Food and Energy Security: In Everyone’s National Security Interests

1. Introduction

• Good morning everyone. I would like to thank Sylvia for giving me the privilege to speak today at the Western Regional Joint Summer Meeting on a problem that lurks in the background of today’s headlines and affects the whole of the global community. As the price of oil has jumped to record levels over the last few years, energy security has received a lot of airtime. However, closely related to energy security, and potentially more destabilizing but less well publicized, is the food security issue1. Further exacerbating both situations are the accelerating global trends of urbanization, population growth, climate change and natural resource constraints.

• You are probably asking yourselves, “Why would the Department of State’s senior diplomat on this island be interested in this, and especially one who is assigned to the military command here?”

• The answer to that question is because food and energy security go well beyond pushing “green” consumer spending and electric cars. In most of the developing world, these issues are woven into the very fabric of poverty that can lead to unsustainable production practices and the increased risk of social instability. While Food and Energy Security often take a back seat in developed societies to other concerns, given the deep linkages across the world today, we can no longer afford to shy away from the complex challenges of global food and energy security.

2. Framing the Issue

• Let’s begin by defining the issue of food security. As many of you know, when we talk of Food Security we consider four nominal factors: food availability, food access, food utilization (which refers to the nutritional value of available food) and the stability of food supply2. For many communities, especially in the developing world, food security can be

1 Secretary Vilsack. (2009, June 6). Speech to Chicago Council. Chicago, Ill.

2 Schiavone, Anthony. (2010). Trade and Climate Change Implications for Food Security: The Case of Mainland Southeast Asia. International Institute for Sustainable Development. 1 | Page

affected by a wide range of internal and external elements: from world food prices to corruption to climate change.

• In 2008, participants of the L’Aquila G8 Summit pledged $18.5 billion dollars to combat food insecurity and hunger. Leading the effort, President Obama further underscored the importance of this issue by pledging at least $3.5 billion over three years3. This is not just charity. From a U.S. standpoint, food security is a foreign policy priority and reflects our national security interests.

• Food Security and National Security • First and foremost, food security has a major and well documented impact on political stability and governance. Food insecurity impacted the Arab Spring revolutions4,5 and incited large protests on the price of basic goods, especially rice, in the Philippines and Indonesia6. Needless to say, for many countries and regions, food security through agricultural development plays a critical role in either supporting or damaging productivity and social stability.

• Secondly, from a domestic standpoint, improving food security has the potential to significantly increase the global middle class. This trend represents a new market opportunity for the American economy, and helps ensure that agricultural exports will remain important to American economic prosperity well into the future7.

• Lastly, addressing Food Security can help enable greater numbers of people to access a consistent and nutritious diet. Improving food utilization represents a proactive approach, which will have a more efficient and effective impact on improving global health7.

• Increasing health will give more people the opportunity to live more productive lives, and a chance to lift themselves out of poverty.

3 U.S. AID. (2011). Feed The Future Fact Sheet. US AID.

4 Ciezadlo, A. (2011). Let Them Eat Bread. Foreign Affairs .

5 Badkhen, A. (2011). The Baguettes of War. Foreign Policy .

6 PACOM JIOC . (2008). PACOM JIOC Food Insecurity Study (Unclassified).

7 Secretary Vilsack. (2009, June 6). Speech to Chicago Council. Chicago, Ill.

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• Food, Energy and the Environment • In addition to national security, the implications of food insecurity also affects our world’s energy resource gaps, as well as climate change and the development of environmentally sustainable production processes.

• While a lot has been said of overconsumption in the developed world, the developing world is grappling with a growing energy poverty issue. Over 1.5 billion people worldwide are considered “energy poor”, or have no access to electricity. Looking forward, we should expect this number to increase as over 3 billion people currently rely on unsustainable biomass-based energy sources. For those affected by energy poverty, food & energy production often go hand-in-hand. More specifically agriculture is often the lynchpin for sustained food, energy, and ultimately economic development8.

• On the environmental side, climate change is one of the biggest risk factors affecting agriculture and food production. Communities all over the world find themselves trapped in a vicious cycle where unprofitable agricultural land is converted to energy production, which leads to higher green house gas emissions, further accelerates climate change, and ultimately makes food production less profitable8.

