Not To Be A Downer, But…

High gas prices are bad, but as the Wall Street Journal reminds us, it could be a lot worse. At least I have a kitchen full of groceries and the ability to keep it that way.

For the world’s poor, the situation is getting worse.

Surging commodity prices have pushed up global food prices 83% in the past three years, according to the World Bank — putting huge stress on some of the world’s poorest nations. Even as the ministers met, Haiti’s Prime Minister Jacques Edouard Alexis was resigning after a week in which that tiny country’s capital was racked by rioting over higher prices for staples like rice and beans.

Rioting in response to soaring food prices recently has broken out in Egypt, Cameroon, Ivory Coast, Senegal and Ethiopia. In Pakistan and Thailand, army troops have been deployed to deter food theft from fields and warehouses. World Bank President Robert Zoellick warned in a recent speech that 33 countries are at risk of social upheaval because of rising food prices. Those could include Indonesia, Yemen, Ghana, Uzbekistan and the Philippines. In countries where buying food requires half to three-quarters of a poor person’s income, “there is no margin for survival,” he said.

One thought on “Not To Be A Downer, But…”

  1. What’s worse is that this isn’t just a momentary pricing blip due to a bad drought, but a confluence of demand factors, including biofuels (from food crops?), rising food demand from emerging economies, and more global meat production.

    In other words, this ain’t going to get better soon. Damn.

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