G20 Development Working Group Submissions
smallholders, face price and yield risks that have
become more manifest with climate change and
volatile food prices, making their incomes more
unpredictable. Similarly, consumers are exposed
to risks concerning price and availability of food,
with potentially serious consequences related to
food security, particularly for poor people. Farmers,
businesses, financial institutions, international
agencies and governments are increasingly seeking
effective and sustainable strategies to mitigate,
transfer or cope with these risks.
To address these challenges, in the Seoul MYAP, the
G20 requested that the FAO, IFAD, the IMF, OECD,
UNCTAD, the WFP, World Bank and WTO work
with key stakeholders to develop options for better
mitigation and management of risks associated
with price volatility of food and other agricultural
commodities without distorting market behavior,
ultimately to protect the most vulnerable.
Alignment with Core G20 and DWG Mandate:
Good risk management in the agriculture sector in
poor countries is essential to improving support for
livelihoods, particularly smallholders' livelihoods,
and to fostering investment in agricultural production.
DWG work on mitigation of food price volatility
is in keeping with G20 efforts to achieve strong,
sustainable, inclusive and resilient growth in LICs.
COMMITMENT 28: Mitigate the adverse effects
of excessive price volatility on the most vulnerable
through the development of appropriate risk-
management instruments
Implementation:
1 2 3 4 5 6
Following up on the targeted report and joint
recommendations of these IOs, G20 Ministers
of Agriculture, in their Action Plan on Food Price
Volatility and Agriculture of 2011, and G20
Leaders, in the Cannes Summit Declaration
of 2011, supported the establishment of an
international agriculture risk management advisory
«Buying food at the market. Solola,
Guatemala.» Credit Photo: Curt Carnemark/
World Bank
and intermediation service, the development of risk
management instruments and the New Partnership
for Africa's Development (NEPAD) initiative to
integrate risk management into agricultural policies
in Africa.
These G20 commitments led to PARM
establishment, which was welcomed by G20
Leaders in the Los Cabos Summit Declaration of
2012. The G20 support was conducive to the roll-
out of such instruments as the IFC Agriculture Price
Risk Management Product. The G20 contributed
to the integration of agriculture risk management in
agricultural policies in the Comprehensive Africa
Agriculture Development Program (CAADP), in
particular through the association with NEPAD in
PARM.
PARM is conceived as a facilitative entity, drawing
from the collective expertise of its contributing
entities, connecting demands in low-income
countries and lower middle-income countries,
notably from governments, farmers and consumer
organizations, rural finance institutions and
value-chain clients, to providers of agriculture
risk management services. It promotes a holistic
approach to agricultural risk management to
address all risks, develop all solutions, and act at
all stages.
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