• Recognizing the inter-connected nature of food security with key economic, energy, and environmental issues, recent research with UN FAO support has focused on Integrated Food-Energy Systems or IFES. The goal of IFES is to help resource-poor communities increase agricultural yields and income, while at the same time producing sustainable energy via bio crops to meet basic community needs. In this way IFES can increase productivity and improve the living standards for many small scale farmers, while also freeing resources to give communities the flexibility to cope with environmental or market disruptions8. 3. Food Security in the Asia-Pacific Region

• With regards to food security and the AP Region, there is good news, and bad news. • First the bad news: According to May/June 2011 issue of Foreign Policy Magazine, 62% of the world’s hungry people live in the Asia and Pacific region. In addition, current research from both the UN FAO and the Intergovernmental Panel on Climate Change indicates that

8 UN FAO 2011.

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tropical regions, such as mainland SE Asia, will be the most negatively affected by climate change.

• The U.S. is particularly concerned about the impact that rising prices will have on vulnerable people, particularly in fragile states. Bilateral approaches alone will not solve the root cause of previous and potential food crises in the region. To that effect, the US and ASEAN are building robust cooperation on food security issues.

• While global and regional strategic cooperation is necessary to effectively combat food insecurity, it is local conditions that dictate implementation9. Each region of the world grows, trades, and consumes different baskets of staple crops, and each region will be affected differently by changes in supply and demand for particular crops. Therefore, there is no one global solution to tight markets and high food prices; each region will have its own solution. As a result, food security policy must be viewed on a country-by-country basis, and then be integrated and coordinated across the region10.

• The good news is that governments in the region are actively collaborating, mainly through ASEAN, to meet the food security challenge. These consultations, and all future consultations, must be regional, the process inclusive, and must emphasize exchanging information, learning from past experiences, and identifying opportunities for collaboration9.

• In the last year, the U.S. has also been actively engaged in helping SE Asian nations improve their food security by co-sponsoring conferences on the issue. The foci of the conferences are to build momentum in national governments to develop responsible and effective policies that work with the markets instead of against them, and also to engage private industry as an essential part of the solution.

• Increased public-private cooperation is an especially important development for SE Asia. During the Private Sector Food Security conference the U.S. supported in June 2010, ASEAN's Deputy Secretary General announced that the Secretariat would work to ensure private sector views, concerns, and suggestions for partnership are raised directly with ASEAN Ministers for Agriculture and Forestry.

9 UN FAO (2011).

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• This summer, the USG supported the first of two 2011 thematic food security conferences with the private sector on food production10, in close collaboration with the ASEAN Secretariat.

• Earlier, the USG organized private-public dialogues on sustainable fisheries in the region. • Based on the success of these dialogues, ASEAN and the Southeast Asia Fisheries Development Commission (SEAFDEC) have acknowledged the important role of the private sector and asked the USG to organize another private sector event in conjunction with a major ASEAN-SEAFDEC conference this year. These actions have significantly increased the voice of the private sector in the policy process in sustainable fisheries in the region.

• The envisioned role of the U.S. in the AP Region will be to continue to lead the public-private dialogue, and to help develop non-protectionist or non-isolationist policies.

• The U.S. believes that market-based measures can help strengthen food security in Southeast Asia. Measures that restrict imports and exports of food are rarely productive and can exacerbate price volatility. The U.S. appreciates the role played by ASEAN members in building consensus around this concept, including at the recent APEC High Level Dialogue on Food Security. Going forward, the U.S. will continue to support ASEAN in private sector engagement and an improved food commodity trading environment within ASEAN.

• For PACOM, our role will be to provide maritime security training and capacity building to help improve cooperation and build trust in the region.

• Cambodia Case Study • Administered through USAID, Feed the Future is the flagship U.S. program to combat Food insecurity through education and technology. In seeking an integrated approach to food and energy security in Cambodia, FTF helps to implement the HARVEST program which focuses on climate change, food security and rural community nutrition through country engagement and innovation11.

10 Conferences referenced are: 1) 10-12 August 2011 International Conference on Asian Food Security (ICAFS) in Singapore,. 2) 16-18 June 2011 ASEAN Conference on Food Security: Role of Private Sector in Singapore. 3) 17 June 2011 ASEAN-SEAFDEC Conference on Sustainable Fisheries for Food Security in Bangkok.

11 Why Feed the Future Matters in Cambodia Cable. 16 March 2011.

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• The HARVEST program integrates agricultural development, nutritional education and climate change initiatives through phased and targeted investments. Its goals are to permanently reduce hunger and maintain sustainable levels of resource use by promoting dietary diversity and increasing farm income12.

