Tuesday, 26 April 2011

Food Crisis


The skyrocketing prices of foods and commodities can cause economic, financial and political Instability.  Many economists warned, after a bitter experience of a financial recession, the world must now be vigilant against new threats. That is the increase in food prices has ignited a political crisis in some countries. What has happened in Tunisia, Egypt, Morocco, Algeria, and Pakistan, not only associated with high levels of unemployment and inequality of income and wealth distribution, but also due to a sharp rise in food prices?

According to UN agency Food and Agriculture Organization (FAO), the global food index rose to highest point since 1990.  The index increased due the soaring prices of some foods and commodities, such as cereals or grains, sugar, and vegetable oil. FAO data release factors that cause the shortage of foods are weather, high demand, reduced yields, and changed crop land usage from foods to others.

 Warning high food prices also came from the World Bank. In fact, The Bank reveals that food prices in foreign countries are now in the "dangerous level."

The World Bank report published in the latest edition of the journal, the Food Price Watch, during October 2010 to January 2011 states at the global level, food prices rose 15 percent. The high food price is making approximately 44 million poor people around the world increasingly destitute since June 2010.

The increase of Price of necessities products and inflation is heavily feels by the poor people. They have to set aside most of their income to purchase food.

"World food prices rose towards the middle of the dangerous levels and threaten tens of millions of poor people around the world," said World Bank President Robert Zoellick, as quoted by BBC news station. He also considered that high food prices also contributed to political instability in the Middle East, although he was not a major cause. Previously, the rapid inflation of food prices in 2008 has triggered a number of riots in several countries. At that time, the World Bank has estimated that 125 million people are in extreme poverty.
 By Za/swj..

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