“2011 World Hunger Report: examining swings in food prices”
These three agencies are the FAO, the International Fund for Agricultural Development (IFAD), and the World Food Programme (WFP). Their leaders are also calling for bold action, as the report’s main conclusion is that food price volatility featuring high prices is likely to continue. They could even increase, triggering crises like those we already know too well. As currently in the Horn of Africa, they are “are challenging our efforts to achieve the Millennium Development Goal (MDG) of reducing the proportion of people who suffer from hunger by half in 2015,” according to the joint warning by Jacques Diouf (FAO), Kanayo F. Nwanze (IFAD), and Josette Sheeran (WFP), in the preface report.
It appears that in addition to the progressive financialization of food, other factors are also responsible for the instability in international economic rates and food security for each country: there are the obvious climate change and increased weather shocks; but there also exists links between energy and agricultural markets, due to the growing demand for bio-fuel.
It is the poorest countries who suffer from the situation, with a particularly significant impact on child development. The report points to the fact that changes in income due to fluctuations in food prices lead to reductions in consumption levels. This leads to decreased amounts of essential nutrients for children under 3 years old. This results in a permanent reduction in the ability of these future adults to earn a good living and the increased likelihood they will remain in poverty, with a negative impact on the overall economy.
However, there are solutions, solutions that moreover take into account the needs of sustainable, environmentally conscious development. They are long-term investments, especially from the private sector; for example, efficient irrigation is suggested, among other recommendations.