• Rolled out this year, successful activities will be scaled up to maximize program impact on food and energy security and malnutrition in Cambodia12.

• Indonesia and Rice Case Study • As one of the world’s largest producers and consumers, rice is vital to Indonesia’s national security. As Indonesia also makes up 41% of ASEAN’s population, rice is strategically important to the region as well12.

• While the availability of rice is relatively secure, a significant percentage of the population does not enjoy stable food and rice access due to poverty in remote and underdeveloped areas13.

• One of the cornerstones of America’s food and energy security response is technological innovation. As applied to Indonesia, a substantial amount of research is taking place both in academia and private industry to develop heartier and more productive transgenic seeds. ASEAN and the target country’s role is to build a policy framework that both encourages and embraces these new technologies13.

• From the U.S. standpoint, our role can be that of a catalyst, helping to build linkages between U.S. universities and Indonesian universities and research institutions. Additionally, we can provide expertise in technology distribution and implementation13.

• China Case Study • As the biggest economic engine in Asia roars on, China faces several looming food and energy security related challenges that could potentially derail its economic growth.

• On the food demand side, China’s bourgeoning middle class will expect to eat more food, and better food, meaning a steady increase in market pressure on demand13. In fact this increase in demand may already be affecting prices. Looking at pre-financial crisis figures, in

12 USDA Agriculture Policy and Economic Report.

13 Brown, Lester R. (2011). The New Geopolitics of Food. Foreign Policy .

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May 2008, inflation rose 9.3% in rural areas, food prices increased 22.1%, pork prices increased 68.3%, and cooking oil rose 46.6%14.

• Chinese officials have tried to use price controls, slower lending, and currency appreciation to reduce inflation, but prices have continued to rise17, especially now that the tempered demand caused by the financial crisis has passed.

• Pressure on China’s food supply looks even more overwhelming. Increased demand for meat by the new middle class may result in pressure to convert land from agriculture to livestock production, which will increase carbon emissions and climate change. The cost of climate change and global warming to agriculture is significant. Crop ecologists estimate that for every 1 degree Celsius rise in temperature above a growing season’s optimum, farmers can expect a 10% decline in grain yield.15

• Another major supply risk for China is its overdependence on inefficient irrigation in grain and rice production, also true in India. As global temperatures rise, many farmers are resorting to overpumping to increase or maintain production levels in the short-term. This misuse of water, itself a precious and scarce resource, leads to the creation of “food bubbles” that could collapse with calamitous results when aquifers run dry.18

• Finally, in the absence of international cooperation, some countries have begun to scramble to build their food reserves, and have begun to engage in what is known as “land grabs.” Land grabs are a hedge against future market shortages of grain by purchasing or leasing land in foreign, and often developing, countries for agricultural development. China is a major player in this growing trend, buying up significant portions of land in places like Sudan and Ethiopia18.

• While the use of this land is very low cost, and may bring some relief to domestic food prices, the downsides to this practice are significant. First of all, the country leasing land derives very little benefit. For most developing countries, agriculture and food security are already endemic problems. Selling land where agricultural commodities are produced and shipped abroad or where profits are realized abroad do little to alleviate the arguably more critical shortages at home18.

14 PACOM JIOC Food Insecurity Study 2008.

15 Brown, Lester R. (2011). The New Geopolitics of Food. Foreign Policy.

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• We should not be surprised then that the practice of “land grabbing” has often led to violence and conflict. Many of the land deals are made in secret and involve land already in use by villages, and nothing stokes hostility like taking people’s land. For example, China’s 2.5 million acre lease with the Philippines in 2007 resulted in a public outcry in Manila and forced the government to suspend the agreement16.

4. What We Can Do: USG and International Collaborative Response

• Collaboration with Global Partners • As a leader in the global community, the United States is uniquely positioned to both increase the profile of food and energy security, while also guiding the international response. At the policy level, President Obama has already underlined the gravity of this issue and publicly supports an innovative and integrated response exemplified by the creation of the Feed the Future Program (FTF). Additionally, the U.S. can become more active in supporting inclusive food and energy security dialogues through international organizations, such as the G-20 and the United Nations.

• G20 partners must play a key role. In fact, Secretary of State Clinton recently traveled to Paris for a meeting of G20 agriculture ministers where she focused attention on issues of food security and promoted the development of sustainable agricultural economies in developing nations.

