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LAC; Markets, Trade, and Institutions (MTI), Since the Agreement on Agriculture came into effect trade in food has quintupled. The rules agreed under the framework of the World Trade Organization (WTO) allowed developing countries to join external markets and increase their participation to the point that they now account for two thirds of the overall flow of agricultural trade.

LAC; Markets, Trade, and Institutions (MTI); Food and Nutrition Policy, Since the Industrial Revolution, the concentration of greenhouse gases (GHG) has consistently risen, leading to a 1.15°C increase in global mean temperatures by 2022. The Intergovernmental Panel on Climate Change (IPCC) confirms human activities as the primary cause of global warming, with emissions continuing to rise. Climate change has resulted in adverse impacts on various fronts, disproportionately affecting vulnerable communities. International efforts, including the United Nations Frame-work Convention on Climate Change (UNFCCC) and its Kyoto Protocol, aimed at stabilizing green-house gas concentrations. These efforts were followed by the Paris Agreement in 2015, focusing on limiting global temperature increases and relying on Nationally Determined Contributions (NDC) from countries.

Non-PR, IFPRI1; 1 Fostering Climate-Resilient and Sustainable Food Supply; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry, Markets, Trade, and Institutions (MTI); Food and Nutrition Policy, Food production includes a complex and varied set of agricultural and nonagricultural activities, involving a growing number of sectors and actors that influence the way food is produced, processed, distributed, and consumed. Recently, and especially after the 2021 United Nation Food Systems Summit (UNFSS), it has been proposed that this conglomerate of activities and socioeconomic actors be jointly identified as food systems. National food systems, which exist in each country, are interrelated through trade and other factors with regional food systems and finally with the global food system. The concept of food systems has been adopted as a useful tool for understanding the multiple and complex interrelations between different production, distribution, and trade partners and for adjusting policy analysis and design to this complex world. The discussions and documentation prepared during the UNFSS process brought to public attention not only the utility and complexity of this concept but also some of the shortcomings of current food production practices. The summit also highlighted an urgent need to establish processes for identifying such shortcomings, their relative importance, and possible measures that would lead to the transformation of national food systems and the global food system.

PR, IFPRI5; DCA; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry, MTID, The challenges faced by the global agri-food system are very complex. It must not only provide a sufficient nutritious food supply to meet growing demand, but it also requires managing environmental issues such as the impact of climate change, the pressure on natural resources, and the ecological sustainability of agricultural practices.

Non-PR, IFPRI1; CRP2; 1 Fostering Climate-Resilient and Sustainable Food Supply; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry; 4 Transforming Agricultural and Rural Economies; DCA, MTID; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Achieving world food security is more complex nowadays. It is not only necessary to pay attention to the availability of food, but also to the way in which it is produced, paying special attention to the impact of the food production systems on climate change and natural resources sustainability. The challenge is to produce a diversified basket of nutritious food in sufficient quantity while reducing greenhouse gas emissions and minimizing the impact on natural resources. Accomplishing these diverse goals requires an integrated strategy that takes into account increased productivity and the environmental sustainability of food production systems with a focus on efficient use of land, water, fertilizers and energy.

Non-PR, IFPRI4; CRP2; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry, MTID; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), In the context of climate change the world faces growing environmental pressures described as planetary boundaries including air and water pollution, land degradation, natural resources depletion and extinctions of species among other environmental issues and, in particular, more frequently extreme weather-related events and natural disasters affecting negatively the human development.

PR, IFPRI1; CRP2; Ceres2030; 1 Fostering Climate-Resilient and Sustainable Food Supply; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry; 4 Transforming Agricultural and Rural Economies; DCA, MTID; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Sustainable agricultural practices enable more efficient use of natural resources, mitigate the impact of agriculture on the environment, and strengthen capacity for adaptation to climate change and climate variability. Because these practices usually require substantial effort or resource allocation from farmers, incentives are necessary to support farmer adoption. Despite growing interest, there has been little systematic evaluation of the incentives–adoption–outcome chain—that is, which incentives best promote adoption and which lead to desired sustainability outcomes. This brief presents the results of a literature review that examined (1) uptake agricultural practices under three kinds of incentives, market and nonmarket, regulations, and cross-compliance, and (2) the impact on productivity, profitability, and environmental sustainability. Based on this review, it offers a set of seven tested principles to follow in designing and implementing incentives for sustainable agriculture.

