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Additional, co-ordinated efforts will also be necessary to enhance agricultural growth and food security. Pledges made at the G-8 summit in L’Aquila demonstrated strong signals of intent, and now need to be backed up by clarity over how they will be met, and by rapid implementation. The international community must be sensitive to the needs of fragile states. First, it is important to ensure fragile states do not miss out on international support in the aftermath of the global financial crisis.

Several European development partners have announced that as their GNI has decreased, their aid budgets – tied to GNI figures – will also be cut. 6 Further, assessments of previous slowdowns suggest that while aid is resilient to mild crises, the more severe and protracted a crisis becomes, the greater the negative impact on aid. The direct effect of falling aid will be compounded by indirect effects of exchange rate movements due to the appreciation of the dollar against many currencies. Aggregated across all development partners, this could depress current values of aid by as much as USD 8 billion (almost half from the Euro zone), although technical co-operation and humanitarian assistance, being less sensitive to currency movements, will be less affected.

UN (United Nations) (2009), Millennium Development Goals Report 2009, UN, New York. WFP (World Food Programme) (2009), “Effects of the Financial Crisis on Vulnerable Households: Findings from Five Case Studies”, WFP, Rome. World Bank (2009a), Global Monitoring Report 2009: A Development Emergency, World Bank, Washington, DC. World Bank (2009b), Global Development Finance: Charting a Global Recovery, World Bank, Washington, DC. World Bank (2009c), Impact of the Global Financial and Economic Crisis on Fragile and Conflict-Affected Countries, World Bank, Washington, DC.

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