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Socio economic consequences of food price spikes

Will Martin's picture

High food prices, especially when they have increased suddenly and unexpectedly, have been found to hurt many poor people around the world. The Global Monitoring Report 2012: Food Prices, Nutrition, and the Millennium Development Goals (GMR) finds that the food price shock that peaked in early 2011 pushed nearly 50 million people into poverty. On one level, this is not surprising—the poorest people, after all, spend nearly all of their income on food. But on further reflection, this result is not so obvious— three quarters of the world’s poor are rural and the majority of them depend on farming for their livelihoods. The problem is that—unlike farmers in rich countries—many poor farmers in developing countries don’t produce enough food to meet their families’ needs. These net buyers of food are hurt by higher food prices even though they are farmers.

Putting food first …

Jos Verbeek's picture

Our world is only three years away from the 2015 deadline for reaching the Millennium Development Goals (MDGs). Two global targets have been reached well ahead of schedule – according to preliminary estimates for extreme poverty the proportion of people living on less than a $1.25 a day has fallen below half its 1990 value. The same is true for the target to halve the proportion of people without access to safe drinking water. 

A few more MDGs are in sight of the finish line. These are primary school completion rate and gender equality in primary and secondary education. 

However, some others will need a real push, particularly child and maternal mortality and access to improved sanitation facilities. Hence, it is too early to claim that the mission has been accomplished, especially when we look at individual countries and achievements per region. Disparities among regions and countries remain large and much remains to be done to make progress towards the MDGs a reality for all.