• The focus of the FTF program is sustainable innovation. To effectively target poverty stricken communities and the smallholder farmers which make up these communities, FTF will help fund scientific research targeted at increasing yields and income for farmers, while also strengthening international partnerships to help build sustainable trade and market structures to nurture development17.

• Research • In the area of technology: continued research, improvement, and the roll-out of integrated food and energy systems (IFES) will become increasingly important. Essential to this

16 Brown, Lester R. (2011). The New Geopolitics of Food. Foreign Policy.

17 US AID. (2011). Feed The Future Fact Sheet. US AID.

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approach will be increasing international collaboration, especially between research institutions, local governments, and private sector firms.

• In terms of research priorities, the U.S. National Security Strategy published in 2010 specifically emphasizes research efforts in two particular areas: (1) improving food systems performance, and (2) understanding household income and livelihood dynamics.

• Examples of relevant projects include how the level and distribution of rural assets affect food security, evaluating food emergency response and safety net options, the design of collective actions for financing social and infrastructure investments, and how households respond to rising prime-age mortality as they try to maintain their food security18.

• In addition, promising new technologies in agriculture promise heartier, higher yielding, and more energy efficient crops. The USG, and specifically the USDA through its Agricultural Research Service, will continue to help support this effort through research funding, and by leveraging political capital to help connect US research centers and universities with institutions abroad.

• Biofuels • Turning to energy security, biofuels remain a critical piece of the puzzle. While not all headlines surrounding biofuels have been positive, U.S. Secretary of Agriculture Tom Vilsack has declared the potential impact of sustainable energy must continue to be nurtured both on the policy front, by encouraging innovation, and on the research support front through partnering with the U.S. government and increasingly, with private industry.

• By placing an emphasis on technology, including biofuels, and closer international private- public partnerships, the USG can help to build an environment conducive to nurturing and implementing new strategies to address food and energy security.

• Healthy Women, Healthy Economies • Another area in which Secretary of State Hilary Clinton has placed greater focus is in supporting women in poverty stricken communities. Studies show that in many communities, especially rural ones, women are the most important economic players. Not

18 National Security Strategy 2010.

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only do they play a critical role in harvesting and acquiring food, but they have also been shown to invest most of their incomes in their families and communities19.

• Therefore, an essential front in addressing food and energy security is that of the gender gap. To this end, USAID is a major proponent for programs such as the Women Farmer’s Advancement Network (WOFAN), which seeks to increase economic participation by women through the provision of training and education20.

• Another initiative aimed at women is the 1,000 Days Partnership. In conjunction with the Scaling Up Nutrition (SUN) movement, the 1,000 Days Partnership seeks to improve food utilization through the recognition of the 1,000 day window of opportunity, from pregnancy through age 2, where nutrition has the greatest impact on developing a child’s cognitive and physical capacity, mitigating the risk of chronic disease, and ultimately saving lives26.

5. Conclusion

• As we continue to work to recover from the effects of the recession following the 2008 financial crisis, it would be easy to lose focus on issues like food security in light of concerns about unemployment, which directly affects Americans’ daily lives. In this environment, the challenges of adopting a smart, strategic, and most importantly, integrated approach to solving food and energy security challenges become even more daunting.

• Moreover, with support from the highest levels of government for integrated programs such as FTF, and an emphasis on technology, we can make progress to increase agricultural productivity, decrease poverty and under-nutrition, and drive sustainable economic growth.

• Secretary of State Hilary Clinton told the UN FAO a few months ago that with FTF we aim to lift income for 18 million vulnerable men, women and children. We also aim to prevent child mortality for 7 million children. To support smallholder farmers (which by some estimates make up fully ½ of the 1 billion people worldwide affected by food insecurity21) we aim to generate $2.8 billion in agricultural GDP in targeted regions through Research and

19 Otero, Maria. (2011, June 13). Bread for the World Speech.

20 Ambassador At-Large Melanne Verveer. Healthy Women, Healthy Economics.

21 “East Asian Solutions for Global Food Security” Deutsche Welle, World Economic Forum. Jakarta, Indonesia.

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Development activities, while also helping to leverage private investments to improve sustainable market opportunities22.

• Secretary Clinton observed that the trend lines indicate that if we do not act now to address food and energy security, we may never catch up. She pointed out that demography, climate, and other problems are militating against our efforts, which therefore requires us to be even more determined and she issued a call to action to move ahead in breaking down the factors that feed the vicious cycle of poverty and climate change, to advance global food and energy security.

22 Secretary of State Hilary Clinton. (2011, May 6). FAO Address.

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