On Thursday, July 3, I had the opportunity to attend a panel discussion on rural development held by ECOSOC on the topic of small scale farmers, agriculture, and poverty reduction in the face of recent increases in food prices.

Small scale farmers, also referred to here as “small producers” or “small holders” are generally farmers who own small commercial farms supporting a single family, especially in rural areas of developing countries, where agriculture is the main source of income. Small holders make up 3/4 of the world's poor in rural areas, and almost 1/3 of the world population depends on small holder farming. Furthermore, agricultural growth is at least twice as effective in reducing poverty as non-agricultural growth. Thus, some very effective poverty-alleviating strategies focus on helping small holders by encouraging their agricultural growth and productivity.

The current food crisis is due to recent increases in food prices; higher food prices reduce the real wages of many workers, as they get less food for the same cost as before. The conventional wisdom thus states that higher food prices increase poverty levels by decreasing the amount of food the average household can afford.

On the other hand, panelist Sandra Polaski, Senior Associate and Director from the Carnegie Endowment for International Peace, stated that the impact of rising food prices on poverty is not as uniform as conventional wisdom holds. She said that

1. food prices have historically been extremely volatile, and we have no way of knowing if the current high food prices will persist, and
2. there is a differing impact of rising food prices on poverty on different households, and in different countries.

The impact is not uniform because it varies based on the household’s source of income and on expenditures. For some countries, high food prices are good – but for others, they increase poverty levels. She cited India and China as examples. India is the single largest reservoir of poverty in the world, with 8 million people living on just $1 a day. In India, rising rice prices were poverty alleviating; people found more jobs and agricultural exports increased. Moreover, when prices increase, the “change in real income is most for the poorest rural people and the most for disadvantaged classes, like scheduled tribes and castes.” In urban areas, this impact is much smaller.

Second, China is “the 2nd largest reservoir of poverty in the world.” Historically, decreases in poverty have had to do with increases in food prices. Since China and India make up 54% of all the poverty in the world, “we must consider the impact on each country in order to come up with appropriate policy responses.” According to Polaski, the poorest of the poor - at least in India and China - actually benefit from higher food prices - and this must be acknowledged by policymakers. Policy must also allow for very volatile prices in the future. Policy cannot be “one size fits all” but must take into account these various factors.

Robert Watson, Chief Scientific Adviser at the Department of Environment, Food and Rural Affairs of the United Kingdom spoke about how to make small scale farming more profitable. “Food production is growing faster than population since the 1960s, but the successes are uneven,” he said. “Agriculture can no longer be viewed as production alone – we need to increase production without increasing emissions...without land and water degradations,” he continued. Here are certain specific suggestions he put forward:

• Innovate. Make agriculture science specific. Scientific organizations must explicitly support the needs of small scale farmers.
• Improve water management
• Target small-scale - not just medium or big - farmers
• Empower women (Small holder agrisystems are increasingly managed by women). Women must be involved in decision making. Women need education. Also, explicitly provide support to women’s organizations.
• Access to credit for small scale farmers
• Stimulate private sector investments – good governance is necessary.
• Double agricultural production in the next few years
• Most 1st generation biofuels are not economically, socially, or environmentally sustainable; need to invest in 2nd and 3rd generation biofuels instead. (Biofuels are derived from plants, and examples of 1st generation biofuels include those made from sugar, starch, vegetable oil, or animal fats. These have been criticized for taking food away from humans and thus increasing food shortages. 2nd generation biofuels are made from non-food crops, while 3rd generation biofuels come from algae.)

Overall, Watson emphasized that “small scale farming can be highly productive and environmentally sustainable.” Agriculture must thus be multi-functional, emphasizing the role of the small-scale farmer, empowering women, and increasing investment in research & development.

The next speaker was Steven Schonberger, Lead Operations Officer in Agriculture and Rural Development at the World Bank. His speech also focused on helping small holders. His key message was that high food prices have provided new opportunities for producers. He stated that small holders have limited access to finance, which is one of the constraints on increasing production. He emphasized the need to get investment back in agriculture and rural development. He also emphasized a new role for the state in helping small holders:

New role for the state:

• regulate input markets
• make sure farmers are getting what they paid for
• demand socially responsible products

Finally, James Borel, Group Vice-President responsible for DuPont Crop Protection and Pioneer Hi-Bred, offered some concrete suggestions to help small holders increase production, especially focusing on scientific research. He stated the importance of “having access to best inputs, such as seeds and salinity.” He also emphasized the need for aggressive farmer education, and the need to empower farmers with modern technology and information. Moreover, many farmers must have better access to markets.

