Agricultural development has long been considered an important driver of overall economic development in developing countries such as Nigeria. Whether increasing public expenditures on agriculture (PEA) can directly improve broad dimensions of household well-being has continued to be debated. In addition, there has been growing interest in the economic flexibility of households to switch between nonfarm and farming activities. Such flexibility can potentially enhance the resilience of households to shocks like the COVID-19 pandemic in today’s rapidly changing socioeconomic environments. Direct evidence of the impact of PEA on broad development outcomes is also important in informing regional initiatives aiming to use PEA as an instrument for overall food security enhancement and poverty reduction in Africa. Using state- and local government area (LGA)-level PEA figures and household data in Nigeria, this study aims to provide initial evidence at the household level in Nigeria. The findings suggest that greater PEA shares have positive effects on various development outcomes at the household level, including consumption, poverty reduction, nonfarm capital investments, and household dietary diversity. The findings also suggest that greater PEA shares are likely to help farm households enhance their economic flexibility. These findings are consistent with the hypotheses of positive linkages between PEA and agricultural outcomes, and linkages between agricultural and nonagricultural outcomes, often advocated in the literature. PEA should be increased by increasing its share of total public expenditures through conscious efforts to reallocate existing resources, rather than trying to increase it by increasing the overall size of public expenditures. Furthermore, it remains important to identify the appropriate sources (for example, spending by LGA or state) and types of PEA (for example, recurrent or capital spending) for particular development outcomes.

Public expenditures (PE) are critical for key public sector functions that contribute to development and welfare improvements, including the provisions of necessary public goods and the mitigation of market failures. PE in social sectors, such as health, education, and social welfare, and in agriculture have been increasingly recognized as potentially important for income growth, poverty reduction, fostering increased private investment, improved nutritional outcomes, and greater economic resilience. Furthermore, the importance of the impact of subnational PE on these outcomes has also been recognized, as appropriately decentralized PE systems can potentially achieve greater effectiveness by enabling public sector support that is tailored more to local needs. However, direct evidence of these developmental effects of decentralized PE in developing countries like Nigeria has been relatively limited. This study attempts to fill this knowledge gap by estimating the effects of shares of total subnational PE for agriculture, health, education, and social welfare, as well as PE size, on household-level outcomes using nationally-representative panel household data and both local government area and higher state-level PE data for Nigeria. We find that greater shares of total PE for agriculture, health, and social welfare, conditional on PE size, generally have positive effects on consumption, poverty reduction, and non-farm business capital investments. A greater share of total PE for agriculture benefits a broader range of outcomes than do greater shares of total PE for health and social welfare. These include improving certain nutritional outcomes, like household dietary diversity across seasons, and economic flexibility between farm and non-farm activities, which may be particularly important for building resilience in today’s rapidly changing socioeconomic environment due to shocks, including COVID19. Such multi-dimensional benefits of greater PE for agriculture are particularly worthy of attention in countries like Nigeria, which have historically allocated a lower share of total PE to agriculture than to health and other social welfare sectors and a lower share of total PE to agriculture compared to that allocated to agriculture in similar countries in Africa and elsewhere.

Ending poverty and stabilizing climate change will be two unprecedented global achievements and two major steps toward sustainable development. But the two objectives cannot be considered in isolation: they need to be jointly tackled through an integrated strategy. This report brings together those two objectives and explores how they can more easily be achieved if considered together. It examines the potential impact of climate change and climate policies on poverty reduction. It also provides guidance on how to create a “win-win†? situation so that climate change policies contribute to poverty reduction and poverty-reduction policies contribute to climate change mitigation and resilience building. The key finding of the report is that climate change represents a significant obstacle to the sustained eradication of poverty, but future impacts on poverty are determined by policy choices: rapid, inclusive, and climate-informed development can prevent most short-term impacts whereas immediate pro-poor, emissions-reduction policies can drastically limit long-term ones.

The COVID-19 pandemic exposed the vulnerability of agrifood systems to shocks and stresses and led to increased global food insecurity and malnutrition. Action is needed to make agrifood systems more resilient, efficient, sustainable and inclusive. The State of Food and Agriculture 2021 presents country-level indicators of the resilience of agrifood systems. The indicators measure the robustness of primary production and food availability, as well as physical and economic access to food. They can thus help assess the capacity of national agrifood systems to absorb shocks and stresses, a key aspect of resilience. The report analyses the vulnerabilities of food supply chains and how rural households cope with risks and shocks. It discusses options to minimize trade-offs that building resilience may have with efficiency and inclusivity. The aim is to offer guidance on policies to enhance food supply chain resilience, support livelihoods in the agrifood system and, in the face of disruption, ensure sustainable access to sufficient, safe and nutritious food to all.

Economic resilience within the agrifood system is becoming increasingly crucial for assuring sustainable development. This is particularly so in regions with volatile and fragile environments, including Central Asia. Evidence remains scarce regarding what factors can enhance the economic resilience of agents within the agrifood system, including the resilience of productivity and technical efficiency. We partly fill this knowledge gap using the unique panel datasets of farm enterprises in Uzbekistan and southern Kazakhstan, collected in 2019 and 2022, during which these enterprises experienced significant economic shocks in input prices. Using novel methods that combine Inverse Probability Weighting and panel stochastic frontier analyses models, we show that farmers who received more agricultural training and who had been granted greater autonomy in their production decisions in 2018 experienced greater resilience in technical efficiency despite the need to reduce the use of chemical fertilizer and oil/diesel in response to their price surges. Our findings suggest that providing critical public goods like information (related to training) and enabling environment (related to decision-making autonomy) can potentially enhance the resilience in the technical efficiency of farm enterprises. Furthermore, with chemical fertilizer and oil/diesel being potentially environmentally harmful inputs, these farmers also indirectly demonstrated resilience toward environmental sustainability.

Unless action is taken now to make agriculture more sustainable, productive and resilient, climate change impacts will seriously compromise food production in countries and regions that are already highly food-insecure. The Paris Agreement, adopted in December 2015, represents a new beginning in the global effort to stabilize the climate before it is too late. It recognizes the importance of food security in the international response to climate change, as reflected by many countries prominent focus on the agriculture sector in their planned contributions to adaptation and mitigation. To help put those plans into action, this report identifies strategies, financing opportunities, and data and information needs. It also describes transformative policies and institutions that can overcome barriers to implementation. The State of Food and Agriculture is produced annually. Each edition contains an overview of the current global agricultural situation, as well as more in-depth coverage of a topical theme."

New evidence this year corroborates the rise in world hunger observed in this report last year, sending a warning that more action is needed if we aspire to end world hunger and malnutrition in all its forms by 2030. Updated estimates show the number of people who suffer from hunger has been growing over the past three years, returning to prevailing levels from almost a decade ago. Although progress continues to be made in reducing child stunting, over 22 percent of children under five years of age are still affected. Other forms of malnutrition are also growing: adult obesity continues to increase in countries irrespective of their income levels, and many countries are coping with multiple forms of malnutrition at the same time – overweight and obesity, as well as anaemia in women, and child stunting and wasting.