PR, IFPRI2; CRP2; Ceres2030; 1 Fostering Climate-Resilient and Sustainable Food Supply; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry; 4 Transforming Agricultural and Rural Economies; DCA, MTID; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Las prácticas agrícolas sostenibles permiten un uso más eficiente de los recursos naturales, mitigan el impacto de la agricultura en el medio ambiente y fortalecen la capacidad de adaptación al cambio climático y la variabilidad climática. Debido a que estas prácticas generalmente requieren un esfuerzo sustancial o la asignación de recursos por parte de los agricultores, se necesitan incentivos para apoyar la adopción por parte de los agricultores. A pesar del creciente interés, ha habido poca evaluación sistemática de los incentivos-adopción-cadena de resultados, es decir, qué incentivos promueven mejor la adopción y cuáles conducen a los resultados de sostenibilidad deseados. Este informe presenta los resultados de una revisión de la literatura que examinó (1) la adopción de prácticas agrícolas bajo tres tipos de incentivos, de mercado y no de mercado, regulatorias y las transferecias condicionadas, y (2) el impacto en la productividad, la rentabilidad y la sostenibilidad ambiental. Con base en esta revisión, ofrece un conjunto de siete principios probados a seguir en el diseño e implementación de incentivos para la agricultura sostenible.

PR, IFPRI3; Ceres2030; CRP2; 4 Transforming Agricultural and Rural Economies; DCA; ISI, MTID; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), The increasing pressure on agricultural production systems to achieve global food security and prevent environmental degradation necessitates a transition towards more sustainable practices. The purpose of this scoping review is to understand how the incentives offered to farmers motivate the adoption of sustainable agricultural practices and, ultimately, how and whether they result in measurable outcomes. To this end, this scoping review examines the evidence of nearly 18,000 papers on whether incentive-based programmes lead to the adoption of sustainable practices and their effect on environmental, economic and productivity outcomes. We find that independent of the incentive type, programmes linked to short-term economic benefit have a higher adoption rate than those aimed solely at providing an ecological service. In the long run, one of the strongest motivations for farmers to adopt sustainable practices is perceived benefits for either their farms, the environment or both. Beyond this, the importance of technical assistance and extension services in promoting sustainable practices emerges strongly from this scoping review. Finally, we find that policy instruments are more effective if their design considers the characteristics of the target population, and the associated trade-offs between economic, environmental and social outcomes.

Non-PR, IFPRI5; DCA, MTID, The challenge to produce more food to meet the growing world demand requires a careful, integrated and global approach, to secure the efficient use of land, water and energy at the global level, aimed at increasing productivity and food supply with production systems which are environmentally friendly. Nowadays in many regions the crop production is still developed under intensive production systems, which are deteriorating the natural resources and contributing to global warming. The purpose should be to move to more environmentally friendly production systems. To support that process it is proposed to improve the measurement of sustainable practices in crop production and to monitor the production systems in different regions to provide international comparisons and track performance over time. At the same time, trade is, and will be in the future crucial to cope with a global production system environmentally friendly providing suffice food to meet food security, given that regional production and consumption imbalances associated with regional differences in resource endowments are very relevant. However, world trade of agricultural products continues seriously limited by trade policies and could be worsened by new measures implemented by some countries during or after the COVID-19 crisis. Therefore, the G20 should promote policies and measures to facilitate dialogue and information exchange on supply and demand to foster agreements between food trading partners, based on a more open trading system, aimed at reconciling both objectives: global food security and environmental sustainability.

Non-PR, IFPRI5, MTID, Developing the bioeconomy offers a significant opportunity for achieving the Sustainable Development Goals (SDG) at the global level, while at the same time serve as strategic instruments for addressing new challenges emerging from the COVID-19 global crisis. Advances in science and technology and existing experiences, fully support expectations in this sense. However, effective progress will be only possible if national strategies evolve within a coherent and harmonized global framework. The G20 has a strategic role in promoting this transition not only among its members, but within the broader development community. Three specific lines of action are proposed in support of this transition: (i) a broader agreement on guiding principles for global bioeconomy policymaking; (ii) a framework of credible bioeconomy indicators; and (iii) an effective bioeconomy knowledge management platform.

