Monday, April 28, 2008

Food crisis might to lead to instability in many countries, some even warned of war!

In a garbage dump in Port-au-Prince, people recently scavenged for food (photo left).
Scandalous Storm’
“This is a perfect storm,” President Elías Antonio Saca of El Salvador said Wednesday at the World Economic Forum on Latin America in Cancún, Mexico. “How long can we withstand the situation? We have to feed our people, and commodities are becoming scarce. This scandalous storm might become a hurricane that could upset not only our economies but also the stability of our countries.”
In Asia, if Prime Minister Abdullah Ahmad Badawi of Malaysia steps down, which is looking increasingly likely amid postelection turmoil within his party, he may be that region’s first high- profile political casualty of fuel and food price inflation.
In Indonesia, fearing protests, the government recently revised its 2008 budget, increasing the amount it will spend on food subsidies by about $280 million.
“The biggest concern is food riots,” said H.S. Dillon, a former adviser to Indonesia’s Ministry of Agriculture. Referring to small but widespread protests touched off by a rise in soybean prices in January, he said, “It has happened in the past and can happen again.”
Last month in Senegal, one of Africa’s oldest and most stable democracies, police in riot gear beat and used tear gas against people protesting high food prices and later raided a television station that broadcast images of the event. Many Senegalese have expressed anger at President Abdoulaye Wade for spending lavishly on roads and five-star hotels for an Islamic summit meeting last month while many people are unable to afford rice or fish.
“Why are these riots happening?” asked Arif Husain, senior food security analyst at the World Food Program, which has issued urgent appeals for donations. “The human instinct is to survive, and people are going to do no matter what to survive. And if you’re hungry you get angry quicker.”
Worst crisis in 30 years-UN special adviser
“It’s the worst crisis of its kind in more than 30 years,” said Jeffrey D. Sachs, the economist and special adviser to the United Nations secretary general, Ban Ki-moon. “It’s a big deal and it’s obviously threatening a lot of governments. There are a number of governments on the ropes, and I think there’s more political fallout to come.”
Many rich nations are less affected while the under-developed and developing nations are suffering the worst crisis ever and the rising prices and shortages would see millions die form hunger and malnutirtion.

2 comments:

Anonymous said...

Sarawak is the biggest state and yet we can't even be self-sufficient in our staple food-rice!

The Taib government knows only easy money like timber logging and oil palm. They couldn't care less if the poor have food on the table for the kids.

Even if the BN dumbs in RM 4.00 billion in making Sarawak the "rice bowl" of Malaysia, only a few gaints who are politically connected to the power that be would benefit.

Throw them out in the next state election seems the only chioce, agree?

Supporter of people

Anonymous said...

Comment in the New Straits Time in support of the supporter of people.

"RM4 billion to boost food production". "Sarawak to become new rice bowl of the country".

"Plan for joint-venture cattle-rearing project with Indonesia". "Private sector urged to venture into food production". Given that the rise in food prices is not likely to abate any time soon and is expected to stay high for some time, these and other initiatives to increase food production are to be welcomed. Soaring food prices bring home the risk of relying heavily on imports of major food items.

Given that we have a comparative disadvantage in growing rice because our production costs are very much higher than those of neighbouring countries, and that it was more profitable to grow other crops or convert agricultural land to other uses, we had elected to remain a net importer because we did not envisage problems sourcing our requirements in the global market.

As long as rice was available at an affordable price on the world market, we were all right, which is not the case now. However, even in normal times, little of the world's rice is traded on the international market.

Moreover, the rise in consumption in China and India, the fall in production due to the effects of climate change, and the rise in costs following hikes in fuel prices mean that the rise in rice prices is not a temporary, cyclical phenomenon that will blow over soon.

In the short term, it means we have to tighten our belts and pay more for the food we eat. In the long term, it means we have to pursue the goal of self-sufficiency in rice because it remains our staple food despite our growing taste for wheat-based products and convenience foods. It is not in the long-term interest of the country to be dependent on external sources of food.

Indeed, we are in a position to increase rice production by making the best use of the land already under cultivation. Even in the areas inside the eight traditional "rice bowls", there is room for further increase because the average yield still falls far short of the target of 10 tonnes per hectare set under the Ninth Malaysia Plan.

However, for this to happen, we have to address the various factors that have kept productivity low and diverted a large portion of domestic savings and investment away from food production.

These are old concerns that require new approaches if we are serious about ensuring the availability, adequacy and stability of our food supply.

Food for thought
30-04-2008

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