Launch of the joint UNCTAD-FAO Commodities and Development Report 2017: Commodity Markets, Economic Growth And Development

Good morning ladies and gentleman. It is a pleasure for me to present this FAO-UNCTAD joint publication, together with my colleague from UNCTAD, Chantal Line Carpentier.

 

I would like to stress that the Commodities and Development Report points to the importance of a renewed commitment to structural transformation that aims to diversify the economy, including its agricultural sector, and invest in human capital and social protection. Diversification and promoting inclusive growth will be crucial because economic growth alone will not be enough to drive poverty reduction and promote food security.  

 

International food prices are expected to continue at 2010 levels in the coming years.  Meanwhile, price volatility as a result of climate change and other factors can have direct, disproportionate impacts on the livelihoods of the poor.

 

This point is especially relevant from the perspective of agriculture. Lower food prices can limit the flow of cash into rural communities and reduce incentives for investments. Abrupt food price shocks due to unforeseen events can quickly erode incomes of farmers and thus increase poverty.

 

Diversification in the agricultural sector has strong linkages with the rural economy and is thus crucial in improving food security and contributing to poverty reduction and inclusive growth.

 

Moreover, policies that promote agricultural productivity and invest in social protection, health and education can increase small farmers’ incomes, protect them from economic volatility and secure long-term human development achievements.

 

The report looks at case studies to identify policy interventions that support inclusive growth, poverty reduction and food security. Allow me to share some of the key insights from these studies:

 

• Expanding the linkages between the commodity sector and manufacturing and services can promote employment and income generation.

 

• Improving productivity in the agricultural commodities sector in commodity-dependent developing countries can boost small farmers’ incomes and export revenues.

 

• Pricing policies that enable farmers to obtain a higher share of international prices can provide an important incentive to the producers.

 

• Promoting inclusive growth is all the more important for countries in which the commodity sector has few linkages with the local economy, as is the case for agricultural commodities produced by large commercial farms such as soybeans.

 

FAO firmly believes that the recommendations presented in the report can inform policies that will drive inclusive growth and make important contributions to eradicating hunger and achieving the 2030 Agenda. 

 

I thank you for your attention.