Food Security and Sustainability: Investment and Financing along Agro-Food Chains

288 Pages·2017·7.1 MB·English

by  George Mergos

EDITED BY GEORGE MERGOS
MARINA PAPANASTASSIOU
FOOD
SECURITY AND
SUSTAINABILITY
Investment and Financing
along Agro-Food Chains
Food Security and Sustainability
George Mergos • Marina P apanastassiou
Editors
Food Security and
Sustainability
Investment and Financing along Agro-Food
Chains
Editors
George Mergos Marina Papanastassiou
University of Athens Middlesex University Business School
Athens , Greece Hendon , United Kingdom
ISBN 978-3-319-40789-0 ISBN 978-3-319-40790-6 (eBook)
DOI 10.1007/978-3-319-40790-6
Library of Congress Control Number: 2016956469
© Th e Editor(s) (if applicable) and the Author(s) 2017
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Prefa ce
Th e relevance of this volume is very timely. With evidence on climate
change accumulating, the issue of feeding 9.5 billion people in 2050
climbs high up in the international agenda. Th ere is little doubt that
global warming represents for mankind the huge challenge of making
development sustainable. Hence, despite current eff orts, these two issues,
food security and sustainability, remain unsettled. It is not just that
the world needs to produce more food to accommodate rapidly rising
demand due to fast-growing populations and incomes, but food systems
are also under severe stress due to climate change, there is a diet shift to
animal products and resource degradation.
After the food crisis of the 1970s, the downward trend in food com-
modity prices in the 1980s and the 1990s led to complacency. Th e year
2002 represents, though, a turning point with a food price trend reversal
and increased food price volatility initiating renewed interest on food
security and sustainability. However, this time the global terrain is dif-
ferent. Globalization has elevated a large part of the global population
to affl uence, changing consumption, production and trade patterns, and
signifi cantly aff ecting population well-being everywhere.
Clearly this challenge needs to be met on all levels of the political sys-
tem, that is, institutions of supra-national governance, national govern-
ments and sub-national actors. In addition, it requires not only strong
eff ort but also innovative governance practices. At the international level
v
vi Preface
there is strong eff ort in this direction, and achieving food security is the
second of the UN Sustainable Development Goals with the specifi c tar-
get to solve the problem of hunger by 2030. However, the issue has not
received similar attention at national, sub-national or even at household
levels due to its complexity and the diffi culties encountered in policy
analysis and design.
Methodologically, food security has been analysed, up to very recently,
using traditional food-supply demand balances at global, national and
household level. Th e objective was to address issues of chronic or transi-
tory food insecurity, purchasing power, fi nancing of food imports, buff er
stocks and commodity price volatility. However, over the next three–four
decades the problem of food insecurity gets increasingly complex, because
it should be considered within the context of climate change and resource
constraints, at a time of an accelerating economic and social transforma-
tion due to globalization. Th us, the nexus of food security, sustainability
and globalization establishes a new perspective in the very old issue of
food security. Th is new perspective should take into account compli-
cated Global Value Chains, responsible investment, sustainability issues
and recent advances in consumer behaviour. In addition, there are other
important issues that should also be considered, such as the effi ciency of
distribution chains in reaching households in need, the impact of micro-
fi nance for generating purchasing power, the importance of price and
income volatility, risk mitigation policies, as well as the importance of
GMOs for global supply–demand balances. Th is new perspective gives
a new direction in the research agenda on food security, globalization
and sustainability. Hence, this is a timely volume because food security
has been designated as a key priority for sustainable development and as
such has been acknowledged by all major stakeholders responsible for
the future of global economy and human welfare. In the light of this, the
volume includes contributions of researchers from major international
organizations, national research institutions, universities and the private
sector.
Th e volume is by necessity eclectic. It aims to touch upon only a few
of the dimensions of food security. Th e volume begins with two chapters
on the shifting market environment and green growth strategies. Th en it
