Food Security

The global poverty landscape is increasingly shaped by conflict, climate shocks, displacement, and market disruptions—forces that are concentrating extreme poverty in the most fragile settings. At the same time, humanitarian and development financing is under pressure, heightening the need for  scalable and cost-effective approaches to poverty reduction. Graduation models—multifaceted interventions designed to help extremely poor households to “graduate” from poverty—are emerging as a particularly promising response in this context.

Currently, 80% of the world’s people rely on just three agricultural commodities as primary food staples: Maize, rice, and wheat. Production of these staple foods is concentrated in a small number of countries and regions, often called “breadbaskets.” At the same time, the incidence of climate-driven droughts, storms, floods, and related shocks is on the rise, creating large-scale threats to agricultural production in these areas. Recent research suggests that climate change will increase both the volatility of agricultural output and correlations across regions.

The realities of a changing climate are becoming increasingly clear, with temperatures rising around the world and extreme weather events, like flooding and droughts, becoming more and more frequent. April 2025 was the second hottest April globally on record, and evidence suggests such anomalous high temperatures could become the norm rather than the exception.

The world faced a stark inflection point in 2024, as the continued rise in the number of people facing crisis-to-catastrophic levels of acute food insecurity meets sharp reductions in funding for humanitarian assistance. The 2025 Global Report on Food Crises (GRFC), released today, reports that 295.3 million people across 53 countries/territories faced acute food insecurity in 2024. This represents a tripling of the number of people facing acute hunger since 2016 and a doubling since 2020 (Figure 1).

Figure 1

Fertilizer prices experienced a significant surge in 2021, driven by the post-COVID 19 global economic recovery. Russia’s February 2022 invasion of Ukraine propelled prices even higher. Broad economic sanctions on key fertilizer exporters Russia and Belarus exempted agricultural products but triggered further economic disruptions. Overall, the conflict heightened market uncertainties regarding the availability of potash, phosphate, and nitrogen-based fertilizers in international trade.