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Interview with Shenggen Fan, Global Food Policy Leader

FrontLines - July 2010

Shengenn Fan, the director general of the International Food Policy Research Institute, discussed world hunger recently with FrontLines editor Ben Barber. In 2009, IFPRI received $10 million out of its $63 million budget from USAID, which was its largest source of funding.


Photo: Shenggen Fan
Shenggen Fan

Q: Despite advances in hybrid seeds, chemical fertilizer, and science, hunger continues to afflict a new total of 1 billion people. Why is it we have all these achievements and still we’re unable to keep up?

FAN: First, technologies are necessary but they are not a sufficient condition for improvement.

Second, these modern technologies remain beyond the reach of many smallholders. In Africa, less than one-third of farmers use modern seeds compared to over 80 percent in Asia.

Third, because modern inputs can be expensive and can require higher output to offset the greater cost, they can entail increased risk if there’s a drought or a flood, for example.

Fourth, African agricultural extension systems have not been able to develop seeds that are tradeable in Africa.

Even if you increase production with modern technology and inputs, you still have to provide adequate access to the energy and micronutrients in the food. In India, despite high economic and agricultural growth, many people remain hungry. There’s a disconnect between agricultural growth and a reduction in hunger and poverty.

Q: Has the dispute over genetically modified food gone away or does it still block many farmers from getting higher yields?

FAN: Again, technologies alone cannot solve the complex problems of hunger and poverty. Some, including biotechnology, do have great potential to benefit poor populations in developing countries. Because this possibility exists, I believe it would be irresponsible not to assess the potential of genetically modified crops such as nutrient-enriched, droughttolerant, and disease-resistant varieties. Evidence on the potential benefits and risks is needed by all stakeholders, including NGOs, governments, scientists, and, more importantly, consumers and producers. Ultimately, regulatory bodies should ensure that the products are safe to humans, animals, and the environment, and then consumers should choose what to eat.

Q: So is there still a lot of possibility to increase yields and plant more GMO?

FAN: I think there’s potential to use biotechnology to increase yields, but sound regulatory policy is needed to reduce the health, environmental, and other risks, and maximize the benefit for consumers and society.

Q: Okay, if you were given a limitless budget—billions and billions of dollars—from the World Bank and USAID, from all of the aid groups, what three steps would you take to provide every human being with sufficient food?

FAN: Even with limited resources, we can still achieve a world free of hunger. It is a matter of political will, and of how we work together.

First, donors and investors should fulfill their commitments. The G8 in 2005 pledged 0.75 percent of their gross domestic product (GDP) for development assistance: Today, it’s only half of that.

Second, we need to ensure that that money is used efficiently and effectively to increase smallholders’ productivity.

Third, we must recognize that many poor people are not able to participate in growth because they don’t have good health or they lack access to other productive assets. In such cases, we need to adopt a targeted approach to protect the poorest people and to make sure that they can build their human or financial assets. Through this, they can come to participate in the growth process.

Furthermore, donors should really try to build each country’s capacity to pursue its own strategy and investment plans for food security. Through research and analysis, organizations such as IFPRI can help build capacity but the key is food security programs that are led and driven by the countries themselves.

Q: Norman Borlaug once told me that building roads in Africa was the key to fight hunger, that roads would reduce the cost of transporting fertilizer to farmers and the cost of sending harvests to the market. Do you agree, and is enough being done to create those roads?

FAN: In fact, maybe 10 years ago, when Norman Borlaug was in this building, he told me that Africa needed three things—rural roads, number one; number two, rural roads; number three, rural roads. I very much agree that more and better roads in Africa could reduce input costs and allow better access to markets.

We’re finding, in India and parts of Africa, that the returns on rural roads are very high both in terms of promoting agriculture and helping poverty reduction.

Q: How can the donor community end sharecropping and other forms of land ownership which leave millions of people as landless laborers or renters of land; and end systems in which speculators dictate the price?

FAN: Well, sharecropping was most widespread in Asia during the Green Revolution period, the ‘70s and ‘80s. It served a purpose: without it, few farmers would have had access to land. It worked in the context of certain cultural norms, however, and has proven less desirable as societies have changed.

