Secretary-General tells 2nd Commission on Investment, Enterprise,and Development that potential for agricultural investment "is enormous"; calls for "smart laws and procedures" to back State development efforts
Geneva, 26 April 2010 - Comprehensive and coherent national efforts are needed, along with the creation of an international set of principles for responsible investment in agriculture, to help developing countries capitalize on the enormous potential for investment in farming in the wake of the recent food crisis, UNCTAD´s Secretary-General said this morning as a five-day meeting opened on investment and development concerns.
Along with debating "investment in the agricultural sector with a view to building productive capacities," UNCTAD´s Investment, Enterprise and Development Commission will focus this week on "the role of States; efficiency in public investment for development."
The organization´s Secretary-General, Supachai Panitchpakdi, said in an opening address that both issues "are critical for developing countries as they struggle to overcome the impacts of the recent food crisis and the financial and economic crisis."
And Commission President Maurice Peter Kiwanuka, Ambassador of Uganda to the United Nations Office at Geneva, said the recent food crisis had resulted in "lost lives and lost hopes," adding that this week´s discussions are taking place against that background.
"There is an urgent need to invest more in agriculture," Secretary-General Supachai told the meeting, "both to ensure food security and as the basis for long-term economic development."
UNCTAD´s World Investment Report 2009 showed that global foreign direct investment (FDI) in agricultural production has been increasing. But Mr. Supachai stressed that such mounting investment must be not only encouraged but well managed. Rising investment by transnational corporations (TNCs) in developing nations has great potential, he said, "but we also have to recognize that the actual amount of FDI in the sector is still low, and that potential risks, such as land grab, may pose serious threats to developing-country farmers."
He said national governments need to have comprehensive measures in place to ensure that such FDI works to the benefit of domestic economies and agricultural sectors. And he said a global set of principles should be established to guide the agricultural investments of transnational firms.
This afternoon, there will be a presentation before the Commission of a set of draft Principles for Responsible International Investment in Agriculture for Sustainable Development. The draft has been developed jointly by UNCTAD, the Food and Agriculture Organization, the World Bank, and the International Fund for Agricultural Development.
Efforts by governments to ensure efficient public investment in development have borne fruit in recent years, the Secretary-General told the meeting, and "smart laws and procedures, organizational schemes, and e-government tools that have demonstrated their efficiency in one country could be helpful to other countries confronted by the same problems." Discussion of the topic, scheduled for Wednesday, 28 April, will include the sharing of such best practices.
The Investment, Enterprise, and Development Commission meets yearly, as decided by UNCTAD´s 12th ministerial conference in 2008. This year´s session is the Commission´s second. This year, along with carrying out a debate on its two main themes, the Commission will consider the reports of recent UNCTAD expert meetings. These include meetings on enterprise development, "South-South" cooperation, investment for development, international standards of accounting and reporting, green and renewable technologies, and the contribution and effective use of external resources for development.
Late this afternoon, the winners of the second UNCTAD Empretec Women in Business Awards will be announced before the Commission. The UNCTAD-supported Empretec programme trains entrepreneurs in developing countries, many of whom go on to found their own businesses.
And on Tuesday, 27 April, UNCTAD´s Investment Policy Reviews (IPRs) of Belarus and El Salvador will be presented and discussed with government officials from those nations.
