A new generation of policies on agrifood systems

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“Growing geopolitical tensions, climate change, global supply chain disruption, new consumption patterns and accelerated technological development create the need for a new generation of policies on agrifood systems. These policies should not only address food production and trade, but also environmental sustainability, climate resilience and social equity. They should also be evidence-based, utilizing data and rigorous studies to inform the design of effective interventions”

IICA is of view that this is an opportune moment to foster informed dialogue to understand how this context will affect the positioning of the region and the role of agrifood systems in its development strategies and its international standing. This dialogue invites us to rethink the public policies needed to transform and improve agrifood systems of the Americas. Thus, we believe that we should look beyond the basic concept of agriculture, highlighting the fundamental role of agrifood systems and the bioeconomy in strategic development, and ensuring the involvement of the region in global dialogues and agendas, such as the United Nations Food Systems Summit (UNFSS), the World Trade Organization (WTO) and the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP). Consequently, at IICA, we are promoting a new generation of policies that address the transformation required by global food systems (Piñeiro et al, 2023).

As such, we trust that this article will stimulate discussion on the need for a new generation of policies that take into account the international environment and address global and regional challenges affecting agrifood systems, as well as on the role of IICA and its partner institutions, in defining these policies. To this end, our Public Policy Observatory for Agrifood Systems (OPSAa) will be made available to the countries, as a tool that provides valuable resources for policy design and implementation. It provides examples of how agrifood policies are being applied, demonstrating how they can be adapted to effectively address the dynamic and complex global context.

For more information, see: https://opsaa.iica.int/about-us

The international context

Piñeiro et al (2023) describe how this new international order is being shaped by the consolidation of major strategic alliances, with the EU, Russia and China as the leading players. This re-organization, driven by the economic growth in China and new political scenarios, is prompting the restructuring of global value chains and fostering a new global industrial policy, with the state providing explicit support for strategic sectors. Moreover, the profound technological transformations are significantly altering food production, further increasing the importance of the production and trade of the Americas for global food security . In this scenario, the geopolitics of food is also gaining paramount importance, which underscores the need for policies that will ensure a balance between agricultural production and natural resource conservation, environmental sustainability and social inclusion.

“The agrifood trade balance of Latin America increased by more than seven times in 23 years, moving from 22.8 billion in 2000 to 170.6 billion in 2023, sealing its position as the major net food exporting region in the world ” Fore more information see: https://opsaa.iica.int/commerce

Effectively, the global economy is being re-organized around large strategic partnerships that are politically aligned and that are the result of multiple crises triggered by the pandemic, armed conflicts, extreme climate events and the food crisis , which have affected trade and transnational investments.

“As of 2015, there has been a reversal in the trend of several years—the reduction of hunger at the global level—with hunger increasing by 7.7 points to 9.2% of the global population in 2023, that is, 735 million people” For more information see: https://opsaa.iica.int/

Likewise, there has been an acceleration in the reconfiguration of global value chains, which has led to economic decoupling and the relocation of production. At the same time, alternative strategies to globalization have also been emerging, such as nearshoring and friendshoring, which aim to strengthen economies and reduce the dependency of certain countries. This shift towards more marked regionalism and more protectionist policies may have negative impacts on trade and investment in developing countries, although it could also create opportunities for countries that are considered as “friends”.

Consequently, the new global industrial policy is characterized by explicit state support for strategic sectors, with subsidies and trade restrictions being used to bolster national competitiveness. These measures are intended to boost local production, reduce import dependency, foster technological supremacy and enhance economic self-sufficiency, requiring increased intervention by the state and stricter regulations. However, this policy re-direction could curb innovation and escalate costs.

Coupled with this, science and technology have created profound changes in food production over the last 50 years. Global food security depends in great measure on the food production and trade of the Americas. There is growing international interest in the agriculture sector of the Americas, given the region’s production capacity and wealth of natural resources. New technologies and the development of the bioeconomy are expanding the potential of the agriculture sector and if properly managed, could help to overcome challenges, such as the competition for resources and environmental sustainability.

“Challenges and opportunities in the new international scenario must inform the design of development strategies, adapted to the circumstances of each country”

It is essential to create public policies that integrate these strategies and are tailored to the new global conditions, current production structures and available technology. This new generation of policies should: 1) tackle the challenges and take advantage of the opportunities of the new international context; 2) redefine development strategies for agrifood systems so that they can be tailored to the reality of each country; 3) review policy instruments and the types of state intervention and organization (Piñeiro et al, 2023); and 4) be evidence-based to ensure that state interventions are effective.

