WORLD TRADE  
ORGANIZATION  G/AG/GEN/94 
20 December 2010 
 (10-6831) 
Committee on Agriculture Original:   English 
  
 
ANNUAL MONITORING EXERCISE IN RESPECT OF THE FOLLOW-UP TO THE 
MINISTERIAL DECISION ON MEAS URES CONCERNING THE POSSIBLE 
NEGATIVE EFFECTS OF THE REFORM PROGRAMME ON  
LEAST-DEVELOPED AND NET FOOD-IMPORTING  
DEVELOPING COUNTRIES 
 
  Attached are copies of contributions by WT O Members and representatives of the Food and 
Agriculture Organization (FAO), the International Gr ains Council (IGC), the Inter-American Institute 
for Cooperation on Agriculture (IICA), the Intern ational Monetary Fund (IMF), the United Nations 
Conference on Trade and Development (UNCTAD)  and the World Food Programme (WFP) at the 
meeting of the Committee on Agriculture on 18 November 2010 (Agenda It em 2.C(ii) refers). 
 
_______________ 
 
 
 
CONTRIBUTIONS 
 
I.
 CONTRIBUTIONS BY WTO MEMBERS............................................................................2  
A. EUROPEAN UNION .......................................................................................................................2  
B. SWITZERLAND .............................................................................................................................2  
II. CONTRIBUTIONS BY INTERGOVE RNMENTAL ORGANIZATIONS ........................3  
A. FOOD AND AGRICULTURE ORGANIZATION (FAO) .....................................................................3  
1. Recent developments on food pri ces and global food situation ............................................3  
2. Food import bills of LDCs and NFIDCs .................................................................................4  
3. Cereal import bills of  LDCs and NFIDCs ..............................................................................5  
4. Countries in f ood crisis....................................................................................................... ......5  
B. INTERNATIONAL GRAINS COUNCIL (IGC)...................................................................................5  
C. INTER -AMERICAN INSTITUTE FOR COOPERATION ON AGRICULTURE (IICA).............................6  
D. INTERNATIONAL MONETARY FUND (IMF) .................................................................................6  
1. Recent economic developments  and outlook for 2011 ...........................................................7  
2. The recent crisis and recov ery:  the IMF response................................................................7  
3. The enhanced modalities of IMF support to LICs and NFIDCs ..........................................9  
4. IMF support for initiatives at the global level........................................................................9  
E. UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD) ........................10  
1. Commodity prices and food (in)security...............................................................................10  G/AG/GEN/94 
Page 2  
 
  2.
 Trade and productive capacity in LDCs and NFIDCs ........................................................11  
3. The international trading system and Doha Round ............................................................11  
F. WORLD FOOD PROGRAMME (WFP)..........................................................................................12  
1. The state of food insecurity ................................................................................................... .12 
2. WFP response and actions .....................................................................................................12  
3. Global initiatives to a ddress food insecurity.........................................................................14  
4. Conclusions.................................................................................................................... ..........15  
 
_______________ 
  
I. CONTRIBUTIONS BY WTO MEMBERS 
A. E
UROPEAN UNION  
1. On behalf of the European Union, two expert  policy coordinators (Mr. Nick Weatherill 
(DG-ECHO) and Mr. Wim Olthof (DG-DEV)) introduced EU's new humanitarian food assistance 
strategy and developmental policy framework on food security (see Annexes 1 and 2).  Both 
frameworks were adopted in May 2010 after an elaborate process of consultations with members 
States, other donor countries, United Nations agen cies, NGOs, civil society groups and academia. 
2. The current thrust of the EU's humanitarian food assistance policy is to move away from the 
concept of "food aid" to a broader and more comprehensive concept of "food assistance" geared to countries in need while acknowledging the importa nce of non-food dimensions in addressing hunger 
and malnutrition.  Assistance programmes should, inter alia , respect and promote humanitarian 
principles, be need-based and results-focussed, not harmful to recipient markets, and be firmly 
coordinated with development assistance operations. 
3. The aim of the development policy framework on food security is to inject new impetus in 
achieving the Millennium Development Goals (M DGs).  The priorities under the new policy 
framework include:  (i) improving smallholder r esilience and rural livelihoods;  (ii) supporting 
effective governance;  (iii) promoting regional agriculture and food security policies;  and 
(iv) strengthening assistance mechanisms for vulne rable population groups.  The EU continues to 
remain the world's biggest donor of development assistance (about €55 billion in 2010, i.e. 56 per cent of global assistance) with food security aspects playing an import role in its various activities and operations. 
B. S
WITZERLAND  
4. In 2009, Switzerland allocated some CHF 220 million to humanitarian aid, of which 
CHF 45 million were specifically earmarked fo r food aid.  The United Nations World Food 
Programme (WFP) is Switzerland's key partner in this sphere. 
5. Food aid is usually distributed in the form of dairy products procured in Switzerland either by 
Switzerland itself or by the WFP, the balance of the earmarked amount being used to purchase cereal 
products. 
6. In addition to direct aid in the form of f ood products, Switzerland also provides financial 
support.  The funds released serve a threefold purpose:   (1) to provide logistical support and staff for 
the organizations responsible for distributing foods tuffs on the ground;  (2) to establish and maintain  G/AG/GEN/94 
 Page 3 
 
 
  the necessary transport infrastructure;  and (3) to ensure the maintenan ce of distribution systems in the 
beneficiary countries. 
7. Switzerland's contributions are not based on "least developed country" (LDC) or "net 
food-importing developing country" (NFIDC) status.  The sole criterion used is the need for humanitarian aid of the regions affected by natura l or other disasters.  In actual fact, however, the 
countries benefiting from Swiss aid belong to either of these two groups, and most of the beneficiary 
countries are located in Africa and Asia. 
8. Details of the amounts allocated for food aid and technical assistance and the breakdown of 
figures by beneficiary country are provided in Switzerland's Table NF:1 notifications. 
9. Switzerland is a co-signatory of the Food Aid Convention and has undertaken to make an 
annual contribution of 40,000 tonnes of food aid in wh eat equivalent.  As in previous years, this 
commitment was fulfilled in 2009/2010.  Switzerla nd also plays an active part in the Food Aid 
Committee - as yet informal - discussions on a renegotiation of the Food Aid Convention.  It also supports a long-term development c ooperation policy that would aim, inter alia , to promote 
agriculture in the developing countries.  Lastly, Switzerland seeks to provide food aid in such a way 
as to boost local development through local purch ases, cash contributions, food vouchers, and the 
building up of local production capacities.  A suit ably reviewed Convention should reflect such 
strategies. 
II. CONTRIBUTIONS BY INTERGO VERNMENTAL ORGANIZATIONS 
A. F
OOD AND AGRICULTURE ORGANIZATION (FAO) 
1. Recent developments on food prices and global food situation 
10. FAO released on 17 November 2010 its latest edition of the Food Outlook , the most 
comprehensive report on global food commodities, d esigned to guide policy makers on developments 
in world production, consumption, trade, and prices, including outlook for the coming months and 
year.  Below are some highlights from that analysis. 
11. The key underlying theme is sharply incr easingly world prices of most agricultural 
commodities in recent months, again raising fears of a food crisis as was experienced recently. 
12. As shown in the figure below, the FAO Food Price Index  reached 197 points in 
October 2010, a gain of 34 points since June 2010,  and only 16 points short from its peak of 
214 points in June 2008.  The sharp rise in the price of grains was a major factor.  The FAO Cereal 
Price Index  averaged 219 points in October 2010, a gain of 68 points since June 2010, but, despite 
rising, short of the peak value of 274 points reached in April 2008.  Prices of oils and fats, and of 
sugar also rose sharply during the second half of 2010. G/AG/GEN/94 
Page 4  
 
