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Views from the Center

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G-20 Endorses World Food Programme Hedging

This post is co-authored by Vijaya Ramachandran

Last week, the G-20 agriculture ministers meeting in Paris issued a communiqué calling for the World Food Programme to develop hedging strategies to purchase food. In a little-noticed section towards the end of a 24-page document, the ministers stated:

We invite the multilateral, regional and national development banks or agencies to further explore, in connection with the private sector as appropriate:

Development of hedging strategies that could help international humanitarian agencies, in particular WFP, to optimize food procurements and maximize the purchasing power of financial resources, building upon forward purchase… (Annex 5)

Currency Wars Are a Development Problem and the G-20 Has a Major Role to Play in the Solution

Last weekend’s communiqué from the G-20 finance ministers is a first step to bridge the divide in the ongoing currency wars. I find both hope and disappointment in the Communiqué. It is very positive that the G-20 ministers have called for the IMF to help identify countries with policies leading to large and unsustainable imbalances. This is a step in the right direction, although no specific quantitative indicators have yet been advanced.

Development and the Seoul G-20 Summit

Reports of progress last weekend notwithstanding, the so-called currency wars—the reality and threat of competitive devaluations—are likely to continue to dominate the news about the upcoming Seoul G-20 Summit.

The G-20 Is a Great Idea … but Let’s Make Sure the Execution Is Right!

This post is joint with Enrique Rueda-Sabater

Moving from the clearly obsolete G-7 to a broader group that reflects the reality of today’s world makes eminent sense. Doing it on the basis of a grouping improvised during the crisis-before-last (and making sure that it included the then-favorite finance ministers of the U.S. and Canadian sponsors) is squandering the opportunity to move up to a credible, transparent, global governance platform.

GAFSP! U.S.-Led Food Security Fund Could Push Better Risk Management at World Food Program, Reducing Hunger

An illustrious lineup was on hand today at the U.S. Treasury for the launch of the somewhat awkwardly named Global Agriculture and Food Security Program (GAFSP), a multidonor trust fund that the global leaders promised to create at the G-20 Summit in Pittsburgh last September. The new fund’s goal: to help countries reduce poverty and hunger by increasing investments in agriculture, particularly amongst smallholder farmers. Speakers included U.S.

At The G-20 Summit, Nothing for Africa

Five years after Africa was centerstage at a meeting of the G7 heads of state in Gleneagles, it has all but vanished from the priorities of policymakers from the rich and emerging economies. At the G20 Summit in London this week, heads of state will debate new resources for the IMF, in the range of $250 billion. But these resources will likely be deposited in the New Arrangements to Borrow (NAB) facility, which will be far too expensive and out of reach of most African countries.