Map of Bioinput-related measures in LAC

For more information on Bioinputs, see OPSAa: https://opsaa.iica.int/dimensions-area?thematic-area=64

Towards a new generation of public policies

Since the eighties, public policies have evolved significantly, moving away from ideological and prescriptive approaches to evidence-based approaches. Developments in the health sciences have demonstrated the effectiveness of making decisions based on data and scientific evidence, which then led to the adoption of this approach in other areas of public policy (Baron, 2018). During the nineties, the use of empirical data and rigorous analysis to inform the design and evaluation of policies was promoted, as a means of ensuring efficacy and efficiency. This perspective has transformed policy formulation in various fields, including agriculture, and ensured that governmental decisions are more informed and more responsive to the real needs of the population (Boaz et al, 2019).

Agrifood systems are increasingly complex and the policies to promote them often have conflicting objectives. Traditionally, they have sought to increase productivity, agricultural income and the affordability of food, although over time, they have also incorporated environmental and social objectives. Moreover, they use a wide range of instruments and measures to achieve their objectives, anticipating driving factors and overcoming barriers that may limit the effectiveness of state interventions. These characteristics underscore the importance of having a solid foundation of scientific evidence to guide their design and application (El Benni et al, 2023).

According to Chavarría (2018) ), the formulation of public policies in relation to the agrifood sector should satisfy four conditions. The policies should: 1) address the problem identified, 2) ensure that the planned activities and products create the desired impact, 3) take into account the assumptions and risks that could affect the achievement of the objectives, and 4) incorporate technical and rigorous indicators that facilitate follow-up and ongoing evaluation of the intervention. 

See the evaluation of the Desarrollo Rural Sostenible (PRODERS) project in Paraguay: https://opsaa.iica.int/goodpractices-254

At the same time, the true influence of research findings on policy decisions will also depend on the actors that use this information. In addition to being end users, these actors may also be involved in the evaluation and design of policies to increase their relevance and acceptance (El Benni et al, 2023).

Efforts to develop a new generation of policies on agrifood systems seek to address the complexity of agricultural problems and global challenges. Previous approaches were too rigid, often resulting in ineffective policies that produced negative consequences (El Benni et al, 2023).

These new policies are based on diverse methods of compiling and analyzing evidence, including quantitative methods (surveys, experiments, statistical analysis), qualitative methods (interviews, focus groups, participant observation), evidence synthesis (systematic review, meta-analysis) and modelling (simulations, cost-benefit analyses). This combination of methods facilitates the design of more effective policies that can be adapted to the current complexities of the agriculture sector (Baron, 2018). Box 1 provides examples of new evidence-based policy approaches to address complex global problems affecting agrifood systems.

This new approach acknowledges the fact that evidence is not the only factor that should be considered during policy formulation. Other important factors include values, priorities and the circumstances of the people affected by the policy (Antle et al. 2017).

Box 1.  The application of evidence-based policies 

Global problems such as climate change unquestionably require the adoption of new evidence-based policies to address them. The Accelerating Impacts of CGIAR Climate Research for Africa (AICCRA) project is a pertinent example of this. AICCRA works to improve the coherence of policies on climate change and agriculture, by identifying policies gaps and promoting sustainable agricultural practices. At the same time, it promotes greater coherence among agricultural development and climate change policies, ensuring that interventions are based on the best available evidence. AICCRA initiatives include the development of capacities in climate information services and the integration of smart agricultural practices in the secondary education curriculum in Africa, ensuring that the next generation of agricultural professionals will be equipped to tackle the challenges of climate change (see, for example, Tesfaye et al, 2022). On the other hand, in the United States, the USDA Agriculture and Food Research Initiative (AFRI) funds research to address critical challenges in agriculture. Policies derived from these studies drive innovative and sustainable agricultural practices. AFRI provides funds for research, education and extension services, with a view to improving rural economies, increasing food production, stimulating the bioeconomy, mitigating the impacts of climate variability, addressing problems related to the availability of water, guaranteeing food safety and security, improving human nutrition and building the capacities of the next generation of the agricultural workforce. Among its recent achievements, AFRI has funded the development of new cultivars used in 15% of the wheat grown in the U.S.; invented an electrochemical nanoscale process as a solution to bacterial contamination in the food industry; and developed tools to monitor and control outbreaks of avian influenza. Source: AICCRA 2022; UDSA 2023.

