Briefing Papers Number 17, May 2012 | Page 2

The 2012 G-8 summit of the eight largest industrialized countries, to be held in May at Camp David in the United States, is an opportunity to bolster commitment to help resolve the crisis of global food insecurity and food price volatility. Approximately 925 million of the world’s people suffer from chronic malnutrition and hunger; more than half of these people live in rural areas and depend on agriculture for their livelihoods.1 Significant, sudden increases in the prices of staple foods in 2007 and the first half of 2008 forced more than 100 million people into hunger. While prices fell in 2008 and 2009, they stayed above the historically low levels seen earlier in the decade and then rose sharply again in 2010-11. In February 2011, the World Bank announced that since June 2010, rising food prices—reaching nearly their 2008 highs—had driven an estimated additional 44 million people in developing countries into poverty.2 Volatility in the prices of food commodities is expected to continue. The consequences of food price shocks among hundreds of millions of people already on edge have already been seen in the riots that spread across 40 countries in 2008. The recent uprisings in North Africa and the Middle East were sparked not only by pent-up political discontent, but also by the anger and frustration of vulnerable people as global food prices soared.3 The close relationship between volatile food markets and political instability is indisputable. The urgency of the global food security crisis was recognized by the G-8 summit in 2009 in L’Aquila. Thirteen developed countries joined in the L’Aquila Food Security Initiative (AFSI), which committed participating nations to take all necessary measures to achieve global food security, including mobilizing $22 billion over three years for sustainable agricultural development.4 The initiative 2  Briefing Paper, May 2012 Figure 1: Official Development Assistance (ODA) to Agriculture for Sub-Saharan Africa — Overall assistance — Multilateral assistance — Bilateral assistance 4,500 Constant 2006 dollars (in millions) USAID 2012’s Golden Opportunity has begun to reverse decades of neglect of agricultural development in low-income countries; it has also stimulated new efforts—such as co-financing, human capital development, institutional capacity building, and marketplace strengthening—to improve food security. Complicating efforts to find longer-term solut