The role of debt swaps in fostering long term investment in agrifood systems to achieve food security and improve nutrition (FFD4 Side Event).
This side event, organized by The Permanent Mission of Egypt, Permanent Mission of Italy, Permanent Mission of Spain, Food and Agriculture Organization of the United Nations, aims to achieve two core objectives: 1) showcase FAO's strategic approach related to the use of debt swaps as instruments to promote food security, nutrition, and climate; and 2) gather a range of relevant sovereign and multilateral actors that have been engaged in recent years in debt-for-food security swaps, as well as other.
In an effort to render agrifood systems more efficient, inclusive, resilient and sustainable to achieve Sustainable Development Goal (SDG) 2 (end hunger, achieve food security and improved nutrition), debt swaps can be of critical assistance to low-income countries (LICs) and middle-income countries (MICs). These countries tend to register a limited capacity to access financing and high levels of sovereign debt and often house high levels of food-insecure population, which implies that a considerable share of their public revenue must be used to service payments on interest and principal.
In line with the Sevilla Commitment's call for tangible steps to support developing countries to address these challenges, debt swaps provide governments with much needed fiscal space, allowing them to reallocate public resources towards crucial policies and programmes that transform debt service into long-term agrifood systems investment with beneficial effects on, among others, food security, nutrition and climate.
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