55 in this list) is a version of the Royce-Bass Food Aid Reform Act that would provide authorization to untie up to 45 percent of the emergency food aid budget and allow the US Agency for International Development to provide assistance in whatever form—food purchased in the US or locally, vouchers, or cash transfers—would help the most people the quickest.

Is Agribusiness the Key to Africa’s Growth?

Today, the World Bank launched a new report, "Growing Africa: Unlocking the Potential of Agribusiness." The report argues that agriculture and agribusiness should be at the top of the development and business agenda in Sub-Saharan Africa. The Bank is right to emphasize this issue--of the $25 billion of food that African countries import annually, only $1 billion comes from other African countries. The report offers a clear and well-researched exposition of the state and prospects of African agribusiness. It is broad in scope, encompassing agricultural production and upstream input markets as well as supply chains and agro-processing.

The Ethanol Link between Food and Energy Prices in Pictures

US government promotion of the ethanol industry is an important element in the recent spikes in corn (and other food) prices, but rising oil and gasoline prices are also key contributors.  This is the punch line of a recent presentation I gave on US biofuel policy, and a point that can be clearly illustrated in just two charts:  the first chart provides a crude summary of key elements of US biofuels policy; the second chart shows trends in ethanol production, corn prices, and crude oil prices all starting to move together in the mid-2000s.

“The United States Must Be a Leader in Development” -- Senator Richard Lugar

“No superpower that claims to possess the moral high ground can afford to relinquish its leadership in addressing global disease, hunger, and ignorance,” said former US senator Richard Lugar. “Our moral identity is an essential source of national power… We diminish ourselves and our national reputation if we turn our backs on the obvious plight of hundreds of millions of people who are living on less than a dollar a day and facing severe risk from hunger and disease.”