  100150200250FAO Food Price Index
FAO Cereals Price Index 
 
 
13. These upward movements were connected with several factors, the most important being a 
worsening of the outlook for crops in key produc ing countries.  The pressure on the prices was first 
felt in the cereal market, most notably for wheat an d barley, in August.  This prompted FAO to call 
for an extraordinary meeting on 24 Septembe r 2010 to discuss the underlying causes and possible 
remedies.  The meeting clearly identified the impor tance of reliable and up-to-date information on 
crop supply and demand to c ope with unexpected developments in world markets.  More transparency 
and a better understanding of the role of commodity  futures markets and government responses were 
also viewed as necessary to address price volatility. 
14. Amid fears of a repeat of the price surge e xperienced in 2008, FAO expects supplies of major 
food crops in 2010/11 to be more adequate than two years ago, mainly because of much larger reserves.  Nonetheless, following a series of unexp ected downward revisions to crop forecasts in 
several major producing countries, world prices have risen alarmingly and at a much faster pace  than 
in 2007/08. 
15. As regards the outlook for the next season, as current global inventories are expected to be 
used up rapidly, the size of next year's crops will be critical in setting the tone for stability in international markets.  For major cereals, productio n must expand substantially to meet utilization and 
to reconstitute world reserves.  Farmers are expected to respond strongly to the high prices by expanding plantings.  With the pressure on world prices of most commodities not abating, the international community must remain vigilant agains t further supply shocks in 2011, and be prepared. 
2. Food import bills of LDCs and NFIDCs 
16. Rising global demand for non-staple foodstuffs h as boosted food import bills to near record 
levels.  Higher international prices for livestock pr oducts and vegetable oils coupled with larger 
imports are likely to lead to much greater im port costs for those commodities compared to 2009. 
17. The increase in international prices of food comm odities, all in the second half of 2010, is 
boosting the overall food import bill in 2010, closer to the peak in 2008. 
18. While cereal import bills are stabilizing, non-cereal bills are increasing rapidly.  For the 
LDCs, total food import bills are estimated to increase from US$22.5 billion in 2009 to 
US$24.9 billion in 2010, with much of the increas es accounted by vegetable oils, sugar and dairy  G/AG/GEN/94 
 Page 5 
 
 
  products, through a combination of higher import vol umes and prices.  A similar scenario seems to 
hold for the NFIDCs. 
19. With 2010 drawing to a close, attention is now on prospects for next year.  Sharp increases in 
international quotations for grains , sugar and products in the oilseed complex in recent months are 
already a cause for concern.  It is  unlikely that the effects of higher prices will be contained within 
their respective sectors, as many of these commod ities constitute major feedstock ingredients for the 
livestock or biofuel sectors.  With price increases largely reflecting scarcity in export supply, global 
competition for securing foodstuffs is set to intensify. 
3. Cereal import bills of LDCs and NFIDCs 
20. Although cereal import bills stabilized in 201 0 compared with 2009, these have been 
substantially higher than in the pre-crisis years. 
21. In 2007/08 – the peak of the food crisis – cer eal bills amounted to $10 billion for the LDCs 
and $17 billion for NFIDCs.  These were more than double the average for the previous three years, 
2004/05-2006/07.  Almost all of the increase then w as due to higher per unit import cost.  From that 
peak, import bills fell by about 20 per cent in 2008/09 for both groups and a similar reduction in 
2009/10.  But cereal bills in the post crisis years (average for 2008/09-2010/11) have remained higher 
by 50 per cent for the LDCs and 65 per cent for the NFIDCs compared with th e average for the three 
years before the crisis (i.e. 2004/05 to 2006/07).  Therefore, policy responses to these high cereal import bills continue to remain a top priority.  
4. Countries in food crisis 
22. As part of the monitoring work on food situati on, FAO also updates a list of countries in crisis 
requiring external assistance for food for a variety of  reasons, notably those facing:  (i) an exceptional 
shortfall in aggregate food production/supplies;  (ii)  widespread lack of access;  and (iii) severe 
localized food insecurity.  In the September 2010 issue of the publication, Crop Prospects and Food 
Situation , a total of 30 such countries were listed, wh ich include 23 of the 49 LDCs and 4 NFIDCs 
(Côte d'Ivoire, Kenya, Mongolia and Pakistan). 
23. Food insecurity in protracted crises  was also the theme of this year's FAO flagship 
publication on measurement and analysis of food insecurity, The State of Food Insecurity in the World 
2010 .  These are countries characterized by long-lasting or recurring crises, both natural and human-
induced, and limited capacity to respond.  A total of  22 such countries were identified by this study, 
which included 15 LDCs and 2 NFIDCs (Côte d' Ivoire and Kenya).  The study concluded that 
improving food security in protracted crises requires going beyond short-term responses in order to 
protect and promote livelihoods over the longer term;  and that the current aid architecture needs to be 
modified to better address both immediate needs and the structural causes of the protracted crises. 
B. I
NTERNATIONAL GRAINS COUNCIL (IGC) 
24. Under the Food Aid Convention,  1999, donors commit to prov ide over 5 million tonnes of 
food aid annually with the objective to enhance globa l food security.  With the implementation of the 
Marrakesh Ministerial Decision, the Convention in that  year extended the list of potential recipients to 
cover all WTO Members listed as "Net Food-Importing Developing Countries". 
25. The IGC Secretariat, as part of its long-s tanding cooperation with this Committee and the 
WTO Secretariat, regularly provides updates of its activities and of FAC operations.  The members of 
the Food Aid Committee greatly value the regular input provided by the WTO Secretariat on the G/AG/GEN/94 
Page 6  
 
  activities of the WTO, most recently in June 2010,  when FAC members were informed of progress 
with the Doha Development Agenda. 
26. In recent years the Food Aid Committee has institu ted a series of informal meetings between 
members to consider the replacement of the F ood Aid Convention, 1999 (FAC) by an up-to-date 
instrument that would more effectively provide a ppropriate food assistance to those with identified 
needs.  These discussions have continued and inte nsified since the IGC Secretariat last reported on 
progress to this Committee, in November 2009.  At an  informal meeting in December, four particular 
points emerged as requiring further clarification, namely:  the vision and objectives of a new Convention;  its place in the global food security system;  the type of commitments donors should undertake, and the role of the Food Aid Committee.  It  was agreed that the in formal process should be 
accelerated in the months prior to the next session in  June 2010, when the fu rther extension of the 
1999 FAC was to be decided. 
27. Following another informal meeting in Februa ry 2010, the Food Aid Committee agreed to a 
proposal to set up a Working Group on the future of the Food Aid Convention, which was to report to members before the June session.  The Working Gro up commenced its work in March, and in London 
in April.  Its report sets out a shared vision on the objectives and principles of a new Convention, 
members' commitments, the role of the Food Aid Committee and the next steps.  This report was 
endorsed by members in June 2010 and the Committ ee agreed that further discussion was required on 
some key questions.  Meanwhile, the FAC was extended by another year. 
28. In September 2010, members met informally in Ottawa, with the aim of further developing 
and crystallising aspects of consensus and obtaining a cl ear vision of the future.  This involved a more 
detailed examination of the current Conventio n and identifying areas of common ground on the 
possible elements of a new Convention.  While so me members again indicated that they were now 
ready to begin the formal process of negotiation,  not all had received the necessary clearances to 
proceed.  When FAC members next meet, in D ecember, they will decide whether the formal 
negotiating process can commence. 
29. A full report on the members' FAC operations in the year ending June 2010 is still being 
compiled by the IGC Secretariat and will be tran smitted to this Committee as soon as possible.  
However, initial indications are that the tota l will again amply exceed the combined minimum 
commitment specified under the Convention, but wi ll be somewhat lower than the 2008/09 figure of 
7.9 million tonnes.  As such, however, these figures do not fully reflect the increasing complexity of 
food assistance operations, and the efforts being made by donors to ensure they respond to needs as 
effectively as possible within the context of indivi dual humanitarian emergencies such as this year's 
flood disaster in Pakistan.  The sharp rises in globa l grain and oilseed prices seen since July, both 
internationally and on local mark ets, pose a renewed threat to th e food security of vulnerable 
populations, as well as reigniting the debate about the causes of repeated spells of food market 
instability, many of them closely tied to devel opments in other commodities, energy markets and 
currencies. 
C. I
NTER -AMERICAN INSTITUTE FOR COOPERATION ON AGRICULTURE (IICA) 
30. The IICA contribution was circulated as G/AG/GEN/93. 
D. INTERNATIONAL MONETARY FUND (IMF) 
31. The recovery in emerging and developing count ries has come sooner than expected.  Global 
economic activity is expanding at a moderate pace, driven by the robust recovery in emerging Asia 
and Latin America.  Growth in developing countries is also accelerating, fuelled by countercyclical 
policy responses and growth in demand for commoditi es.  However, risks to the outlook are on the  G/AG/GEN/94 
 Page 7 
 
