A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

The rating agency, an essential compass
for the agricultural domain

November 25, 2013

The dominance of the three credit rating agencies––Fitch Group, Standard & Poor’s and Moody’s––which hold 96 percent of the world market, could be undermined by the creation of a new rating agency. Following the China-based Dagong, ARC Ratings was launched on November 20, 2013 by combining five rating organizations from emerging countries: Portugal, India, South Africa, Malaysia and Brazil.

This new initiative is occurring at a time when the leading Big Three agencies are facing severe criticism as a result of positions and choices that some deem too partial, opaque and shortsighted. In fact, there is a real commitment, especially in Europe, toward a global financial reform based on more control on these agencies. The fact that the Big Three are American entities only fuels the hope for restructuring the sector. The European Union has thus put new constraints on rating agencies to better regulate and oversee their activities, and the European Parliament ratified such restraint in January 2013.

ARC Ratings aims to reflect “a multi-polar world economy” and wants to overtake the oligopoly of sorts that is dominated by Americans. The initiative is not the first one: the Dagong Agency tried it but is having difficulty to compete. Europe does not want to be out of step, and consequently wants to start an agency through Roland Berger Strategy Consultants, and we note that in July, the French Spread Research1 firm obtained the authorization to do business in Europe, a notable first.

A stricter control of rating agencies––especially in finance––is an essential condition to consolidate the international financial landscape. If this current scrutiny should improve transparency, healthy competition and responsibility, the geographical and sectorial expansion of these agencies is a paramount requirement in a context of unregulated trade liberalization, intrinsic market instability and growing withdrawal by states. And this is all the more so, since the rating agency is a necessary tool to minimize risks and guide international decision-making.

At a time when food security and agriculture are becoming key geopolitical and strategic issues in the 21st century, the momagri’s initiative to create a rating agency in these fields thus seems to be both crucial and in line with international governance consolidation.

1 Established in 2004, the firm employs 15 persons. It is active on the London and Paris financial exchanges and provides European credit market investors with credit ratings and bond investment recommendations paid by bond investors.
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Paris, 25 June 2019