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By Jomo Kwame Sundaram


KUALA LUMPUR, Malaysia, Jan 21 2025 (IPS) - Corporate-dominated food systems are responsible for widespread but still spreading malnutrition and ill health. Poor diets worsen non-communicable diseases (NCDs), now costing over eight trillion dollars yearly!


Unhealthy food systems

A recent UN Food and Agriculture Organization (FAO) study of 156 countries found that such food systems account for unsafe food and diet-related NCDs.


FAO estimates related ‘hidden costs’ at about $12 trillion annually, with 70% ($8.1 trillion) due to NCDs such as heart disease, strokes and diabetes. Such costs significantly exceed these food systems’ environmental and social costs.


FAO’s annual State of Food and Agriculture 2024 (SOFA) investigated hidden costs worldwide. These were primarily health-related, followed by environmental degradation, mainly in more ‘industrialised’ agri-food systems in upper-middle and high-income countries.


SOFA 2024 builds on the 2023 SOFA. The two-year study uses true cost accounting to estimate significant costs and benefits of food production, distribution and consumption.


The study estimates “hidden costs and benefits”, including those not reflected by market prices. The latest SOFA updates cost estimates, classifies them by agrifood system, and proposes solutions.


The report identifies 13 dietary risks with health implications, with significant differences among various food systems. Inadequate consumption of whole grains (the leading dietary risk in most food systems), fruits, and vegetables is the worst, while excessive sodium and meat consumption cause significant health risks.


Hidden costs

SOFA 2024 identifies historical transitions from traditional to industrial agrifood systems, their outcomes, and hidden costs. It distinguishes six food systems worldwide – traditional, expanding, diversifying, formalising, industrial, and protracted crisis – and links each to hidden costs.


This approach enables a better understanding of each system’s unique features and the design of more appropriate policies and interventions.


However, inadequate fruit and vegetable intake is the main concern during protracted crises – e.g., prolonged conflicts, instability, and widespread food insecurity – and in traditional systems with low productivity, limited technology adoption, and shorter value chains.


Excessive sodium consumption is another significant health concern, rising as food “systems evolve from traditional to formalising, peaking in the latter and then decreasing in industrial systems”.


Meanwhile, processed and red meat intake rises with the shift from traditional to industrial systems. Meat is one of industrial food systems’ top three dietary risk factors. Adverse environmental impacts of unsustainable agronomic practices contribute significantly to hidden costs.


Such costs – due to greenhouse gas emissions, nitrogen runoffs, land-use changes, and water pollution – rise with diversifying food systems. Rapid growth typically involves changing food production and consumption, costing $720 billion more yearly.


Formalising and industrial food systems also incur significant environmental costs. However, countries facing protracted crises face the highest environmental costs, equivalent to a fifth of their output.


Social costs, including poverty and undernourishment, are most significant in traditional food systems and more vulnerable to protracted crises, incurring around 8% and 18% of GDP, respectively.


Such high social costs emphasise the urgent need for integrated efforts to improve livelihoods and well-being, reflecting stakeholder priorities and sensitivity to local circumstances.


Collective action

SOFA 2024 seeks to promote “more sustainable, resilient, inclusive, and efficient” food systems. It uses true cost accounting to identify hidden costs, going well beyond traditional economic measures such as the gross domestic product (GDP).


Using realistic and pragmatic approaches, policymakers make better-informed decisions to enhance food systems’ social contributions. More comprehensive approaches should acknowledge the crucial contributions of food systems to food security, nutrition, biodiversity, and culture.


Such transformations require transcending conceptual divides, ensuring health, agricultural, and environmental policy coherence, and fairly sharing costs and benefits among all stakeholders.


The report stresses that this requires collective action involving diverse stakeholders, which is difficult to achieve. Such stakeholders include consumers, primary producers, agribusinesses, governments, financial institutions, and international organisations.


Addressing hidden costs affects various stakeholders differently. Appropriate frameworks, supportive policies, and regulations ease implementation and minimise disruption by adopting sustainable practices early and protecting the vulnerable.


Recommendations

Recognising food systems’ adverse consequences for diets and health, the report makes several key recommendations quite different from those of the Davos World Economic Forum-compromised 2021 UN Food Systems Summit. It urges:


• incentivising the promotion of advancing sustainable food supply chain practices and balancing among food system stakeholders.


• promoting healthy diets by making nutritious food more affordable and accessible, reducing adverse health consequences and costs.


• using labelling, certification, standards, and due diligence to reduce greenhouse gas and nitrogen emissions, harmful land-use changes, and biodiversity loss.


• empowering society with comprehensive, clear, accessible, and actionable food and nutrition education and information about food choices’ health, environmental, and social impacts.


• using collective procurement’s significant purchasing power and influence to improve food supplies and the environment.


