|
United Nations officials have called the rise in prices a
crisis that needs to be addressed immediately by the world
community. A sense of desperation has caused people to riot
in Haiti, while people in Asia, Africa and elsewhere line
up for U.N. food handouts.
"If not handled properly, this crisis could result in
a cascade of others ... and become a multidimensional problem
affecting economic growth, social progress and even political
security around the world," said U.N. Secretary-General
Ban Ki-moon.
Devastating rise
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |

The higher demand for meat in countries like China have
also increased the demand for grain used as animal feed. |
 |
 |
The cost of basic foods such as wheat and corn have doubled
and tripled over the past few years due to several reasons.
Most recently, the rising price of oil has made food cost more
to transport and produce.
In addition, biofuels such as ethanol, touted as a way to reduce
fossil fuel consumption and reduce the reliance on Middle Eastern
oil by creating fuel out of plants, are also being blamed for
the food price climb. Because the U.S. and European governments
pay farmers to plant corn to make ethanol, they have inadvertently
driven up the cost of corn as well as soy and other basic food
crops.
And finally, rising wealth in heavily populated countries
such as China means that more people are eating meat, which
in turn has increased the demand for grain to feed animals.
Leaders call for aid
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |

U.N. leaders like Ban Ki-moon have asked the international
community to contribute hundreds of millions of dollars
in emergency aid. |
 |
 |
Rising prices have affected
everyone -- but poor people in the developing world may be suffering
the most.
"High food prices dismay even relatively well-off Americans
- but they're truly devastating in poor countries, where food
often accounts for more than half a family's spending,"
New York Times columnist Paul Krugman wrote in early April.
U.N. leaders have called for millions of dollars in aid to help
prevent widespread starvation.
According to the Economist Magazine, 100 million people could
be driven to absolute poverty - living on one dollar a day -
by a 20 percent rise in food prices, undoing a decade of growth
in certain poor countries.
Ban Ki-moon has called for the international community to "take
urgent and concerted action" to address the high prices.
World Bank President Robert Zoellick has called for world governments
to provide $500 million in aid to the U.N. World Food Program
by May 1. President Bush announced recently that the U.S. will
provide $200 million in emergency aid, according to the Associated
Press.
A threat to security
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |

People in Haiti have rioted in response to the high price
of food staples. |
 |
 |
As poor people around
the world go hungry, the unrest caused by high prices could
also pose a threat to global security and stability.
In Haiti, rioters burned tires and fought the police. Haitian
Saint Louis Meriska told the New York Times that he couldn't
afford to feed his children.
"They look at me and say, 'Papa, I'm hungry,' and I have
to look away. It's humiliating and it makes you angry,"
he said.
Malaysian President Abdullah Ahmad Badawi, who is danger of
losing his seat, could be the first prominent political casualty
of the crisis, according to the Times.
"It's the worst crisis of its kind in more than 30 years,"
Jeffrey Sachs, a special adviser to the U.N. Secretary-General,
told the Times. "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." |