World Bank calls for action over food crisis

Following the dramatic rise in food prices worldwide, the World Bank stated yesterday that this rise has resulted in severe hunger and malnutrition, putting the fight against poverty in the world’s most underdeveloped countries by seven years.

The bank’s president, Robert Zoellick, appealed to wealthy countries to immediately contribute a further £250 ($500m) to the World Food Programme and to sign up to a “New Deal for global food policy”.

He stated that in the last year focus in the US has lain with the price of fuel yet that the real issue lies with the millions across the world that are struggling to feed themselves.

Zoellick claimed that the price of bread has risen by 120% within the last year with rice prices rising by 75% in two months.

The World Bank has calculated that on average food prices have risen by 83% over the past three years alone.

Zoellick then went on to emphasise the crisis by stating that, in Bangladesh, a 2kg bag of rice currently costs about half of the daily income of a poor family.

He spoke of the fact that as prices are so high there is little margin for survival, with rising food prices often resulting in simply fewer meals.

He declared that this is not simply about a food crisis but potentially a loss in future learning potential for children and adults and stunted physical and intellectual growth.

The International Monetary Fund has undertaken research which shows that Africa will be the continent hit hardest by the rise in food pricing and the World Bank’s analysis reflects this diagnosis.

It is expected that over 20 countries in Africa are set to have their trade balance deteriorate by over 1% of GDP as a direct result of having to fork out more for their food.

Prime Minister, Gordon Brown, has written to Yasuo Fukada, the Japanese PM and chairman of the G8 industrialised countries requesting a co-ordinated response to the growing crisis.

Brown’s proposal has been keenly welcomed by Zoellick who has stated that this weekend’s meetings will do more than just identify the scale of the crisis with the Bank recognising the need to act upon the emergency.
Zoellick has called for the $500m contribution to the World Food Programme in addition to suggestions for an expansion in safety-net programmes for poorer communities.

He also proposed an increase in long-term financial support to aid production, with agriculture being made a priority.

The World Bank is in the process of plans to double its loans to agriculture projects in developing countries to $800m in 2008.

Zoellick also warned against protectional measures made by governments in countries including Mexico and India that have imposed export bans on commodities as a reaction to riots that have broken out after the rise in food prices.

He also criticised the rush to grow crops for biofuels as a way by which climate change can be tackled, as the process sometimes diverts agricultural land away from food, particularly the susidies and import tariffs used to promote wider use of the fuels.