Financial Mirror (Cyprus)

Ending hunger sustainabl­y

- By Maximo Torero Maximo Torero is Chief Economist of the Food and Agricultur­e Organizati­on of the United Nations. © Project Syndicate, 2021. www.project-syndicate.org

In 2015, 193 countries gathered at the United Nations and pledged to end global hunger by 2030 as part of the Agenda for Sustainabl­e Developmen­t. With less than a decade to go, prospects for achieving this goal appear bleak. Improving them will require government­s and the private sector to address the global food and environmen­tal crises simultaneo­usly.

Food insecurity has increased in recent years as a result of conflicts and climate change, as well as the COVID-19 pandemic and the accompanyi­ng global economic crisis. Today, up to 811 million people suffer from hunger, including 132 million additional people who were classified as undernouri­shed during the pandemic. Another three billion people are too poor to afford a healthy diet.

Efforts to fight hunger have traditiona­lly focused on producing more food – but this has come at a high environmen­tal cost.

Agricultur­e depletes 70% of the world’s fresh water and 40% of its land. It has contribute­d to the near-extinction of around one million species.

Food production generates 30% of global greenhouse-gas (GHG) emissions and is the leading cause of deforestat­ion in the Amazon.

Policymake­rs seeking to eradicate hunger today thus face a difficult dilemma: preventing billions from going hungry while also saving the planet. For example, a fertilizer subsidy could boost crop yields and reduce hunger, but it could also lead to excessive nitrogen use, thus ruining the soil.

Similarly, cattle and rice farms emit methane, a more potent GHG than carbon dioxide. The most effective way to reduce methane emissions is to tax them. But this would cause food prices to rise, affect poor consumers’ access to nutrition, and threaten the livelihood­s of farmers and ranchers.

Countries must therefore establish an optimal level of environmen­tal pollution that doesn’t reduce agricultur­al productivi­ty or undermine the social and economic wellbeing of the poor. We need a solution that feeds the most mouths without endangerin­g the planet.

Finding a workable plan requires looking at food systems holistical­ly – a major departure from the current siloed approach. To avoid unintended consequenc­es, it is essential to quantify any trade-offs with data. And to turn data-driven strategies into action demands a coordinate­d effort to boost public and private investment­s.

No one interventi­on alone can solve the hunger problem. But studies suggest that a mix of key measures aimed at increasing farm productivi­ty and cutting food loss and waste could reduce the number of chronicall­y hungry people by 314 million in the next decade, and also make healthy diets available for 568 million people. Expanding countries’ national safety nets, including school-feeding programs, could give an additional 2.4 billion people access to a healthy diet by 2030.

Another study shows how a series of low-cost initiative­s can end hunger for 500 million people by 2030 while also limiting agricultur­al GHG emissions in line with the goals of the 2015 Paris climate agreement.

These initiative­s include agricultur­al research and developmen­t to produce food more efficientl­y, informatio­n services that provide farmers with weather forecasts and crop prices, literacy programs for women – who account for almost half of small farmers in developing countries – and scaling up social protection. This can be accomplish­ed if rich countries double their food-security aid to $26 billion per year until 2030, and poorer countries maintain their annual investment of $19 billion.

Automation can help to manage the trade-offs between food production and environmen­tal protection. For example, “AgBots” that resemble small farm vehicles can identify and remove weeds. Because they don’t use expensive chemical herbicides, robots can reduce the cost of weeding by 90% and protect the soil from potentiall­y harmful chemicals. Likewise, artificial intelligen­ce and cloud solutions can detect pestinfest­ed areas using drone imaging. The data collected can help to guide farmers’ irrigation, planting, and fertilizat­ion decisions, and indicate the best time of the year to sell a given crop.

Government­s must now work with the private sector to make these high-tech, precision-farming systems available at lower costs, especially for small farmers. The good news is that private firms are increasing­ly keen to promote sustainabi­lity – including through “blended finance” schemes, which combine an initial investment from government­s or multilater­al financial institutio­ns with subsequent commercial financing. This kind of approach can effectivel­y de-risk private finance and encourage investment in improving food systems.

For example, the US and Dutch government­s have been working with the German coffee company Neumann Kaffee Gruppe and three European banks to provide a $25 million loan to small farmers in Colombia, Kenya, Honduras, India, Indonesia, Mexico, Peru, and Uganda for sustainabl­e coffee production.

The banks initially rejected the proposal because small farmers are usually shut out of financial services and thus unable to prove their creditwort­hiness, making them a highrisk group for commercial lenders. But the banks signed on to the scheme after the Dutch government and Neumann Kaffee Gruppe agreed to cover the first 10% of losses should it not pan out, with the US government absorbing 40% of the remaining losses.

Detractors will argue that individual countries should be responsibl­e for reversing the trend of rising hunger through domestic policies. While this may be true, other problems such as GHG emissions cannot be tackled by a country or a region on its own, and must be addressed and funded globally.

Saving the planet does not have to come at the expense of feeding the poor, and vice versa. If government­s get their act together, it’s still not too late to wipe out hunger by 2030.

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