A silent tsunami which knows no borders sweeping the world.That is how Josette Sheeran, head of the UN World Food Program, described the worsening global food crisis. Food shortages have caused riots in Haiti, Cameroon, Indonesia and Egypt, among others.
The sharp increases in food prices are attributed to several factors, including (1) an increased demand for biofuels (corn being made into ethanol rather than sold on the food market), (2) drought (e.g., in Australia) or flooding (Bolivia, South Asia, some parts of E. Africa), (3) surging demand from developing nations like China and India, (4) shortages of fertilizer, and (5) property rights.
So what's being done to ease the burden on the world's poor?On May 1, President Bush called on Congress to appropriate $770 million in international food aid. Some $200 million in emergency food will be sent out immediately via the Bill Emerson Humanitarian Trust Fund at the United States Department of Agriculture.
However, much of the request for the food aid is entangled with the emergency war supplemental spending bill - the one that wants $70 billion for the wars in Iraq and Afghanistan - so I expect it'll be a while before a single cent of the request makes it into needy hands.
In addition to outright aid, World Trade Organization Director-General Pascal Lamy is calling for a refocus on international agricultural development and a re-thinking of current policies, including protectionist subsidies and tariffs.
The World Bank and the International Monetary Fund recently held a series of meetings to address the crisis. Following the meeting, the World Bank announced a "New Deal for Global Food Policy" that will provide cash, redouble food-for-work programs, and assist with agricultural development, including plantings.
Robert Zoellick, head of the bank, also spoke about the Extractive Industries Transparency Initiative Plus Plus (EITI++). The initiative "seeks to develop national capability to handle the boom in commodity prices, and channel the growing revenue streams into fighting poverty, hunger, malnutrition, illiteracy, and disease." Or, more simply, it wants countries with natural resources like oil, natural gas, or mineral wealth to channel the revenue funds into infrastructure development.
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