World Bank to start agriculture fund with $1.5 billion
WASHINGTON (Reuters) - The World Bank will start a trust fund to boost agriculture in poor countries with an initial $1.5 billion, its president Robert Zoellick said on Tuesday, warning of the risk of another food price crisis.
Crop shortages in India and the Philippines combined with increased speculation in commodity markets have increased the risk that food prices could spike, similar to what happened in 2008, Zoellick said.
"I'm not forecasting this. I'm just staying we have to anticipate this as a possible risk," he told reporters on the sidelines of a food security event at Brookings Institution.
The World Bank was asked by the Group of 20 nations in September to create a fund to help quickly disburse pledges of $20 billion from the world's richest nations to help small farmers in developing countries grow more food and reduce hunger.
"I'd like to get more (of the $20 billion promised) but the key thing is that people keep their pledges," Zoellick told reporters, noting that some of the promised funding may be delivered bilaterally or through other multilateral agencies.
"My key point is, let's get these things up and running," he said.
The fund will pool money from the United States, Canada and Spain, Zoellick said, noting the European Commission will also add funds.
