Written evidence submitted by the All Party Parliamentary Group on Agriculture and Food for Development

 

February 2010

 

1. The APPG on Agriculture and Food for Development welcomes the Government's decision to legislate for the contribution of 0.7% of their gross national income (GNI) on official development assistance (ODA). The APPG feels that the Government should also be commended on its progress towards achieving UN General Assembly resolution 2626 by 2013, committing all economically advanced countries to providing 0.7% of their GNI to ODA. Indeed, the UK Government should also be applauded for trebling the British aid budget since 1997, however; the APPG wishes to state that more can be done and more must be done.

 

2. As highlighted in the background to the draft Bill, increasing global aid is a vital step towards achieving the Millennium Development Goals (MDGs) by 2015. The international consensus garnered around these eight targets since the UN Millennium Declaration in 2000 has been of vital importance to the global developmental effort. It is widely agree that in order to meet the MDGs, and indeed to tackle poverty in a meaningful and sustainable manner post 2015, then ODA will need to be maintained at a higher level than present.

 

3. Noting that the "main objective" of ODA is the "promotion of the economic development and the welfare of developing countries", as outlined in the draft Bill's introduction the APPG on Agriculture and Food for Development would like to encourage the Government to take a further step and legislate for a 10% contribution of total ODA to agriculture programmes in the developing world and the monitoring of its performance in 2013 and subsequent years in the same vein as the 0.7% commitment.

 

4. The need to legislate in such a way stems from the pressing need to halt, and ultimately reverse, our current global slide towards hunger with specific relevance to the Millennium Development Goals. Currently with over 1 billion people hungry, in order to meet MDG 1 by 2015 and to reduce by half the proportion of people who suffer from hunger, the world must pull 100 million people per year out of hunger for the next 6 years, though this is only half of the global hunger problem.

 

5. According to the FAO, $30 billion of additional funds will be needed annually to rectify this situation in order to meet MDG 1 on time.

 

6. With some European governments now disputing their ability to afford such provisions, the UK - a leader in international development must take a lead on hunger as part of its commitment to meeting 0.7% GNI for ODA by 2013 and help to put agriculture back at the top of the international development agenda, since few others are either willing or able to do so.

 

7. To date the UK has actively promoted the MDGs as the guiding framework for development partnerships, yet MDG 1 has been severely neglected. If the UK is to continue to set the agenda and play a leading role in international development it is vital the UK demonstrates its commitment not only to invest in international development per se, but also to invest in the sectors that need it most and which have the greatest multiplying affect.

 

8. Economists widely accept that a 1% increase in per capita agricultural output leads to a 1.6% increase in the income of the poorest 20% of society. The World Bank estimates that economic growth from agriculture generates at least twice as much poverty reduction than growth in any other sector, whilst the International Food Policy Research Institute (IFPRI) estimates an additional annual contribution of $2.9 billion by 2013 would lift 144 million people out of less than a dollar-a-day poverty by 2020. Agriculture in this respect is unique, and as such its needs to be developed in proportion to the UK's 0.7% target rather than being continually left behind.

 

 

"Investment is needed in sustainable agriculture, which is the most important economic sector for most Africans. African governments have made a commitment to invest 10% of their budgets in agriculture. We will strengthen our support for their commitment."

The Gleneagles Communiqué - G8 2005

 

 

"The tendency of decreasing ODA and national financing to agriculture must be reversed."

The G8 2009

 

 

9. Between 2004 and 2008, DFID's overall spending increased in line with the increased budget provision agreed in the 2004 Spending Review.

 

10. In 2005/06[1] the total voted resource expenditure on poverty elimination increased by 20% to £3.9 billion; In 2006/07[2] the total voted resource expenditure on poverty elimination stood at £4.7 billion and; In 2007/08[3] the total voted resource expenditure on poverty elimination stood at £4.5 billion. In 2009/10 this figure rose to £5.5 billion.

 

11. Examining the proportion of these budgets allocated to agriculture it can be summarised that: In 2005/06 DFID spent £115 million on agriculture; this is 2.95% of DFID's total budget. In 2006/07 DFID spent £203 million on agriculture; this is 4.3% of DFID's total budget. In 2007/08 DFID spent £172 million on agriculture; this is 3.8% of DFID's total budget.[4] Data for 2009/10 is not yet available.

