INSTITUTE FOR FOOD AND DEVELOPMENT POLICY WINTER 2015-16 VOLUME 21 • NUMBER 3

Photo by Leonor Hurtado Seven reasons why the ’s plan for agriculture will not help small farmers* By Eric Holt-Giménez, Justine Williams, Caitlin Hachmyer

After ignoring small farmers for decades, volatile food prices and record have forced the World Bank to respond to the multiple crises of agriculture. Implementing Agriculture for Development, the Bank’s 2013-2015 Agriculture for Action Plan (AAP) proposes US$30 billion in agricultural investments for poverty alleviation, equity and environmental sustainability and assigns a role to peasant farmers in the global economy.1 The AAP is significant because it is directed at the farmers who produce over half of the world’s food—on a quarter of the globe’s farmland.2 Although the AAP recognizes agriculture’s tremendous diversity—and the importance of women in agriculture—its recommendations are old, free market development recipes. Rather than taking the poverty out of agriculture, the Bank proposes purging agriculture of the poor by integrating a relatively small percentage of better-off farmers into global value chains, turning others into agricultural workers, and expecting hundreds of millions of farmers to leave the countryside altogether. *This Backgrounder was adapted by Eric Holt-Giménez and Ana Galvis based on Food First Development Report No. 22 “The World Bank Group’s 2013-15 Agriculture for Action Plan: A Lesson in Privatization, Lack of Oversight and Tired Development Paradigms” http://foodfirst.org/wp-content/uploads/2015/10/DevelopmentReport22final.pdf products before the “value” is 1 Flawed assumptions added by processing, trade or distribution, are the poorest in the The AAP is based on flawed world.5 Over one third of the total assumptions. It repeats the mantra global value created under global that to meet the needs of a growing value chains accrues to the rich, population we must double food northern countries, while only production by 2050. But this eight percent of total value added is projection for agricultural growth shared among poor and developing is calculated based on prices rather countries.6 than yields and does not include production of the fruits and vegetables essential to the human The obsession with the diet. The world grows enough food 3 private sector today to feed 10 billion people, yet 1 billion people are hungry and Without providing any malnourished. Hunger is the result evidence, the AAP asserts that Photo by Tanya Kerssen of low incomes and the unequal increased investment in the private distribution of resources—not sector will improve smallholder scarcity.3 livelihoods. By promoting “public- this really amounts to nothing The Plan ignores the private partnerships” the World more than the repackaging of old, 8 underlying causes of hunger and Bank actually channels the lion’s Green Revolution-style practices. maintains outdated paradigms of share of it’s lending to the private The AAP prioritizes “improved” agricultural modernization without sector. Shifting resources away from drought and flood resistant seed considering the negative impacts its public funding arm, the Bank is varieties and wants farmers to industrial agriculture has on peasant embracing the IFC (International practice “sustainable intensification” farmers. Although warning of Finance Corporation), its private by growing more food on smaller 2 volatile food prices and climate sector facility. The AAP states that areas of land with “smarter” change, it fails to address monopoly “in recognition of the evolving applications of external inputs. The power, financial speculation and global context” (i.e. privatization idea is that non-agricultural “islands greenhouse gas emissions from and unregulated global markets), it of biodiversity” (i.e. nature reserves) industrial agriculture—the main will focus on “facilitating [a] private surrounding these intensive farms drivers of price volatility and sector response” by dramatically can be left in their natural state. climate change.4 increasing the IFC’s agribusiness Because these seed varieties depend investments. This assumes that on conventional chemical inputs, private sector development lifts all this is a way to maintain the model 2 The danger of global boats. Actually, decades of private of industrial agriculture while value chains sector lending has led to stagnating nodding toward conservation investments in health, education goals. This contradicts the more The Bank wants to bring poor and welfare—social goods that are ecological “nature’s matrix” farmers into “global value chains.” essential for improving the well- approach, recognized by scientists This funnels their production being and upward mobility of the who insist biodiversity is best toward the value-added products poor.7 conserved when agriculture itself that can be sold in international is more biodiverse—as it is when markets. For instance, instead The false solutions of smallholders practice agroecology 4 rather than chemical-intensive of growing food for local climate-smart 9 consumption, farmers produce grain agriculture and modernization agriculture. for industrial livestock or agrofuels. Opening up new markets The World Bank promotes 5 Financialization and for farmers may seem appealing, climate-smart agriculture to commodification of but in reality global value chains increase agricultural productivity, climate risk are controlled by transnational build climate resiliency and reduce corporations. Countries whose greenhouse gas emissions. But as The AAP proposes “crop- Gross Domestic Product relies on international peasant organization related insurance offerings such producing primary agricultural La Vía Campesina points out, as the Global Index Insurance Facility” to offer index-based led multiple, ill-fated attempts weather insurance. Whereas at market-led land reforms. To