The UN Food and Agriculture Organization director-general, Jacques Diouf, called for restraint in tightening credit as a response to the global financial crisis while speaking at the biennial UN food policy conference in Bangkok, Thailand. In another example of the tie between the global food crisis and the economic downturn, Diouf voiced concern that the tightening of credit could lead to a repeat spike in food prices, as farmers would find it more difficult to expand production.
After the 2007 and 2008 surges in the price of corn, rice, and other grains, prices have fallen by a third. However, grains prices are still 27% higher than in 2005, and global stocks remain low. And although several countries have invested more heavily in agriculture as part of their respective economic stimulus initiatives, food policy analysts are wary that a constriction of credit could negate any progress made.
Diouf also appealed to the leaders of the Group of 20 (G-20), the collection of heads of government and state from the 20 largest industrialized countries, to address agriculture initiatives during the group’s summit this week in London. Diouf pushed for the inclusion of a food crisis discussion to alleviate the effects of the global economic slowdown on the developing world.
How do you think the G-20 might address the global food crisis? Leave your reactions and questions in the comments section of this post.
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