Ayodele Aminu, Constance Ikokwu and Kunle Aderinokun
11 April 2008
Washington, DC — The World Bank yesterday expressed concern over rising global food prices and urged the international community to fill the gap of about $500 million worth of food which the United Nations' (UN) World Food Programme (WFP) said is required to meet emergency needs.
Addressing newsmen yesterday at the ongoing International Monetary Fund/Word Bank Spring Meetings in Washington D.C, World Bank President, Mr. Robert Zoellick lamented that the poor in many development countries spend up to 75 per cent of their income on food, a situation which puts them in precarious conditions.
According to a recent World Bank report christened "Rising Food Prices: Policy Options and World Bank Response," increases in global wheat prices reached 181 per cent over the 36 months leading up to last February, while overall global food prices increased by 83 per cent. According to the report, food crop prices are expected to remain high throughout this year and 2009 and then begin to decline, but they are likely to remain well above the 2004 levels through 2015 for most food crops.
Given this scenario, Zoellick said, both the World Bank and its development partners will need to expand and improve access to safety net programmes, such as cash transfers, and risk management instruments to protect the poor.
"Meetings such as this one are usually about talk. Words can focus attention. They can build momentum. But we can't be satisfied with studies, papers and talk.
"This is about recognising a growing emergency, acting, and seizing opportunity too. The world can do this. We can do this. We can have a New Deal for Global Food policy.
"First, for the immediate crisis, the international community must fill the at least $500 million food gap identified by the UN's WFP to meet emergency needs. Governments should be able to come up with this assistance.
"And we need to expand and improve access to safety net programmes, such as cash transfers, and risk management instruments to protect the poor.
"We need to increase financial support for short-term needs, restructuring existing projects and fast-tracking grants and loans where needed.
"We must make agriculture a priority. The Bank has announced it will double agriculture lending for sub-Saharan Africa over the next year from $450 million to $800 million. IFC will be boosting its agribusiness investments, too, across the value chain of production,
"And we must complete the Doha Round," he said.
Zoelick also noted that prices of gasoline in the United States and Europe have risen.
"In the US and Europe over the last year we've been focused on the prices of gasoline at the pump at $2.50, then $3.00, $3.50 and much more. While many worry about filling their gas tanks, many others around the world are struggling to fill their stomachs. And it's getting more and more difficult every day.
"Let me give you just two examples:
"In just two months, rice prices have skyrocketed to near historical levels, rising by around 75% globally and more in some markets - with more likely to come.
"In Bangladesh a 2kg bag of rice now consumes almost half of the daily income of a poor family. With little margin for survival, rising prices too often means fewer meals.
"Or take wheat, where in the past year the price has risen by 120%. That means that the price of a loaf of bread has more than doubled. Poor people in Yemen are now spending more than a quarter of their incomes just on bread - before they pay for other essential food for their children - let alone basic healthcare or shelter.
"This is not just about meals forgone today, or about increasing social unrest, it is about lost learning potential for children and adults in the future, stunted intellectual and physical growth. Even more, we estimate that the effect of this food crisis on poverty reduction world-wide is in the order of seven lost years. So we need to address this not just as an immediate emergency but also in the medium term," he said.
There had been widely reported cases of food prices -induced riots in Haiti, Egypt and Zimbabwe.
Earlier, the Managing Director of the International Monetary Fund (IMF), Dominique Strauss-Khan announced that the Fund is "facing a possible success" of the voice and quota reform required to give emerging and developing countries more say at the institution.
The voice and quota reform overhaul is expected to be approved by the Fund's Board of Governors under the voting procedures scheduled to be concluded by April 28, 2008.
Straus-Kahn noted with delight the rate of growth in West Africa, which he said was largely due to new economic framework embarked upon by countries in addition to technical advice from the Fund.
He however, pointed out that protests against the Fund with regard to its impact on the developing world persists.
The managing director disclosed that a conference to scrutinise the role of the Fund in such countries will be held this year in Tanzania.
He acknowledged the important role of Central Banks in managing professionally the global financial crisis.
Be the first to Write a Comment!
Copyright © 2008 This Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
