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Philanthropy, United Nations

The Strategic Value of Pooled Funds in Development

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Since 2010, the FAO has been receiving unearmarked funds. The impact has been significant and  the FAO is advocating for more.

Advocating for more unearmarked or pooled funding

For years, FAO has been strongly advocating for more unearmarked or less-earmarked funding and pooled funding. This type of funding allows organizations to better allocate funding based on their priorities, strategic objectives and work programmes. Established in 2010, the FAO Multipartner Programme Support Mechanism (FMM) was the first of its kind to be established in FAO (The Africa Solidarity Trust Fund set up in 2013 is another example that will be illustrated in a follow-up article). In six years of existence, the FMM has proven its immense value. The FMM has not only delivered substantial results in countries and benefited thousands of people, but it has helped make FAO a more strategic organization, better equipped to support the Sustainable Development Goals and answer today’s global challenges.

The FMM is a fund for partners willing to contribute unearmarked or slightly earmarked funds. Since 2010, the FMM has received more than 60 millions of dollars from the kingdoms of Belgium, Sweden and the Netherlands and the Flanders Cooperation. Conceived as a tool to support FAO’s Strategic Objectives, the FMM gives FAO the freedom and flexibility to allocate the funds where the organization believes they are most needed and effective to implement FAO Strategic Programmes and achieve its Strategic Objectives. Departing from a traditional project-based approach, the fund favors a wider and more strategic programmatic approach.

Poverty still drives people out of their homes, even on a snowy day, to earn a living.

Photo:Poverty still drives people out of their homes, even on a snowy day, to earn a living. Unearmarked funds allow the FAO to allocate funds where the organization believes they are most needed. Photo Credit: UN Photo/Basir Seerat

Related Article: “TRANSFORMING AGRICULTURE FOR SUSTAINABLE DEVELOPMENT“

This innovative instrument is in line with FAO’s and other UN agencies move to raise more sustainable, predictable and flexible funding to support the 2030 Sustainable Agenda.

Six years down the line, the impact has been more than meaningful.

Numerous and tangible results in countries

The mechanism has worked very well. During its six years of existence, FAO’s unearmarked fund has proven crucial to advance work in areas such as hunger eradication, poverty reduction, climate change and sustainability in production, areas all at the heart of FAO Strategic Objectives and the 2030 Agenda on Sustainable Development.

More than 30 projects implemented in 60 countries delivered substantial results. Results are manifold and include amongst many others the Voluntary Guidelines for Small Scale Fisheries, the implementation of strengthened forest monitoring systems in numerous countries, the development of a new methodology to measure the severity of food insecurity, and several successful policy processes such as the adoption of a national contract farming strategy in Malawi or the drafting of a National Rural Youth Employment Policy in Senegal to combat rural poverty.

The FMM allows FAO to support programmes or projects which the organization estimates are necessary but are underfunded, have a lower priority in donor’s agenda, are innovative and carry some level of risk, or have mid-to long term delivery which does not fit into donors’ requirement for immediate results.

The FMM has an immense strategic value for FAO

Beyond the delivery of concrete results contributing to progress toward the realization of FAO Strategic Objectives, the FMM has revealed its many advantages, many of them with a strong strategic value.

The FMM allows FAO to support programmes or projects which the organization estimates are necessary but are underfunded, have a lower priority in donor’s agenda, are innovative and carry some level of risk, or have mid-to long term delivery which does not fit into donors’ requirement for immediate results.

Promoting new areas of work

FMM funds have been crucial in supporting emerging areas of work which are today central to FAO’s work. For example, the Climate Smart Agriculture (CSA) concept and success was enabled by the FMM which provided the initial support to the concept development, testing, implementation, and dissemination. Today the CSA has been adopted by institutions all over the world and is widely applied in countries.

Similarly, the FMM has been crucial to support the emergence of Decent Rural Employment as a new area  of work for FAO. Today creating decent employment opportunities in rural areas is a main component of FAO’s work to reduce rural poverty.

Secretary-General watch high tide in Bairiki.

Photo: UN Secretary-General watches high tide in Bairiki. He was accompanied by Honorable Amberoti Nikora, Minister of Environment, Lands and Agricultural Development (left). Photo Credit: UN Photo/Eskinder Debebe

Stimulating innovation

The FMM has also stimulated innovation, by supporting the development of new methodologies and

practices and the exploration of new research grounds. For example, FAO developed a new methodology, the Food Insecurity Experience Scale (FEIS), which measures the severity of food insecurity and provides for the first time a direct and comparable measure of food insecurity across countries in the world. This innovative tool has been selected as an indicator to measure global progress towards the 2030 Agenda for SDG 2, Target 2.1 to end hunger by 2030.