He gave a very good example of using scientific research to improve prospects for small producers. In India, the mustard seed crop is generally planted in September and harvested in December. However, about 30% die from frost in the winter, since they are harvested so late. Through research, scientists decreased the maturation time of the seeds, so that farmers were able to harvest the plants earlier. Thus, less crop died from frost. Farmers also benefited from an increased price for their crops because they were able to sell them earlier than the regular crop in January – there was less competition. Thus, there is great potential for such scientific research and development strategies to be applied elsewhere and to greatly increase production.

“This issue is not only about food production, but income production,” he said. “Agriculture must be higher on our agenda.”


Credit: World Development Report 2008: Agriculture for Development

Figure 4 credit: May 2008 Report: Rising Food Prices, Poverty, and the Doha Round by Sandra Polaski from the Carnegie Endowment for International Peace.

Sustainable Development:n.development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (United Nations’ recognized Brundtland Definition)
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On Wednesday, July 2, 2008, the Economic and Social Council (ECOSOC) identified the biggest
issues that are hampering sustainable development internationally, including rises in energy costs, a declining world economy, an international food crisis, and climate change.

Along with regular ECOSOC members, several foreign ministers outlined their countries' plans to promote sustainable development.

According to one of the foreign ministers, Japanese Vice-Minister for Foreign Affairs Mr. Yasuhide Nakayama, there are three priority areas of sustainable development:

1. economic growth
2. insuring human security
3. environmental issues and climate change.

He explained that these three areas are interrelated and must all be in place in order to achieve sustainable development within a country.

Nakayama made it clear that international cooperation is necessary in fighting climate change. “There are a variety of opinions about climate change, but one thing is certain,” he said. “We share the responsibility to make progress for future generations.” He also added that technology is an important tool in solving environmental issues and creating low carbon societies.

After promising that Japan will donate over ten billion US dollars towards fighting climate change, the Vice-Minister said that Japan would fight the international food crisis as well. “Japan is ready to release over three hundred thousand tons of imported rice. [We will also] donate fifty million US dollars to poor farmers,” he said.

Nakayama called upon all countries to join efforts in helping societies grow and promote sustainable practices. He made an analogy between countries’ efforts in achieving sustainable development with Japan’s national reconstruction following World War II. “As all of you know, Japan has had its own experience of recovering and rebuilding,” he said. “We didn’t start from zero, but sub-zero.”

Like Nakayama, Iran’s Minister of Foreign Affairs Mr. Manouchehr Mottaki also called for international cooperation.

“The world economy is worsening during a severe economic downturn and a food crisis is impeding on the [ Millennium Development Goals ]by reversing progress made,” he said. “Obviously, [developed countries] should not remain indifferent to the situation because overcoming these obstacles requires vigorous cooperation. It is imperative for ECOSOC to assume a leading role in promoting cooperation.”

While other foreign ministers identified climate change and financial problems as threats towards sustainable development’s progress, Mottaki blamed the “management of world affairs.” He warned the council that “before thinking about the future, we should think about where we are now.”

“The management of the world should be carefully scrutinized in order to find its shortcomings,” he said. “The political aspect of the management of world affairs today is non-democratic and faces serious constraints in decision-making process. In economic progress, there is a deep gap between the rich and the poor. Wrong economic policies by certain economic powers have lead to the increase of the price of powers, and the world is at the stake of these policies by these powers. The weakest countries have been harmed the most.”

After Mottaki identified problems that are limiting sustainable development, Lichtenstein’s Minister of Foreign Affairs, Mrs. Rita Kieber-Beck, pointed towards solutions.

Noting that “the food crisis and energy costs are presenting serious threats to sustainable development” and that “we must do more to solidify our gains,” in a unique approach, Kieber-Beck suggested mirofinance as an effective tool in helping countries become sustainable.

Microfinance is the provision of small loans to the world’s poorest people to help them start their own businesses and create sustainable lives. In this way, microfinance services promote economic sustainability for people by giving the poor the chance to take control of their financial futures and become completely self-reliant.


“Microfinance is an important tool that has proved to be successful,” Kieber-Beck said. “It is estimated that there were over 64 million borrowers worldwide in 2006, up from 9 million in 2000.” (Refer to the graph to the left.)

While microfinance isn’t the only way that we can promote sustainable development, few other foreign ministers besides Minister Kieber-Beck were able to provide concrete suggestions. What other things can governments, groups, and people do to become more sustainable? What can YOU do to lead a more sustainable life?