 
  downside as growth in advanced ec onomies is expected to remain sl uggish.  The recovery in NFIDCs 
is also lagging behind that of other emerging mark ets and developing countries.  Meanwhile the crisis 
has had serious effects on global poverty, which need s to be addressed with a renewed sense of shared 
responsibility amongst advanced, emerging, and de veloping countries, as well as international 
organizations and other stakeholders.  The IMF is committed to do its part. 
1. Recent economic developments and outlook for 2011 
32. The global economic recovery continues to a dvance, but remains uneven and fragile, with 
downside risks remaining elevated.  Financial sector  strains have receded recently, but markets and 
institutions remain sensitive to sove reign and banking sector risks.  Global growth has been somewhat 
stronger than expected during the first half of 2010, but has begun to moderate since, largely owing to 
a weakening of public demand even as private dema nd remains sluggish in th e advanced economies.  
Going forward, growth in advanced economies is expected to remain subdued in the second half of 
2010 and first half of 2011 as the inventory-le d rebound gradually slows, the impact of 
accommodative fiscal policies fades, and a fragile fi nancial sector continues to heal. In contrast, 
growth in emerging and developing economies, driven  by domestic demand, is projected to remain 
robust, albeit at moderating levels (see Annex 3). 
33. In 2010, real GDP growth in NFIDCs is project ed at 4.7 per cent compared to 7.1 per cent for 
emerging markets and developing countries as a whole.  Following the inflation surge in NFIDCs in 
2007-08, inflation has continued to decline in 2010,  reflecting economic slack in the global economy 
as well as the rapidly weakening second-round effects of the commodity price surge before the global economic and financial crisis.  In  2011, growth in NFIDCs is expected to remain broadly unchanged 
at 4.8 per cent.  
34. Turning to commodity markets, food prices broadly declined in the first half of 2010 while 
prices of other commodity groups were increasing.  The contrast in price developments between food 
and other commodities primarily reflected relatively more favourable supply expectations on the food 
side.  In particular, projections of harvest outcome s for major grains and oilseeds in the current crop 
year were upgraded through the first half of this year.  In the third quarter of 2010, however, this 
process was reversed as global supply estimates for major crops began to be downgraded.  First, 
wheat prices surged after adverse weather conditio ns led to much lower wheat harvests in Russia, 
Ukraine and parts of North America, with price effects reinforced by export bans by Russia and 
Ukraine.  More recently, corn prices have risen ra pidly after yield estimates for US production have 
been reduced, and rice prices also have increased  due to weather-related declines in harvest 
expectations in key Asian markets.  In late Oct ober, food prices were thus 44 per cent above their 
cyclical lows of December 2008.  Among the majo r food crops, prices of wheat, corn, and soybeans 
have increased by 33, 83, and 55 per cent, resp ectively, between December 2008 and October 2010.  
35. Looking ahead, while food prices are expected to moderate from recent highs, they are 
expected to remain high in real terms compared w ith averages over the past few decades.  At current 
levels, food prices are expected to provide the incen tives for a broadly balanced expansion of demand 
and supply.  With stock levels generally still low from a long-run pe rspective, food markets continue 
to be vulnerable to further supply shocks.  Specific ri sks in the short term include the La Niña weather 
pattern but also trade bans imposed in response to  harvest shortfalls in key producer countries. 
2. The recent crisis and recovery:  the IMF response 
36.
 The IMF responded quickly to the global economic  crisis with record-breaking levels of 
financial assistance to its members, while overhau ling its general lending framework and streamlining 
conditions. G/AG/GEN/94 
Page 8  
 
  (a) Financial assistance
:  The IMF has provided emerging and developing countries with 
about US$189 billion in financial support sin ce the beginning of the crisis, including 
US$6 billion in concessional resources to Low Income Countries (LICs).1  T h i s  
support has eased liquidity constraints and catalyzed donor support, helping countries to implement countercyclical policies and preserve critical social spending.  In 
addition to lending, the general allocati on of Special Drawing Rights (SDRs) of 
US$250 billion helped developing countries re build international reserves without 
having to divert resources from essential public  spending.  In the context of the recent 
reform of lending facilities for LICs, IMF me mbers agreed to raise loan and subsidy 
contributions for the Poverty Reduction and Growth Trust (PRGT) to provide up to 
US$17 billion to low-income countri es in the period through 2014. 
(b) Conditionality
:  The Fund has streamlined cond itionality and refocused it on core 
issues and policies deemed critical for m acroeconomic stability and essential to the 
success of countries' economic programmes.  The Fund is committed to help protect 
the most vulnerable in supporting countries' reform programmes. 
(c) Facilities for emerging markets :  Precautionary arrangements, such as the Flexible 
Credit Line (FCL) and the High Access Precautionary Stand-by Arrangements (HAPAs) have helped stabilize emerging ec onomies and mitigate potential contagion 
effects.  The IMF has recently adopted two further important reforms to its toolkit for 
crisis prevention in emerging economies:  a new Precautionary Credit Line (PCL) was introduced for members with sound economic policies and only moderate 
vulnerabilities, and the FCL was improved to  allow for more flexible access for a 
longer period of time.  The rigorous qualification processes for these credit lines, with conditionality in the PCL focusing on remaining vulnerabilities, will broaden the availability of insurance instruments to IMF members while protecting resources and 
limiting the risk of moral hazard. 
(d) Support for LICs
:  The IMF also remains firmly committed to assisting LICs in 
facing the uncertainties of the global economic environment.  The IMF has reformed its lending facilities for LICs, significantly  increased its medium-term concessional 
lending capacity, and eliminated interest charges on all concessional IMF lending until 2012.  In addition to these reform s, the IMF has established a new Post-
Catastrophe Debt Relief (PCDR) Trust that a llows the IMF to join international debt 
relief efforts for very poor countries that are hit by the most catastrophic of natural 
disasters.  In July 2010, the new Trust was u sed to provide full debt relief to Haiti, the 
equivalent of US$268 million, following the devastating earthquake in January. 
(e) Debt relief and debt policy
:  Significant progress continues to be made in reducing 
the debt burden of LICs under the Heavily Indebted Poor Countries (HIPC) Initiative 
and the Multilateral Debt Relief Initiative (MDRI).  This year, the Democratic 
Republic of Congo and Liberia reached the completion point (the second and final 
step under the HIPC Initiative and MDRI) and received irrevocable debt relief. 
Moreover, Comoros reached the decision point  (the first step under HIPC/MDRI) and 
began to receive interim relief.  All in all, 30 of the 40 HIPCs have reached the 
completion point and 36 have reached the d ecision point.  A number of LICs with 
IMF-supported programmes have begun to ta ke advantage of IMF's new policy on 
debt limits.  The new policy is designed to provide more flexibility for borrowing 
                                                      