proceeds to discuss issues of Global Value Chains in the agro-food system,
Preface vii
investment, fi nance and risk. Th e second part of the book presents food-
security-related policies in a number of case studies drawn mainly from
the Mediterranean area.
W hen it comes to summarizing the discussion assembled in this vol-
ume, the message is mixed. Although food security and sustainability
are receiving increased attention and the commitment to improve food
security is widespread, the evidence on actual policy making is scarce. At
the core is the lack in understanding the complexity of the issues and the
need for interdisciplinary analysis. Food security and sustainability are at
the crossroads of three areas: science, economics and governance. Hence,
the identifi cation of evidence-based policy measures would require the
collaboration of researchers in the three areas. Th is will be the main chal-
lenge for future research in the domain of policy design for food security
and sustainability.
Athens George   Mergos
London Marina   Papanastassiou
Acknowledgements
Th is book stems from the inaugural workshop of the M editerranean
Center for Food Security and Sustainable Growth (MED-SEC) that was
established in early 2015 as an interdisciplinary network of researchers
engaged in research, education and policy making in the area of Food
Security, Development and Sustainable Growth. Th e Workshop titled
“Investment and Financing along the Agro-food Value Chain for Food
Security and Sustainability” was convened in Athens, Greece, in May
2015. Th e high-quality contributions presented at the workshop by lead-
ing experts from academia, industry and international organizations pro-
vided state-of-the-art knowledge on the challenges food security poses to
the world.
Th e location of the Workshop was ideal, as Greece is located at the
crossroads of South East Europe, Eastern Mediterranean and the wider
MENA region which faces the impact of food insecurity. Countries in
the region experience limited and fragile natural resources—in particular,
land and water—and acute vulnerability to climate change. In addition,
the unstable political environment, confl icts that tantalize the region,
imposes further pressure on food prices and on available land for cultiva-
tion among other factors
Th is volume includes papers presented at the Workshop, as well as
papers by other prominent international experts who kindly responded
to the editors’ invitation to join and support this project. As a result,
ix
x Acknowledgements
this edited volume refl ects the multidisciplinary approach adopted in the
Workshop as the only way to achieve an in-depth understanding of the
multifaceted nature of food security.
We would like to thank our sponsors and supporters for their gen-
erous contribution towards the realization of the Workshop and fi nally
of this volume. Our venue sponsor was e xcelixi Center of Sustainable
Entrepreneurship of the Bank of Piraeus Group, Greece. Th e Center pro-
vided us with excellent venue facilities and logistical support, and we are
thankful to them. Also, we have received support in the realization of the
Workshop from the Bank of Greece; the Middlesex University, UK; the
University of Athens, Greece; and our graphic designer partner, I mpressme
Communications . We are grateful to our sponsors and our supporters for
their generous and unconditional contribution to the accomplishment of
this Workshop and the realization of this volume.
E diting the work of others is always easier than critically reviewing
one’s own output. Hence, for including our own chapter on the link
between GVCs, MNEs and food security, we turned to Hafi z Mirza of
UNCTAD for review. We are thankful to him for his penetrating com-
ments and suggestions.
F inally, we would like to take this opportunity to express our gratitude
to Maddie Holder and the staff of Palgrave Macmillan for their hard
work in getting this volume to press.
April 2016
University of Athens George   Mergos
Athens , Greece
Middlesex University Business School Marina   Papanastassiou
London , UK
Contents
1 Food Security and Sustainability: Globalisation,
Investment and Financing 1
George Mergos and Marina Papanastassiou
Introduction and Overview 1
Food Security and Sustainability: Renewed Interest
on a Long-Standing Issue 2
Current Developments and Future Challenges 8
Defi nition, Measurement and Analysis of Food Security 12
Focus and Structure of the Book 18
Structure of the Book 21
Concluding Remarks 29
2 Th e F ood S ecurity D ebate in a  S hifting M arket E nvironment 35
Tassos Haniotis
I ntroduction 35
A ssessing the  M ain D rivers of  M arket U ncertainties 37
O n the  C ausality of  C ommodity P rice M ovements 47
R elevance for the  P olicy D ebate 50
xi