 

12. In Sub Saharan Africa[5] - the total spent specifically on agricultural programmes for 2005/06 was £12.57 million, for 2006/07 was £12.23 million, in 2007/08 it was £26.15 million and in 2008/09 it was £20.69 million. The figures represent 0.32%, 0.26%, 0.58% and 0.37% respectively.

 

13. At the same time, African countries are stuttering towards committing 10% of their national budget on agriculture, as part of the Maputo Declaration (2003) - for them it is all about new, sustainable investment in agricultural productivity. It is vital that DFID's country programmes fully support this emerging agricultural agenda as outlined in Africa owned and Africa led initiatives such as The Comprehensive Africa Agriculture Development Programme (CAADP) of The New Partnership for Africa's Development (NEPAD). Yet to date this is not being done. As such the enshrinement of a commitment of 10% of ODA to agriculture in legislation centrally would allow DFID's country offices to focus on the issues requiring immediate assistance at the local level.

 

14. For Africa, agriculture is the key to poverty reduction and DFID must be there to help unlock that potential. DFID's continued unwillingness to direct additional budgetary resources towards agriculture out a clear message to African Governments. To date only 7 African countries have met the 2003 Maputo Declaration of directing 10% of total Government expenditure to agriculture. It is difficult to believe that it is a coincidence that the 2008 World Bank Report recorded that a mere 4% of official ODA, on average, went to agriculture while also noting that in sub-Saharan Africa public spending for agriculture, on average, stood at 4% of total Government spending.

 

15. As such the UK Government should use this draft legislation to commit 10% of UK Overseas Aid to sustainable agriculture, thereby almost trebling current commitments - a symbolic pledge to match the Maputo Declaration and provide a much needed boost towards the additional $30bn a year required to tackle chronic hunger globally. The potential of such a strengthened Act would be to impact positively on the actions of other donor countries in respect of meeting their ODA commitments and thereby moving towards fulfilment of the MDGs; as well as impacting positively on recipient countries to make necessary investments, where possible, in conjunction with increased UK commitments. Indeed, in terms of sustainability and predictability of aid levels for developing countries - such a legal commitment would help the Department provide more sustainable programmes for agriculture[6] based on developing countries ability to plan their long-term expenditure commitments, which the background to the Bill acknowledges are "vital to [the] achievement of the MDGs".

 

 

"Hunger is a moral challenge to each one of us as global citizens, but it is also a threat to the political and economic stability of poor nations around the world."

Prime Minister Gordon Brown

 

16. The above statement was made by Prime Minister Gordon Brown in April 2008 and closely echoes the background information in the draft Bill which states:

 

"But in the 21st Century, development is not merely a moral cause; it is also a common cause. The success and security of other countries profoundly affect our own success and security. Justice, security and prosperity are indivisible: none of us can fully enjoy them unless we all do. Building Britain's future and building our common future go hand in hand."

 

 

17. Sentiments such as this are central to agriculture and food security. Hunger is not only a moral issue; it is an economic and social issue; it is a diplomatic issue; it is a security issue; and it is one that requires the developed world to act now if this global slide towards hunger is to be stopped.

 

18. By complementing the existing draft Bill with legislation to enshrine a 10% commitment of UK ODA to agriculture, the UK can take a vital step towards achieving MDG1, setting the global international agenda for donors and ensure that we also set the standard for developing nations to help themselves in this vital sector for alleviating chronic poverty.

 

 

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[1] http://www.official-documents.gov.uk/document/hc0506/hc14/1450/1450.pdf

[2] http://94.126.106.9/Documents/publications/dfidresourceaccounts0607.pdf

[3] http://www.dfid.gov.uk/Documents/publications/dfidresourceaccounts0708.pdf

[4] Drawn from Hansard: 21 July 2009 : Column 1249W

[5] Drawn from Hansard: 21 July 2009 : Column 1242W

[6] P7 http://www.publications.parliament.uk/pa/cm200910/cmselect/cmpubacc/282/282.pdf