1 References to LICs (the 72 countries eligible to  borrow under the IMF concessional lending facilities, 
within the Poverty Reduction and Growth  Trust) include most LDCs but only  some NFIDCs.  Countries that fall 
outside the LIC classification are eligible for support under alternative IMF facilities.  G/AG/GEN/94 
 Page 9 
 
 
  strategies.  It is based on an assessment of the risk to debt sustainability and of the 
authorities' capacity to manage public resources, providing space for some non-concessional borrowing to finance public spending, including key infrastructure 
investments. 
3. The enhanced modalities of IMF support to LICs and NFIDCs 
37. The IMF, working with other deve lopment partners, will continue its efforts to help LICs and 
NFIDCs meet their key challenges: 
(a) Investing in infrastructure
:  Mindful of the large infrast ructure investment needs, the 
IMF is helping countries strengthen dom estic revenue perfo rmance, boost their 
capacity to make productive investments, and borrow safely. In this context, the IMF 
and the World Bank are working on tools to help countries assess their capacity to 
manage public investment.  The IMF is he lping to build capacity to handle the 
macroeconomic management of aid inflow s, debt management, public financial 
management, tax policy and administration, and the fiscal challenges faced by natural resource-rich economies.  With the help from donors, the IMF is strengthening its 
network of regional technical assistance centers, particularly in Africa and Central 
Asia. 
(b) Reducing risk
:  IMF is working with countries to rebuild the macroeconomic policy 
buffers, which served them well during the crisis.  To improve the analysis of low-income country vulnerabilities, IMF is deve loping a new "vulnerability exercise" for 
LICs to parallel the efforts made in recen t years for advanced and emerging market 
economies.  At the same time, the interna tional community needs to help LICs make 
their economies more resilient to shocks.  In  this regard, several policy options could 
be considered, including a deepening of dom estic financial systems, the introduction 
or expansion of well-targeted social safety-nets, contingent repayment terms on official borrowing, and the development of markets for special instruments such as 
terms-of-trade indexed debt. 
(c) Helping countries in fragile situations
:  IMF is launching a review of its engagement 
in countries in fragile situations.  In light  of the particular macroeconomic challenges 
in these countries, the IMF is considering, in close collaboration with other partners, 
how the IMF can improve its effectiveness in providing technical, policy and financial support to these countries. 
4. IMF support for initiatives at the global level 
38. The framework of international collaboration has been strengthened in response to the crisis, 
including through the G-20's Mutual Assessment Process.  To be effective, the efforts to secure the 
global recovery and implement the reforms needed to  prevent future crises must continue to be 
cooperative.  In this regard, the following areas should be highlighted: 
(a) Macroeconomic and financial policies
:  The crisis highlighted shortcomings in the 
identification of risks to global economic st ability.  In order to achieve a sustained 
and balanced recovery, countries must work collaboratively and refrain from policy actions that detract from this shared goal.  The Fund has continued to strengthen the analytical underpinnings of early warni ng to capture cross-country spill-overs and 
macro-financial linkages.  Important steps have been taken to make financial sectors 
safer around the world, but the unfinished age nda is still substantia l, particularly for 
cross-border finance and macro prudential regulation.  All this suggests serious G/AG/GEN/94 
Page 10  
 
  vulnerabilities and challenges remain, re quiring continued policy cooperation and 
collaboration. 
(b) Trade openness
:  The IMF has been a firm and consistent advocate of open trade as 
an engine for economic growth and poverty reduction.  A new impetus is needed on 
global trade reforms that have the potentia l to unleash new sources of productivity 
and growth in developing countries.  Adva nced and major emerging market countries 
should act now by expanding and simplifying trade preferences, focusing on the poorest countries, and tackling trade-distorti ng agricultural subsidies.  Concluding the 
Doha Round should be a priority.   
(c) Aid for Trade
:  The IMF participates with other organizations in the Aid For Trade 
initiative and is a core agency in the E nhanced Integrated Framework (EIF) for 
LDCs.  
(d) The MDGs :  The IMF continues to work with ot her agencies to help bring the MDGs 
to fruition, including by participating in initiatives such as the MDG GAP Task 
Force.  Collective efforts are called for to ensure that the Gleneagles promises on aid 
are kept, allowing developing countries to finance urgent infrastructure needs and 
respond to the challenges of climate change. 
E. UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD) 
1. Commodity prices and food (in)security 
39. Since 2002, international commodity prices have  experienced sustained increases, rising to 
unprecedented levels in the first half  of 2008.  Food prices rose by more than 100 per cent.  In the case 
of LDCs, this meant that the import bill increased from US$11 billion in 2002 to almost 
US$52 billion in 2008. 
40. In the second half of 2008 and early 2009, co mmodity prices fell sharply.  By December 
2008, average food prices had fallen by more than 30 per cent.  Prices rose again in 2009, remained 
stable at a relatively high level during the first half of 2010 and rose sharply in the second half of 
2010.  In October 2010, the FAO world food price in dex was only 8 per cent below its all-time high 
from June 2008.2 
41. Commodities trade has traditionally been more volatile than overall manufacturing trade and 
this has been a concern for exporting and importing countries alike.3  For NFIDCs, both the high level 
and the volatility of food prices is of great concern.  This is pa rticularly true for volatility in 
agricultural markets as price fluctuations in tho se markets have strong effects on real incomes, 
especially in LDCs, where the population spends a hi gh share of income on food (e.g. 55 per cent in 
Bangladesh, 77 per cent Burundi, 63 per cent Cambodia, 67 per cent Malawi).  There is no consensus in the literature as to whether volatility has increased in recent years, but many analysts expect that 
volatility will increase in the future.
4  
                                                      
2 Among commodity groups, not all prices have evolved in the same manner.  For instance, wheat and 
coffee experienced a sustained upward trend (due to c limatic conditions, in the case of wheat and sustained 
consumption despite the crisis, in the case of coffee) while  prices of rice, maize and vegetable oilseeds and oils 
have fluctuated more. 
3 UNCTAD, Trade and Development Report 2008 . 
4 Jacks, David, Kevin O'Rourke and Jeffrey Williamson, Commodity Price Volatility and World Market 
Integration since 1700 , 2009;  National Bureau of Economic Research, NBER Working Paper 14748   G/AG/GEN/94 
 Page 11 
 
