By Staff Writer | for Moakanyi Magazine

Trade and markets lie at the heart of the development process. In food and agriculture, markets expand consumers’ choices and create incentives for farmers. Markets thereby enable the optimal allocation of resources and provide the avenues which link agriculture with other sectors of the economy. This makes markets crucial for the structural transformation of the economy. How trade and markets contribute to sustainable development is the subject matter of this 2020 edition of The State of Agricultural Commodity Markets (SOCO).

The role of well-functioning markets in driving economic growth is significant; however, the market mechanism cannot guarantee the provision of a range of social and environmental benefits that are central to sustainable development. In some instances, markets may fail to reconcile the interests of individuals with those of society as a whole, but also with the needs of future generations, which are embedded in the 2030 Agenda for Sustainable Development.

The 2030 Agenda and its 17 Sustainable Development Goals (SDGs) aim at a better and more sustainable future for all. They address the global challenges we face, including ending poverty and hunger and restoring and sustainably managing natural resources. The SDGs integrate the three dimensions of sustainable development – economic, social and environmental – with closely interwoven targets.

Agriculture is central to the 2030 Agenda. Its linkages with food security, economic growth, employment and poverty eradication, the environment and natural resource management, and nutrition and health are reflected in most of the SDGs. Markets identify these linkages.

This report discusses policies and institutions that can promote economic growth and also harness agricultural and food markets to contribute towards sustainable outcomes – economic, social and environmental.

SOCO 2020 explores the evolution of trade and markets and examines their roles in growth and sustainable development. It looks specifically at the emergence of global value chains in food and agriculture; the extent to which smallholder farmers in developing countries participate in value chains; and, the transformative impacts of digital technology on markets.

The full report is available from the FAO website.

Source: FAO