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COVID-19 and Global Food Security
1. COVID-19 AND GLOBAL
FOOD SECURITY
Johan Swinnen
Director General, International Food
Policy Research Institute
August 4, 2020
John McDermott
Director, CGIAR Research Program on
Agriculture for Nutrition and Health (A4NH)
2.
3. COVID-19 & Global Food Security
Book Sections
1. Introduction
2. Food Security, Poverty, and Inequality
3. Diets and Nutrition
4. Labor Restrictions and Remittances
5. Food Trade
6. Supply Chains
7. Gender
8. Policy Reponses
9. The Future of Pandemics and Food Systems
Methodology
1. Global models
2. Country models
3. Survey analyses
4. Expert views
5. Case studies
4. A combination of impacts of
Large economic RECESSION
Major food system DISRUPTIONS
• Traditional supply chains (both harvesting,
processing, transport and retailing) in poor
countries
• Labor-intensive activities in rich countries
(e.g. some F&V harvests (migrants) and
meat processing)
COVID-19 impacts on food and nutrition security
5. COVID-19 impacts on global poverty and nutrition
Source: Laborde, Martin and Vos, 2020
Impact on Global POVERTY
148
79
42
20%
23%
15%
0%
5%
10%
15%
20%
25%
0
40
80
120
160
World Sub-Saharan
Africa
South Asia
Increase no. of poor (millions)
% increase poverty (RHS)
Impact on Global NUTRITION
6. COVID-19 impacts on country GDP and poverty
Source: Amewu et al. 2020; Baulch et al. 2020; Diao et al. 2020; Pradesha et al. 2020; Thurlow, 2020.
Average COVID-19 impact per month of lockdown
-24.3%
-37.2%
-30.1%
Indonesia Ghana Nigeria
13.3
16.7
12.212.6
16.8
10.7
14.0
16.5
15.0
Indonesia Ghana Nigeria
National Rural Urban
Increase in POVERTY headcount (% points)Declines in GDP (%)
7. 1. They spend a large share of their income on food
2. Their main production factor and asset is physical
labor
3. COVID causes more disruptions in their (private)
food value chains – since more labor-intensive
4. Public social and nutrition programs are disrupted
(more important for them)
5. Less access to health services
6. Especially vulnerable: children, women,
(ex-)migrants
Poor people’s food and nutrition security is
disproportionately affected by COVID-19
8. 50
26.7 27.5
Poorest Middle Richest
Poor people suffer
from stronger INCOME declines
Poor people suffer from
stronger NUTRITION effects
30.8
60.8
71.7
20.8
44.2
69.2
Poorest Middle Richest
Jan-Feb May
COVID-19 impacts: Survey results from Ethiopia
Source: Hirvonen et al. 2020; Tesfaye et al. 2020.
% of households consuming dairy products% of households that have much lower incomes
9. Women are especially vulnerable
Gendered impacts of COVID-19
Income effects (eg from remittances)
Health requirements, particularly in rural areas
Shocks like illnesses and death
Women’s empowerment and children’s schooling – with
impacts on future female labor force participation
Gender-sensitive policy responses : examples
Adapt existing schemes and choose forms of social protection mindful of gender implications
Improve program targeting for women
Complementary programming in food and nutrition, water and sanitation, maternal health, etc.
…
Source: Quisumbing et al. 2020; Hidrobo et al. 2020.
10. Source: Diao and Wang, 2020.
Percent declines in total income due to a 50% international remittance
shock and a 30% domestic remittance shock among poor households
-5.0%
-16.3%
-11.8%
-11.0%
Urban
Rural female headed
Rural
Total
Gender and income declines
COVID-19 induced fall in remittances in Myanmar
11. Source: Thurlow, 2020; Diao and Wang, 2020.
-14.3%
-5.2%
-13.7%
-21.8%
Total Agriculture Industry Services
Changes in sectoral GDP during 7-week period of
restrictions and shocks in ETHIOPIA
Changes in sectoral GDP during 2-week lockdown
in MYANMAR
-41%
-14%
-52%
-56%
Total Agriculture Industry Services
Sectoral impacts due to COVID-19
12. Changes in GDP (%),
NIGERIA: 5-week lockdown
Changes in GDP (%),
MYANMAR: 2-week lockdown
-41%
-24%
-14%
-33%
-71%
-38%
-18%
-14%
-29%
-92%
Economic decline of food systems
Source: Thurlow, 2020.
