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Food, Agriculture, and Biofuels
More than a billion people in developing countries suffer from chronic hunger. Long a neglected topic, the role of agriculture in promoting pro-poor growth is attracting renewed attention in the United States and internationally. CGD’s work in this area focuses on how rich countries’ agricultural policies and practices impact people and economic development in the poor world.
Three out of four people in the developing world live in rural areas and depend on agriculture to support themselves and their families. Yet, since development traditionally involves moving people from subsistence farming into higher-productivity activities in manufacturing and services, governments and donors have neglected agriculture for decades. The spike in food prices in 2007–08, coupled with the consequent increases in hunger and poverty, returned food security issues to the policy agenda.
Senior fellow Kimberly Elliott, author of Delivering on Doha: Farm Trade and the Poor, focuses on how rich countries' agricultural policies and practices affect poor people in the developing world. Non-resident fellow Peter Timmer has written extensively on the role of agriculture and food security in the economic development process. Non-resident fellow Jenny Aker conducts research on food aid in the Sahel and on the importance of mobile phones on food prices.
CGD research on food and agriculture analyzes several other topics:
- Trade policies and farm subsidies that protect rich-country agricultural producers from competition at the expense of developing countries
- The effect of biofuels production on poor people, including through food prices.
- The impact of rich-world consumption of "fair trade" agricultural products, such as coffee and chocolate, on poor people and on development.
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In the face of climate change, land and water scarcity, declining growth in crop yields, and dwindling public budgets, donors will need to be more innovative in how they deliver aid for agriculture.
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.
Washington is abuzz with rumors that the White House budget will include a far-reaching reform of US food aid that moves away from in-kind food aid transported on American ships. Even though no details are available, the plan faces considerable resistance from agricultural and maritime interests that profit from the current system. But current practices are inefficient, costly, and slow and most development advocates support the administration’s desire to shake things up.
US government promotion of the ethanol industry is an important element in the recent spikes in corn (and other food)
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The Obama administration’s FY14 budget request included a food aid reform proposal that the administration estimated would allow US food aid to reach an addition 2-4 million people per year—for roughly what the United States spends now. My colleagues Kim Elliott and Will McKitterick have a new brief out that argues this is a conservative estimate. Their calculations suggest that the reforms would help at least 4 million more people, and maybe as many as 10 million for the same amount of money as under the current inefficient system.
Using panel data from Mozambique collected in 2007 and 2008, the authors explore the impact of the food crisis on the welfare of households living with HIV/AIDS. While HIV households have not suffered more from the crisis than others, infected people who experienced a negative income shock also expereinced a reduction or a slower progression in outcomes when treating their illness.
Washington is abuzz with rumors that the White House budget will include a far-reaching reform of US food aid that moves away from in-kind food aid transported on American ships. Even though no details are available, the plan faces considerable resistance from agricultural and maritime interests that profit from the current system. But current practices are inefficient, costly, and slow and most development advocates support the administration’s desire to shake things up.
The world’s elite—plus a few ringers like me—gathered last week in the small Swiss village of Davos to discuss the state of the world at the 2017 Annual Meeting of the World Economic Forum (WEF). Although not formally on the agenda, the issue of tropical forests infiltrated a number of discussions. But first, a quick recap of the meeting’s big themes that provided the broader context.
Bravo to Senators Bob Corker (R-Tenn.) and Chris Coons (D-Del.) for trying to free international food aid from the 1950s-era practices that cost lives and waste taxpayer dollars.
Post-doctoral fellow Jenny Aker assesses the impact of weather shocks on grain markets in Niger. Droughts and crop failures occurred in Niger in both 2000 and 2004, but only the 2004 drought resulted in a severe food crisis. Many were quick to cite market failure and hoarding as causes of the crisis, but other factors such as the spatial distribution of drought, temporary trade restrictions, and inadequate incentives to import from Nigeria may have played a larger role.
What does the 2016 election mean for America’s future position in the world? It’s likely too early to tell at this stage of the campaign cycle. Many of the early Republican contenders — such as Jeb Bush and Scott Walker — have been relatively quiet on foreign policy issues or have focused almost exclusively on Iran, Israel, and Russia. That’s to be expected at this point. Yet, other candidates — like Marco Rubio and Lindsey Graham — are already outlining a more comprehensive vision for advancing American interests.


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