As World Hunger Rises, Aid Disappears

Global organizations like the World Bank and UN may hope that the more that they discuss the global food crisis, the more likely that it is the trouble will go away. The agencies cannot control the fact that large developed and developing nations are less likely to feed the world’s hungry because of  their own fiscal constraints.

The World Bank says that its Global Food Price Watch showed prices rose 36% in March compared to the same month a year ago.

The new report said:

According to the latest edition of the World Bank’s Food Price Watch, a further 10 percent increase in global prices could drive an additional 10 million people below the $1.25 extreme poverty line. A 30 percent price hike could lead to 34 million more poor. This is in addition to the 44 million people who have been driven into poverty since last June as a result of the spikes. The World Bank estimates there are about 1.2 billion people living below the poverty line of US$1.25 a day.

The cause of the trouble is already well articulated, but that does not mean that there is any ready solution. Demand in some of the more populous nations like China is up. Bad weather has cut production worldwide. Farmers are doing their best to cash in as they move acreage under production toward the commodities with the highest prices. More supply has not driven prices down because demand has risen so high.

It is not many years ago the US and other developed nations produced food and shipped it to countries where people were starving. It is more expensive to buy food to donate now. And, austerity measures are likely to curtail purchases of food for donation.  The U.S. has its own problems feeding hungry Americans. Budgets for food stamps and school lunch programs may be cut as politicians try to tame the deficit.  How can politicians make the case that more food should be donated to the world’s poor when they can’t afford to feed their own people who are in need?

China does not seem to have any ready to take up the slack if the developed nations are less able to send food overseas to poor countries.  In fact, there is plenty of evidence that China has a challenge feeding its own poor.

There is not much hope that the World Bank’s fears will not come true. The nations that might give aid either are strapped for money or too concerned about their internal problems.

Douglas A. McIntyre