2018年-世界发展银行全球_Future_of_Food___Maximizing_Finance_for_Development_in_Agricultural_Value_Chains_44页_1mb

Summary of FUTURE of FOOD: Maximizing Finance for Development in Agricultural Value Chains

Core Content

This report, FUTURE of FOOD: Maximizing Finance for Development in Agricultural Value Chains, outlines the critical role of finance in achieving the Sustainable Development Goals (SDGs) related to agriculture. It emphasizes the need for both public and private investments to transform agricultural value chains and improve food security, poverty reduction, and environmental sustainability.

Main Goals and Development Outcomes

The report identifies three primary development outcomes:

1. Feeding every person with safe food and adequate nutrition

   • 815 million people globally still lack minimum dietary energy needs.
   • Over 2 billion people are deficient in key vitamins and minerals.
   • By 2050, the number of people to feed in low-income countries will increase by 90 percent.

2. Ending poverty

   • 767 million people live on less than $1.90 per day, with 80 percent in rural areas and 64 percent working in agriculture.
   • Ending poverty by 2030 will require significant income gains in rural areas, particularly in Sub-Saharan Africa and South Asia.

3. Boosting shared prosperity through more and better jobs

   • 1.6 billion people will reach working age in low and middle-income countries over the next 15 years.
   • The food system has the potential to create new jobs and improve employment quality.

4. Better stewarding the world’s natural resources

   • Current food production practices are unsustainable, contributing to 25 percent of greenhouse gas emissions.
   • Shifting to sustainable systems is essential to meet global development targets.

Key Messages

• Current investment levels are insufficient to achieve the SDGs, especially in agriculture.
• Crowding in private investment is necessary to complement public resources and achieve development goals.
• Public resources must be optimized to support essential public goods such as research, infrastructure, and education.
• Private sector actors include farmers, input suppliers, traders, processors, and distributors.
• Market failures and a poor enabling environment for the private sector hinder development outcomes.
• Digital platforms and emerging technologies are reshaping agricultural value chains, offering new opportunities and risks.
• Managing transaction costs and risks is vital to enhancing the effectiveness of agricultural finance.
• Public-private dialogue and diagnostics are essential for designing effective reform and investment programs.

Financing Landscape

Public Financing Needs

• The UN agencies estimate that $140 billion per year is needed for agriculture and rural development to end poverty and hunger.
• $50 billion per year is required from the private sector, mainly for on-farm and agro-processing investments.
• $90 billion per year is needed from the public sector for public goods like agricultural research and rural infrastructure.

Private Financing Sources

• Farmers are the largest private investors in agriculture, with on-farm investments exceeding all other sources combined.
• Value chain actors (input suppliers, traders, processors, distributors, and marketers) contribute to the financing of other segments through informal and formal credit mechanisms.
• Formal financial institutions account for 25% of financing to smallholders, while informal and community-based institutions provide 45%.
• Value chain actors supply about 30% of the finance to smallholder farmers.
• State banks are the largest source of lending to smallholder farmers in developing countries, accounting for 67% of formal lending.
• Microfinance institutions (MFIs) provide access to credit and insurance for poor people, especially women, but have limited reach in agriculture.
• Local and international commercial banks provide domestic credit to the private sector, but their involvement in agriculture is limited and often short-term.
• Impact investors allocate about 7% of their investments to the food and agriculture sector, with an annual flow of about $1.5 billion.
• Development finance institutions (DFIs) support both public and private investments, including direct loans and equity financing.
• Private sector foundations and agricultural investment funds are also emerging as important sources of finance, pooling resources from pension funds and other entities.

Implementation and Recommendations

• To maximize finance for development in agricultural value chains, the report recommends:
  • Private-sector-oriented diagnostics to identify market failures and improve the enabling environment.
  • Inclusive public-private dialogue to define a reform and investment agenda that ensures impact.
  • Cross-sectoral coordination across ministries and agencies to improve the performance of agricultural value chains.
  • Blended finance solutions to reduce transaction costs and risks for private investors.
  • Improving the composition of public spending to prioritize high-impact public goods over private goods subsidies.

Conclusion

The report underscores the importance of a coordinated and comprehensive approach to finance agricultural value chains. It highlights the need for both public and private investments, with a focus on improving the business environment, reducing transaction costs, and promoting sustainable practices. The World Bank Group is committed to this agenda and working with partners to ensure that agriculture contributes to the SDGs.