 
  42. Both the proportion and the number of undernou rished people have declined in 2010 
compared to 2009 as the global economy recovers a nd food prices remain below their peak levels.5  
But under-nourishment remains higher than before the food and economic crisis, making it ever more 
difficult to achieve the hunger reduction targets of the MDGs.  Furthermore, the most recent rise of 
food prices may again lead to increasing numbers of undernourished people. 
2. Trade and productive capacity in LDCs and NFIDCs 
43. Agricultural performance in LDCs has been  very poor since 1970.  Food production per 
capita declined from 1970 to 2005, though the level h as stabilized since the 1990s.  However, there 
are significant regional variations in the trends.  In many African LDCs, staple food production is 
largely rain-fed and experiences large fluctuati ons caused by climatic variability.  This has 
contributed to a decline in per capita staple  food production.  Where rapid increases in food 
production per capita exist, most often the reas on is the development and application of new 
agricultural technologies.  One of the major cons traints to increasing agricultural production and 
domestic food supply in LDCs is slow agricultura l productivity growth.  In many LDCs, agricultural 
productivity has been stagnant since the 1960s. 
44. The food production performance of LDCs is reflected in their tr ade structure.  The value of 
LDCs food imports has increased more sinc e 2000 than the value of their food exports.6  Thus, LDCs 
rely increasingly on international food supply, highli ghting the importance of the Marrakesh Decision 
on LDCs and NFIDCs. 
45. In addition, many LDCs and NFIDCs have b ecome increasingly vulnerable and exposed to 
phenomena related to climate change.  In this rega rd, recent research suggests that by 2080, cereal 
yields in more than 40 developing countries - mainly in Sub-Saharan Africa - ar e expected to decline, 
with mean losses of about 15 per cent.7 
3. The international trading system and Doha Round 
46. LDCs and NFIDCs require special attention in the current context.  They depend on 
international markets and reliable access to food.  The potential adverse effect on NFIDCs of certain 
instruments that are used to stabilize domestic  food prices but that can accentuate world price 
fluctuations should be taken into account.  Export  subsidies are counter-cyclical and depress world 
market prices in times of surplus.  When food pr ices are high, export restrictions can trigger a self-
reinforcing spiral of rising world prices at the expense of importing countries. 
47. Another policy instrument could be the sp ecial agricultural safeguard mechanism for 
developing countries "SSM" that would allow developing  countries to temporarily raise their tariffs in 
the case of low import prices or import surges.  Th is instrument could stabilize domestic prices and 
encourage production of agricultural goods in NFID Cs with associated positive effects on food 
security.  Such special and differential treatment provisions that provide de veloping countries with 
more flexibility would contribute to implement the Marrakesh Decision. 
48. Furthermore, aid flows to support agriculture are not sufficient and unevenly distributed.  The 
aid architecture should maximize chances that food production re lated assistance will serve as a 
strong basis for food security in the long term. 
                                                                                                                                                                     
(Cambridge);  World Bank, Global Economic Prospects , 2010;  IMF, World Economic and Financial Survey , 
Washington DC., 2009. 
5 FAO, The State of Food Insecurity in the World 2010 . 
6 Based on UN Comtrade data and FAO statistics. 
7 Fischer et al. (2005) cited in International Food Policy Research Institute, IFPRI (2008). G/AG/GEN/94 
Page 12  
 
  49. Speculation has increasingly been associated w ith recent commodity price volatility.  In 
recent years, the number of transactions of non-tr aditional investors has increased significantly.  
Although there is no consensus on the effect of specul ations in the literature some evidence suggests 
that speculations have magnified commodity price fluctuations. 
50. Promoting productivity growth in basic staples should be a major regional priority for policy 
makers especially in Africa.  To some extent, this is reflected in recent African Union and New 
Partnership for Africa's Development initiatives.  An increasing productivity could reduce their 
dependence on food imports and may thus make a positive contribution to food security as well as to 
the much needed structural change.
8  A situation as it is found in most LDCs where a majority of the 
population is employed in the agricultural sector and where at the same time large parts of the 
population are food insecure needs to be overcome.  This would address the structural causes of the 
food crisis and support agricultural livelihoods. 
F. WORLD FOOD PROGRAMME (WFP) 
1. The state of food insecurity  
51. As the global economy recovers, the number  of people experiencing hunger has declined 
from 1.2 billion in 2009 to 925 million in 2010.  After increasing from 2006 to 2009, due to high food 
prices and the global economic crisis, the decrease is encouraging.  But hunger remains a critical issue 
for countries around the world.  Volatile food prices,  storms, floods, earthquakes and conflicts have 
plunged tens of millions into vulnerability just in  the last eight months.  With the devastating 
earthquake in Haiti, life threatening drought in Sahel and epic level fl ooding in Pakistan, the 
Philippines and China, livelihoods and access to f ood of more than 50 million people have been 
disrupted. 
52. These events are a stark reminder of two points:  first, the world needs sustained commitment 
to food security through both development and humanitarian action and second, global recovery 
through economic growth - while essential - will no t be sufficient to eliminate hunger within an 
acceptable period of time.  
53. Today, the face of hunger in the world is most likely to be that of a small-holder farmer and 
his/her family, in both low income food deficit count ries but also in countries that have experienced 
unprecedented economic growth and high reductions in pove rty in the last few years.  India has raised 
incomes, lifted people out of poverty and moved fr om food deficits to food surpluses but remains 
home to more undernourished people than live in all of Sub-Saharan Africa.  While economic growth 
plays an important role in hunger reduction, in many countries where incomes have increased 
substantially, malnutrition has not declined corr espondingly.  A World Bank study estimated that, 
with per capita income growth of 2.5 per cent pe r annum, the average reduction in the fraction of 
underweight children would be between 27 and 34  per cent by 2015, too little to achieve the 
underweight indicator of MDG 1.  The poor become hungry for many reasons, ranging from volatilities on the global commodity markets to conflict, disease, marginalization, discrimination, bad 
governance and natural disasters. 
2. WFP response and actions 
54. With these facts in mind, it is clear that food security requires a global and integrated 
approach.  Because food insecurity is experienced  on a daily basis by hundreds of millions of 
individuals, it requires concerted and cooperative global action. With the support of its executive 
board, WFP is leading the way in several critical areas, of which: 
                                                     
 
8 UNCTAD LDC report 2009.  G/AG/GEN/94 
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  (a) Targeted Nutrition – the right food, for the right people at the right time – especially 
for those under two years of age. 
(b) Innovative Programming - where WFP is deploy ing the tools approved in its Strategic 
Plan, such as Purchase for Progress (P4P), local purchase, and cash and vouchers in emergency response as well as in-country led food security plans.  
55. With its new "food assistance" approach, WFP stri ves to respond to the challenges of hunger.  
WFP is a global provider of safety-nets for the bottom ten per cent of the bottom billion.  In many countries where WFP works, social protection is becoming a way to move away from annual relief 
programmes to multi-year, more predictable system s that enhance the eff ectiveness, efficiency, 
coverage and coordination of ex isting programmes.  If properly designed and managed, social 
protection offers a platform to reduce the need for future assistance and enha nce country ownership of 
programmes and processes.  WFP's engagement in social protection focuses on social safety nets including school feeding, mother and child pr ogrammes, vulnerable group assistance such as those 
living with HIV/AIDS, asset creation programmes an d climate risk management tools.  While food-
based programmes represent the cornerstone of WFP assistance, including national food fortification 
strategies with governments, they have been co mplemented by tools such  as cash transfers and 
vouchers.  Under certain conditions , i.e. in places where there are functioning markets but people 
cannot afford to purchase the food, cash and vouc hers enhance access to food and stimulate local 
markets, also giving people a choice in what they buy.  In 2009, WFP had 27 cash/voucher programmes;  in 2010 the number will increase to 69.  When feasible, these programmes are also deployed in emergency and recovery si tuations such as in Haiti and Pakistan. 
56. WFP is also involved in innovative climate risk management tools.  Farmers in Ethiopia and 
China benefit from WFP insurance schemes to protect  against exceptional droughts and floods.  These 
weather-index insurance products that currently ar e being piloted will soon be combined with 
traditional disaster risk reduction tools such as ca sh or food for assets programmes.  Designing and 
implementing ex ante  interventions are crucial to both emer gency risk financi ng and development 
programming.  In the short term, these instrume nts – which are growing in importance under the 
threat of global climate change – seek to build res ilience against the effects of extreme weather events 
that displace or wipe out the assets defining food  security, and thus prevent the negative coping 
strategies that provoke plunges into mutually reinfo rcing poverty and hunger traps.  In the long term, 
climate risk insurance can stimulate behavioural ad justments that allow individuals, communities and 
countries to accommodate changes in climate pattern s, thereby protecting key natural, ecological, 
human and economic assets from degradation and disp lacement, and thus safeguarding food security. 
57. WFP's substantial food procurem ent continued in 2009.  In 2009, WFP procured 2.6 million 
tonnes of food, including 2.1 million tonnes in 75 developing countries.
9 
58. An important step to improve global food secu rity is empowering farmers in developing 
countries to contribute to local and regional food needs.  Efforts to indu ce sustainable increases in 
small-holder incomes must combine supply-side in terventions designed to raise farm productivity 
with measures that reduce market  volatility and enhance farmers' access to sources of stable and 
sustainable demand for their farm products. This is precisely the aim of WFP's P4P initiative that 
purchases food directly from small-holder farmers and their associations/cooperatives to build their 
capacity to compete in local and regional markets.10  Together with many partners, the initiative 
provides technical expertise in agricultural and ma rket development, and in connecting farmers to 
markets.  Twenty-one pilot countries are now part of  the initiative.  In 2009, 40 farmers' organizations 
with more than 45,000 members sold food commodities to WFP.  Two years since launching, WFP 
                                                      
