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Guide on incentives for responsible investment in agriculture and food systems











Bulman, A., Cordes, K.Y., Mehranvar, L., Merrill, E. and Fiedler, Y. 2021. Guide on incentives for responsible investment in agriculture and food systems. Rome, FAO and Columbia Center on Sustainable Investment. 




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    Incentives are one of many tools that governments can use to promote investment. Incentives may encourage the establishment or growth of a sector and lead to jobs and revenue growth. Incentives may also have social and environmental sustainability impacts. This paper explores ideas for government incentives that can encourage responsible investment in the avocado and pineapple industry. It is particularly relevant to governmental actors and policy makers, as well as to civil society, advocacy groups and others who seek to improve investments. The ideas presented here aim to stimulate discussion and provide inspiration. They should not be seen as prescriptive recommendations, but rather a starting point for considering how incentives may support the goal of promoting sustainable investment in the global avocado and pineapple industries.
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    This rapid capacity assessment tool aims to help interested practitioners (such as government agencies, producer organizations, or development partners) to carry out a multi-stakeholder assessment of existing and needed capacities to enhance responsible investment in agriculture and food systems at country level. It is designed to support the application of the CFS Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI Principles). The tool addresses the different systemic dimensions of capacity development and focuses on: the institutional set-up for agricultural investment-related policy processes; policies, laws and incentives of relevance to agricultural investments; organizations and services relevant to agricultural investments and; key change agents to promote responsible agricultural investments. The tool consists of a series of questions which ask groups to analyse their current national context and identify how to enhance, in their country, responsible investment in agriculture and food systems. Conducted through a multi-stakeholder workshop, this participatory process should be inclusive of all relevant stakeholders, with a particular focus on those underrepresented in the policy-making process: small-scale producers, women, youth and indigenous peoples (if applicable).
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    More than a decade has passed since the publication of the series entitled Social Analysis of Agriculture and Rural Investment Projects, which comprises three complementary manuals – the Manager’s, Practitioner’s and Field guides. During this time, conflict, climate change and economic downturns have been driving up poverty, hunger, and socioeconomic inequalities, reducing the resilience of agrifood systems. In response, the FAO Investment Centre has updated the Social Analysis guides to address the evolving and volatile rural transformation context, providing programme managers, practitioners and field workers with a set of enhanced tools for the design, implementation and evaluation of inclusive investments in agrifood systems. Today’s investments must prioritize more demand-driven, people-centred, culturally sensitive and locally owned sustainable approaches, with increased attention to reducing gender and other inequalities. Operationalizing these principles contributes to FAO’s and financing agencies’ objectives of ending poverty, improving food security and nutrition, and reducing inequalities. The goal of the updated guides is to support investments that contribute to inclusive, resilient and sustainable agrifood systems, aligned with the outcomes of the UN Food Systems Summit, the Sustainable Development Goals (SDGs), and the core principle of leaving no one behind. This publication is part of the Investment Toolkits series under the FAO Investment Centre's Knowledge for Investment (K4I) series. The contents of this publication have been developed into three e-learning courses, which are accessible for free through the FAO E-learning Academy.

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