Rising food prices drive 44 million people into poverty – World Bank

The World Bank says rising food prices have driven an estimated 44 million people in developing countries into poverty.

In a press release issued Tuesday February 15, 2011 and copied to ghanabusinessnews.com, the World Bank President Robert Zoellick says since June 2010 “global food prices have risen to dangerous 2008 levels and threaten tens of millions of poor people around the world.”

“The price hike is already pushing millions of people into poverty, and putting stress on the most vulnerable, who spend more than half of their income on food,” he added.

Citing the latest edition of Food Price Watch, the World Bank’s food price index, it said food price index rose by 15% between October 2010 and January 2011, and that is 29% above its level a year earlier and is only 3% below the 2008 peak.

According to the index, among grains, global wheat prices have risen the most, doubling between June 2010 and January 2011. Maize prices are about 73% higher, but crucially for many of the world’s poor, rice prices have increased at a slower rate than other grains. Sugar and edible oils have also gone up sharply. Other food items essential for dietary diversity in many countries have increased, such as vegetables in India and China, and beans in some African countries.

It also indicates that the increase in extreme poverty (under $1.25 a day) due to the price hike is associated with higher malnutrition, as poorer people eat less and are forced to buy food that is both less expensive and less nutritious.

In contrast to the 2008 food price spike, however, it says, two factors have prevented even more people falling into poverty this time. One is that good harvests in many African countries have kept prices stable, especially for maize, a key staple. Another is the fact that the increases in global rice prices have been moderate and the outlook for the rice market appears stable.

At the beginning of 2008, the World Bank estimated that 33 countries of the world faced potential social unrest because of rising food and energy prices. Some African countries experienced very difficult times. Countries such as Cote d’Ivoire, Egypt, Togo, Cameroon and Bourkina Faso all experienced social unrests leading to the loss of lives and injury to citizens in some cases.


Source: ghanabusinessnews.com