2008 Global Food Crisis - Causes, Consequences and Policy Recommendations
World Food Crisis 2008
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Transcript of World Food Crisis 2008
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World Food Crisis 2008
All God’s People Need Food
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High Grain Prices Separate
Haves and Have Nots
Richest 20% in world consume 16 times as much food as the poorest 20%
Industrialized Countries spend 10-20% on food
Developing Countries spend 60-80% on food
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Who are the have nots?
FAO has documented we have 854 million who are undernourished at less than 1700 calories per day
More than 1 billion people live on less than $1 per day – the extreme poor
Another 1.5 billion people live on between one to two dollars per day
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Jesus Calls Us to Follow Him- to bond with the hungry- to serve the hungry
For I was hungry and you gave me food
For I was thirsty and you gave me water
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Looking beneath the $1 a day lineLooking beneath the $1 a day line
PoorPoor
($.75 cents – $1)($.75 cents – $1)
485 million people485 million people
Medial poorMedial poor
($.50 cents – $.75 cents)($.50 cents – $.75 cents)
323 million people323 million people
Ultra poorUltra poor
(less than $.50 cents)(less than $.50 cents)
162 million people162 million peopleSource: Ahmed, et al. 2007.Source: Ahmed, et al. 2007.
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Who are the Extreme Poor?
Poor
485 million peoplebetween $.75 cents & $1
Medial Poor
323 million peoplebetween $.50 cents & $.75 cents
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Ultra Poor
162 million people
less than $.50 cents
Do we have strategies to find the hungry in their moment of need?
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Where are they?
Malnourished children- dark gray 40%+, light pink 30-39%, darker mauve 20-29%, yellow 10-19%, red less than 10%
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-31-38
-27
5
29
-45
-30
-15
0
15
30
Developing World East Asia & PacificSouth Asia L America & Caribb.Sub-Saharan Africa
Mill
ion
The growing number of the poorest in SSA The growing number of the poorest in SSA Living below US$.50/day (1990-2004)Living below US$.50/day (1990-2004)
Source: Ahmed et al. 2007.Source: Ahmed et al. 2007.
Where are the poorest?
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72% of Sub-Saharan Africans live on less than $2 a day
59% of Asians (excluding China) live on less than $2 a day
Asian poverty declined in last 20 years while African poverty grew
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World Prices as tracked by FAO
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Surge in cereal and oil pricesSurge in cereal and oil prices
0
100
200
300
400
0
20
40
60
80
100Corn
Wheat
Rice
Oil (right scale)
Source: Data from FAO 2007 and IMF 2007Source: Data from FAO 2007 and IMF 2007.
Commodity prices (US$/ton)Commodity prices (US$/ton)
New trend?
New trend?
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GLOBAL FOOD PRICE RISES
Wheat: 130%
Soya: 87%
Rice: 74% Corn: 31%
Time: One Year to March 2008 Source: Bloomberg
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Grain Market Forces Collide With Food Needs of Poor
Production is insufficient.Stocks of wheat and rice are at 25 year low.Bio fuels are demanding more food stocks.Food riots threaten to create instability in 37 countries.Tariffs and subsidies in US and Europe depress local markets.
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The poor need livelihoods.
They need to grow their own food if at all possible.
They may need rural extension and marketing services.
They may need basic health care to maximize their opportunities.
They may need literacy and new skills.
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Pro-poor policy actions to adapt Pro-poor policy actions to adapt and mitigate food price problemand mitigate food price problem
1.1. Developed countriesDeveloped countries
Eliminate agricultural Eliminate agricultural trade trade barriers, barriers, expand / re-visit aid priorities for expand / re-visit aid priorities for agriculture and rural servicesagriculture and rural services, , including social protectionincluding social protection
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Pro Poor Policy Actions
2. 2. Developing countriesDeveloping countries
Increase investment in Increase investment in agriculture, rural infrastructure agriculture, rural infrastructure and market access for small and market access for small farmers farmers Expand Expand social protectionsocial protection (rural (rural and urban) for the poorestand urban) for the poorest
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Pro Poor Policy Actions
3. 3. Science and Technology (CGIAR and Science and Technology (CGIAR and NARS)NARS)
Facilitate production response Facilitate production response by agriculture science- and by agriculture science- and technology-based solutions technology-based solutions (China, India, Africa)(China, India, Africa)
Joachim von Braun IFPRI, IFAD, FAO Joachim von Braun IFPRI, IFAD, FAO
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Pro Poor Policy Actions
4. Support Agriculture programs for the poor
Stand With Africa
World Hunger
Seek LWR and LWF programs that target the poorest of the poor
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Sources cited
FAOBBCGuardianWorld Bank
Compiled by Pastor Chuck FluegelEast Central Wisconsin Synod
of the ELCA