Fourth Preparatory Committee (4th PrepCom) Session for the Fourth International Conference on Financing for Development (FFD4) Panel Discussion 4 on Specific Actions in the[...]

Fourth Preparatory Committee (4th PrepCom) Session for the Fourth International Conference on Financing for Development (FFD4) Panel Discussion 4 on Specific Actions in the First Draft of the Outcome Document on II.A. Domestic Public resources

Adriano Campolina, Senior Policy Officer, FAO

01/05/2025

Thank you chair,

Excellencies, colleagues,

Current domestic expenditure for agrifood systems transformation is not directed where it is most needed, nor is it financing sustainable and inclusive agrifood systems transformation. FFD4 can play a critical role in addressing these challenges.

There is a need to increase the volumes and improve the quality of domestic public resources for agrifood systems transformation, given its crucial role for economic growth, employment, food security and nutrition and overall resilience, particularly in Low and Lower Mid Income countries.

Public spending on agriculture per rural inhabitant has persisted at very low levels for years among low- and lower-middle income countries, which is where the highest levels of food insecurity and undernutrition. These are also the countries that are most dependent on agrifood systems for their GDP and employment.

FAO welcomes the attention already given to these issues in the draft outcome document, as well as the proposals made by delegations to bring explicit food security and nutrition considerations on the domestic public resources section.

Furthermore, FAO considers it important that the outcome document reflects the following:

i) The importance of considering food security and nutrition objectives, including appropriate funding to food security and sustainable agrifood systems, in fiscal programming.

ii) The importance to consider the significant potential on re-allocating public domestic spending in agriculture towards sustainability, inclusivity and healthy diets. Some of this relocation could result from increasing official development assistance (ODA) flows to lower-middle-income (LMICs) and low-income countries (LICs)

iii) The importance of debt swaps, concessional loans and grants to provide these governments with much needed fiscal space, allowing them to reallocate public resources towards transforming agrifood systems, promoting food security and nutrition and increasing resilience.