Nations like Haiti, Egypt and Philippines have faced food riots in recent times. Ivory Coast, Indonesia and Ethiopia have also recorded considerable unrest on this account.
Several factors have contributed to this sharp rise in global food prices. Prominent among them are an increased demand for food products, an increased use of cultivable land for the growth of transport fuels and inclement weather, which has ruined agricultural crops in some nations.
As per World Bank estimates the global overall food prices have risen by 83% in the past 3 years. This overall hike has been propelled by a hike in the prices of major staple crops like wheat, corn and rice. In the past couple of months prices of rice have risen around 75% worldwide. The comparable figure for wheat is 120% in 2007. This is indeed alarming when studies reveal that poor people spend nearly 75% of income earned on food.
To add to the woe important rice producing nations like India, China, Egypt and Vietnam are facing rice export restrictions. This has badly affected rice importing nations like Bangladesh, Afghanistan and Philippines.
As observed by Robert B. Zoellick, the upwardly mobile food prices could effectively amount to “seven lost years” for the fight initiated for global poverty eradication.
He proposed a policy guideline comprising various steps, which could be initiated for boosting the long term world agricultural production for effectively combating the menace of food price inflation.
As an emergency measure to dissipate the present crisis Zoellick has urged the developed nations to come in with donations to plug in the existent food gap of US$500 million as identified by the World Food Program of UN.
World Bank envisages to take its agricultural lending figures for Sub-Saharan Africa to US$800 million within the coming year as per the 'new deal'. This is nearly twice the preset allocated level for this region. The primary purpose of this increased loan assistance is an increment in crop productivity.
International Finance Corporation, World Bank's wing for ushering private sector development, is also set to increase its investments in agribusiness.
Zoellick has called for allocations to the tune of US$30 billion from sovereign wealth funds worldwide towards investments for the growth and development of Africa.
It may be noted that food price inflation is leading to an increased incidence of malnutrition. It is leading to war like situation in poor nations. A whole generation of children who are tomorrow's adults are likely to be affected physically and intellectually by this food crisis. It is also likely to give rise to trade imbalances that would adversely affect the developed nations.
Zoellick has urged for aid, for the provision of food to those who are badly hit by this crisis across the globe and also for assistance for the small farmers. The World Bank is already working for the provision of resources to small farmers towards the procurement of seeds for planting in the coming agricultural season.