agricultural insurance historically address issues of land tenure, the compensates farmers after a crop AAP supports land markets, titling failure, index-based weather programs and land administration insurance gives payouts to farmers reforms. The intent is that small- whenever environmental measures scale farmers can then use land exceed specified thresholds10 (such as collateral for loans, or they as during droughts or hurricanes). can sell to larger farmers and Because actual agricultural leave agriculture altogether. performance is irrelevant, insurers Unfortunately, bringing agricultural do not have to worry about costly land into the global marketplace verification processes. Thus, the has a spotty track record for insurance can be offered much development; it often leads to more cheaply than traditional indebtedness, forced sales and crop insurance, and is potentially increased land conflict and unequal 12 accessible to small-scale farmers. land distribution. Photo by Ana Galvis While providing a financial safety net to small-scale farmers in Ignoring the IAASTD extension and education to the face of increasing climate risk 7 recommendations incorporate local and indigenous is important, index-based insurance knowledge and embrace equitable actually pushes farmers away from Remarkably, the AAP ignores participatory decision-making the diversified farming practices the International Assessment of processes. They suggest increasing that build climate resilience. How? Agricultural Knowledge, Science investments in agroecological Insuring small-scale farmers makes and Technology for Development farming and adopting an them more “creditworthy.” They (IAASTD)— a multidisciplinary equitable international trading are encouraged to take out credit study involving over 400 scientists framework. The IAASTD claims to purchase chemical fertilizer and sponsored by the UN Environment it is possible to maintain current 3 commercial seed varieties. This Program, FAO, UNESCO, Global levels of productivity and improve pushes farmers toward mono- Environment Facility and the profitability for small-scale cropping, which is inherently less World Bank itself.13 farmers through more socially climate resilient than diversified Instead of seeking to and ecologically resilient farming agriculture. Shifting reliance incorporate poor farmers into systems. All of these findings went to insurance schemes can also existing global value chains, unnoted by the authors of the AAP. undermine traditional risk pooling the IAASTD calls for a radical agreements and other community- transformation of the world’s food Conclusion & level social safety nets. and farming systems. The report— Recommendations Index-based weather insurance endorsed by 58 governments— does offer promising returns concludes that industrial agriculture Nearly a third of humanity for corporate agribusinesses by degrades the natural resources upon lives directly or indirectly from making small farmers clients. which human survival depends agriculture. The Bank’s Agricultural The financialization and and threatens water, energy and Action Plan essentially proposes commodification of climate risk climate security. It warns that driving most of these people sets the stage for derivatives trading reliance on simplistic technological from the countryside. Where will markets which, like all markets fixes—including transgenic crops— they go? Some analysts estimate for imaginary commodities, can will not solve hunger and could the global economy would have produce unexpected and wide- increase poverty and environmental to grow at 15% a year over the ranging negative consequences for degradation. It also criticized the 11 next 50 years in order to absorb global agricultural systems. undue influence of transnational this massive workforce—clearly agribusiness on public policy and this is impossible.14 Agricultural 6 Land programs that the unfair global trade policies that investment is needed, but not the promote conflict and leave half of the world’s population kind proposed by the World Bank. unequal distribution malnourished. If the Bank is truly concerned about The IAASTD proposes ending hunger and rural poverty it Since the 1990s the Bank has reconfiguring agricultural research, should: üü Follow the transformative recommendations of the IAASTD—adopting a focus on local and regional food systems and agroecology; üü Review existing projects and policy reforms with the meaningful involvement of the populations most affected, and withdraw from those that fail to promote the right to food and the legitimate tenure rights of women and communities, or that prioritize global financial interests over vulnerable people and the environment; üü Support small-scale producers’ own investments as advised by the Committee on World , by putting women, small-scale farmers and other marginalized groups at the center of any future strategy and project for food security and nutrition (especially in Africa), making sure that human rights and environmental impact assessments are carried out; üü Prioritize egalitarian land structures, shifting the land administration focus from titling to access and stop any policy changes that facilitate large-scale land concentration and that impede smallholder’s ability to keep their land; üü Support agroecological practices by small-scale farmers through participatory research in agroecology, dissemination of ecological farming knowledge via farmer-to-farmer networks, and capacity-building of public extension services to advise farmers on how to practice ecological farming; üü Prioritize projects and policies that support local infrastructure and distribution of small-scale producers’ agricultural products to local markets, including public sector institutional markets; and üü Prioritize projects and policies that allow farmers to save, exchange and sell their own seeds.

