São Paulo – This Monday (18th) atthe G20 summit in Mexico, the group’s leaders have announced the establishment of a fund to acknowledge innovative actions that aim to solve food supply and agricultural development issues around the world. The AgResults fund will set out to boost food security and improve the livelihoods of farmers in developing countries by means of prizes and other market initiatives.
The AgResults is expected to count on up to US$ 100 million, which will be managed by the World Bank. The initiative is backed by the governments of Australia, Canada, Italy, the United Kingdom and the United States, and the Bill & Melinda Gates Foundation.
According to a statement issued by the World Bank, the AgResults fund will use incentive mechanisms through results-based payments, such as prizes paid when certain milestones are achieved. According to the statement, these types of financing systems have been successful in fostering innovation and solutions in other areas, such as healthcare.
The statement claims that AgResults was born out of the realization that there is a great need for increased investment in global food security and agricultural development, in particular from the private sector.
In the coming years, AgResults will launch a series of pilots that address hunger-related problems. The first pilot will target maize production in Sub-Saharan Africa. Other pilot projects are being prepared and should include vaccination of herds, fertilizer innovation, boosting crop yields, lowering post-harvest losses, increasing herd productivity, and nutritional improvement.
*Translated by Gabriel Pomerancblum
