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Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction |
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170 Part II - Chapter 10
big companies owing to major disruptions in market access.
Agriculture promotion policies should be carefully designed. For example, instruments—such as input or insurance subsidies—can, on the one hand, reduce vulnerability of producers and other actors in the agricultural value chain, but, on the other hand, may increase overall vulnerability of the local agricultural system by facilitating production on marginal lands and possibly increasing drought exposure (Hazell and Hess, 2010
Hazell, P. and Hess, U. 2010.,Drought insurance for agricultural development and food security in dryland areas., Food Security, December 2010, Volume 2, Issue 4, pp 395-405.. . New partnerships between smallholders, local and national governments and large agribusiness companies may pave the way for a longer-term strategy that effectively strengthens the resilience of smallholder farmers. More and more companies are recog-
nising the business opportunities inherent in addressing existing agricultural challenges (see Box 10.4).
Owing to rising agricultural commodity prices, some multinational agribusiness corporations are now seeing opportunities to invest in improving the productivity and strengthening the resilience of smallholder farmers.
As Box 10.5 highlights, although still controversial, commercial initiatives are providing technology and outreach to smallholder farmers for food production in regions with high potential and where limited gaps in infrastructure, markets and production deficits may relatively cost-effectively relieve some risks to natural and human capital. At the same time, investments by major global corporations raise new concerns regarding the use of genetically modified
Box 10.4 Creating shared value in agriculture in India
In India, Jain Irrigation Systems, the largest manufacturer of irrigation systems and a leading fruit and vegetable processing business, developed a micro-irrigation system based on the principle of drip irrigation that was appropriate for smallholder farmers and that reduced water usage by 30 percent compared with commonly used flood irrigation systems (Borgonovi et al., 2011 Borgonovi, V., Meier, S., Sharda M. and Vaidyanathan, L. 2011.,Creating shared value in India: How Indian corporations are contributing to inclusive growth while strengthening their competitive advantage., Executive Summary. October 2011., Boston, USA: FSG.,. . Borgonovi, V., Meier, S., Sharda M. and Vaidyanathan, L. 2011.,Creating shared value in India: How Indian corporations are contributing to inclusive growth while strengthening their competitive advantage., Executive Summary. October 2011., Boston, USA: FSG.,. . Another example from the subcontinent is a public-private partnership (PPP) that seeks to address farmers’ vulnerability to volatile commodities markets. Gramin Suvidha Kendra (GSK) has established partnerships with a variety of private companies, non-governmental organisations and government institutions, such as the state postal departments, to provide farmers with agricultural inputs and expert advice as well as information on storage, financing and futures prices; the latter via the Multi Commodity Exchange of India Limited (MCX), a founding partner of GSK. First surveys of participating farmers indicate real success, with 57 percent of farmers reporting the successful use of MCX futures prices for their cropping decisions and 66 percent claiming productivity increases owing to access to improved seeds and fertilisers. (Source: UNISDR)
Table 10.1 Infrastructure deficit of Africa’s low-income countries
(Source: adapted from Foster and Briceno-Gardena, 2010)
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