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Today’s low-income countries spend more than twice on average than today’s advanced economies spent more than a century ago (Figure 1). To be sure, this difference reflects the lack of the tax instruments and systems we have today. From 1850 until the early 1900s, customs duties and excises provided the bulk of government revenues, while the personal income tax and VAT were not introduced in countries until later. Moreover, society’s expectations from the government were much different then. In 1900, for example, spending on unemployment, health, pensions, and housing amounted to only 1.1 percent of GDP in the Scandinavian countries on average and to 0.7 percent of GDP in the U.S. Even with low level of government spending, economic development was brisk in most of the Advanced 14 at the turn of the 20th century, with infrastructure improvements financed by private capital and the strong expansion of primary and secondary education. And here lies the lesson for today’s developing economies: While working on strengthening domestic taxation and raising more revenues to finance public goods, the priority needs to be on improving the business environment to attract private capital—mobilizing private finance for development. Figure 1. Governments of today’s low-income countries spent more on average in 2018 than today’s advanced economies did in 1900 (in percent of GDP) Governments of today’s low-income countries spent more on average in 2018 than today’s advanced economies did in 1900 Source: IMF Prudence and Profligacy Database, IMF Fiscal Monitor 2018, World Bank WDI, and authors’ estimates. Note: LIC = low-income countries; SSA = Sub-Saharan Africa; A14 = the average of the Advanced 14 in the figure. GDP per capita of the Advanced 14 in our sample averaged $2,722 in today’s prices during the last decade of the 19th century; In 2016, per capita GDP in sub-Saharan Africa averaged $2,757.Government spending in the Advanced 14 increased substantially since 1960 as they reevaluated the role of government amid rapid industrialization and globalization and new taxes became commonplace (Figure 2). The shift from agrarian to industrial to post-industrial economies required different worker skills. Economic disruptions reshaped governments in the past, as is happening now with the changing world of work, leading to a large expansion of social insurance and protection spending.Government spending among the advanced economies has increased, but so has its variability. Before 1913, spending among the advanced economies ranged from less than 2 percent of GDP in Japan to 13 percent in Italy, or a span of 11 percentage points. Today, the span of spending among the advanced economies is 39 percentage points: from 17.3 percent in Hong Kong to 56.4 percent in France. Development paradigms vary among today’s advanced and developing countries. Robust growth can happen with a smaller or a larger government, in general. Too large of a redistribution, however, may create substantial disincentives to work and invest, or lead to tensions between formal and informal workers, employees of large companies or state-owned enterprises and small private firms. This danger now is clearer than ever: The changing world of work is clashing with persistent informality in developing countries and social protection systems that cover only part of the population.must for today’s developing countries, especially for those with abundant natural resources. However, there is overwhelming evidence that fiscal policy has been consistently pro-cyclical in developing countries, resulting in profound macroeconomic imbalances, unproductive debt build-ups, and ongoing instability.any of today’s poorest countries do not collect adequate revenues to build the human capital, infrastructure, and institutions needed for stronger growth and faster poverty reduction. In sub-Saharan Africa, for example, 15 of the 45 countries have revenues lower than 15 percent of

It’s at the center of our dinner tables: an essential human experience where we connect with our friends and family. But it’s also at the center of a story that connects each of us to farmers, producers, suppliers, grocers, and other families around the world. Every meal is the result of a journey that recently became even more difficult. Distribution bottlenecks. Rising food prices. Grain shortages. Energy crises. Climate change. This is the reality of our global food system today. When talk at mealtime turns to the price of bread and higher grocery bills, we’re really joining a much larger conversation about where our food comes from, and how it arrives on our tables. And as the recent war against Ukraine has revealed: while this story impacts each of us in different ways, it undeniably impacts all of us, together.For many of us, that impact is first felt on the store shelf where food prices are still high despite a five-monthWhat may end up in your kitchen as chapati or a tortilla begins as a simple seed of wheat germinating in the ground. That seed often starts its life worlds away from where it ends up—and it faces a series of challenges on its way to you. Below The most effective way to help mitigate the disruptions caused by the war in Ukraine is to end the war and ensureHome Agriculture Every meal is the result of a journey that recently became even more difficult. Distribution bottlenecks. Rising food prices. Grain shortages. Energy crises. Climate change. This is the reality of our global food system today. When talk at mealtime turns to the price of bread and higher grocery bills, we’re really joining a much larger conversation about where our food comes from, and how it arrives on our tables. And as the recent war against Ukraine has revealed: while this story impacts each of us in different ways, it undeniably impacts all of us, together. . What’s more, the challenges we face today could