all the participants to the workshops and symposium as well as the FAO Liaison Office in Japan and Brighten Institute in Indonesia.
Datasets on Agricultural Capital Stock and other statistical indicators were revised and updated through the efforts of Dominic Ballayan, Carola Fabi and Robert Mayo of the Statistics Division. We are thankful to Pascal Liu, Suffyan Koroma, Pedro Arias and Massimo Lafrate of the Trade and Markets Division for supervising and guiding the case studies on foreign investment in agriculture and for contributing in the sections dealing with foreign investment, particularly Section 7.4 of this report. We also extend our thanks to Masataka Fujita and Astrit Sulstarova of UNCTAD for their valuable support on the data and analysis of foreign investment in agriculture.
We are grateful to Calvin Miller, Emilio Hernandez and Nomathemba Mhlanga, the Rural Infrastructure and Agro-industries Division, for their contributions on investment in agro-industries. We are also grateful to Keith Wiebe, Jakob Skoet, Sarah Lowder and Brian Carisma, all from FAO’s Agricultural Development Economics Division, and Daneswar Poonyth of FAO’s Policy and Programme Development Support Division. Special thanks to Peter Hazell (Imperial College, London), Martin Evans, Derek Byerlee, Rita Butzer (University of Chicago), Carlos Seré (International Fund for Agricultural Development), Alberto Valdés (Universidad Católica de Chile), Mahendra Dev (Indira Gandhi Institute for Development Studies), Tewodaj Mogues, International Food Policy Research Institute, Bisaliah Siddinaik, Donato Antiporta and Nasredin Elamin (FAO Regional Office for the Near East and North Africa).
We would like to thank Richard China, Director, FAO Liaison Office with the European Union and Belgium and David Phiri, Principal Adviser with FAO’s Economic and Social Development Department, for providing guidance on the implementation of the project in their previous capacity as Director, Policy and Programme Development Support Division and Chief, Policy Assistance Support Service, respectively.
Finally, we would like to thank Ms Rumiana Uzunova for handling the administrative and logistical matters, helping in the preparation of this publication and harmonizing all other project activities.
Abbreviations and acronyms
| ACS | Agricultural Capital Stock |
| AOI | Agricultural Orientation Index |
| BDT | Bangladesh Taka |
| CFS | Committee on World Food Security |
| CIP | Country Investment Plan |
| CSO | Civil Society Organization |
| DRC | Domestic Resource Cost |
| FDI | Foreign Direct Investment |
| G8 | Group of Eight |
| GATT | General Agreement on Tariffs and Trade |
| GDP | Gross Domestic Product |
| GDS | Gross Domestic Saving |
| GFCF | Gross Fixed Capital Formation |
| HDI | Human Development Index |
| IFAD | International Fund for Agricultural Development |
| IFC | International Finance Corporation |
| IFPRI | International Food Policy Research Institute |
| IMF | International Monetary Fund |
| IPA | Investment Promotion Agency |
| MAFF | Ministry of Agriculture, Forestry and Fisheries of Japan |
| MDG | Millennium Development Goal |
| NEPAD | New Partnership for Africa’s Development |
| NGO | Non-governmental Organization |
| ODA | Official Development Assistance |
| OECD | Organisation for Economic Co-operation and Development |
| PER | Public Expenditure Reviews |
| PPP | Purchasing Power Parity |
| PRAI | Principles for Responsible Agricultural Investment that Respects Rights |
| R&D | Research and Development |
| RRA | Relative Rate of Assistance |
| SME | Small- and Medium-sized Enterprise |
| SOFA | The State of Food and Agriculture |
| SPEED | Statistics of Public Expenditure for Economic Development |
| TFP | Total Factor Productivity |
| UN | United Nations |
| UNCTAD | United Nations Conference on Trade and Development |
| UNDP | United Nations Development Programme |
| UNIDO | United Nations Industrial Development Organization |
| VGGT | Voluntary Guidelines on the Responsible Governance of Tenure of Land |
| WDI | World Development Indicator |
| WTO | World Trade Organization |
Executive summary
As food prices increase and many face greater food insecurity, there is global concern about financing agricultural growth in the developing world. Accelerated agricultural growth is not only needed to meet growing global demand for food and energy, but is also seen as the main pathway out of hunger and poverty for many impoverished people and countries.
Global estimates of the amount of investment needed to achieve acceptable levels of agricultural growth in the developing world vary enormously, but all these estimates far exceed the current trends in investment in agriculture by governments and donors. This report addresses the key questions that need to be addressed if this investment gap is to be filled:
■ Who is going to make the required investments?
■ Where are the needed resources going to come from?
■ What are the policy options to ensure that resources flow to appropriate segments of the agrofood value chain?
■ What are the policy options for guiding these investments to enhance pro-poor outcomes?
SOME NOTABLE FEATURES OF INVESTMENT IN AGRICULTURE
Investment in agriculture must be viewed in the wider economic