Financing SDG2 and Ending Hunger

Abstract

AbstractThis chapter focuses on innovation in mechanisms to finance the transformation of food systems to end hunger by 2030 and achieve SDG2. The key questions analyzed are: given the estimated costs involved in the transformation of food systems to achieve zero hunger, (1) What are the financing options available? (2) What is their quantitative availability? and (3) How to mobilize/reallocate the potential sources of finance? The concepts proposed here include international development finance, public budgets, banking, and capital markets at the global and national levels. A robust pipeline of investable opportunities should be established with an adequate profile and clear, measurable, and monitorable impact objectives, aligned with achieving SDG2 and ending hunger. Guarantee for “zero hunger” bonds is proposed to finance related public programs, and, in support of that, it is suggested that 2% of the new allocation of SDRs of 650 billion dollars be assigned to a fund, which could be set up within the IMF, to guarantee the interest rate payments of zero hunger bonds issued by developing countries as part of a Zero Hunger Alliance.