Rising food prices, which have caused social unrest in several countries, are not a temporary phenomenon but are likely to persist for several years, World Bank President Robert Zoellick says.
He says strong demand, change in diet and the use of biofuels have reduced world food stocks to a level bordering on an emergency.
Speaking on Monday before the bank’s spring meeting this weekend, Zoellick said the 185-member World Bank would work with other organizations to deal with the crisis by seeking ways to help farmers, especially in Africa, increase productivity and improve access to food through schools or workplaces.
“This is not a this-year phenomenon,” he said, referring to the price spike. “I think it is going to continue for some time.”
Zoellick said that bank forecasters looking at food prices have concluded that a serious risk exists of a significant increase in poverty.
“A recent assessment in Indonesia shows that over three-quarters of the poor are net rice buyers, and an increase in the relative rice price by 10 percent would result in an additional 2 million poor people, about 1 percent of the population,” Zoellick said.
He said in some developing countries the new face of hunger and malnutrition could be urban areas, where food is available but people cannot afford it.
Last week, Zoellick called for a “New Deal for Global Food Policy” that would boost agricultural productivity in poor nations. He said the bank would lend almost twice as much money for agriculture in Africa, from US$450 million to $850 million.
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