9 http://documents.wfp.org/stellent/groups/ public/documents/newsroom/wfp215810.pdf . 
10 See http://www.wfp.org/purchase-progress  for details. G/AG/GEN/94 
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  has purchased 118,000 metric tonnes of food in 20 P4 P countries.  To date, WF P and its partners have 
trained more than 17,300 farmers and warehouse ope rators.  Training topics include contracting, 
agricultural production, quality specifications incl uding food safety, post-harvest handling, group 
marketing, commercialization, and managing agricultural finance. 
59. Any attempt to end hunger is incomplete wit hout addressing under-nutrition.  There is now 
global consensus that children suffer permanent me ntal and physical damage if they don't receive 
adequate nutrition in their early years.  In 2007, a dramatic paradigm shift took place when ready-to- 
use therapeutic foods were shown to be effectiv e.  In 2008, WFP, in collaboration with WHO, 
UNICEF, and UNHCR, revised its guidelines to include  the use of nutritional products for children 
6-23 months of age and all pregnant and lacta ting women.  In 2009, WFP approved a "Nutrition 
Improvement Approach" (NIA) corporate policy that prioritizes the need to effectively prevent and 
treat child under nutrition by providing the " Right Foods at the Right Time ".  These changes are 
essential, because scientific eviden ce tells us just how vital it is to reach undernourished children 
during the first 1,000 days.  WFP is now rapidly in creasing the number of children and pregnant and 
lactating women who receive new nutritionally enhanced food products.  In 2009, WFP supported 
eight times more beneficiaries than in 2008 and in 2010, WFP coverage will increase to nearly 
2 million children (under 5) and pr egnant and lactating women. 
60. Two concrete examples:  in the face of widespread malnutrition earlier this year, WFP's three-
pronged programme to support the Government of Niger included blanket feeding (which provides a 
family ration as well as special nutritional products  for children) helped manage a potentially 
catastrophic situation that was threatening an enti re generation.  Earlier this year, our blanket 
supplementary feeding in Haiti covered all childre n 6-59 months as well as pregnant and lactating 
women, providing supplementary plumpy, high energy  biscuits, and corn soy blend, sugar and oil as 
the country began to recover. WFP is making a bi g effort to produce nutritional products locally 
whenever possible. 
3. Global initiatives to address food insecurity 
61. WFP underlines the importance of coordinated gl obal action to address food insecurity.  This 
year has seen many important events in this regard. 
62. The 36
th Plenary Session of the reformed Committee on Food Security (CFS) was held in 
October 2010.  The reformed CFS, with its se cretariat managed by all three Rome-based UN 
agencies, now includes a wide range of stakeholde rs from civil society, nations, NGOs, the private 
sector, international financial institutions and the fu ll participation of the United Nations through the 
Special Representative of the Secretary-General.  Its mandate now covers the full spectrum of food 
security, from agriculture to supporting small-holder farms, food markets to nutrition, food safety-nets 
to emergency action to prevent famines and reach the most vulnerable of the world's hungry.  WFP will, as required, follow, and contribute to, the requ est to the new High Level Panel of Experts of the 
CFS to undertake studies on:  (1) price volatility, and all of its causes and consequences;  (2) social 
protection and ways to lessen vulnerability through social and productive safety-nets programmes and 
policies;  (3) respective roles of large-scale planta tions and of small-scale farming;  and (4) existing 
assessments and initiatives on the effects of climat e change on food security and nutrition, including 
adaptation and mitigation policies. 
63. WFP's capacity in food price volatility monito ring draws from a number of ongoing strengths:  
its capacity at assessing vulnerability at deep fiel d level; its major global, regional and local food 
procurement operations;  its frontline operational role in addressing the impact of high prices and 
volatility on vulnerability, as seen during the food cr isis.  This was demonstrated when WFP provided 
food assistance in food insecure nations to vulnerable people unable to afford higher food prices;  by  G/AG/GEN/94 
 Page 15 
 
 
  helping nations affected by food export bans, si nce nations at the Rome Summit pledged to make 
humanitarian exemptions in such cases. 
64. The High Level Task Force on the global Food Security Crises, on which both WTO and 
WFP are represented, released an updated comprehe nsive framework for action at the CFS session in 
Rome.  The update seeks to better reflect how the UN system advises national authorities and other 
stakeholders engaged in food and nutrition security.  The updated framework is still based on the twin 
track approach but now prioritizes environmental su stainability, gender equity, the prerequisites for 
improved nutrition and the needs of those least able to  secure their right to food.  It hopes to inspire 
efforts to coordinated and synergized action. 
65. WFP is forging new or stronger relationships  with the African Union, NEPAD, ECOWAS, 
COMESA and other regional organizations.  In addition, WFP is also continuing its critical 
partnerships with the private sector.  In fact, the private sector is now WFP's fifth largest donor 
(US$119 million).  For the last two major emergenc ies – Haiti and Pakistan – the private sector 
contributed US$79 million to WFP. 
66. The Scaling Up Nutrition (SUN) initiative, la unched by the World Bank in 2009, is 
galvanizing and changing the perspective on why an d how to address undernutrition.  WFP has been a 
very active member in the development of this mu lti-stakeholder global nutrition initiative - including 
the development of the SUN Framework for Action and Roadmap – which has been endorsed by over 
100 organizations internationally.  WFP's Nutriti on Improvement approach, centered on women and 
children, and targeting prevention and treatment of malnutrition, and delivering safe, highly nutritious 
foods, is in line with the SUN initiative.11 
67. WFP is concerned by the continued decrease in "safe" humanitarian space.  Threats and 
attacks on humanitarian workers are up worldwid e and as was tragically seen in Somalia and 
Pakistan, WFP is not immune.  Just a few weeks ago there was a terrible attack on the UN compound 
in Herat, Afghanistan.  And just a few days ago,  a three-member UNHAS helicopter crew working for 
WFP was kidnapped in South Darfur. 
4. Conclusions 
68. The number of people experiencing hunger has sli ghtly declined in 2010 compared to last 
year.  While prices have declined, this has not b een the case for the poorest in many countries.  WFP 
will continue to be engaged in m onitoring and responding to volatility of food prices, their causes and 
effects.  In many countries where incomes have in creased substantially, malnutrition has not declined 
correspondingly. 
69. Especially because this is no longer a "food surplus world", WFP addresses hunger with a 
versatile, flexible, tailor-made and coordinated approach, increasingl y using new and context-specific 
tools.  In view of the ongoing discussions on the F ood Aid Convention, WFP can make its experience 
and knowledge available to the parties. 
70. Coordinated global action is essential to address f ood and nutrition insecurity.  It is positive to 
note that more countries are developing cohere nt food security strategies – integrating food 
production with food access and safety-nets with pr oper nutrition – especially for young children. 
71. WFP recommends keeping up the momentum and the funding, both at national level, through 
proper budgetary allocations, as well as at the intern ational level, through support for the agencies and 
partners which are working on the front line of hunger. 
                                                      
