IMF head gives food price warning - The head of the International Monetary Fund has warned that hundreds of thousands of people will face starvation if food prices keep rising. Social unrest from continuing food price inflation could cause conflict. There have been food riots recently in a number of countries, including Haiti, the Philippines and Egypt. Although the problems in global credit markets were the main focus of the meeting, he warned of dire consequences from continued food price rises. "Thousands, hundreds of thousands of people will be starving. Children will be suffering from malnutrition, with consequences for all their lives." The problem could lead to trade imbalances that may eventually affect developed nations, "so it is not only a humanitarian question". 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.
Spiralling food prices have already prompted government intervention in many countries. India, Morocco, China, Senegal and Indonesia have cut import tariffs on wheat, while Ethiopia, Pakistan and Zambia have imposed export quotas and, in extreme cases, export bans. Many countries, including Benin and Senegal, have introduced food subsidies in an attempt to keep basics at an affordable price. The threat of starvation recently triggered riots in Indonesia, prompting government intervention in the form of food subsidies. Shortages and high food and fuel prices have sparked civil unrest in Central Africa, West Africa and Zimbabwe and caused riots over the last few years in Mexico, Bengal, Indonesia, Morocco, Uzbekistan, Yemen, Guinea and Mauritania. World cereal production has declined by up to 16% in recent years in both the US and the European Union, mainly due to reduced plantings and adverse weather in some of the major producing and exporting countries. Wheat production in Australia has fallen a staggering 52%, its cereal production by 33%. Formerly the breadbasket of the world, its grain silos now stand virtually empty. A senior fellow at the Institute for International Economics and the Centre for Global Development in Washington, estimates that global warming will cause a 16% decline in global agricultural gross domestic product by 2020. He also projects output to fall by 20% in developing countries and by 6% in industrialised nations. Last year tied as the earth’s second warmest year in recorded history. Rising temperatures are already resulting in shorter picking seasons. In some cases fruit crops are maturing and rotting before they can be picked. Over recent years, warmer temperatures have resulted in fruit ripening early and falling prey to frosts, as was the case with fruit and nut crops in southern USA in 2007 and 2006. The more arid regions are already being tipped into the danger zone of drought, causing crop failure and loss of livestock. Asia’s melting glaciers may pose the BIGGEST THREAT TO FOOD PRODUCTION THE WORLD HAS EVER FACED. Developing countries are currently relying on band-aid-style trade strategies, which are already proving inadequate.
from http://home.att.net/%7Ethehessians/disasterwatch.html
April 14, 2008
Global Hunger update
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