13. Source: Glauber, Laborde, Martin, and Vos, 2020.
Despite good harvests and stocks for staple
crops: food exporting countries introduced
export restrictions
Rapid response “Trade restrictions are
worst possible response to safeguard
food security”
Similar by FAO, G20, WTO etc. : call for open
trade to avoid repeating the problems of
2007-2008
Since then: removal of several constraints
See: IFPRI trade policy tracker
Trade restrictions:
Early response to COVID-19
14. Source: Bouet and Laborde, 2020; Resnick 2020
See: IFPRI’s COVID-19 Policy Response Portal
Country responses vary widely in
approach and impact
Many responses overlap and interact
Trends thus far may impact food security
• Major restrictions on urban food traders
• Widespread support for contactless
payments
• Targeted support on consumer livelihoods
• Less support for agriculture than for other
forms of economic assistance
• Exclusion of agriculture ministries in many
COVID-19 national response units
COVID-19 policy restrictions create problems for
African trade (international and domestic)
15. Source: Reardon and Swinnen, 2020.
Global vs. local supply
chains
Innovations to
overcome restrictions
Growth of e-commerce
…..
Restructuring trade, supply chains and
food systems
16. Types of national policy responses: LMICs
Fiscal and financial Social protectionMovement control Governance and leadership
Food supplyHealth Markets and trade Business
17. Initial common policy responses
Movement Control and Public Health
Fiscal and Financial
o Ensure essential goods and services
o Function of domestic economy
o Exchange rates / debt / trade
Social Safety Nets
o Recommendations for adapting to provide rapid
support (cash, food, programs)
o Many innovations being tracked (Gentilini, World
Bank)
18. Policy implementation
and effectiveness
For many countries:
• capacity to implement limited.
• failures consequential
Assessing implementation and
effectiveness in the COVID-19
policy response portal:
• Institutional leadership and
coordination
• Price stability
• Citizen responses (civil unrest,
non-compliance)
Trust and acceptance
21. Future of
epidemics and
pandemics
Plagues have had dramatic
impacts historically
Modern tools for control of
epidemics not enough
Frequency / spread / impact
of emergence is changing
Implications for future
prevention and
preparedness
22. COVID-19: Disruptions and connections
COVID-19 – an acute crisis exacerbating chronic underlying conditions
Exposed systemic inequities and need for pro-active inclusion efforts (GFPR, 2020)
Rethinking how systems are organized and the importance of interconnections
between sectors (health, food, economies)
Where to start:
• Cross-sectoral policy responses – trade-offs, synergies, intended and unintended
consequences
• Community leadership and resilience – critical in pandemics
Notes de l'éditeur
Chapter 1: COVID-19: Assessing impacts and policy responses for food and nutrition security
Demand fallout: (i) impact on food access (refer to income impacts and poverty effects from our global scenario analysis)
Chapter 13: Significant economic impacts due to COVID-19 and falling remittances in Myanmar
Chapter 13: Significant economic impacts due to COVID-19 and falling remittances in Myanmar
https://www.slideshare.net/ifpri/tag/covid-19-sam
Chapter 14: COVID-19: Trade restrictions are worst possible response to safeguard food security
Chapter 15: COVID-19 border policies create problems for African trade and economic pain for communities
Chapter 14: COVID-19: Trade restrictions are worst possible response to safeguard food security
The COVID-19 pandemic emphasizes importance of well developed, resilient food supply chains, everyone is now getting painfully aware.
The Chinese word for crisis links danger and opportunity. Hopefully, this health crisis will raise awareness of the importance of building better integrated and inclusive food supply chains. Agricultural policy alone is not good enough.
We need to leverage the entire supply chain. For the poor in Africa and South Asia – I would argue – it can all begin by strengthening the hidden middle.
Most widely and rapidly applied policy responses in the acute pandemic crisis. In the book we have emphasized principles and effects of financial and social protection policies on food and nutrition security and poverty as Jo has described.
Some brief comments on chapter on fiscal and financial and on social protection and how these are being tracked.
One dynamic debate globally has been on balancing the restrictions to movement to reduce viral transmission with the measures to protect the poor and vulnerable and to protection food systems and economies. We see greater understanding of the consequences and benefits, intended and un0intended, and balancing of these two broad areas of policy responses as critical moving forward, particularly if responses to COVID-19 need to be sustained over the medium term.
Chapter 27: Prepare food systems for a long-haul fight against COVID-19 – Maximo – highlight some key points on current policies for food and longer-term considerations
Food systems disrupted and fragile – more systemic approach required
Hawkes - innovations across food system components; Reardon and Swinnen – rapid pace of innovations – what was planned for years now occurring in weeks or months
Big questions – inclusion and protection of long-term gains; dispersion and degree of inter-connectiveness; redundancies,