World Bank and G20 Forum Prepare US$ 130 Billion to Anticipate Food Crisis

Great threats are lurking around the world. (ANTARA PHOTO/M Risyal Hidayat - POOL)

Great threats are lurking around the world. Besides the recession, the food crisis is predicted to occur next year. To anticipate the food crisis, the World Bank and the G20 Forum are committed to disbursing funds of US$130 billion.

This figure was conveyed by the Minister of Finance Sri Mulyani Indrawati in a press conference after the meeting between the G20 Finance Ministers and Defense Ministers in Washington DC, Tuesday (11/10/2022).

“We are also in this case collecting existing initiatives, such as from the World Bank which has an initiative of US$30 billion in dealing with this food crisis,” said Sri Mulyani.

In addition, the Minister of Finance also said last year’s G20 Rome Presidency, G20 countries were committed to providing US$100 billion in budget support so that it could be accessed by countries facing financial and food crises.

She said the threat of a global food crisis was the main issue discussed by the G20 forum. According to her, the focus of the discussion on food issues is related to nutrition and fertilizers.

“We will face 2023, which will be much riskier in terms of food. Initiatives, collaborations, once we identify and test solutions, then we will be able to see what issues need immediate attention,” She added.

Sri Mulyani also encouraged and asked FAO and the World Bank to map out all policy responses globally.

When everyone is doing without collaboration and the similarity of data and dashboards, she said, it can cause overlap and can lead to crucial points that are not handled.

“By having FAO and the World Bank map and test how policy responses in each country, or region, are applied globally, policymakers can identify which areas still need additional focus,” she said.

On the other hand, Minister of Agriculture Syahrul Yasin Limpo said that all G20 member countries responded to various threats of food crises due to the Covid-19 pandemic, the phenomenon of climate change, to geopolitical tensions that increased due to the Russia-Ukraine war. These conditions cause the food chain at the local to global level to be disrupted.

“In the meeting that was passed, all countries were worried about the presence of a food crisis that really needed a more serious response to deal with future conditions,” Syahrul said at a press conference in Washington D.C., United States, Tuesday evening, October 11, 2022.

The risk of the threat of a food crisis and its solutions were discussed by the finance ministers and agriculture ministers of various countries in the Joint Finance Ministers and Agriculture Ministers (JFAMM) which took place in Washington. This forum was held as a series of G20 meetings.

Syahrul said the gathering resulted in the commitment of all G20 member countries to determine solutions to food problems faced in the future. The countries agreed to establish a global funding scheme for three priority issues agriculture and food.

The three issues include the promotion of resilient and sustainable agricultural and food systems. Second, the promotion of agricultural trade that is open, fair, predictable, transparent, and non-discriminatory. Third, the promotion of innovative agricultural entrepreneurship through digital agriculture ensures the welfare of farmers in rural areas.