Food prices are close to "alert status" - February 20, 2011
Soaring food prices is now reaching a crisis level and increases political instability, warned Saturday in Paris President of the World Bank on the sidelines of a meeting of G20 finance ministers.
Robert Zoellick called on leaders of the G20 "to consider food as a number one priority in 2011." Rising food prices will encourage increased agricultural supply, but in the next two years "there could also have a mass of troubles, the government could fall and companies falling into chaos," Has he said.The continuing rise in food prices, fueled by rising agricultural commodity prices is a cause of the current upheavals in the Middle East and North Africa, said he.
As the institution had revealed a few days ago rising food prices have dropped between June and December of 44 million people worldwide below the extreme poverty. This estimate was made based on statistics on income and expenditure survey conducted in countries with low to moderate incomes. The threshold of extreme poverty is defined by spending $ 1.25 per day per person.
"The food prices continue to rise worldwide poor credit personal loans.The food price index of the World Bank has increased by 15% between October 2010 and January 2011, and only 3% below its 2008 peak, "said the institution in a statement.
"Inflationary pressures caused by oil prices, energy and raw materials must be taken seriously," said his part the president of the European Central Bank (ECB), Jean-Claude Trichet, during a press conference at the end of the G20 Finance.
Robert Zoellick has also ensured that the G20 ministers had been receptive to his speech and that this group of industrialized and emerging countries were prepared to act. "The best way to counter critics who say the G20 is a forum of discussion is to initiate real actions, and actions in favor of the poor is what we can do better" he said.France, which currently chairs the G20, has made food security and reducing the volatility of food prices a priority.
(With AFP)
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