Apr
13
Updated 20080414: The World Bank has echoed these sentiments.
With global food prices continuing to rise, the International Monetary Fund has warned that hundreds of thousands of people may face starvation. As detailed in a previous post, rice prices have gone up 70% in the last year. There have already been food riots in Haiti, the Philippines, and Egypt. Quoting: “He said the problem could lead to trade imbalances that may eventually affect developed nations, ’so it is not only a humanitarian question’.”
Well, as long as it’s “not only a humanitarian question” then I guess the rich nations will actually do something about it? Isn’t it the height of arrogance and vanity that he has to make an appeal to rich nations’ self-interest to get them to consider doing something about it? There is one poignant sentence in the article that sums things up quite nicely:
“Food prices have risen sharply in recent months, driven by increased demand, poor weather in some countries and an increase in the use of land to grow crops for transport fuels.” Note that last part: an increase in the use of land to grow crops for transport fuels! It seems to be more economically feasible for farmers to grow wheatgrass and/or corn for ethanol than for food, so that’s where the corn goes!
Also, when will central bankers (and the IMF is nothing more than a central bank) realise that their interference in markets causes as many, if not more problems, than it solves?
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