A noteworthy example in Latin America is the Descubre program in Costa Rica. Concerned about the decreased pace of growth in agrifood exports, the Costa Rican Foreign Trade Promotion Agency (PROCOMER) applied a series of evidence-based policy measures to address recognized market constraints (Box 2).

Box 2. Diversification of exports from Costa Rica: the Pioneer’s Dilemma 

Efforts to diversify food production may be undermined by recognized market constraints. A farmer who decides to invest in a different crop faces the pioneer’s dilemma, a situation in which he/she will be forced to assume high initial costs and significant risks. (Hausmann and Rodrik, 2003). This farmer will need to invest in research, infrastructure and knowledge, with no guarantees that the new crop will succeed in the market. If the crop is successful, other farmers will be able to imitate the original farmer’s methods and enter the market with less investment and risk, benefiting from the experience and knowledge acquired by the pioneer. Although this will benefit the overall agriculture sector, the pioneering farmer will not be able to completely recoup the economic benefits of his/her innovation, as the new players will benefit from this work, without assuming the same risks. This situation discourages the adoption of new crops and limits diversification and progress in the agriculture sector. Arce and Guevara (2019) conducted an assessment of export performance in Costa Rica, pinpointing the fact that a major part of the growth in exports was concentrated in the intensive margin, in other words, in an increase in the quantity of exports of already existing products.  However, the study revealed that there was a decline in the number of new export products and new businesses emerging during the last decade, especially in the agriculture sector. This finding prompted the Costa Rican authorities to re-examine their approach to maintain a dynamic agrifood export sector, focusing on the promotion of the extensive margin, through the discovery and development of new economic activities. Thus, the pioneer’s dilemma had to be addressed. The Descubre program introduced by the Costa Rican Foreign Trade Promotion Agency (PROCOMER) arose as a strategic solution. This program uses a systematic approach, relying on solid data to identify and develop new economic activities and products in rural and coastal areas. Through the platforms of market research, innovation, projects and investment, Descubre facilitates the creation of prototypes and project incubation, encouraging economic diversification and helping to resolve the pioneer’s dilemma. This approach ensures that interventions are effective and sustainable, while improving productivity, increasing rural income, bridging the divide between rural and urban areas and in turn fostering inclusive and sustainable economic development. For more information, see: www.descubre.cr

IICA’s role in promoting a new generation of policies

“IICA is underscoring the need to redefine the role of agrifood systems in the development strategies of its member countries. The concept of agriculture must be expanded to include economic activities linked to agricultural production and food processing and we must recognize the importance of designing a new generation of policies that are aligned with this new vision (Piñeiro et al, 2023).”

There is a need for a new generation of public policies characterized by a strategic long-term vision; differentiated and coherent public policies; and effective integration among different areas and levels of government. Policies must of necessity be based on scientific evidence to maximize results and minimize risks and costs. There is also a need to anticipate, evaluate and address the impacts of the policies implemented and to create a new institutional framework that includes supranational cooperation, international financing, the strengthening of the state and the participation of local governments. This holistic approach seeks to create a balance between the participation of the state, companies and civil society, while promoting the optimal use of resources and endogenous solutions to achieve better results and greater sustainability (CEPAL, FAO e IICA, 2021).

To this end, IICA is proposing the following seven categories of public policies and specific recommendations:

• The Bioeconomy and Agenda 2030: The bioeconomy should be a key strategy for sustainable development, aligned with the Sustainable Development Goals (SDGs). Countries should promote the sustainable use of biomass for the production of food, renewable energy, medicinal products and other value-added goods.    
• Science, Technology and Innovation: It is crucial that we foster innovation in the agriculture sector, including the adoption of advanced technologies such as precision agriculture, genetic engineering and digital technologies. Governments should support research and development to maintain the competitiveness and sustainability of the sector.
• International and Regional Trade: Trade should be seen as an activity that boosts sustainable development and food security. Regional cooperation must be strengthened, ensuring that trade policies are fair and that they do not introduce non-tariff barriers that inhibit the trading of agricultural products.
• Climate Action and Financing: Agrifood systems should be resilient to climate change. Countries must implement policies that reduce carbon emissions and promote sustainable agricultural practices. Moreover, it is essential that funding be ensured for climate change adaptation and mitigation in agriculture.
• The One Health approach: Agricultural health must be addressed from an integrated perspective that considers the interrelationship between human, animal and environmental health. This holistic approach is fundamental in preventing and controlling diseases that may affect both animals and humans. 
• Inclusive Family Farming and Rural Development: Family farming must be supported as a pillar of rural development. Policies should focus on improving the living and working conditions of family farmers, facilitating their access to resources, technologies and markets.
• Equity and Equality: Policies should promote gender equity and social inclusion in the agrifood sector. It is fundamental to ensure that all individuals, regardless of gender, ethnicity or social condition, have equal opportunities and access to the benefits of development (Piñeiro et al, 2023).

