The private sector’s role in infrastructural development continues to evolve and expand as the years go by. Owners of the public sector are demanding to fund for operations, maintenance and construction. The tax revenues that are steadily diminishing accompanied by an increase an increase in infrastructural development. Private sector has operated and owned wastewater/water and their public utilities a sector where constant revenues offer a reliable source of investments. Despite the many private areas that provide essential services in the world, countries that have nonfunctional and weak state have been characterized by a weak attraction of private investment as compared to more developed countries. The reason behind this seems insurmountable and intuitive. The intermediate rehabilitation of our infrastructure is one of the major components of a short term growth cycle; a sustained growth will require long-term policies. Food and agriculture are one of the sectors that private investors have spotted numerous opportunities
Many countries around the world are on the path of reaching the millennium goal by reducing the number of hungry people, but much private, and public expenditure are needed. With the world’s shifting consumption pattern, erosion on the natural resources and growing population future strains on agriculture will be overwhelming. FAO estimates that agriculture investments developing countries must increase by at least fifty percent so as to meet the anticipated population growth. To reach a zero hunger target then the countries around the world cannot do it alone, they have to partner with private sectors. To negotiate a good public-private partnership deal then, all partners must identify and value their assets, goals, and interests. That is the only way that will make all sides win and gain from any deal
Private Sector in Food and Agriculture
In the United States, the agriculture and food industry is thriving. Several industries have gained from the stronger partnership with the public sector. The United States Department of Agriculture and the land-grant university all support the broad network of packages, grocers, and marketers to increase productivity. It also provides greater convenience, protect the environment and keep the cost of food low for consumers.
Markets internationally have grown tremendously in the last 30 years; this expansion can be attributed to liberalization and an increasing demand that is caused by an increase population growth and rising incomes. Given the complexity of agriculture and food sector in the United States of America, it is quite difficult it become difficult for the private institution to invest in agricultural key areas that need focus. Despite the numerous challenges private companies have actively come in to develop fertilizers, pesticides and other products that necessitate the growth of more food. These private companies have invested millions of dollars in this sector with one objective of increasing the information available to farmers, the amount of food available and at the same time increasing profits. A farmer in America use every complex and heavier machines like combined harvest, storage bins, and tractors that can’t be provided by the government. Private companies have to produce these farm machinery so that enough food that can be produced to meet the rising population
Agriculture heavily relies on infrastructure. Road, Transportation, and Storage bins containers that are used to store the readily perishable agricultural products help farmers to capitalize on their effort and investments. A smaller investment goes a longer way in helping farmer increase productivity and reduces wastage. For many decades infrastructure has always remained a public good that the government caters for, however recently numerous partnerships between private and public sectors have come up. The World Bank has played a significant role in infrastructural development. United States government has also made substantial investments in infrastructure and roads which have ultimately spurred private investment
Food processing and marketing has revolutionized. Currently, everything from manufacturing to packaging to storage depends on technology. Anything from harvesting, drying, and roasting nuts and converting of fruits to nuts has been mechanized. The newer processing, marketing and packaging can greatly enhance export potential and retail value. Companies like Pepsi and Walmart have partnered with farmers to make sure that the food produced is of good quality and farmers also gain higher incomes.
Given the above engagement, private companies may support the development and industrial development at the same time in some ways that includes sharing financial and technical expertise with farmers so as to improve food security in the country, promote better nutrition and raise revenue. Many commercial goals are also available and open to these companies. As institutions engage in the key emerging market such as agriculture, they gain goodwill, insight, and credibility. With the increasing opportunities in the agricultural sector companies can collaborate with the United States government to take advantage of these opportunities.
Taking advantage of the Priorities to Feed the Future
Feeding the future was a step forward that private institutions around the world can capitalize on. The agriculture sector has been one of the most abandoned sectors in the world. The industry in the past has taken advantage of this gap to make an extra gain by collaborating with farmers. Feeding the future is a program that aims at helping farmers to mitigate the environmental impact of climate such as a decline in rain. The private sector engagement is a top priority to feed the future with programs that seek to inject millions of dollars into the industry with the intention of creating market links and many opportunities for small-scale farmers. Currently, many companies are interested in agricultural development and food security. They do so by providing support and training, intellectual property and a pathway to farmers to market products.
Many private companies take the emerging markets as a key development opportunity. Despite the numerous opportunities challenges have been inevitable. Several regulations on the public, private partnership with the government have slowed down the organization process. The government has been working hard to make sure that trade is liberalized so as to bring more investors in the food and agricultural area. Investments in the private sector have greatly enhanced efficiency in the supply chain and made significant adjustments in the science and data. Feed the Future program is an effort to leverage the government funding with the private sector.
Enabling Environment for Public-Private Investments in Food and Agriculture
By creating an enabling environment that will warrant private investment is the first step to increasing investments in the food and agricultural sector. Public policies and institutions that affect the quantity and quality of investments must be strengthened in developing countries. For small-scale producer’s systems, policies governing natural resources and land tenures are critical. Many farmers without land right cannot acquire credit a factor that negatively reduces productivity. Various laws that restrict public-private partnerships should be lessened more capital is pumped into the sector. That is the only way farmer will increase their revenue and productivity. The government can also encourage direct foreign investments into the sector. Foreign investment can bring expertise, cash, and machinery, elements that are critical in the agricultural sector.
The government should also support the private and local organizations cooperation. Due to the long gestation period experienced in agricultural investments, benefits tends to take much longer before they emerge. At the initial stages, patience is required, and the government should step in to provide patience capital for the investors willing to forego immediate financial returns in the long term. The government can also put in place various measures that will involve local communities and individuals in decision making over the investors. Such a move will just make sure that both parties benefit from any decision that is taken.
Investments are the only way that the country will combat hunger and poverty. Increasing investment in private sector leaves a mark that cannot be erased. If this form of partnership is left unchecked then some forms of investments with significant food security, socio-economic and risks on the environment will occur. Out-growers opportunities and decent jobs are the major positive impacts of private investments in food and agriculture. Better national governance policies are crucial for risk reduction and positive outcome. Countries should come up with better laws and policies that can facilitate such a kind of a move. Political sensitivity, contrasting perspectives and vested interests on development ought not to be ignored at all.