The FMM is also supporting innovative research on integrated crops, agro-forestry and livestock practices with a view to intensify the production, while reducing greenhouse gas emissions.

The FMM has also supported the piloting of innovative practices. For example, in the Dry Corridor of Guatemala and Honduras, new agro-forestry practices have been tested and can now be replicated in similar agronomic settings. In Burundi, the integration of agricultural practices regarding fish and livestock and land erosion techniques was proven successful and can be scale-up in a similar contexts. With global challenges gaining in complexity, innovation is a necessary path to solutions.

Cross-sectoral work is a prerequisite to address global and multifaceted challenges such as climate change or sustainability in agriculture.

Fostering inter-disciplinary work

The FMM stimulates cross-sectoral work within the Organization, contributing to make FAO a more strategic organization by stimulating synergies and leading to more integrated visions. Cross-sectoral work is a prerequisite to address global and multifaceted challenges such as climate change or sustainability in agriculture. For example, the FMM supports the development and implementation FAO Vision for Sustainable Food and Agriculture which integrates the social, environmental and economic dimensions of sustainability and can serve as an entry point for the integrated implementation of SDGs at country-level.

Generating catalytic effects

FMM supported projects have often a strong catalytic effect. Relatively small projects lead to complementary or wider projects and attract additional financing from national or international sources. During the 2014-2015 biennium, more than 10 million dollars were generated as a result of FMM projects.

Today, results achieved by the FMM strongly make the case for more unearmarked funds.

FAO STRATEGIC OBJECTIVES

1. Contribute to the eradication of hunger and malnutrition

2. Make agriculture more productive and sustainable

3. Reduce rural poverty

4. Enable more inclusive and efficient agricultural and food systems

5. Increase the resilience of livelihoods to threats and crisis.

To each Strategic Objective corresponds a strategic program.

Recommended Reading: “ADB HELPS  ENHANCE CROP DIVERSIFICATION AND FOOD SECURITY IN AFGHANISTAN“

EDITOR’S NOTE: THE OPINIONS EXPRESSED HERE BY IMPAKTER.COM COLUMNISTS ARE THEIR OWN, NOT THOSE OF IMPAKTER.COM. Featured Image: UN Photo/JC McIlwaine
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About the Author /

Nadine has over 20 years of experience in the Food and Agriculture Organization of the United Nations, in resource mobilization (public and private sector resource partners, projects/programme management (Central and Southern Africa) and coordination (planning and monitoring of one of the largest FAO projects).

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The food industry is coming under increasing scrutiny for its environmental impact, from greenhouse gas emissions, to excessive and detrimental land and water usage, to chemical pollution. Given the challenge of feeding a growing world population whilst simultaneously needing to drastically reduce greenhouse gas emissions and other environmental impacts, clearly we need to look at alternatives to “dinner as usual”. The contribution of livestock to global greenhouse emissions is estimated at between 14.5 – 18%. Fortunately, there are companies who are tackling this challenge head on and looking at how emissions from food production can be reduced. With consumer interest increasing in alternatives to meat and other protein sources, we’ve spoken to the founders of three companies. From the seemingly futuristic to the rediscovery of superfood trees, each company tackles this new drive in consumer interest in different ways.

Solar Foods, Finland

Dr Pasi Vainnika is the CEO and co-founder of Solar Foods. The slogan of the company is “Food out of thin air”. Pasi was formerly in charge of the single largest renewable energy program in Finland. However, when he found out that 20-25% of the emissions come from food, he realized that emissions from this sector needed to be addressed, as well as those in the energy sector. But with the growth in affordable and renewable energy – particularly solar energy– it led him and his team to question the possibility of producing food solely from energy, carbon dioxide, and water. It turns out, the answer is yes. Solein is a unique single cell protein. It is produced using a fully natural fermentation process like that of the production of yeast or lactic acid bacteria. The powder, which is produced from the process, is 50% protein, 5-10% fat and 20-25% carbohydrate. Most likely, the first product to reach the consumer market will be a replacement in existing plant-based foods. For example, using Solein in shakes or as an alternative to dairy in milks, yogurts, and even in breads and pasta. In the future, a lasagna could include the protein in all aspects of the recipe: the sauce, in the pasta sheets, and in the filling. Further into the future, there is also the possibility that it could be used as the basis for cultured meat production.
In the Photo: Solein Can be used in smoothies as a protein alternative. Photo Credit: Shawn Fields - Unsplash
To produce a kilo of the protein powder takes 10 liters of water in comparison to the 2500 liters of water for a kilo of soy or 15,500 liters for a kilo of beef. Electricity is the main raw material, and the plan is to source this from renewable energy sources. Additionally, Solein binds carbon dioxide rather than emitting it, easing pressure on land use. The product is currently going through regulatory checks and testing at the moment, with a plan to launch in 2021. NASA and the Soviet Union space programs had started to investigate in similar protein production for their expeditions in the past, but Solar Foods has brought it down to earth.