In a generic way, IICA is launching a variety of initiatives to drive new generation policies on agrifood systems. These activities include the generation and systematization of evidence through research and the analysis of key aspects such as food security, climate change, social inclusion and environmental sustainability .  IICA is also disseminating this evidence through various platforms, such as publications, events and workshops, ensuring that it reaches a wide audience. Moreover, it is training key actors, including decision-makers and technical experts, on the effective use of evidence to inform policy formulation. Offering direct advisory services to governments, IICA is contributing to the development and implementation of policies based on solid data. Moreover, it is fostering dialogue among stakeholders, from scientists to farmers and civil society organizations, to promote a culture of informed decision-making in the agrifood sphere, based on science.

Source: https://iica.int/en/press/news/international-cooperation-agencies-meeting-iica-stress-need-new-generation-public

“Researchers from six institutions, including IICA, analyzed eighteen thousand academic publications about farmers’ motivation to adopt sustainable agricultural practices, resulting in six recommendations on how to design and implement incentives for sustainable agriculture” For more information, see: Piñeiro et al, 2020.

IICA plays a crucial role in facilitating the development of consensus positions at the hemispheric level that assist in positioning regional agendas and priorities at the global level. One example is the consensus adopted by the ministers of Agriculture of the Americas for the Food Systems Summit 2021, which acknowledged the fact that although agrifood systems are not failed systems, they can be improved significantly; and emphasized that agriculture should be seen as part of the solution to global challenges  (IICA, 2021).

Indeed, IICA spearheads actions at three levels: global, regional and national, as illustrated in Box 3. At the global level, it represents Latin America and the Caribbean in international forums, advocating for sustainable and evidence-based approaches that respond to the global challenges facing the sector. Regionally, it coordinates efforts that transcend national borders, promoting harmonized policies and sharing best practices among member countries. Whereas, at the local level, it executes specific projects that address local needs, working directly with governments, cooperation agencies, multilateral banks and agricultural communities. 

Box 3. IICA: Project execution at various levels

IICA plays a vital role in combatting climate change, through initiatives at the global, regional and national level. One example at the global level was the installation of the Home of Sustainable Agriculture of the Americas pavilion at COP27, where IICA emphasized the pivotal role of the agriculture sector in climate change mitigation and adaptation. The pavilion, which hosted high-level events and was a meeting ground for key stakeholders, highlighted the contributions of farmers and promoted food security and climate resilience. The Living Soils of the Americas initiative, led by IICA, is an example of technical and interdisciplinary cooperation. This initiative, approved by 34 member countries, seeks to balance knowledge levels across the region and guide activities related to soil carbon sequestration, based on the use of Good Agricultural Practices (GAPs). The publication resulting from this initiative offers scientific methodologies to identify the effects of GAPs; estimate carbon stock levels in the region and evaluate the carbon sequestration potential, thereby increasing sustainability and the mitigation of greenhouse gas emissions. Moreover, IICA is promoting the Hemispheric Partnership for Food Security and Sustainable Development. The two main objectives of the partnership are: 1) to strengthen participation in and coordination among Member States in agriculture-related international forums, and 2) to promote joint actions to exchange information, knowledge, policies and investments that contribute to the strengthening of agrifood systems in the region. At the national level, IICA evaluated the Desarollo Rural Sostenible (PRODERS) project in Paraguay, which is aiming to improve standards of living in rural areas, by increasing agricultural productivity and competitiveness. The evaluation stressed the importance of addressing the needs of rural communities and increasing agricultural productivity. In terms of efficiency, the project has significantly increased productivity and the income of thousands of families. Evidence has shown that there are notable improvements in beneficiaries’ quality of life and access to markets.  Moreover, the focus on sustainable agricultural practices and technology diversification guarantees sustainability and long-term benefits for rural communities https://opsaa.iica.int/goodpractices-254). Source: CEPAL, FAO, IICA 2023.

