Rising food prices

High food prices threaten economic and political stability around the world, even more than the current problems in the financial markets, according to an international group of finance ministers.

Meeting in Washington this weekend, finance officials discussed the growing problem of skyrocketing food prices. Officials from the World Bank and the International Monetary Fund noted political unrest in countries such as Haiti, Egypt, the Philippines and Indonesia because of food shortages.

The New York Times reported that wheat prices have risen 130 percent since March 2007 and soy prices have gone up 87 percent. Food prices overall have climbed by 83 percent worldwide over the past three years.

The problem has been blamed on a variety of factors, including bad weather that has damaged crops, skyrocketing prices for fuel and transportation, and an increased demand for meat and dairy products in Asia. Also, the International Monetary Fund and the United Nations point to biofuels, such as corn-based ethanol, as part of the problem because the demand for biofuels has increased the demand — and price — for many crops. In addition, countries’ trade and agricultural policies have, in some cases, hindered the shipments and production of food.

In other words, although there is enough food in the world, the problem comes down to distribution, cost and politics.

Those problems could derail developing countries and increase starvation, disrupt the global economy and add to political upheaval around the world, IMF Managing Director Dominique Strauss-Kahn said.

This past weekend Robert Zoellick, the president of the World Bank, called for the international community to give $500 million more in food aid this year and, in response, President Bush has committed $200 million from the United States.

That aid is a good start, but the issues underlying the problem still need to be addressed. The United Nations has called on nations to rethink their policies and work together to find solutions. This is one issue that should unite the world: Hunger knows no nationality.