11 http://un-foodsecurity.org/sites/defa ult/files/SUN_FRAMEWORK_POLICY.PDF . G/AG/GEN/94 
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  ANNEX 1 
 
  
European Commission‘‘An EU policy framework to assist developing countries in An EU policy framework to assist developing countries in 
addressing food security challenges’addressing food security challenges’
Willem OlthofWillem Olthof
Geneva Geneva 
18 November 201018 November 2010
 
 
  
European CommissionStructure of the presentationStructure of the presentation
¾Background
¾Rationale
¾Process
¾Policy Approach
¾Priorities & Focus Areas
¾Next Steps
 
  G/AG/GEN/94 
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European CommissionBackgroundBackground
EU (EC + MS) is the biggest donor in the world 
Estimate: > € 55 bn in 2010
About 56% of global assistance
Food Security is an increasingly important theme in 
development cooperation, globally and in EU
Various financing instruments at EU level:
Food Facility (€ 1 billion; 2009-2011)
Food Security Thematic Programme (about € 250 million per 
annum)
Geographical programmes (e.g. EDF)
 
 
 
 
European CommissionRationaleRationale
Commission Communication; initiative related to 
various factors :
¾Hunger and malnutrition have increased in the 
world
¾MDG1 off-track
¾Global initiatives on food security (UN HLTF, GPAFSN, 
AFSI, CFS reform )
¾New food security challenges: pressures on natural resources, impacts of climate change
¾New food security issues: nutrition, price volatility, 
right to food, bioenergies, land acquisition
 
 
 
 
 G/AG/GEN/94 
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European CommissionProcessProcess
¾Online public consultation on Issues Paper , Nov 2009-
Jan 2010
¾Meetings with various stakeholders (civil society, 
Member States), end 2009, early 2010
¾Inter-services consultation, Feb. 2010
¾Adoption of Communication by Commission: 31 March 2010
¾Discussion with Member States (CODEV) -> drafting of Council Conclusions, April 2010
¾Council adoption: 10 May 2010
 
 
 
 
European CommissionApproach of the Policy FrameworkApproach of the Policy Framework
¾EU should give new impetus to achieving the MDGs:
¾MDG 1 – eradicating extreme poverty and hunger
¾Looking at countries most off-track: fragile countries
¾MDG1 is most off-track particularly in Africa, 
¾Most of the poor and hungry in the world live in rural 
areas , where agriculture forms the main economic 
activity
¾Evidence shows that investments in the smallholdersector yield the best returns in terms of poverty reduction and growth 
 
 
 
 
  G/AG/GEN/94 
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European CommissionPolicy Policy ApproachApproach (cont(cont ’’d)d)
¾The proposed policy framework addresses food
insecurity accross the 4 pillars :
¾1) Increasing availability of food
¾2) Improving access to food
¾3) Improving nutritional adequacy of food intake
¾4) Enhancing crisis prevention and management
¾To be effective, assistance needs to be adapted to the 
country/regional context
¾Adherence to ‘Rome Principles’
 
 
 
 
European CommissionPrioritiesPriorities
¾The CommunicationCommunication proposes that the EU should 
prioritise 4 broad and related dimensions:
¾1) Improve smallholder resilience and rural livelihoods
¾2) Support effective governance
¾3) Support regional agriculture and food security
policies
¾4) Strengthen assistance mechanisms for vulnerable
population groups
¾Listing of 14 priority policy lines
 
 
 
 
 G/AG/GEN/94 
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European CommissionFocus on SmallholdersFocus on Smallholders
¾Sustainable small-scale food production as a main focal 
area of EU assistance:
¾Ecologically efficient intensification
¾Value chain approach (with due attention to financing, processing and 
markets)
¾Governance key; particularly around land
¾Demand-driven research and innovation (incl. adaptation to climate change) -> increase support by 50% in 2015
¾Reducing post-harvest losses
 
 
 
 
European CommissionFocus on GovernanceFocus on Governance
Access to Access to land and other resourcesland and other resources --> support work on > support work on 
internationally agreed guidelines and principles internationally agreed guidelines and principles 
Responsible Responsible agricultural investmentsagricultural investments --> maximisation of > maximisation of 
social, economic and environmental benefits for the social, economic and environmental benefits for the 
country country 
Promote Promote Policy Coherence for DevelopmentPolicy Coherence for Development
Enhance coherence of Enhance coherence of internationalinternational food security food security 
governancegovernance --> support the reform of the CFS> support the reform of the CFS
Rationalise priorities of Rationalise priorities of RomeRome --Based UN AgenciesBased UN Agencies (FAO, (FAO, 
IFAD, WFP) and improv e cooperation/synergies IFAD, WFP) and improv e cooperation/synergies
 
 
 
 
  G/AG/GEN/94 
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European CommissionFocus on Regional DimensionFocus on Regional Dimension
Support regionalSupport regional --level level policies and strategiespolicies and strategies on on 
agriculture and food securityagriculture and food security
Support integration of regional food and agricultural Support integration of regional food and agricultural 
marketsmarkets
Reinforce regional Reinforce regional information systemsinformation systems for agriculture for agriculture 
and food security (incl. nutrition)and food security (incl. nutrition)
 
 
 
 
European CommissionFocus on VulnerabilityFocus on Vulnerability
Support partner countries in establishing and operating Support partner countries in establishing and operating 
social mechanismssocial mechanisms in support of vulnerable population in support of vulnerable population 
groupsgroups
Safety netsSafety nets
Targeted nutrition supportTargeted nutrition support
Support Support ‘‘RightRight --toto--FoodFood ’’approachapproach
Better link Relief, Rehabilitation and Development (Better link Relief, Rehabilitation and Development ( LRRDLRRD ))
Address (effects of) Address (effects of) price volatilityprice volatility
 
 
 
 
 G/AG/GEN/94 
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European CommissionFollowFollow --upup
General - Implementation Plan
Under preparation; EU coverage
Translates policy proposals in activities and expected results
Covers both policy and financial sides
Financing - Food Security Thematic Programme:
€ 750 million for 3 years (2011-2013)
Three priority areas: (i) research & innovation; (ii) governance
for food security; and (iii) food security in fragile country 
situations (chronic malnutrition; LRRD) -> about 25 countries
 
 
 
  G/AG/GEN/94 
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  ANNEX 2 
 
  
1Communication from the Commission to the 
Council and the European Parliament
Presentation by DG-ECHO to
WTO Committee on Agriculture
GENEVA, 18thNovember 2010Humanitarian Food Assistance
 
 
 
 
2RATIONALE
• Hunger Trends
– General increase in vulner ability and humanitarian needs. 
– 2006 – 2009: 172 million additional food-insecure and 
undernourished globally. 
– 2003 – 2006: prevalence of acute malnutrition in under-5s 
increased from 8% - 11%.
– Climate change, conflict, food price rises.
 
 G/AG/GEN/94 
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3RATIONALE
• Policy Environment
– Shift away from “surplus disposal” towards “meeting 
needs”. 
– Shifts in conceptual understanding of causes of transient 
food-insecurity. New models of best practice for tackling 
hunger in crisis, beyond in-kind food aid provision.
– European Consensus on Humanitarian Aid
• Action Plan: “Elaborate diversified approaches and interventions
to food assistance” and “adjust policy” (AP 13)
– 2007 transfer of responsibility for emergency food 
operations from DG AIDCO to DG ECHO (incl. food aid budget line).
 
 
  
4PROCESS
• Extensive 12 months st akeholder consultation
– Internal Consultation 
• All relevant EC services.
• Close coordination especially with DEV’s food-security policy 
process.
– External Consultation
• MS, other donors, UN/NGO/Red X partners, research, 
academics.
• Questionnaire - Jan ‘09• Stakeholders’ Roundtable - June ’09
 
  G/AG/GEN/94 
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5PROCESS
•Adoption by the College 31stMarch 2010
–Communication on Humanitarian Food Assistance
• Main policy lines for EU and Member States
• Definitions, objectives, scope, principles.
• Synchronised and articulated with DG DEV’s Food Security 
Communication.
– Accompanying Staff Working Document
• Commission implementation of HFA
• Operational perspectives / examples
•Council Conclusions adopted by Foreign Affairs 
Council May 10th 2010
• All EU MS endorse main elements of HFA Communication.
 