Non-PR, IFPRI1; CRP2; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry, MTID; LAC; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Export taxes have been used in many countries. The 2007–2008 food price crisis shed light on export policies’ dangerous consequences for food security during periods of price spikes. Some countries, and Argentina in particular, implemented export taxes for almost all tariff lines in those years. During the past 15 years, several papers have been written on the impact of export duties and other barriers to exports in Argentina. The area of analysis (poverty, employment, public revenues, and so on) and the methodology have varied in each case. However, most of the literature is based on partial equilibrium frameworks or does not consider dynamic effects for projections of the most important economic variables (such as gross domestic product, or GDP; exports; agricultural production; and employment). Additionally, most of those studies were done in the first decade of the new millennium, when food prices and the evolution of trade and global growth were different from their current context. In December 2015, the new Argentine government repealed taxes on exports of agro-industrial goods, except for soybeans (and their by-products), on which an initial reduction of 5 percentage points was established. Likewise, the government also eliminated the quantitative restrictions that existed for some products until that moment. Based on these changes in legislation, this study aims to analyze the impact of changes in export duties and export restrictions on Argentina’s economy, measuring their impact on different economic variables. The scenario also includes the elimination of other nontariff barriers to export. The paper finds that export taxes and restrictions in Argentina do affect world prices and the country’s terms of trade, and that their removal leads to declines in the world prices of the products involved (negatively affecting producers of similar products in other countries but benefiting consumers). Second, the removal of export taxes and restrictions leads to some

Non-PR, IFPRI5; 1 Fostering Climate-Resilient and Sustainable Food Supply; CRP2, MTID; PIM, 14 pages, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Argentina’s G20 presidency has emphasized the needs to improve soil management and increase agricultural productivity in a sustainable way to achieve an inclusive and resilient food future. While increases in agricultural productivity improve economic welfare and can help address food security problems by benefiting both consumers and producers simultaneously, it has to address the depletion of scarce natural resources. In the context of changing climate, achieving sustainable and resilient agricultural production is a major corner stone in both adaptation and mitigation strategies. The global community needs to have the proper tools to monitor sustainable agricultural productivity gains, identifying countries and sectors lagging behind, and committing R&D efforts accordingly to the challenges ahead. As such, it is suggested that 1) an international consortium should monitor Agricultural Total Factor Productivity to provide international comparisons and track performance over time; 2) the G20 should acknowledge and address the issue of sustainable productivity measurement, and; 3) support more in depth research on the relation between Agricultural TFP and Agricultural R&D.

Non-PR, 1 Fostering Climate-Resilient and Sustainable Food Supply; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food Industry; 4 Transforming Agricultural and Rural Economies; 5 Strengthening Institutions and Governance, MTID, Si bien los niveles de productividad agrícola por trabajador y por hectárea se han incrementado en los últimos 50 años, la región aún muestra niveles inferiores a los alcanzados por los países desarrollados. Incluso, las diferencias de productividad al interior de Latinoamérica son muy significativas. La incorporación de maquinaria y tecnología moderna, junto con gestión eficiente, podrían generar alternativas viables para aumentar la producción agrícola en la región. A pesar de su relevancia, los estudios sobre la incorporación de maquinaria a las actividades rurales son particularmente escasos y muchas de sus aristas continúan aún entre las sombras. Por ello, el objetivo del presente documento es hacer una reseña de la evidencia disponible acerca de la situación actual de la mecanización agrícola en América Latina a fin de atraer mayor atención a la misma. En la actualidad, el valor marginal de la incorporación de maquinaria en América Latina aún sigue siendo superior al aporte de la mayor parte del globo, lo que indica el retraso relativo de la región en este aspecto. Incluso las brechas de dotación de maquinaria al interior de la región siguen siendo significativas. En particular, se observa que los países con menor cantidad de hectáreas por explotación poseen un menor acervo de maquinaria por trabajador, lo que pone en evidencia el hecho de que el tamaño de la finca afecta la capacidad de los agricultores a acceder a tecnologías agrícolas modernas.

Non-PR, IFPRI2; CRP2, MTID; PIM; LAC, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Export taxes have been used in many countries. They have multiple effects at the macroeconomic and sectoral levels, including on the terms of trade (resulting from the market power of key suppliers), the reduction and stabilization of consumer prices (which influence food security) or on intermediate input prices (which may affect in different ways the processed goods using them), government revenues and income distribution. These taxes can also create serious negative externalities for trade partners and affect long-term investment and innovations in the targeted sectors. Recent years have been marked by a renewal of interest in this issue from the trade community. The 2007–08 food price crisis shed light on export policies’ dangerous consequences for food security during periods of price spikes (Anderson and Martin, 2011; Bouët and Laborde, 2011).