• ensuring inclusive rural transformations while reducing hidden health, environmental and social costs.


• strengthening civil society and governance to enable and accelerate sustainable and fair food system innovations and enhance social well-being, especially for vulnerable households.


Jomo Kwame Sundaram


KUALA LUMPUR: Undoubtedly, the world needs to reform existing food systems to better serve humanity and sustainable development. But the United Nations World Food Systems Summit(UNFSS) must be consistent with UN-led multilateralism.

For the first time ever, the World Economic Forum (WEF), a partnership of some of the world’s most powerful corporations, is partnering the UN in launching the Summit, now scheduled for September, with its ‘Pre-Summit’ beginning today.

Food insecurity is primarily due to inequalities and deprivations as victims lack the means to obtain the food they need. The UN should not serve those who cynically use hunger, starvation and deprivation to advance private commercial interests.


UN-led multilateralism threatened

The collapse of the Soviet Union, the end of the Cold War and seemingly unchallenged US dominance in the 1990s posed new threats to UN-led multilateralism. The World Trade Organization was set up in 1995 outside the UN system. Later, ‘recalcitrant’ Secretary-General (SG) Boutros-Ghali was blocked from a second term.

The four UN Development Decades from the 1960s ended with the lofty, Secretariat-drafted Millennium Declaration, bypassing Member State involvement. The Millennium Development Goals (MDGs) were then elaborated by the UN Development Programme with scant Member State consultation.

Growing corporate sway in the UN system got a big boost with the UN Global Compact. Such influences have affected governance of UN agencies, now better known as the World Health Organization struggles to contain the pandemic.

Difficult negotiations followed growing developing country disappointment with the MDGs, not delivering on climate finance as promised in 2009, and failure to better address the 2008 global financial crisis and its aftermath.

Hence, the negotiated Sustainable Development Goals (SDGs) compromise enjoys greater legitimacy than the MDGs. However, achieving Agenda 2030 was undermined from the outset as rich countries blocked needed funding at the third UN Financing for Development summit in mid-2015.


Summit bypasses UN processes

In the last dozen years after the 2008 world food price spike, the UN Committee on World Food Security (CFS) has become an inclusive forum for civil society and corporate interests to debate how best to advance food security. Unsurprisingly, CFS has long addressed food systems.

CFS’s High-Level Panel of Experts (HLPE) is widely acknowledged as competent, having prepared balanced and comprehensive reports on matters of current and likely future concern. In the UN system, CFS is now seen as a ‘multistakeholder’ engagement model for emulation. Yet, the Summit bypassed CFS from the outset.

Nominally answering to the UNSG, Summit processes have been largely set by a small, largely unaccountable coterie. UNFSS organisers initially moved ahead without representative stakeholder participation until his intervention led to some consultative processes.

Mainly funded by the WEF and some major partners, they remain mindful of who pays the piper. Hence, they mainly promote supposedly ‘game-changing’, ‘scalable’ and investment-inducing solutions claiming to offer technological fixes.


Agroecology innovation

An HLPE report has approvingly considered agroecology or ‘nature-based solutions’. Many scientists have been working with food producers for decades to increase food productivity, output, diversity and resilience through better agroecological practices, thus cutting costs and enhancing sustainability.

The evidence is unambiguous that agroecology has delivered far better results than ‘Green Revolution’ innovations. A survey of almost 300 large ecological agriculture projects in more than fifty poor countries reported rising farmer incomes due to lower costs and a 79% average productivity increase.

This contrasts with the record of the Alliance for a Green Revolution in Africa (AGRA) launched in 2006. With funding from the Gates and Rockefeller Foundations, it promised to double yields and incomes for 30 million smallholder farm households by 2020. Despite much government spending, yields hardly rose as rural poverty grew.

Agroecological innovations have proved effective against infestations. Thus, safer, more effective biopesticides that do not kill useful insects and microbes, and non-toxic alternatives to agrochemical pesticides have been created.

The UN Food and Agriculture Organization (FAO) hosted its first International Agroecology Symposium in 2014, before committing to ‘Scaling Up Agroecology’. But for Kip Tom, President Trump’s representative, FAO was no longer “science-based”.


Demonising agroecology

The Gates Foundation has been funding the Cornell Alliance for Science, ostensibly to “depolarize the GMO debates” by providing training in “advanced agricultural biotechnology communications”. Why traditional agricultural practices can’t transform African agriculture is only one instance of such sponsored propaganda masquerading as science.

Well-resourced lobbyists are using the UNFSS to secure support and legitimacy for commercial agendas. With abundant means, their advocacy routinely invokes ‘public-private partnerships’ and ‘science, technology and innovation’ rhetoric.

Forced to be more inclusive, Summit organisers are now using ‘solution clusters’ for advocacy. They then build broad ‘multi-stakeholder’ coalitions to advance purported solutions with the UNFSS mark of approval.