 
  
6CONCEPTS AND DEFINITIONS
•F r o m  FOOD AID to FOOD ASSISTANCE
– Addressing food availability , food access , and food utilisation .
– Acknowledging the importance of other non-food dimensions (eg 
public health, education) in determining nutritional outcomes and influencing feeding practices.
– Understanding the role of livelihoods and coping strategies .
–D e l i v e r i n g  m o r e  appropriate and effective assistance, based on 
diversified responses using a variety of potential tools (eg cash , 
agricultural inputs, food). 
 
 G/AG/GEN/94 
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7OBJECTIVES
• To safeguard the availability of, access to, and consumption of 
adequate, safe and nutritious food for populations affected by ongoing
, firmly forecasted , or recent humanitarian crises , so as 
to avoid excessive mortality, acute malnutrition, or other life-threatening effects and consequences;
•T o  protect livelihoods
threatened by recent, ongoing, or 
imminent crises, minimise damage to food production and 
marketing systems, and establish conditions to promote the
rehabilitation and restoration of self reliance ;  and
•T o  strengthen the capacities of the international humanitarian 
aid system, to enhance efficiency and effectiveness in the delivery of food assistance.
 
 
  
8PRINCIPLES / APPROACHES
Humanitarian Food Assistance should:
– Respect and promote core humanitarian principles .
• Impartiality, neutrality, independence.
–B e  needs-based , evidence-based , and results-focused .
• Strong needs assessments to precede action.
• Response analysis Æmost appropriate tools (incl CASH)
• Routine monitoring and evaluation.
• Centrality of outcome indicators (nb food consumption).
–Do no harm and preserve human dignity.
• Avoiding market distortion.
• Avoiding dependency.
• Minimising environmental and conflict risks.
 
  G/AG/GEN/94 
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9PRINCIPLES / APPROACHES
Humanitarian Food Assistance should :
– Involve beneficiaries, and incorporate gender , protection , 
livelihood , risk-reduction and nutrition perspectives, in needs 
assessment, response design and implementation.
• Centrality of livelihoods in emergencies (reinforcement, protection 
and recovery).
• Food safety, quality (macro/micro-nutrient), acceptability.
• Special nutritional needs of specific groups ( under-2s ).
– Seize concurrent secondary opportunities to benefit local farmers 
and promote self-reliance.
•Local / regional procurement
• Protect / strengthen local capacities for self-reliance and coping, 
and national capacities for disaster mitigation, during response.
 
 
  
10PRINCIPLES / APPROACHES
Humanitarian Food Assistance should:
• Consider carefully its c omparative advantage relative to other 
actors.
• Limitations of humanitarian instruments (timeframe, predictability, 
national partnerships)
• For chronic needs, DRR and disaster management – development 
actors more appropriate.
•Advocacy for state / development responsibility.
• Pursue LRRD objectives that ensure optimal impact on 
humanitarian symptoms and on structural root causes of food-
insecurity.
• Foster strong coordination.
• Emergency Food Security Cluster with links to global governance 
architecture.
 
 G/AG/GEN/94 
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11IMPLICATIONS FOR FAC
• Existing FAC (1999) designed to support country-to-country, surplus Æ
deficit food commodity disposal.
BUT
• Large decline in such aid flows (1995 41% Æ2009 4%).
• Most donors have untied their aid and become cash funders rather than 
commodity providers (nb local procurement). 
• Declining share of programme and project food aid compared to 
emergency food aid (76%), with humanitarian assistance marked byshifts in policy and best practice.
SO
• The FAC must be reformed to reflect and accommodate new food 
assistance policies, new objectives, new tools and modalities (eg needs-based responses including cash, nutrition, livelihoods support).
 
 
  
12WANT TO KNOW MORE?
http://ec.europa.eu/echo/policies/food_assistance_en.htm
 
 
  G/AG/GEN/94 
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  ANNEX 3 
 
 
(Annua l percen t change un less o therwise no ted)
 
2008 2009 2010 2011 2010 2011
  
World output 2.8 -0.6 4.8 4.2 0.2 -0.1
Advanced economies 0.2 -3.2 2.7 2.2 0.1 -0.2
Emerging and developing economies 6.0 2.5 7.1 6.4 0.3 --
    Net Food Importing  Countries 5.7 2.9 4.7 4.8 ... ...
    Purely Net Food Importing  Countries 5.1 1.9 4.3 4.1 ... ...
  Developing Asia 7.7 6.9 9.4 8.4 0.2 -0.1
    China 9.6 9.1 10.5 9.6 -- --
    India 6.4 5.7 9.7 8.4 0.3 --
    ASEAN-5 4.7 1.7 6.6 5.4 0.2 -0.1
  Latin America and the Caribbean 4.3 -1.7 5.7 4.0 0.9 --
    Brazil 5.1 -0.2 7.5 4.1 0.4 -0.1
  Middle East and north Africa 5.0 2.0 4.1 5.1 -0.4 0.2
  S ub-S aharan Africa 5.5 2.6 5.0 5.5 -- -0.4
  Central and eastern Europe 3.0 -3.6 3.7 3.1 0.5 -0.3
  Commonw ealth of Independent 
    S tates 5.3 -6.5 4.3 4.6 -- 0.3
    Russia 5.2 -7.9 4.0 4.3 -0.3 0.2
    Excluding Russia 5.4 -3.2 5.3 5.2 0.9 0.5
Memorandum
World growt h based on market
    exchange rates 1.6 -2.0 3.7 3.3 0.1 -0.1
World trade volume (goods and services) 2.9 -11.0 11.4 7.0 2.4 0.7
Imports
  Advanced economies 0.4 -12.7 10.1 5.2 2.9 0.6
Emerging and developing economies 9.0 -8.2 14.3 9.9 1.8 0.6
    Net Food Importing  Countries 13.7 -3.6 4.4 6.6 ... ...
    Purely Net Food Importing  Countries 10.4 -5.8 3.2 6.3 ... ...
Exports
  Advanced economies 1.9 -12.4 11.0 6.0 2.8 1.0
  Developing countries 4.6 -7.8 11.9 9.1 1.4 0.1
    Net Food Importing  Countries 4.4 -5.6 4.9 6.1 ... ...
    Purely Net Food Importing  Countries 3.4 -8.3 5.1 5.0 ... ...
Commodity prices
Oil 36.4 -36.3 23.3 3.3 1.5 0.3
Nonfuel (average based on w orld 
  commodity export w eights) 7.5 -18.7 16.8 -2.0 1.3 -0.6
Consumer prices
Advanced economies 3.4 0.1 1.4 1.3 -- --
Emerging and developing economies 9.2 5.2 6.2 5.2 -0.1 0.2
    Net Food Importing  Countries 13.8 12.1 10.0 9.9 ... ...
    Purely Net Food Importing  Countries 13.9 13.1 10.8 11.1 ... ...
Six-month London interbank 
  offered rate (LIBOR, percent)
On U.S . dollar deposits 3.0 1.1 0.6 0.8 -- -0.1
On Japanese yen deposits 1.0 0.7 0.6 0.4 0.1 -0.2
On euro deposits 4.6 1.2 0.8 1.0 -- -0.2
  
So ur ce: I MFTable 1 Ov erv iew of the World Economic Outlook  Projections
Difference from Jul y
Current Pro jections 2010 Pro jections 1/
 
 
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