World Bank pledges $30 billion for 15 months to tackle food crisis due to Russia's war

World Bank has pledged an estimated $30 billion for at least 15 months to tackle the global food security crisis due to the ongoing war in Ukraine. Due to the blockade of the Black Sea ports by Russian warships, nearly 25 million tonnes of grains slated for export to countries worldwide are stuck in Ukraine, unable to be shipped out. The grain export block has led to inflation worldwide due to food shortage that has skyrocketed the prices of the commodities. 

In an official statement on Wednesday, the US Treasury outlined the food security plan titled IFI Action Plan to Address Food Insecurity drafted by the international financial institutions that would help curb the dearth of supplies, globally. The plan was developed by the Asian Development Bank (ADB), the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the International Fund for Agricultural Development (IFAD), the Inter-American Development Bank (IDB), the International Monetary Fund (IMF) and the World Bank Group. It was decided at a meeting convened in April 2022 by Secretary Yellen on “Tackling Food Insecurity - The Challenge and Call to Action.” 

In its comprehensive, streamlined solution, the World Bank suggested allocating $30 billion to tackle the globe’s hunger stemming from the food crisis. This would comprise $12 billion towards new projects and about $18 billion of undisbursed balance in the existing portfolio of projects linked to food and nutrition security. “It will assist clients and partners to mitigate against the short-term negative impacts on food and nutrition security of the current global food and fertilizer price crises while remaining focused on medium- and longer-term actions that create pathways out of the crisis and greater resilience to price spikes going forward,” said the World Bank in a plan listed by the US treasury. 

According to the plan, World Bank’s global response will address four priorities:

• Facilitate unhindered trade: Build international consensus (G7, G20, others) and commitment to avoid export restrictions that exacerbate global food price increases.
• Support consumers: Scale up nutrition-sensitive social protection programs and replenish early-response financing mechanisms to protect vulnerable households (including in some exceptional circumstances directly financing the food imports).
• Support producers: Ensure next season’s production by removing input trade barriers, focusing on more efficient use of fertilizers, repurposing public policies and expenditures to better support farmers
•  Invest in sustainable food and nutrition security: Strengthen food systems to make them more resilient to rising risks (conflict, climate, pests, diseases), trade disruptions and economic shocks - balance immediate/short term needs with long-term investment for transforming the food system.