World Food Crisis
East West University

Submitted to:
Biva Arani Mallik Senior Lecturer Department of Economics East West University

Submitted by:
Nagib Farhad Rijan ID # 2009-1-10-002 Francisca Dessa ID # 2009-1-10-097 Section: 2

dire implications of what is happening today it is necessary to look at the interaction between these short-term and long-term crises. the United Nations estimates that close to 1 billion suffer from chronic hunger. Both crises arise primarily from the for-profit production of food. This is on top of a longer-term crisis of agriculture and food that has already left billions hungry and malnourished. The severity of this situation is made clear by the United Nations estimate of over a year ago that approximately 18. Due to a lack of food adults living in over 12 million households could not eat balanced meals and in over 7 million families someone . which is only a crude estimate. More than 6 billion people living in the world today.S. including 13 million children. and now biofuels. fiber. leaves out those suffering from vitamin and nutrient deficiencies and other forms of malnutrition. hunger remains a significant problem. 2007). where despite the production of more food than the population needs. Department of Agriculture.World Food Crisis “World Food Crisis And The Actions Taken By Different Countries To Prevent It” An acute food crisis has struck the world in 2008. Lack of production is rarely the reason that people are hungry. February 18. In order to understand the full. The total number of food insecure people who are malnourished or lacking critical nutrients is probably closer to 3 billion— about half of humanity. and the rift between food and people that this inevitably generates. According to the U. in 2006 over 35 million people lived in food-insecure households. But this number. This can be seen most clearly in the United States.000 children die daily as a direct or indirect consequence of malnutrition (Associated Press.

World population growth: Growth in food production has been greater than population growth. pound. wheat by 136%. and grain availability has continued to outpace population.) per U.S. of the . corn by 125% and soybeans by 107%. Huge price increases: Between 2006 and 2008 average world prices for rice rose by 217%. more than doubling the price in just seven months. despite production gains made in the last decade.had smaller portions or skipped meals. However. Although some commentators have argued that this food crisis stems from unprecedented global population growth others point out that world population growth rates have dropped dramatically since the 1980s. In close to 5 million families. world food demand outpaces any production increases. Food per person increased during the 1961–2005 period. According to Joachim von Braun.In late April 2008 rice prices hit 24 cents (U. children did not get enough to eat at some point during the year.S.

had been facing economic crises which eventually lead to recession. President George W. In a recent article for The Nation.6 billion in 1900 to an estimated 6. Financial speculation in commodity futures following the collapse of the financial derivatives markets has contributed to the crisis due to a "commodities super-cycle. That American commodities speculation could have a worldwide impact on food prices is reflected in the globalization of food production. many will go hungry. Aggregate cereal grain food production.8 billion. total food production increases only about 1 to 2 percent per year. she suggests that there is no food shortage but that "as long as food is merely a commodity in societies that don't protect people's right to participate in the market. Financial speculation: Destabilizing influences. former US . 2008. while total world population increases approximately 4%.IFPRI. and as long as farming is left vulnerable to consolidated power off the farm. had risen yearly from the 1960s to the 1980s but has been in decline since. The United States. farmers among them —no matter how big the harvests." Financial speculators seeking quick returns have removed trillions of dollars from equities and mortgage bonds. specifically. some of which has been invested into food and raw materials. this does not take into account any non-food uses of grain production. 2008 U. However. led to a crisis in January 2008. It represents the concentration of wealth throughout the world which Frances Moore Lappé equates to a weakening in fundamental democracy. and eroded investment in food commodities." The actions taking by different countries : IFAD is making up to US$200 million available to support poor farmers boost food production in face of the global food crisis. On October 16.S. World population has grown from 1. including indiscriminate lending and real estate speculation. On May 2. per capita. Bush said he was asking Congress to approve an extra $770 million funding for international food aid.

We need the World Bank. all the big foundations.. and all the governments to admit that. Speech at United Nations World food crisis. Africa's food self-sufficiency declined and food imports rose.S.” –Former US President Bill Clinton. encouraged by the U.N. On October 23. including me when I was President. In June 2008. a sustained commitment from the G8 was called for by some humanitarian organizations.. The release of Japan's rice reserves onto the market may bring the rice price down significantly. On April 30. and we all have to go back to a more responsible and sustainable form of agriculture. the IMF." by treating food crops "like color TVs" instead of as a vital commodity for the world's poor. including me. Clinton criticized decades of policymaking by the World Bank. we all blew it. anticipation of the move had already lowered prices by 14% in a single week. for 30 years. that pressured Africans in particular into dropping government subsidies for fertilizer. We were wrong to believe that food was like some other product in international trade.. 2008. gathering Thursday [Oct 16. improved seed and other farm inputs as a requirement to get aid. . 2008] that the global food crisis shows "we all blew it. This is seen by some as an action to capitalise on the crisis.president Bill Clinton scolded the bipartisan coalition in Congress that killed the idea of making some aid donations in cash rather than in food. in which $1. Now skyrocketing prices in the international grain trade — on average more than doubling between 2006 and early 2008 — have pushed many in poor countries deeper into poverty. the International Monetary Fund and others. Associated Press reported the following: "Former President Clinton told a U. In June 2008 the Food and Agriculture Organization hosted a High-Level Conference on World Food Security. 2008 Thailand announced the creation of the Organization of Rice Exporting Countries (OREC) with the potential to develop a price-fixing cartel for rice. As of May 16.2 billion in food aid was committed for the 75 million people in 60 countries hardest hit by rising food prices.

a system that does not have the same effect as Venezuela’s programs. February 7. This program is certainly having a positive effect on peoples’ lives and nutrition. however. Some results of world food crisis: .Brazil started a program in 2003 that is aimed at alleviating the conditions of the poorest people. which mobilize people to work together for their own and their community’s benefit. Approximately one-quarter of Brazil’s population receive direct payments from the national government under the Bolsa Família (Family Fund) antipoverty program. This infusion of cash is dependent on the family’s children attending school and participating in the national vaccination program. 2008). Under this program a family with a per capita daily income below approximately $2 per person per day receives a benefit of up to $53 per month per person (The Economist. It is.

org/nutrition/index_44186.php .com/topics/United+Nations+World+Food+Programme http://www.References http://monthlyreview.php?context=va&aid=10311 http://www.php?context=va&aid=10311 http://news.globalresearch.stm http://www.unicef.

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