May 30, 2018, Washington, D.C.: Economic recovery in Russia supported by the significant upturns in energy and metal prices is positively affecting the prospects for growth, household welfare, and food security in Eurasia, according to the 2018 Global Food Policy Report released by the International Food Policy Research Institute (IFPRI) at a conference in Moscow.
“Rising commodity prices and resumption of growth in Russia, a key driver of remittance flows and trade for Central Asian economies, increase economic activity and food security in the region through their impact on export earnings, remittance flows, and investments from the region’s main economic partners,” said Dr. Kamiljon Akramov, research fellow at IFPRI, at the report launch.
The report is the latest in an annual analysis of developments in food policy around the developing world, based on the most recent available evidence. Income from employment and remittances remain the primary drivers of poverty reduction and improved food security in the region. After peaking in 2013, remittances inflow from Russia to Uzbekistan, Tajikistan, and Kyrgyzstan fell drastically in 2015 and 2016, making a recovery in 2017. Relatively stable food prices in the region also contributed to food security of poorer households, continuing the trend of decline in poverty and undernourishment rates. However, the report highlights micronutrient deficiencies on one hand, and rising overweight and obesity in all countries in the region on the other hand.
“Harmonization of national food systems is the guarantee of food markets’ efficiency and the successful development of the Eurasian region state economies”, said ECFS Director, Sergey Shoba. “Specialization of agricultural production, taking into consideration natural and logistical factors, will ensure economic efficiency and food availability for the population of the Eurasian region.”
On trade within the region, poor regional integration and cooperation have been serious impediments to development and food security in Central Asia, but the report points out that the recent political changes in Uzbekistan have created a more favorable environment for regional cooperation, indicating a deepening commitment to improving regional ties. Regional trade has received further push from the bilateral agreements signed over the last two years between countries in the region and China. “Chinese investment in logistics and infrastructure has increased in Central Asia in recent years, and several highway and railway projects crossing the region are being considered,” said Dr. Akramov.
However, the region continues to face challenges in the financial sector, especially in Tajikistan, which may have negative impacts on the pace of poverty reduction and on food security as a result of limited credit availability in pro-poor sectors of the economy and finite employment opportunities in low-skill sectors such as agriculture.
Globally, the report notes that the rise of isolationism and protectionism, visible in the US withdrawal from multilateral trade and climate agreements, the UK’s “Brexit” from the EU, and growing anti-immigration rhetoric in developed countries, threatens to slow progress toward the Sustainable Development Goals and improved food security and nutrition.
Although backlash against globalization has been mostly portrayed as a phenomenon affecting the developed world, the report highlights how rolling back global integration could harm the livelihoods of millions of poor people in the developing world as well.
“Policies that encouraged globalization through more open trade, migration, and knowledge sharing have been critical to recent unprecedented reductions in hunger and poverty,” said IFPRI Director General, Dr. Shenggen Fan. “Enacting policies to leverage the benefits of globalization while minimizing the risks that fuel antiglobalism will be critical to meet the Sustainable Development Goals to end hunger and poverty by 2030.”
When international trade is open, however, authors in the report argue it improves food security. “Trade has become a symbol of the failures of globalization, but it has been essential for many of our greatest achievements in improving livelihoods across the globe in recent decades,” said David Laborde, senior researcher at IFPRI and co-author of the report chapter on trade.
Facilitated by global agreements, trade has lowered the average cost of food worldwide and expanded access to more and more diversified foods. Trade barriers, on the contrary, lead to high food prices in land-scarce countries, depressed food prices in land-abundant countries and lower real income in both. While the authors recognize the potential risks associated with trade opening—including rising inequality, health impacts, increased energy use, and environmental damage—they argue these are better addressed with policies that directly target the source of the problem, rather than by hampering trade.
This year’s report also features chapters on how global private investments in agriculture can help the world meet the Zero Hunger goal; the role of open access data in improving livelihoods; as well as updated data sets on agricultural investment, public expenditures, and more.
The report emphasizes that despite daunting challenges the world currently faces, improving food systems provides a path to address them within the sustainability parameters of the planet. “Food systems have the unique potential to fix many of our most pressing global problems, but must be transformed into sustainable systems that support healthy diets for all,” said Fan.
For more information on the report, click here: http://gfpr.ifpri.info/
To speak with chapter authors about the content and themes of the report please contact Drew Sample: d.sample@cgiar.org.
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The International Food Policy Research Institute (IFPRI) seeks sustainable solutions for ending hunger and poverty. IFPRI was established in 1975 to identify and analyze alternative national and international strategies and policies for meeting the food needs of the developing world, with particular emphasis on low-income countries and on the poorer groups in those countries. www.ifpri.org.