Policies, Institutions, and Global Initiatives

It is being increasingly recognized that real, sustainable economic growth and food security requires input from both the public and the private sectors. However, much of the private sector in developed countries has historically been hesitant to invest in developing nations, particularly in riskier ventures such as agriculture.

A major challenge to food security worldwide is a dearth of accurate, timely information. Without reliable information regarding world agricultural markets, production, and stocks, policymakers may engage in harmful policies such as export bans or panic buying, only serving to further drive up food prices and price volatility.

Price volatility in agricultural commodity markets has received a lot of attention in the past year. (For more information on food price volatility, see the Excessive Food Price Variability Early Warning System .) As part of the 2011 G20 Action Plan , the Agriculture Ministers agreed on several initiatives to address high food prices and price volatility. The Rapid Response Forum is a part of the larger Agricultural Market Information System (AMIS) initiative and is designed to promote timely discussion among global policymakers of abnormal agricultural market conditions.

On June 18-19, leaders of the G20 will meet in Los Cabos, Mexico to continue addressing global challenges such as food security and food price volatility. The 2011 G20 Summit led to important steps to reduce price volatility, including the creation of the Excessive Food Price Variability Early Warning system and the Agricultural Market Information System (AMIS) . This year's summit will need to expand upon these steps in order to reach the goals of reduced volatility, poverty reduction, and global food security.

The 2011 Horn of Africa food crisis reinforced the need for governments and international organizations to be able to react quickly to ongoing humanitarian crises such as drought and famine. In particular, emergency food supplies are critical to mitigate the effects of negative weather events and price shocks. Such supplies must be maintained and used effectively, however, to prevent further disruption and volatility in both global and local food markets.