The magic of CGIAR research


October 20, 2021

ARTICLE

A recent report from the Supporters of Agricultural Research (SoAR) Foundation has found that investments in the CGIAR system yield a ten-to-one return on investment in low- and middle-income countries, with additional follow-on benefits impacting higher income and donor countries as well.

Over the last 50 years of CGIAR’s operations, approximately $60 billion have been invested through the system, yielding payoffs of enhanced staple crop yields, economic growth for smallholder farmers, greater food abundance, lower food prices, and reduced rates of hunger and poverty—not to mention greater productivity within the agricultural sector has allowed the geographic footprint of agriculture to shrink, allowing for greater diversification of land use for economic growth as well as environmental conservation and resiliency.

The CGIAR and its precursor centers were conceived to play a critical role, working in concert with the national agricultural research systems (NARSs) in low- and middle-income countries to develop farm technologies that would help stave off a global food crisis.

While the system has achieved great success, the challenges facing agricultural development in target regions of the world remain evolving and, in many cases worsening. Against this backdrop, the SoAR Foundation sought to provide a hard-nosed assessment of the past payoffs to CGIAR research investments to help guide decisions regarding future funding.

To assess the payoffs to CGIAR spending, SoAR used money-metric measures: in particular, the benefit-cost ratio (BCR) and dollar-denominated measures of total benefits. These money-metric measures are explicitly conceived as indications of the economic welfare consequences of R&D and are widely used for that purpose.

The resulting report, The Payoff of Investing in CGIAR Researchoutlined the remarkable return on investment offered by investments in agricultural research conducted by the CGIAR system. SoAR’s meta-analysis found a median estimated BCR of approximately 10:1 for both CGIAR and low- and middle-income country NARS research; that is, on average, a dollar invested today brings a future return equivalent in (present) value to ten dollars today. This is a high BCR: any ratio over the threshold of 1:1 justifies the investment.

Agricultural research is slow magic. Returns accrue over long periods—decades—and realizing the full potential from agricultural R&D requires far-sighted investments. It is also a cumulative endeavor, best done with steady and sustained investments. The evidence we assembled and examined shows that in agricultural R&D, persistence and patience are well rewarded. Past investments in agricultural research, both by the CGIAR and public agencies in low-and middle-income countries, have yielded very high returns.

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