PRESS CONFERENCE on sustainable development commission

 

The Commission on Sustainable Development had a vital role to play in dealing with the global food crisis and related issues of agriculture, drought and desertification, correspondents were told at a Headquarters press conference this morning.

Speaking to the press, following the opening of the sixteenth session of the Commission on Sustainable Development yesterday, were Kathleen Abdalla, Officer-in-Charge of the Division for Sustainable Development of the Department of Economic and Social Affairs; Aslam Chaudhry, Chief of the same Division’s Water and Natural Resources Branch; and John Pender, Senior Research Fellow at the International Food Policy Research Institute.

Ms. Abdalla said that the causes of the global food crisis included the growing world population, changing diets and lack of investment in agriculture, as well as insufficient aid for agricultural development.  Basically, productivity growth had not kept pace with increasing demand.  The Commission was considering agriculture among its main topics, which also included rural development, land, desertification, drought and the development of Africa.  The Commission was tackling those issues in a holistic way, looking into long-term solutions and trying to identify the main challenges, as well as the ways to move forward.  This year, the Commission would be identifying constraints to progress and next year, it was expected to take policy decisions.

Mr. Chaudhry highlighted some Commission members’ concern regarding biofuels production.  Those receiving food aid from their developed partners tended to think that it was not such a great idea.  At the same time, farmers engaged in the production of biofuel crops and being subsidized by their Governments considered the issue from another perspective.  Another aspect of the issue was that precious land and water resources were being used for the production of biofuel crops, while many people in developing countries did not have enough food.

Dr. Pender said that investment in agricultural production had not kept pace with the demand.  Since the “green revolution” at the end of the 1970s, agricultural research and development spending had gone down, especially in the agriculturally-dependent poor countries.  Speakers in the Commission had also addressed the issues of land degradation, as well as drought and desertification, which, in turn, were linked to climate change.  All those factors were driving up the prices, and that had become a major concern for food-importing countries.

The current situation presented both risks and opportunities, he continued, and it was important for the Governments, farmers and international organizations to recognize those opportunities.  With a trend towards growing food prices, it was important to recognize the need to invest more in agriculture.

At the time of growing shortages, should the donors switch the focus of aid from food supplies to research and development? a correspondent asked.  Mr. Chaudhry replied that, in the nearest future, it was important to get food to the hungry people.  Based on the World Food Programme (WFP) and Office for the Coordination of Humanitarian Affairs appeal for some $755 million -- and even more might be needed -‑ food aid had to be provided.  In the long term, investments were needed in the agricultural research and extension system.

Asked to comment on President Bush’s intention to provide some $700 million in food supplies to alleviate the crises, Mr. Pender said that, over the years, American food aid had made a big difference in many countries.  One thing that could be done to make that aid more effective was to allow local sourcing of some of the foods.  However, provision of immediate relief should not be at the expense of the longer-term investment.

To several questions about the role of food futures and speculation in the growth of the world food prices, Ms. Abdalla said that there were both positive and negative aspects involved.  Traditionally, the futures market had actually provided some stability for farmers, securing the price of their products.  It was important to look into specific causes of the price increases.  However, in general, a speculative bubble was not helpful.  While financing was a big part of the Commission’s deliberations, it did not get too much into the futures market or specific financing mechanisms, unless they were aimed at implementing a specific goal.

Mr. Pender added that sometimes speculative behaviour could lead to bubbles and exacerbate problems, but the basic role of the futures markets was price discovery.  Speculation played a positive role in trying to deal with risks.  The issue should be carefully studied before taking any action that could undermine the operation of those markets.

Many different factors were coming together in causing the growth in food prices, including rapidly growing incomes in India and China, Mr. Pender added in response to another question.  That phenomenon had manifested itself in Africa and Latin America, as well.  However, that was actually good news.  Rising food prices happened to be a negative impact of a positive development.  Biofuels also played a role in price increases.  Some 25 per cent of the corn crop in the United States, for example, went into ethanol production.  That certainly had a significant impact on corn prices and, indirectly, on wheat prices, as well.

Also addressed during the question-and-answer session was the issue of fertilizers, the prices of which were going up, as well.  In that connection, Ms. Abdalla emphasized the participation of the business sector and civil society in the Commission session, adding that the Commission was looking at overcoming barriers, sharing lessons learned and improving the policies.

On fertilizer subsidies, Mr. Pender said that, the way they had been implemented in the past, those subsidies often undermined the development of fertilizer markets.  There were smarter ways of doing subsidies, such as a barter scheme in Malawi.  It was also important to put the purchasing power into the farmers’ hands.

Mr. Chaudhry added that, in South Asia, a balanced approach to fertilizer use had developed over the years.  At the same time, the use of fertilizer had generated a lot of investment in the private sector for the production of fertilizer.  However, the problem in Africa was that it totally relied on the imports of fertilizer, which made it more expensive.

Asked if last year’s controversy regarding Zimbabwe’s candidacy for the Commission’s Chair had had an impact on the Commission’s work, Ms. Abdalla said that the Bureau had worked very effectively in preparation for the session.  The issue of Zimbabwe had not come up.  Yesterday, there had been a lot of support expressed for the Chair of the Commission.

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For information media • not an official record