have a significant impact on the future, according to Eurasia Group, people facing food insecurity will rise by about 142 million-243 million by November 2022. Below, we take a look at some of the acute challenges to the global food system that show up on your plate, exploring some of the ways geopolitical conflict, the pandemic, climate change and other factors impacting the cost and availability of the food at your table. Decoding the plate - infographic showing how food prices are being affected Previous Next We’re taking action by investing heavily in our partnerships with biotech organizations working to create more resilient, resource-efficient, and carbon-smart solutions that will increase productivity and minimize harvest loss, investing more than €5bn in research and development every year. From Connection to Action The world is so interconnected that a crisis anywhere can be felt everywhere. In addition to the devastation the war in Ukraine has caused for millions on the ground, it has also set in motion events that have triggered critical disruptions in the supply chain, food production, fertilizer access, energy and more. The war has made a challenging situation worse, as due to the global pandemic food prices were already on the rise. The most effective way to help mitigate the disruptions caused by the war in Ukraine is to end the war and ensure food is not being used as a political tool. The clock is ticking. Every day the war continues, the global food crisis worsens. We believe both collaboration and swift action at scale are key to mitigating the food crisis and to preventing longer-term food shortages. Strengthening our global food system requires innovation, the dedicated support of smallholder farmers, and an active approach to fighting climate change. This is why we are taking immediate action to support Ukrainian growers. To that end, we have donated more than 40,000 bags of seed to support farmers who are still planting in Ukraine.

Today’s low-income countries spend more than twice on average than today’s advanced economies spent more than a century ago (Figure 1). To be sure, this difference reflects the lack of the tax instruments and systems we have today. From 1850 until the early 1900s, customs duties and excises provided the bulk of government revenues, while the personal income tax and VAT were not introduced in countries until later. Moreover, society’s expectations from the government were much different then. In 1900, for example, spending on unemployment, health, pensions, and housing amounted to only 1.1 percent of GDP in the Scandinavian countries on average and to 0.7 percent of GDP in the U.S. Even with low level of government spending, economic development was brisk in most of the Advanced 14 at the turn of the 20th century, with infrastructure improvements financed by private capital and the strong expansion of primary and secondary education. And here lies the lesson for today’s developing economies: While working on strengthening domestic taxation and raising more revenues to finance public goods, the priority needs to be on improving the business environment to attract private capital—mobilizing private finance for development. Figure 1. Governments of today’s low-income countries spent more on average in 2018 than today’s advanced economies did in 1900 (in percent of GDP) Governments of today’s low-income countries spent more on average in 2018 than today’s advanced economies did in 1900 Source: IMF Prudence and Profligacy Database, IMF Fiscal Monitor 2018, World Bank WDI, and authors’ estimates. Note: LIC = low-income countries; SSA = Sub-Saharan Africa; A14 = the average of the Advanced 14 in the figure. GDP per capita of the Advanced 14 in our sample averaged $2,722 in today’s prices during the last decade of the 19th century; In 2016, per capita GDP in sub-Saharan Africa averaged $2,757.Government spending in the Advanced 14 increased substantially since 1960 as they reevaluated the role of government amid rapid industrialization and globalization and new taxes became commonplace (Figure 2). The shift from agrarian to industrial to post-industrial economies required different worker skills. Economic disruptions reshaped governments in the past, as is happening now with the changing world of work, leading to a large expansion of social insurance and protection spending.Government spending among the advanced economies has increased, but so has its variability. Before 1913, spending among the advanced economies ranged from less than 2 percent of GDP in Japan to 13 percent in Italy, or a span of 11 percentage points. Today, the span of spending among the advanced economies is 39 percentage points: from 17.3 percent in Hong Kong to 56.4 percent in France. Development paradigms vary among today’s advanced and developing countries. Robust growth can happen with a smaller or a larger government, in general. Too large of a redistribution, however, may create substantial disincentives to work and invest, or lead to tensions between formal and informal workers, employees of large companies or state-owned enterprises and small private firms. This danger now is clearer than ever: The changing world of work is clashing with persistent informality in developing countries and social protection systems that cover only part of the population.must for today’s developing countries, especially for those with abundant natural resources. However, there is overwhelming evidence that fiscal policy has been consistently pro-cyclical in developing countries, resulting in profound macroeconomic imbalances, unproductive debt build-ups, and ongoing instability.any of today’s poorest countries do not collect adequate revenues to build the human capital, infrastructure, and institutions needed for stronger growth and faster poverty reduction. In sub-Saharan Africa, for example, 15 of the 45 countries have revenues lower than 15 percent of