Spring Meetings 2008 : " A new deal for a global food policy"

Spring Meetings 2008 Website - Press release Briefing center Development committee The "new deal" Rising Food Prices Threaten Poverty Reduction World Bank President Calls for Plan to Fight Hunger High Food Prices - A Harsh New Reality Issue briefs and Data Agriculture (MENA) Trade  (MENA) Poverty  (MENA) Extractive Industries  MDG Atlas Crop Prospects and Food Situation Global Monitoring Report 2008 Website More information soon online

>> See:  Press conference

A new deal for a "forgotten" combat

A top concern will likely be the impact of high food and energy prices on the world’s poor. World Bank President Robert B. Zoellick is expected to build support for a new plan to combat hunger through a combination of emergency aid and long-term efforts to boost agricultural productivity in developing countries.

To combat of overcoming malnutrition, the "forgotten" Millennium Development Goal, only about a tenth of the resources directed at HIV/AIDS goes to fight malnutrition, which causes 3.5 million deaths a year in children under 5 and has long-lasting impacts on health and achievement.

The “New Deal for a Global Food Policy” is among a suite of initiatives Zoellick outlined in an April 2 speech to advance development in the face of skyrocketing food and oil prices.

"Poor people are suffering daily from the impact of high food prices, especially in urban areas and in low income countries,”said World Bank Group President Robert B. Zoellick.

>> Read:  Speech

According to Rising  Food Prices: Policy Options and World Bank Response   (PDF), increases in global wheat prices  reached 181 percent over  the 36 months leading up to February 2008, and overall global food prices increased by 83 percent.
Food crop prices are expected to remain high in 2008 and 2009 and then begin to decline, but they are likely to remain well above the 2004 levels through 2015 for most food crops.

"World Bank President Robert B. Zoellick is expected to build support for a new plan to combat hunger".

While households that are net producers may benefit from higher prices, price increases for staple foods will increase poverty in several countries.

Indeed, for many countries and regions where progress in reducing poverty has been difficult, the impact of rising food prices risks undermining the poverty gains of the last 5 to 10 years, at least in the short term. 

For example, in the case of Yemen, estimates show that the doubling of wheat prices over the last year could reverse all gains in poverty reduction achieved between 1998 and 2005.

Increased bio-fuel production has contributed to the rise in food prices

Concerns over oil prices, energy security and climate change have prompted governments to increase bio-fuel production and use leading to greater demand for raw materials including: wheat, soy, maize and palm oil.
Food price hikes are also linked to higher energy and fertilizer prices, a weak dollar and export bans.

"Policy responses to protect the poor from food price rises are urgent, and need to be designed in a way that is conducive to stimulating greater agricultural production in the long run" said Danny Leipziger, World Bank Group Vice President for Poverty Reduction and Economic Management (PREM).

Many governments are already taking action

• Some are expanding targeted safety nets, such as cash transfer programs to vulnerable groups, food-for-work programs, or emergency food aid distribution.
• Several countries have lowered tariffs and other taxes on key staples, in order to provide some relief to consumers.
• In contrast, other countries have put in place export bans, which are detrimental to food importers and reduce incentives for production.

The World Bank Group is helping countries by:

• Calling on the international community to make up the $500 million food gap required by the UN's World Food Program to meet emergency needs.
  
  
• Making agriculture a priority.  The Bank has announced it will double agriculture lending in Africa in Fiscal Year 2009 - from $400 million to $800 million.
  
  
• Increasing financial support for short-term needs (restructuring existing projects and increasing the size of upcoming grants and loans when needed).
  
  
• Expanding and improving access to safety net programs, such as cash transfers, and risk management instruments to protect the poor.
  
  
• Informing the discussion on bio-fuels.
  
  
• Advocacy on the negative impacts of policies such as export bans, which create price spikes in importing countries, and the high levels of trade tariffs and subsidies in the developed world.

More information on countries policies (PDF)