Higher Steaks, United Kingdom

Whilst some people are switching to plant-based diets and others have reduced their meat consumption, some others still want to keep meat in their diets but are looking for more environmentally friendly options. This is where lab-based meat comes in. Benjamina Bollag, CEO and co-founder of Higher Steaks, a UK-based company, believes that it is important to provide alternatives to meat with a lower carbon footprint, but that taste as close as possible to the real thing. She believes that the change required in human behavior to cut emissions will not happen fast enough otherwise. This approach is confirmed by research they have conducted. 52% of respondents confirmed that they would switch from conventional meat to the Higher Steaks alternative, with 21% saying they would prefer a plant-based diet. There are different ways of producing lab-based meat. The process that Higher Steaks is developing is based on pluripotent stem cells, which are taken from a small skin patch or blood sample. The meat that is grown is then shaped into products. Currently, Higher Steaks is working primarily on pork products.
In Photo: Higher Steaks will eventually release pork as its first lab-cultured meat. Photo Credit: Yvonne Lee Harijanto - Unsplash
The company has yet to conduct a lifecycle assessment of the lab-grown meat, but given the high levels of environmental impact from meat production, it should be safe to say that Higher Steaks products will be more sustainable. In addition, as Benjamina explains, other advantages include the avoidance of antibiotic use, resulting in a product which is better for the consumer as well. The level of fat can also be adjusted, depending on consumer preference. The company is working to have the first products in shops within 3-5 years.

Barukas, Brazil

Barukas proves that you don’t always to have to look to the future for more sustainable food sources. Sometimes it is about rediscovering and making available a food source which has been around for a long time to a wider audience. The baruzeiro tree, native to Brazil, has been a long-time source of nutrition for people living in the Cerrado, the vast savannah at the heart of Brazil. The tree produces a fruit, which contains the baru nut. It was the nutritional profile of the baru nut that initially attracted Seth Tuckerman, who had formerly been the COO of Beachbody, a fitness business. The nuts are high in protein, fiber, minerals, and are lower in fat than typical nuts. The taste is often described as a cross between peanuts and almonds. In fact, Tuckerman’s immediate thought on tasting them was “low calorie almonds”. Tuckerman’s passion is not only about the positive health benefits, but also about the trees and the mutual benefits for the communities where they grew.
In Photo: Baruzeiro tree. Photo Credit: Barukas
Tuckerman became a co-founder of Barukas Incorporated. They are on a mission to plant 20 million baruzeiro trees – as a start. The trees need little water and – as native trees – they are already ideally suited to the Cerrado conditions. First, Barukas must prove that there is a market for the fruit of the existing trees. As such, the company is encouraging those living in the Cerrado to collect the nuts by guaranteeing to buy them, then creating customer demand for the nuts. Collecting the fruit from existing trees helps to preserve them from being cleared for intensive and invasive agricultural methods such as soy plantations. Likewise, planting new trees helps to reverse the deforestation of Cerrado. A report by the Climate Observatory estimated that the destruction of surface vegetation in the Cerrado released 248 million tons of greenhouse gas emissions in 2016. This is roughly two-and-half times the annual tailpipe emissions from all cars in Brazil.
In Photo: Closer look at the baruzeiro tree. Photo Credit: Barukas.
From talking with these three pioneers, it is now clearer than ever that we need multiple solutions to address how to sustainably feed a growing population. We need to cut the carbon emissions and reduce other environmental impacts such as water and land use associated with food production. Some of these solutions are a little way off in the future, but others are available now. We are what we eat, but our choices will increasingly determine what kind of future we will live in as well.   EDITOR’S NOTE: The opinions expressed here by Impakter.com columnists are their own, not those of Impakter.com.
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