The primary function of IFDC’s economic and policy development efforts is to provide expertise to key stakeholders. The concept of an enabling policy environment has been recognized worldwide as a pre-requisite for developing agricultural markets in emerging nations around the world. Macro-economic stability, undistorted pricing environments for both inputs and outputs and enforced sector-friendly regulatory frameworks are pillars to support optimally functioning and efficient agro-economic markets.
Over the last decade, many developing countries and transitional economies have moved from public sector agro-input supply monopolies to private sector-led input supply systems. However, private sector capacity, in most cases, is not robust or mature enough to support and sustain adequate input supply and distribution – leaving many of these input markets underdeveloped and dysfunctional. IFDC assists these nations by developing assessments of market conditions and implementing projects to strengthen the functionality of newly privatized input markets.
IFDC also addresses the distorted and non-conducive policy environments that prevent the growth of agricultural sectors in many developing nations. IFDC regularly is requested by governments to provide fertilizer policy consultation in several areas including subsidies, trade reforms, financial sector growth and macro-policy issues. IFDC has been instrumental in facilitating national and multi-national legislative and/or regulatory reforms in fertilizer quality standards, open trade, standardized pricing, common tariffs and other individual and common market initiatives.
Through extensive market research and assessment activities, project development and advisory services, and policy analysis and dialogue, IFDC ensures that developing and transitional economies provide an enabling environment for building both fertilizer supply and agricultural markets as a whole. Additionally, IFDC analyzes the feasibility of investment programs, socioeconomic suitability of new technologies, implications of multilateral trade agreements on agriculture and agribusiness and economic and policy measures required to advance environmental protection efforts.