Policies, Institutions, and Global Initiatives

Biofuel production has increased drastically in recent years and is expected to continue doing so—by 2020, it is estimated that more than 110 million tons of oil equivalent will be generated by first generation biofuels. With this rapid growth, the role of biofuels in global energy and food markets has come under increasing scrutiny. In particular, the argument that the production of biofuels threatens world food supplies has heightened the sensitivity and controversy surrounding the subject.

With a growing global population putting increasing stress on agricultural productivity, there is a clear need for new policies and tools to meet this rising food demand. Promoting improvements in policies, institutions, and markets to generate agricultural growth will be crucial to stimulate productivity and improve the welfare of poor and disadvantaged populations worldwide.

IFPRI is at the forefront of efforts to increase agricultural productivity through research and capacity-building.

Climate change poses both challenges and opportunities for sustainable agricultural growth, particularly in the developing world. As was witnessed during the 2010 droughts in Russia and floods in Pakistan, major climatic events can have significant negative impacts on agricultural markets, forcing global food prices higher and threatening the world’s food security.

As climate change continues to present new constraints to traditional agriculture, appropriate responses will require complementary policies at the farm-, country-, and global levels.

Agricultural trade plays an important role in the establishment of a fair, well-functioning global economy. At the same time, agricultural trade can also have a detrimental effect on global price stability and food security if policies are enacted that protect one region at the expense of another. Protectionist policies such as export bans or restrictions can actually increase global price volatility and lead to further food insecurity, particularly for developing nations.

2011 has seen continuing fluctuations in the international price of agricultural commodities such as wheat, maize, soybeans, and corn. These staples often make up the bulk of the diet of the world’s poor; thus, any drastic change in the price of these commodities can have serious impacts on the economic stability and food security of the developing world. The fear and uncertainty surrounding changing commodities prices panic policy responses that only exacerbate food insecurity.