The actions seek to underscore the importance of regional agrifood systems to the world and their capacity to address the challenges involved in supplying healthier, safer and more nutritious food to an increasingly urban population, while promoting environmental practices that protect natural resources, rehabilitate and maintain fragile agroecological systems, and reduce polluting greenhouse gases that contribute to climate change throughout the world (Piñeiro et al, 2023). Meeting these complex and often opposing objectives will undoubtedly require the implementation of a new generation of policies on agrifood systems.

OPSAa is a tool developed by IICA to facilitate processes to define and formulate a new generation of policies, as well as to exchange experiences and knowledge

IICA’s Public Policy Observatory for Agrifood Systems (OPSAa) was established out of a desire to assist countries to formulate relevant, effective, efficient and sustainable policies. It provides tools to enable more targeted and efficient provision of technical cooperation in the region, adopting a forward-thinking perspective and improving the capacity to anticipate and understand the environment affecting agrifood systems at the hemispheric, regional and national levels. It also identifies opportunities to spur greater regional cooperation and coordination, by establishing a hemispheric network of regional and national partners to foster dialogue and the exchange of information on public policies. 

“OPSAa offers a wide range of resources that contribute to the systematization and monitoring of public policies related to the agrifood sector”

OPSAa offers a wide range of resources that contribute to the systematization and monitoring of public policies related to the agrifood sector. First, it provides tools grounded in concepts and methodologies to classify and monitor policies, according to essential criteria, such as strategic issues, instruments used and sources of financing. Second, it fosters dialogue and analysis, by creating forums for discussion of the policies recorded, while promoting collaboration to address long-term challenges and opportunities. Third, it provides a solid foundation of concepts and tools for the design, implementation, monitoring and evaluation of policies, supporting the formulation of evidence-based policies. Fourth, it offers visual indicators to assist in evaluating the results and impact of actions to modernize and improve agrifood systems. Finally, the OPSAa digital platform facilitates communication and collaboration among users, promoting the exchange of information and knowledge on current and potential long-term issues, providing an integrated view of the policies, according to various criteria.

For more information see: https://repositorio.iica.int/handle/11324/21839

As a result of its activities, the OPSAa has spearheaded the initiative “Towards a New Generation of Public Policies for Agrifood Systems in the Americas”. As part of this project, a joint concept document has been prepared in collaboration with the World Bank, IDB, IFPRI, FAO, CAF, ECLAC and CIAT, as well as a work agenda with the framework of the Hemispheric Network of Agrifood Policies and an evidence synthesis under the Avanzar2030 project, involving 30 researchers from more than 20 institutions. The aim is to bridge data gaps; analyze public interventions and their associated costs; and to generate the evidence needed to develop a new public policy agenda. Through these efforts, OPSAa is positioning itself as a leader in promoting evidence-based policies to improve the agrifood systems of the region. 

Conclusion

In an environment characterized by rapid transformations and the need for regional and multilateral cooperation, a new generation of policies on agrifood systems offers a solid framework for informed and effective decision-making. These policies will ensure that public initiatives will effectively address the complex global and local challenges, using scientific evidence as their foundation. The challenges and opportunities of the new international context should be used to inform the specific development strategies of each country. It is imperative that the region design a new generation of public policies that take these strategies into account and adapt to the new global conditions, current production structures and available technologies. These policies should: 1) address challenges and opportunities in the new international context; 2) redefine development strategies for agrifood systems, tailored to the specific realities of each country; 3) review policy instruments and the types of State intervention; and 4) be evidence-based to ensure the effectiveness of State interventions.

IICA has identified an opportunity to foster informed dialogue, which will provide an understanding of how this new international dynamic will affect the global positioning of the region and of the role of agrifood systems in its development strategies and its international integration. This dialogue invites us to define and formulate the new generation of policies that will be necessary to transform, modernize or improve agrifood systems in the Americas amidst the new world order. IICA and OPSAa play fundamental roles in promoting and supporting these policies. IICA, given its capacity to generate and disseminate scientific evidence, train key stakeholders, and to facilitate dialogue and build consensus, ensures that public policies are based on solid data and rigorous analysis. OPSAa complements these efforts, providing tools for the systematization and monitoring of public policies and strengthening the capacity of countries to anticipate and respond to the challenges of the agrifood sector.

By adopting this new generation of policies and promoting innovation and diversification, the countries of the Americas will be able to strengthen their agrifood systems, enhance their competitiveness in global and regional markets, and ensure sustainable long-term economic growth.

 

References

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