Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
Review
. 2021;13(6):1525-1540.
doi: 10.1007/s12571-021-01210-7. Epub 2021 Oct 15.

Financing adaptation for resilient livelihoods under food system transformation: the role of Multilateral Development Banks

Leslie Lipper  1 , Romina Cavatassi  2 , Ricci Symons  3 , Alashiya Gordes  3 , Oliver Page  4
Affiliations
Review

Financing adaptation for resilient livelihoods under food system transformation: the role of Multilateral Development Banks

Leslie Lipper et al. Food Secur. 2021.

Abstract

Climate change is imposing a transformative process on agricultural and food systems, threatening the livelihoods of people dependent upon them which includes a large share of the world's poor people. Transformative adaptation that addresses the risks and vulnerabilities to livelihoods that climate change imposes is essential for effective and inclusive transformation of food systems. Financing that is adequate, accessible and appropriate is essential to realizing these objectives. Multilateral Development Banks (MDBs) are already playing an important role in financing transformative adaptation in the agri-food sector and are well-placed to address some of the existing shortcomings. Expanding public sector climate finance and incentivizing private sector investments is needed to attain adequate levels of financing. Reconsidering the rules and procedures for obtaining public sector finance and the capacity to utilize already existent administrative structures, as well as better targeting of activities and communities is important for accessibility. Appropriate finance requires use of mechanisms that address characteristics of the investment, including riskiness, delayed returns, high social values and new and unproven activities. Utilizing blended finance integrated with development finance can generate financing appropriate to the investment needs. Some positive shifts in these directions are already being undertaken by MDBs but more is required.

Keywords: Agri-food system livelihoods; Climate change adaptation; Climate finance; Food system transformation; Resilience; Rural poor,.

PubMed Disclaimer

Conflict of interest statement

Conflicts of interestThe authors declared that they have no conflict of interest.

Figures

Fig. 1
Fig. 1
Increased exposure to more frequent and multiple types of climate extremes in low and middle-income countries. Source: FAO et al. (2018)
Fig. 2
Fig. 2
Share of annual climate finance in small-scale agriculture relative to other climate finance. Source: Chiriac et al. (2020)
Fig. 3
Fig. 3
Annual commitments of public international climate finance to developing countries. Source: Chiriac et al. (2020)
Fig. 4
Fig. 4
Annual commitments of international public finance to developing countries by instruments. Source: Chiriac (2020)
Fig. 5
Fig. 5
The process of adaptive management
See this image and copyright information in PMC

References

    1. Afonina, M., Bohn, S., Hamad, M., Marti, A., & Pasha, A. (2021). Impact assessment report: Viet Nam and Adaptation to Climate Change in the Mekong Delta in Ben Tre and Tra Vinh Provinces, Viet Nam. IFAD, Rome, Italy.
    1. Alfani, F., Arslan, A., McCarthy, N., Cavatassi, R., & Sitko, N. J. (2019). Climate-change vulnerability in rural Zambia: the impact of an El Nino-induced shock on income and productivity. ESA Working Papers 288949, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    1. Arslan A, Belotti F, Lipper L. Smallholder productivity and weather shocks: Adoption and impact of widely promoted agricultural practices in Tanzania. Food Policy. 2017;69:68–81. doi: 10.1016/j.foodpol.2017.03.005. - DOI
    1. Asfaw S, Maggio G. Gender, Weather Shocks and Welfare: Evidence from Malawi. The Journal of Development Studies. 2018;54(2):271–291. doi: 10.1080/00220388.2017.1283016. - DOI
    1. Auci S, Castellucci L, Coromaldi M. The impact of climate change on the distribution of rural income in Ethiopia. International Journal of Environmental Studies. 2018;75(6):913–931. doi: 10.1080/00207233.2018.1475914. - DOI

LinkOut - more resources