1 RobertNotes Townsend et al., “Implementing agriculture 5 UNCTAD, “Global Investment Report 2013: 10 Ryan Isakson, “Derivatives for Development? for development : World Bank Group agriculture Global Value Chains: Investment and Trade for Small-Farmer Vulnerability and the Financialization 4 action plan (2013-2015)” (World Bank Group, Development” (United Nations Commission on of Climate Risk Management,” Journal of Agrarian 2013), http://documents.worldbank.org/curated/ Trade and Development, 2013), http://unctad.org/en/ Change, no. July (n.d.), doi:n/a – n/a. doi:10.1111/ en/2013/01/17747135/implementing-agriculture- publicationslibrary/wir2013_en.pdf. joac.12124. development-world-bank-group-agriculture-action- 6 Rashmi Banga, “Measuring Value in Global 11 Ibid. plan-2013-2015.”plainCitation”:”Robert Townsend Value Chains,” Background Paper (United 12 Alice Martin-Prevel, “Unfolding Truth: et al., “Implementing Agriculture for Development : Nations Conference on Trade and Development, Dismantling The World Bank’s Myths on World Bank Group Agriculture Action Plan (2013- 2013), http://unctad.org/en/PublicationsLibrary/ Agriculture and Development” (Oakland, CA: 2015 ecidc2013misc1_bp8.pdf. Oakland Institute, 2014). 2 GRAIN, “Hungry for land: small farmers feed 7 Bhumika Muchhala, “Amplifying the private sector 13 Beverly McIntire et al., “Agriculture at a the world with less than a quarter of all farmland” in development: Concerns, questions and risks,” Crossroads: International Assessment of Agricultural (Barcelona: GRAIN, May 2014), http://www.grain. Resurgence 283, no. 284 (April 2014): 40–44. Knowledge, Science and Technology for org/article/entries/4929-hungry-for-land-small- 8 “UN-Masking Climate Smart Agriculture” (La Development,” Synthesis (Washington, D.C.: Island farmers-feed-the-world-with-less-than-a-quarter-of- , September 23, 2014), http:// Press, 2009), http://www.agassessment.org/. all-farmland. viacampesina.org/ en/index.php/main-issues- 14 S. Amin, “Food Sovereignty: A Struggle for 3 Frances Moore Lappe and Joseph Collins, World mainmenu-27/sustainable- peasants-agriculture- Convergence in Diversity,” in Food Movements Hunger: Ten Myths (New York, Oakland: Grove mainmenu-42/1670-un-masking- climate-smart- Unite! Strategies to Transform Our Food Systems Press, Food First, 2015). agriculture. (Oakland: Food First Books, 2011), xi – xviii. 4 Eric Holt-Giménez, Raj Patel, and Annie Shattuck, 9 Ivette Perfecto, John Vandermeer, and Angus Food Rebellions: Crisis and the Hunger for Wright, Nature’s Matrix: Linking Agriculture, Justice (Oakland, CA, London: Food First Books, Conservation and Food Sovereignty (London, UK: Pambazooka Press, 2009). Earthscan, 2009).

About the authors: Eric Holt-Giménez is the Executive Director of Food First. He holds a MSc. in International Agricultural Development from the University of California at Davis and a PhD in Environmental Studies from the University of California at Santa Cruz. Justine Williams is a PhD candidate in Anthropology at the University of North Carolina in Chapel Hill. Caitlin Hachmyer is a full-time diversified vegetable farmer and part-time educator, researcher, and writer in northern California. She holds a master’s degree in Urban and Environmental Policy and Planning from Tufts University.

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