Obviously, people without land are subject to exploitation by landowners or land-grabbers from other countries. To secure the land for smallholders is critical, and you need good governance, regulation, and contract enforcement.

Q: Hernando de Soto points out that, if small farmers in Latin America had the title of their land, they could get a loan and buy a small tractor or irrigation.

FAN: In some instances, I agree. Smallholders may need to establish ownership of the land in order to access credit and generate income for the family. But the issue is broader and more nuanced than this, and it leaves open the question of the right type of title.

In some settings, evidence suggests that communal land tenure has a better effect than individual ownership in terms of local decisionmaking, gender dynamics, cultural preservation, and natural resource management. And in any case, ownership doesn’t preclude an active rental market. In China, for example, farmers who leave the countryside for insecure jobs in the city rent out their land for the income and to preserve the option of returning to their farms should they become unemployed.

Q: If subsidies and trade protection by wealthy countries ended, what impact would that have on food production and availability?

FAN: We would expect global food prices to rise. Smallholder farmers in many developing countries who produce more than their households consume would benefit and would have incentives to increase production. However, there would be risks as well, especially for poor urban consumers and subsistence farmers. National policies would need to manage social safety nets carefully.

Any such process would have to be gradual so that farmers in developing countries could adjust to higher prices. Food prices went up in the last few years but smallholders were not able to respond because this happened too suddenly and they lacked access to inputs, infrastructure, and financial information to seize the opportunity. At the same time, poor consumers were not sufficiently protected from the price shocks.

Q: What are the cutting-edge food policies and scientific advances that you believe will do the most to shrink hunger?

FAN: In my view, we need a significant re-orientation of food policies and interventions. We should come away from top-down, donor-driven, or capital city-driven programs that tell countries or people what they should do and what is best for them. We should involve more farmers’ and grassroots organizations, such as those emerging across Africa.

We should support countries that are willing to pursue evidence- based food policies and implement country-driven strategies. A country-driven strategy can really help smallholders and local communities. We have to make sure they increase smallholder production and we have to monitor progress and enable them to adjust policy where necessary.

Q: You’ve recently taken over here as head of IFPRI. Do you want to move IFPRI in a particular direction or set up new policies?

FAN: I was glad to take over a successful and well established institution with a good reputation among key stakeholders. I want to continue this course.

Food security’s context and challenges are always changing and we have to anticipate and adapt. Major factors affecting the prospects for food security include globalization, increasing incomes, and population growth. At the same time, climate change will reduce yields if we don’t do something about it.

In addition, we have to look at the implications for agriculture and food security of economic growth and of macroeconomic policymaking— in general and particularly in light of the food, fuel, and financial crises. We also want to deepen research on the linkages between agriculture, health, and nutrition. We assume that closer cooperation between these sectors could unleash synergies.

Underlying all this work is a profound need to help countries to build their capacity to pursue their own food security programs.

Q: The USAID administrator, Rajiv Shah, recently noted that a large percentage of the USAID budget used to be on agriculture but in recent years it fell to only 1 percent. Why did the donor nations stop investing in agriculture?

FAN: I think part of the problem was complacency. Towards the end of the ’80s and in the ’90s, global food prices were low. There was plenty of food.

Domestic politics in donor countries also played a role. Farm lobbies, environmental organizations, and groups opposed to what they see as corporate-led economic globalization may have affected some donors’ behavior. The ensuing reduction in investment for agriculture and food security has been as widespread as it has been dramatic. For all OECD countries, not just the U.S., around 1990, the percentage of foreign aid devoted to agriculture was about 10 percent. Today, it’s 4 percent.

Q: Is this protectionism?

FAN: Yes, in the case of, say, a lobby that tried to get more farm subsidies and other barriers against imports. But not all the pressure has been motivated by protectionism. Consider the many environmental concerns that have been raised, for example.

Regardless of motives, however, and to the extent that these domestic pressures have impeded agricultural development in poorer countries, the typical argument is that these countries don’t need to produce more because there is food aid. It has not worked. It won’t work in the future.

 


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