World Hunger Dilemma Spreads Without Solution

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By Douglas A. McIntyre Published
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A new report from the World Bank states what has been obvious for months: food prices have spiked so high that the costs represent a threat to the ability of many people to feed themselves. The organization also offered solutions it would like to implement, but none of them comes close to a solution to the mammoth problem. And solutions cannot come from elsewhere either. Food shortages are too great, and the nations that might offer aid have become hog-tied by moves toward austerity.

In the latest edition of its Food Price Watch report, World Bank Group President Jim Yong Kim commented:

Food prices rose again sharply threatening the health and well-being of millions of people. Africa and the Middle East are particularly vulnerable, but so are people in other countries where the prices of grains have gone up abruptly.

Maize prices were up 25% from June to July, as was the price of wheat. Soybean prices rose 17%. The price of internationally traded commodities moved 1% above the previous high in February 2011. The geographic areas hurt most by increases even sharper than the worldwide average included many extremely poor countries in Sub-Saharan Africa.

The World Bank also offered evidence that food prices may not stabilize for some time. Adverse weather problems in much of the largest food-producing regions may continue.

Much of the report is self-congratulatory, even though the effects of World Bank activity have been sharply limited. Reporting on its progress:

The World Bank’s support for agriculture in FY12 was over $9 billion—a level not reached in the past two decades. The Bank is also coordinating with UN agencies through the High-Level Task Force on the Global Food Security Crisis and with non-governmental organizations, as well as supporting the Partnership for Agricultural Market Information System (AMIS) to improve food market transparency and to help governments make informed responses to global food price spikes.

The organization pledged to create “safety nets” for the world’s poorest people, although how those might be funded could not be explained. Even if the World Bank can add another $9 billion in support, the amount is hardly great enough to scratch the surface of trouble that has hurt hundreds of millions of people.

There was a time when countries led by the United States contributed billions of dollars of aid for people who could not feed themselves. Those programs have been curtailed by worry over national deficits. Contributions from Europe have been undermined even more as the viability of the European Union continues to be questioned and some of the economies there sink into deep and protracted recessions.

The World Bank report does not admit that its efforts cannot come close to a solution for a growing and brutal problem — too much demand and too little affordable food among the poorest regions of the world.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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