Global Food Crisis: April 15, 2008 – Not Recession?
President Bush and Robert Zoellick, head of the World Bank, are urging rich nations to help to raise $500 million for food aid (Larry Downing/Reuters)
President Bush has responded to a World Bank warning on the dangers of soaring food prices by ording the release of $200 million in emergency food aid for the worst affected countries.
Robert Zoellick, head of the World Bank, this week urged rich nations to “put our money where our mouth is” and act urgently to help people in need. He cited an appeal by the UN’s World Food Programme to raise $500 million by May 1, which had received commitments for less than half of that total.
India seeks overhaul of global financial system
April 14,2008, India Sunday called for a thorough overhaul of the global system of financial oversight and regulatory mechanisms to save the developing world from an economic crisis not of their making.< read more >
Monday, April 14, 2008 Echoing a call by India, finance ministers from around the world have sought urgent action to stem rising food prices, warning that social unrest will spread unless the cost of basic staples is contained. <read more >
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
London, UK – 14th April 2008, 23:04 GMT: GLOBAL MARKETS:
April 15, 2008 – Traders in soft commodities are keeping a close eye on events in parts of the developing world where food supply shortages and skyrocketing prices have sparked riots.
The World Food Crisis : Most Americans take food for granted. Even the poorest fifth of households in the United States spend only 16 percent of their budget on food. In many other countries, it is less of a given. Nigerian families spend 73 percent of their budgets to eat, Vietnamese 65 percent, Indonesians half. They are in trouble.
Last year, the food import bill of developing countries rose by 25 percent as food prices rose to levels not seen in a generation. Corn doubled in price over the last two years. Wheat reached its highest price in 28 years. The increases are already sparking unrest from Haiti to Egypt. Many countries have imposed price controls on food or taxes on agricultural exports.
So, America is very careful not to use the word “recession”. Every word in the dictionary that describes “recession” can be used to describe the situation the world faces right now. The GLOBE is shouting about the sorry state of rising food, oil and energy prices. The focus is not disparity between those effected and those not. International business is scrambling to hang on, business strategy must adapt to the situation. The snake is eating it’s own tail. Before long there will be no snake.