Parliamentary Dialogue Series: Food, Fragility and Finance

The World Bank Group, together with the International Monetary Fund (IMF) and the Parliamentary Network on the World Bank and IMF (PN) hosted the third edition of the virtual Parliamentary Dialogue Series, themed Food, Fragility and Finance on June 22, 2022.

A global food crisis is pushing many countries toward famine as hunger levels surpassed all previous records in 2021 as reported by the 2022 Global Report on Food Crises, with close to 193 million people acutely food insecure—nearly 40 million more people than during the previous high reached in 2020. Even prior to 2020, hunger was on the rise due to various factors, including conflict and climate change. The situation was made worse by COVID-19 through reduced incomes and disrupted supply chains. It is now being exacerbated further by the war in Ukraine as Ukraine and Russia account for over a quarter of the world’s annual wheat sales. Price increases of up to 30 percent for staple foods are putting significant pressure on the poorest households, threatening to push millions more into hunger. In addition, higher fuel prices will increase the import costs of oil, worsening external and fiscal balances already strained by the pandemic.

Some 80 participants from across the globe connected to hear from Nabila Assaf, Manager of Fragility, Conflict, Violence and Forced Displacement, WBG; Holger Kray, Practice Manager of Agriculture and Food Security, WBG; and Bjoern Rother, Advisor in the Strategy, Policy and Review Department, IMF. Panelists gave overviews of the current food security and fragility context, and how the WBG and IMF are supporting countries in protecting the poor and most vulnerable, including a $2.3 billion World Bank program to address escalating food insecurity in Eastern and Southern Africa approved the day before; the World Bank Group Strategy for Fragility; Conflict and Violence 2020-2025; and the new IMF Strategy for Fragile and Conflict-Affected States. The dynamic conversation that followed between experts and MPs centered around the urgency of rising food prices, the importance of improved domestic agricultural practices, social safety nets rather than subsidies to promote resilience, and reduced food waste.

Key takeaways:

• Food security has been a growing problem in recent years, but hunger levels spiked sharply to record highs in 2021 with nearly 193 million people living in famine, threatening to exacerbate fragility and conflict.
• Conversely, conflicts and insecurity are the main drivers of food insecurity and must be addressed in holistic ways by countries and the international community.
• Building resilience to shocks is key to surviving multiple, overlapping crises. Social safety nets can help by channeling limited finances to the poor and most vulnerable, rather than subsidies that are not targeted and can waste precious funds.
• International cooperation and open trade are crucial to keep food flowing to countries that need it most.
• Food waste is a major problem that could be addressed at the country level by parliamentarians to capitalize on the available resources.
• Improved agricultural practices and incentivizing farmers could help boost domestic production and reduce risks of conflicts.
• Parliamentarians are critical to passing laws, scrutinizing budgets, and overseeing their governments to ensure that citizens have access to food and are less susceptible to conflicts.