Non-PR, IFPRI5, MTID

Non-PR, IFPRI1; C Improving markets and trade, MTID; LAC, El reciente paradigma tecnológico que se está difundiendo a nivel mundial, caracterizado por tecnologías posibles de ser aplicadas a los recursos naturales, presenta importantes oportunidades para los países de menor desarrollo relativo, donde la agricultura, la ganadería y sus cadenas de valor son parte importante de la tradición productiva. Recientemente el IFPRI ha venido estudiando el modelo de producción agrícola argentino de las últimas décadas, advirtiendo que dicho sistema organizacional y productivo ha permitido la rápida adopción de técnicas productivas y la superación de barreras financieras y de riesgo (en una actividad donde los riesgos climáticos y sistémicos son superiores a los de otras actividades), con la consecuente mejora de la productividad media. Las actividades vinculadas a la producción agropecuaria han experimentado una transformación considerable, que adquirió especial intensidad en los últimos años. Los cambios cuantitativos en la producción fueron acompañados por modificaciones en los modelos tecnológicos y por transformaciones en la forma de organización de la actividad, que amplió la cantidad de sectores involucrados en la producción, descentralizando las actividades y dando origen a nuevos actores que contribuyen a la difusión tecnológica. Este nuevo modelo productivo y organizacional ha instaurado un sistema de producción más asociativo y menos individualista que ha permitido una difusión más rápida del conocimiento y ha facilitado la incorporación de nuevas tecnologías, mayor financiamiento y mejor manejo de riesgo en el sector agrícola argentino, con notables impactos positivos en la productividad. En este sentido, el análisis de caso es un primer paso hacia la posibilidad de fomentar la adopción algunas de las características del sistema productivo (o agrícola) y organizacional argentino por el agro de otros países de la región. Sin embargo, cabe señalar que los cambios observados en el agro argentino no sólo responden a la adopció

Non-PR, IFPRI1; C Improving markets and trade, MTID; LAC, We conduct an ex ante evaluation of the impacts of a potential global recession within the next years and the possible policy responses to support economic activity and improve social indicators in five Central American countries: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. We review the economic and social evolution of the past decades in those countries, and we consider a global scenario that includes further deceleration of world growth, lower commodity prices, and a decline in remittances and capital flows to those countries. We simulate those scenarios and related policy issues using recursive dynamic CGE models for the countries considered. The global shock is run under fixed exchange rates and flexible exchange rates (in the case of El Salvador, which has adopted the US dollar as the domestic currency, the simulation of a flexible exchange rate is just indicative). In all cases, a flexible exchange rate delivers better results in terms of GDP per capita, by softening the overall economic impact of the external shocks. Two possible interventions to deal with the recession are simulated: one focuses on policies to strengthen the safety net for the poor; the other applies a more general macroeconomic stimulus (a tax cut plus a modest increase in public investments, financed by un-conventional monetary policy) to try to cushion the shock. For all countries except El Salvador, these two simulations are run with a flexible exchange rate. In the first policy simulation GDP per capita in those countries does not change much, but the poor groups targeted clearly improve their incomes and consumption, helping them the most during the years of the negative shocks. In the second simulation, the macroeconomic stimulus improves the performance of the economies, allowing GDP per capita to be higher than in the case of the shock alone. In summary, facing a potential global downturn as the one simulated here, those countries that have flexible exchange rates

Non-PR, IFPRI1; C Improving markets and trade; D Transforming Agriculture, MTID, Gold mining is the main economic activity in Madre de Dios, Peru. Despite efforts, the state has not yet managed to identify a formalization process achievable for small operators. In addition, many small-scale miners are driven by poverty and need income to provide for their basic needs. Because participation in small-scale mining is largely driven by poverty, it is likely that, in the longer term, much artisanal mining activity will disappear naturally if, through economic development, more attractive work options become available. This paper reviews the importance of illegal mining in Madre de Dios and the potential for development of the agriculture sector. It also analyzes three different policy scenarios: (1) government spending to rectify the environmental damage in the region caused by illegal mining, (2) development of the agricultural sector in the region, and (3) a final scenario with both environmental restoration and agricultural development. Results show that additional government spending in Madre de Dios does not significantly affect the rest of the country and that investment in agriculture can achieve structural change in the gross domestic product of Madre de Dios. Development of the agricultural sector also slightly increases household incomes in Madre de Dios.