Are we ready to prevent the next food price crisis?

By Denis Drechsler, Project Manager, Agricultural Market Information System (AMIS), Food and Agriculture Organization of the United Nations

food-crisisWhen prices of staple food crops soared in international markets in 2007-10, it was a wakeup call for many world leaders to take action. In view of millions of families being pushed into hunger, the G20 decided to create the Agricultural Market Information System (AMIS) to combat excessive volatility by enhancing transparency and policy co-ordination in international food markets.

Since its launch in 2011, AMIS has provided more reliable and timely assessments of global food supplies by working closely with the main trading countries of staple food crops. This has created a more level playing field for all market actors to make informed decisions. Even more important have been achievements in the area of policy dialogue. When maize prices spiked in 2012, for example, regular exchanges among the key producing countries helped avoid a repeat of hasty policy action, such as export bans that had exacerbated market turbulences in the past. Through AMIS, it seems, the world is better prepared to minimise the risk of future food price crises.

Continue reading

Energy for the 2030 Agenda

By Dr. Fatih Birol, Executive Director, International Energy Agency

Birol
Africa’s night sky could change dramatically if we achieve “energy for all” by 2030.

The 2030 Agenda for Sustainable Development has been ratified, and access to affordable, reliable, sustainable and modern energy for all by 2030 is a target in its own right (SDG 7). Modern energy is central to achieving global development: it has never been a more important time to understand where the world stands on achieving this target, and to propose pragmatic strategies for achieving universal energy access.1

Achieving modern energy for all is within reach. The number of people without access to electricity fell below 1.1 billion in 2016, from 1.7 billion in 2000. We have undertaken an in-depth assessment of each country’s progress, finding some staggering successes. Half a billion people gained access to electricity in India alone, with government policies putting the country on track to universal access by the early 2020s, a tremendous achievement. Moreover, some countries in sub-Saharan Africa, including Kenya and Ethiopia, are on track to universal electricity access by 2030. However, progress overall has been uneven. Despite current efforts, over 670 million people will still be without electricity by 2030, 90% in sub-Saharan Africa.

Continue reading

Bridging the green investment gap in Latin America: what role for national development finance institutions?

By Maria Netto, Lead Capital Markets and Financial Institutions Specialist, Inter-American Development Bank, and Naeeda Crishna Morgado, Policy Analyst – Green Growth and Investment, OECD              

Green-investmentThe developing world urgently needs more and better infrastructure. Affordable and accessible water supply systems, electricity grids, power plants and transport networks are critical to reducing poverty and ensuring economic growth. The way new infrastructure is built over the next 10 years will determine if we meet the Sustainable Development Goal (SDGs) and the Paris Agreement objectives. Considering the long lifespan of most infrastructure projects, the decisions developing countries make about how they build infrastructure are critical: we can either lock-in carbon intensive and polluting forms of infrastructure, or ‘leap frog’ towards more sustainable pathways.

Many countries in Latin America are making this shift: thirty-two of them have committed to cut their emissions and improve the climate resilience of their economies, in infrastructure and other sectors, through Nationally Determined Contributions (NDCs). The cost is estimated at a staggering USD 80 billion per year over the next decade, roughly three times what these countries currently spend on climate-related activities. What is more, this is in addition to a wide investment gap for delivering development projects and infrastructure overall – the World Bank estimates that  countries in Latin America spend the least on infrastructure among developing regions in the world.
Continue reading

The lost secret of aid efficiency

By Simon Scott, Counsellor, OECD Statistics Directorate

Wilson Schmidt
Wilson Schmidt (1927-81). Photo courtesy of Lisa Hill Corley and George Mason University

In 1963 John Pincus of the RAND Corporation suggested redefining aid to reduce all forms of aid to their value as grant or subsidy, and in 2014 the OECD’s Development Assistance Committee (DAC) agreed to his suggestion. (See an earlier post about this evolution.)

Of course, in the meantime, DAC members had not just been sitting around for 51 years. In 1969 they used Pincus’ “grant equivalent” method in a Recommendation to soften the terms of aid, and in 1972 they used it again to decide which loans were soft enough to count as official development assistance. The World Bank and the IMF also used the method in measures to keep the lid on developing countries’ debt, and the Paris Club used it to equalise creditors’ efforts under different debt relief options.

Yet one potential use of grant equivalents has been thoroughly neglected. Ironically it was the very application of the method that was most discussed 50 years ago, namely its potential to ensure the most efficient use of aid funds.

Continue reading

2030 began yesterday

banner-web-GVC

By Mario Cerutti, Chief Institutional Relations & Sustainability Officer, Lavazza

To learn more about countries’ strategies for economic transformation, learn about the 9th Plenary Meeting of the OECD Initiative for Global Value Chains, Production Transformation and Development hosted by the Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok, Thailand on November 2017.

Lavazza
Image taken from the Lavazza Sustainability Report 2016

On 25 September 2015, 193 countries agreed to 17 Sustainable Development Goals (SDGs) that seek to ‘’end poverty, protect the planet and ensure that all people enjoy peace and prosperity.’’1

Making that vision a reality calls on us all, including business, to renew our commitment to sustainability. What does this mean in practical terms?

Continue reading

Climate Action and Trade Governance: Prospects for Tourism and Travel in Small Island Developing States

banner-web-GVC

By Keith Nurse, Senior Fellow, Sir Arthur Lewis Institute of Social and Economic Studies; World Trade Organization Chair, University of the West Indies.

To learn more about countries’ strategies for economic transformation, learn about the 9th Plenary Meeting of the OECD Initiative for Global Value Chains, Production Transformation and Development hosted by the Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok, Thailand on November 2017.

Keith-Nurse-climate-change-islands-photo-by-
Damage caused to the island of St. Maarten following hurricane Irma. Photo: Shutterstock

2017 will go down as a landmark year given the huge impact of hurricanes on the economic, social and ecological environments in the wider Caribbean. The decimation of several island territories, such as Dominica, Anguilla, Barbuda, St. Maarten, Turks and Caicos, US and British Virgin Islands, and Puerto Rico have taken hundreds of lives and destroyed livelihoods in key sectors like tourism. Take the case of Dominica that had a direct hit from category 5 hurricane Maria on September 18, 2017.1 It is estimated that 35% of the reefs at dive sites in Dominica were damaged, and a month later only 43% of accommodation properties are operational. Hurricane Maria went on to hit Puerto Rico that is now facing a humanitarian crisis.2

Continue reading

What can governments do to harness the potential of new technologies?

banner-web-GVC

By Eduardo Bitran, CEO and Deputy Chairman of the Chilean Economic Development Agency (CORFO).

To learn more about countries’ strategies for economic transformation, learn about the 9th Plenary Meeting of the OECD Initiative for Global Value Chains, Production Transformation and Development hosted by the Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok, Thailand on November 2017.

chile-mining
Facilities to refine the copper from the mine in Chuquicamata, Chile

Chile is considered a success case, and Chileans today are much better off than a decade ago. However, inequality is persistent and the knowledge base of the country is still limited. What the country also faces is a productivity challenge. Chile’s total factor productivity growth has decreased from 2.3% per year in the 1990s, to a yearly rate of 0.3% from 2000 to 2009, and then to -0.2% after 2010. These trends lasted through several government terms. So, what needs to be done to sustain the country on its path towards development?
Continue reading