Responding to the
global food crisis –
trade, investment and
commodity policies
and measures
Ralf Krüger
Investment Analysis Branch
Division on Investment and Enterprise
UNCTAD
Comprehensive framework
for action – the UN response
Analytical framework Overview
TRADE
DEMAND/
SUPPLY
PRODUCTIVITY
SPECULATION/
EXPORT
RESTRICTIONS
ENERGY/
BIOFUELS
COMPETITION
TRADE RULES
INVESTMENT
COMMODITY
OTHER
Trade policies and
measures
Policies and measures
• Regional marketing and
trading of food / trade
facilitation
• Use of tariffs for agricultural
development
• Reduce tariffs on agricultural
inputs
• Reduce export subsidies and
other domestic support
measures
• Review barriers to trade in
biofuels
• Review subsidies to biofuel
and feedstock producers
UNCTAD support
• Development of an
endogenous trade policy
• Assessment of agreements
and strategies
• Assistance in trade
negotiations
• Promoting intergovernmental
dialogue
• Promotion of South-South
cooperation
• Introduction of food import
policies
• Elaborating long-term food
procurement agreements
• Analysis on liquidity
constraints of LDCs and net
food importing DCs
International investment
policies and measures
Policies and measures
•
•
•
•
•
UNCTAD support
• In-depth analysis of
Assess trade offs and
investment in agriculture,
mitigation measures
e.g. World Investment Report
Create a more favorable
2009
environment for investments
• Identification and targeting of
into agriculture
potential sources
– Better incentives
• Promotion of policies and
measures to attract private
– More transparent and
investment,
simpler rules
e.g. Investment Policy
Address undercapitalization of
Reviews
agriculture
• Global Network of Exim Banks
Assess biofuel investment
and Development Finance
prospects
Institutions (G-NEXIS) to
promote South-South
Pay special attention to
investments and trade
competition issues
• Design of competition policies
Commodity policies and
measures
Policies and measures
•
•
•
•
•
•
UNCTAD support
• Design of national agriculture
Agricultural commodity sector
commodity development
development policies are
policies to boost production
central
• Assistance in trade
Define mix between food and
negotiations in relation to
export crops
agricultural policies
Create early warning systems
• Analysis on subsidy modes
on food shortages and
sources of food
• Identification of agricultural
sectors and support measures
Assistance to smallholders
• Aid coordination in agriculture
Aid for commodity sector
development
• Advise on commodity financing
instruments / risk management
Reduce transaction costs, e.g.
through commodity
• Provision of market information
exchanges
• Assessing and setting up
commodity exchanges
Technology and other
policies and measures
Policies and measures
UNCTAD support
• Food-related development aid
• Advisory and capacity-building
support balancing urgent and
• Increase ODA for agriculture
(infrastructure, R&D, rural
long-term food security
finance, real-time
• Food security in formulation,
information)
reform, or implementation of
• Improving access to
competition laws
information and technologies
• Choice of technological
/ exchange of best practices
intervention
• Improve capacity to assess
and modify technology
• Role of Science & Technology
• Coordinated response to
• Suitable biofuel policies and
speculation
strategies
• Analysis on speculation
• Reconsider biofuel blending
targets
• Consider diversification of
sources for biofuels
To move ahead…
• Interconnection of policy areas
 mix depends on country situation
• Short vs. long run
 a specific challenge
• How do individual counties’
responses fit into this framework?
More information
• Ralf Krüger
UNCTAD Investment Analysis Branch
[email protected]
tel: +41 22 917 57 92
• Related documents
– http://www.un.org/ga/president/62/letters/cfa160708.p
df (UN comprehensive framework, July 2008)
– http://www.unctad.org/sections/edm_dir/docs/osg_200
8_1_en.pdf (UNCTAD report with recommendations)
– http://www.unctad.org/en/docs/presspb20081_en.pdf
(UNCTAD policy brief)