Groups contrast the speedy global response to the financial crisis with the 'shocking' delay in responding to food shortages in the developing world
guardian.co.uk, Thursday October 16 2008 00.01 BST
Two Ugandan women drag sacks of food relief. Photograph: Walter Astrada/AFP/Getty Images
Five months after countries pledged to give more than $12bn to address the global food emergency, less than $1bn has been delivered, says Oxfam. In a report to coincide with World Food day, the international agency berates rich countries for failing to respond speedily or adequately to soaring food and fuel prices.
"Rich countries are directing their attention to high fuel prices and turmoil in the financial sector but the number of malnourished people in the world rose by 44 million people in 2008. Nearly one billion people are now going hungry. When you consider the speed of the world's response to the credit crisis, the delay in acting is shocking", said an Oxfam spokesman.
In a separate report, Care International said that at least 6.4 million people in Ethiopia now need emergency food aid and that Somalia is facing a food crisis "unseen since the famine of the early 1990s".
"Drought, conflict, and rising food prices have left more than 17 million people in the Horn of Africa sliding into a full-blown humanitarian crisis. These countries are heading into the peak hunger season when cereal prices are at their highest, and families have no stocks left from the previous harvest", said Jonathan Mitchell, Care's emergency director.
The Oxfam report says that while staple food prices have come down since their peak in July, they remain stuck at levels far higher than the long-term average. "This is not a fleeting crisis."
Barbara Stocking, director of Oxfam GB, said: "It is shocking that the international community has failed to organise itself to respond adequately to this. The UN taskforce produced a good plan – the Comprehensive Framework for Action – but there is still not clear leadership to implement it."
She added: "Developing countries are being bombarded with different initiatives and asked to produce multiple plans for different donors. We need to see one coordinated international response, led by the UN, which channels funds urgently to those in need, and leads on implementation of the longer-term reforms".
The Oxfam report contrasts the global food crisis with the record profits being made by the world's largest agribusiness and seed companies. "[US food company] Bunge saw its profits increase by $583m (£333m) between April and July, Thailand's Charoen Pokphand Foods is forecasting a 237% increase in sales, Nestlé's global sales rose 8.9% January to June and Tesco has reported profits up 10% on last year. France's Carrefour and Wal-Mart in the US say that food sales are the main factor sustaining their increases in profits".
The world's largest seed companies have all seen profits grow by over 25% in the second quarter of 2008.
However, poor countries have also failed to come up with adequate answers to food price rises, says the report. Many countries responded by banning rice exports. But this, says the report, resulted in only limited curbs on inflation and has contributed to a shortage of supplies on the world market.
Other countries have forced controls on markets or slashed import tariffs, but this could pose serious future threats to infant industries and paralysis of the food supply chain.
Oxfam recommends that poor countries invest more in agriculture and protect small-scale producers. It urges rich countries to stop pressing for rapid liberalisation of poor countries' economies in trade negotiations and global agreements.
"The food crisis and the fate of 17 million people in Africa is being pushed down the list of priorities. Add to this the global financial crisis, and things could hardly be any worse. The perfect storm just got more perfect", said Mitchell.
Five months after countries pledged to give more than $12bn to address the global food emergency, less than $1bn has been delivered, says Oxfam. In a report to coincide with World Food day, the international agency berates rich countries for failing to respond speedily or adequately to soaring food and fuel prices.
"Rich countries are directing their attention to high fuel prices and turmoil in the financial sector but the number of malnourished people in the world rose by 44 million people in 2008. Nearly one billion people are now going hungry. When you consider the speed of the world's response to the credit crisis, the delay in acting is shocking", said an Oxfam spokesman.
In a separate report, Care International said that at least 6.4 million people in Ethiopia now need emergency food aid and that Somalia is facing a food crisis "unseen since the famine of the early 1990s".
"Drought, conflict, and rising food prices have left more than 17 million people in the Horn of Africa sliding into a full-blown humanitarian crisis. These countries are heading into the peak hunger season when cereal prices are at their highest, and families have no stocks left from the previous harvest", said Jonathan Mitchell, Care's emergency director.
The Oxfam report says that while staple food prices have come down since their peak in July, they remain stuck at levels far higher than the long-term average. "This is not a fleeting crisis."
Barbara Stocking, director of Oxfam GB, said: "It is shocking that the international community has failed to organise itself to respond adequately to this. The UN taskforce produced a good plan – the Comprehensive Framework for Action – but there is still not clear leadership to implement it."
She added: "Developing countries are being bombarded with different initiatives and asked to produce multiple plans for different donors. We need to see one coordinated international response, led by the UN, which channels funds urgently to those in need, and leads on implementation of the longer-term reforms".
The Oxfam report contrasts the global food crisis with the record profits being made by the world's largest agribusiness and seed companies. "[US food company] Bunge saw its profits increase by $583m (£333m) between April and July, Thailand's Charoen Pokphand Foods is forecasting a 237% increase in sales, Nestlé's global sales rose 8.9% January to June and Tesco has reported profits up 10% on last year. France's Carrefour and Wal-Mart in the US say that food sales are the main factor sustaining their increases in profits".
The world's largest seed companies have all seen profits grow by over 25% in the second quarter of 2008.
However, poor countries have also failed to come up with adequate answers to food price rises, says the report. Many countries responded by banning rice exports. But this, says the report, resulted in only limited curbs on inflation and has contributed to a shortage of supplies on the world market.
Other countries have forced controls on markets or slashed import tariffs, but this could pose serious future threats to infant industries and paralysis of the food supply chain.
Oxfam recommends that poor countries invest more in agriculture and protect small-scale producers. It urges rich countries to stop pressing for rapid liberalisation of poor countries' economies in trade negotiations and global agreements.
"The food crisis and the fate of 17 million people in Africa is being pushed down the list of priorities. Add to this the global financial crisis, and things could hardly be any worse. The perfect storm just got more perfect", said Mitchell.
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