Aid agencies must pressure donors for cash, experts say
Written by: Megan Rowling
Aid agencies must step up pressure on donors to keep their promises to tackle world hunger amid fears that global financial turmoil will sideline the food crisis, experts say. In recent weeks, investors have lost confidence in banks, forcing governments to pledge hundreds of billions of dollars of taxpayers' money to stabilise their financial systems. "There's no doubt there's going to be more pressure on politicians to deal with the problem in front of their eyes and the risk is that something like the global hunger problem will slip down the agenda," warned Tom Arnold, chief executive of Concern Worldwide, a Dublin-based aid agency. Arnold said it was more important than ever to tackle hunger because a global economic slowdown would compound the effects of the jump in food and fuel prices since early 2006. "We're going to be caught in a pincer movement of greatly increased need of the very poorest people at the same time perhaps as a squeeze on the resources to deal with them," he said, adding that donations from governments and individuals would be likely to come under pressure. Concern is hosting an international conference to highlight ways of addressing hunger on World Food Day, October 16, in Dublin. Experts say that the huge sums being raised to shore up banks around the world beg the thorny question of why aid agencies often struggle to raise much smaller amounts to feed the world's 925 million hungry. "The world has shown that there's a lot of money on the table," said Nancy E. Roman, director of communications and public policy strategy at the U.N. World Food Programme. "It's very difficult then to say that you, WFP, feeding the hungry people, aren't going to get the $2 billion you need to fund the balance of your work this year." Earlier this year, as global food prices soared to record highs, the U.N. food agency doubled its 2008 funding requirements to $6 billion. So far it has raised just over $4 billion, Roman said. "The $700 billion that the U.S. has devoted to the financial crisis would fund our work for more than 100 years," she said. "I think it would be a tragic mistake if we allowed a financial crisis to become an excuse for not funding critical hunger needs worldwide." Roman said the unstable financial climate meant WFP had a responsibility to articulate why feeding hungry people matters. "And it does matter, because hungry people are angry people, and they often move and migrate, and migration of course can create situations where civil unrest is more likely," she said. Disturbances over high food prices broke out in several poor countries, mainly in Africa, in early 2008, with riots bringing down Haiti's government in April. One potentially positive impact of the turmoil on financial markets is that it has dragged food commodity prices lower. The U.N. Food and Agriculture Organisation (FAO) food price index hit a record high in June, before declining to a seven-month low in August, as international prices of cereals, vegetable oils and dairy products dropped sharply. WFP's Roman said lower prices would help the agency reach more people, but would take a while to filter through to the markets where WFP buys its food aid supplies. She added that even if food prices did ease, they would likely remain relatively high due to structural factors like increased consumption among the middle classes in developing countries, limited farm land and population growth. Increased use of food crops like maize to make biofuels and rock-bottom world food stocks have also boosted prices in recent years. According to Christopher Delgado, agricultural policy advisor at the World Bank, the main problem for poor people is rapid changes in food prices, which have become increasingly linked to fluctuating fuel prices. "The underlying problem is price volatility," he said. "The fact that prices go down in the short term almost adds to the problem because instead of those things that could sustainably deal with the crisis occuring, the fact that prices go down will be a disincentive for certain kinds of investment." Analysts say high prices could help the world food situation if they encouraged farmers to grow more crops. But as fertilisers and seeds have also become more expensive, few small farmers in poor nations have been able to profit by ramping up production. Joachim von Braun, director general of the Washington-based International Food Policy Research Institute, said the global credit crunch would curb the amount of money available for long-term investment in agriculture, such as irrigation and developing new seed varieties. He urged political leaders not to delay in tackling climate change - which is expected to lead to lower crop yields - or the longstanding neglect of agricultural science and technology. "We have to get our act together on these two factors otherwise we are programming for disaster in the middle of the century," he warned. Jeffrey Sachs, a prominent development economist and special adviser to the U.N. secretary-general, told AlertNet that investing in farming in poor nations could help beat tough economic times. "During the boom years, very little attention was given to the poor so maybe during the harder years, there will be more recognition that markets by themselves don't solve all of these problems, that if our bankers need help, maybe the world's poorest people need help," he said.
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17 Oct 2008 02:18:53 GMT
Megan and all,
Fine article, ta for all the info. A view from Downunder. I suspect the present stir over the value of green fluff with tangerine stripes may be the world food crisis coming home to the industrialised world to roost. My guess is, back of it all, China and India and the surrounding poorer Asian countries, unable to feed their own folk, have put much of their admirable collective effort and scarce water into manufacturing. The good folk in many of those factories barely earn enough to eat, for very long hours put in. They sell our supermarkets here in Oz excellent bicycles for $13 each. That seems to have made most factories in the rest of the world redundant. So here, we live by selling coal and iron and ally, and as an aside, the country has been stripped of scrap metal - all the old three-phase electric motors for instance went to Egypt, curious twist. The US, Britain, etc., seem to have been living on credit - see both the dimming of the lights on street of the flickering wall and in London, fluff-trading capital of the world. Folk can't pay their mortgages basically because they need the money for food and to keep getting to their jobs to earn money for food. This market flap may be a trivial blip, or it may merely initiate another depression such as 1893 and 1929, an armaments race (protected industry) and a World War. Such fun and so romantic, those, as Hollywood has repeatedly explained. The Russkies have promised to triple their armaments expenditure already, so unless we stay more sober than them, here we go. But it may actually be serious, as ecology may have something to say this time. We are in plague numbers as a species, and are over-running our resource bases. We are pumping down the big aquifers, but we are a riverine monkey yet and rivers seldom get longer of their own accord. The geological report card for such miscreants is fairly clear. I have been reading Phillip Gibbs' "Since Then" on Europe in 1919 - 1930, and in particular his graphic report on the Volga region famine. He was almost everywhere and was astonishingly well informed. His book is a bit stark re what happens when you get food policy wrong. He was also very useful in getting the words out and aid in. Maybe we can collectively do similar, between all us observers and scribblers and dirt diggers, and so help forestall or sidestep at least some of that sort of thing. So, spread the word to plant food now. And do it. In gardens, but also on public land. Google publcfoodtrees, if bored. Also, just as urgent, I think we might usefully explain to one and all that, front and foremost the world's farmers must get credit and labour, now. On the net and concerned? Email the words. Unemployed? Dig or go help a farmer. The long party, for the million monkey mobs, the city folk among us, may just be over. Time to get real? Peter Ravenscroft Trainee feral peasant, Closeburn, Queensland, Oz.