With strong and growing evidence of agroecology’s progress and potential, propaganda against it has grown in recent years. Agroecology advocates are caricatured as ‘Luddite eco-imperialists’, ‘Keeping Africa on the Brink of Starvation’, and condemning farmers to ‘poverty, malnutrition and death’.

A public relations consultant has accused agroecology advocates of being “the face of a ‘green’ neocolonialism” “idealizing peasant labour and retrograde subsistence farming” and denying “the Green Revolution’s successes”.

Agroecology solutions are the main, if not only ones consistent with the UN’s overarching commitment to sustainable development. But the propagandists portray them as uninformed barriers to agricultural and social progress. Such deliberate deceptions block needed food system reforms.

UN Special Rapporteur on the Right to Food Michael Fakhri alerted UNFSS Special Envoy Agnes Kalibata that agroecology is being dismissed as backward when it should be central to the Summit. Concurrently President of AGRA, with its particular commitment to needed food system reform, she is in an impossible position.


Best Summit money can buy?

Investing in the Summit is securing legitimacy and more resources from governments, the UN system, private philanthropy and others to further their commercial agendas. Meanwhile, many are working in good faith to make the most of the UN Summit.

Nevertheless, it is setting a dangerous precedent for the UN system. It has rashly opened a back door, allowing corporate-led ‘multi-stakeholderism’ to undermine well-tested, inclusive ‘multi-stakeholder’ arrangements developed over decades under multilateral Member State oversight.

UNFSS Science Days on 8 and 9 July indicated the Summit is being used to push for a new food science panel. This will undercut the HLPE, and ultimately, the CFS. Hence, the UNFSS seems like a Trojan Horse to advance particular corporate interests, inadvertently undermining what UN-led multilateralism has come to mean.

As both CFS and HLPE are successful UN institutions, the Summit will inevitably undermine its own achievements. Hence, for many Member States and civil society, UNFSS represents a step backward, rather than forward.



Related IPS Articles

by Tim Wise


It’s been nearly fifty years since Frances Moore Lappé reminded us in her seminal work, Diet for a Small Planet, that hunger is not caused by a scarcity of food, it is caused by a scarcity of power. Economist Amartya Sen won a Nobel Prize more than twenty years ago for showing that famine was rarely caused by a lack of food.


Yet, here in 2020, with the world well aware of the twin dangers of hunger and malnutrition, there was Agnes Kalibata, the leader of the Alliance for a Green Revolution in Africa (AGRA), telling an online audience that poor, hungry countries can’t think about diet diversity, “it’s a luxury.”


The comments earned a sharp response from Jomo Kwame Sundaram, the Malaysian economist whose most recent post was Assistant Director General at the UN Food and Agriculture Organization.


“A popular and persistent misconception is that it is necessary to first overcome dietary energy undernourishment before addressing malnutrition,” he wrote in his column for InterPress Service.


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From Jomo and  International Development Economics Associates

About Jomo

Jomo Kwame Sundaram is Senior Adviser at the Khazanah Research Institute. He is also Visiting Fellow at the Initiative for Policy Dialogue, Columbia University, and Visiting Professor at the International Islamic University in Malaysia. 

 

He was a member of the Economic Action Council, chaired by the seventh Malaysian Prime Minister, and the 5-member Council of Eminent Persons appointed by him, Professor at the University of Malaya (1986-2004), Founder-Chair of International Development Economics Associates (IDEAs), UN Assistant Secretary General for Economic Development (2005-2012), Research Coordinator for the G24 Intergovernmental Group on International Monetary Affairs and Development (2006-2012), Assistant Director General for Economic and Social Development, Food and Agriculture Organization (FAO) of the United Nations (2012-2015) and third Tun Hussein Onn Chair in International Studies at the Institute of Strategic and International Studies, Malaysia (2016-2017).

He received the 2007 Wassily Leontief Prize for Advancing the Frontiers of Economic Thought.

Read his full resume here.

In The Media

TheStar 26 June 2020

TheStar 26 June 2020

The Star 20 Sept 2019

The Star 20 Sept 2019

Political will needed to push for renewable energy

The Star 10July 2019

The Star 10July 2019

Malaysian businesses need boost

The Star 9 Oct 2019

The Star 9 Oct 2019

Subsidise public transport for bottom 40%

The Edge 26 Sept 2019

The Edge 26 Sept 2019

Call for measures to counteract global headwinds

The Edge 9 Oct 2019

The Edge 9 Oct 2019

Subsidise public transportation, not fuel

The Star 8 Oct 2019

The Star 8 Oct 2019

Subsidise public transportation for bottom 70%

TheEdge 2Oct 2019

TheEdge 2Oct 2019

"We need to counteract downward forces"

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