What the World Bank Is Doing
(Updated September 15, 2011)

In response to the severity of the food crisis and the need for prompt action, the World Bank Group set up the Global Food Crisis Response Program (GFRP) in May 2008 to provide immediate relief to countries hard hit by food high prices. The Bank response has been articulated in coordination with the United Nations’ High-Level Task Force (HLTF) on the Global Food Security Crisis.

• The World Bank Group increased the GFRP to $2 billion in April 2009 to provide immediate relief to countries hard hit by food high prices. GFRP was created in May 2008 to reduce the threat high food prices and rising agricultural production and marketing costs pose to the livelihoods of the world’s poor. The expedited processing of GFRP projects, up to an initial ceiling of $1.2 billion, helped speed response.
  
  On April 16, 2009, the Board endorsed a rise in the ceiling from $1.2 billion to $2 billion, but shortened the use of expedited processing by one year to June 30, 2010. In light of the recent rise in food prices again from June 2010, the Board reinstated the initial time period for the use of expedited processing to June 2011. Given growing concern about continued food price volatility and uncertainty in food markets, the Board in June 2011 further extended the processing of expedited processing under GFRP till June 2012. The money is used to feed poor children and other vulnerable groups,  provide for nutritional supplements to pregnant women, lactating mothers, infants and small children, to meet additional expenses of food imports or to buy seeds for the new season.
• • Grant funding has also been made available through several external-funded trust funds in support of the full range of interventions available under the GFRP. A Multi-Donor Trust Fund (MDTF) has received contributions of AUD 50 million from the Australian government, €80 million from the government of Spain, 7.6 billion Korean Won from the Republic of Korea, CAD 30 million from the government of Canada, and $0.15 million from International Finance Corporation (IFC).
  
  The Russian Federation has also allocated $15 million for the Kyrgyz Republic and Tajikistan, through the Russia Food Price Crisis Rapid Response Trust Fund, which became operational in April 2009. The European Commission has allocated has allocated €111.8 million to support operations in 10 countries. Together the three Trust Funds amount to about $356 million equivalent.

Project Status: Global Food
Crisis Response Program

Project Status: Externally
Funded Trust Funds

As of September 2011, GFRP has approved $1,502.5 million. To date, $1,185.7 million out of the $1,502.5 million in total approved funding has been disbursed (79 percent of approved funds).

Total Bank-funded, Board-approved GFRP projects amount to $1,238.9 million, of which $202.4 million is from the Food Price Crisis Response (FPCR) Trust Fund for 27 countries, 17 of which are in Africa; $835.8 million is from IDA for 13 countries; and $200 million is from IBRD for a project in the Philippines. 86 percent of Bank-sourced Board-approved funds have been disbursed).

Under the externally-funded GFRP trust funds, we have approved operations totaling $263.65 million — 19 MDTF-funded projects, two Russia FPCR Trust Fund-funded operations, and 11 European Union (EU) Food Crisis Rapid Response Facility-financed operations. 45 percent of approved funds under the externally-funded trust funds have been disbursed.

Through its efforts, the GFRP has helped nearly 40 million vulnerable people in 44 countries.

• The quality of results from World Bank investment in agriculture and rural development through the regular programs remains among the highest priorities. In FY11, IBRD/IDA/Special Financing assistance to agriculture and related sectors, as described in Implementing Agriculture for Development: World Bank Group Agriculture Action Plan, FY10-12, was $3.6 billion (8% of total IBRD/IDA).
• In addition to the IBRD/IDA/Special Financing investments of $3.6 billion, IFC invested $2.2 billion in agribusiness and related sectors, resulting in total World Bank Group assistance of $5.8 billion to agriculture and related rural development lending.
• The Bank tripled investments in safety nets and other social protection programs in health and education to $12 billion over next two years, as announced in April 2009.
• The Bank helps countries develop financial market insurance products and risk management strategies to ensure increased capacity to respond to future prices increases, such as weather derivatives and crop insurance.
• The Bank helps countries develop financial market insurance products and risk management strategies to ensure increased capacity to respond to future prices increases, such as weather derivatives and crop insurance.
• In addition, the World Bank is supporting the newly reformed Consultative Group on International Agricultural Research (CGIAR). A new CGIAR Multi-Donor Trust Fund was established to harmonize donor investments and is being hosted and managed by the World Bank. Six new results-oriented research programs submitted by the Consortium of International Agricultural Research Centers have been recently approved for funding by the CGIAR Fund Council. They cover staple food crops; livestock and fish; key agricultural production systems; forestry and agroforestry; and climate change and agriculture.

The World Bank is responding to the food crisis in coordination with development partners. It is contributing to several agricultural and food security working groups drafting recommendations for the G20, at the request of the French Presidency. This follows World Bank support for food security at the request of the G20 Development Working Group under the Korean Presidency in 2010.

The Bank is also actively engaged with the United Nations High-Level Task Force on the Global Food Security Crisis. It was established in late April 2008 and brings together the Heads of U.N. specialized agencies, funds, and programs of the Bretton Woods institutions. The World Bank, through the GFRP Secretariat, participated in the updating of the UN’s Comprehensive Framework for Action. The World Bank also regularly participates in the Multilateral Development Banks’ (MDB) Working Group on Food and Water Security.