<http://www.theglobeandmail.com/servlet/story/RTGAM.20080414.wfood14/BNStory/International>
Soaring food prices now top threat, IMF says

-----

<http://commentisfree.guardian.co.uk/raj_patel/2008/04/a_manmade_famine.html>

A man-made famine

There are many causes behind the world food crisis, but one chief 
villain: World Bank head, Robert Zoellick

Raj Patel

April 15, 2008 8:30 AM

For anyone who understands the current food crisis, it is hard to 
listen to the head of the World Bank, Robert Zoellick, without 
gagging.

Earlier this week, Zoellick waxed apocalyptic about the consequences 
of the global surge in prices, arguing that free trade had become a 
humanitarian necessity, to ensure that poor people had enough to eat. 
The current wave of food riots has already claimed the prime minister 
of Haiti, and there have been protests around the world, from Mexico, 
to Egypt, to India.

The reason for the price rise is perfect storm of high oil prices, an 
increasing demand for meat in developing countries, poor harvests, 
population growth, financial speculation and biofuels. But prices 
have fluctuated before. The reason we're seeing such misery as a 
result of this particular spike has everything to do with Zoellick 
and his friends.

Before he replaced Paul Wolfowitz at the World Bank, Zoellick was the 
US trade representative, their man at the World Trade Organisation. 
While there, he won a reputation as a tough and guileful negotiator, 
savvy with details and pushy with the neoconservative economic 
agenda: a technocrat with a knuckleduster.

His mission was to accelerate two decades of trade liberalisation in 
key strategic commodities for the United States, among them 
agriculture. Practically, this meant the removal of developing 
countries' ability to stockpile grain (food mountains interfere with 
the market), to create tariff barriers (ditto), and to support 
farmers (they ought to be able to compete on their own). This 
Zoellick did often, and enthusiastically.

Without agricultural support policies, though, there's no buffer 
between the price shocks and the bellies of the poorest people on 
earth. No option to support sustainable smaller-scale farmers, 
because they've been driven off their land by cheap EU and US 
imports. No option to dip into grain reserves because they've been 
sold off to service debt. No way of increasing the income of the 
poorest, because social programmes have been cut to the bone.

The reason that today's price increases hurt the poor so much is that 
all protection from price shocks has been flayed away, by 
organisations such as the International Monetary Fund, the World 
Trade Organisation and the World Bank.

Even the World Bank's own Independent Evaluation Group admits (pdf 
<http://stuffedandstarved.org/drupal/files/ag_africa_eval.pdf>) that 
the bank has been doing a poor job in agriculture. Part of the bank's 
vision was to clear away the government agricultural clutter so that 
the private sector could come in to make agriculture efficient. But, 
as the Independent Evaluation Group delicately puts it, "in most 
reforming countries, the private sector did not step in to fill the 
vacuum when the public sector withdrew." After the liberalisation of 
agriculture, the invisible hand was nowhere to be seen.

But governments weren't allowed to return to the business of 
supporting agriculture. Trade liberalisation agreements and World 
Bank loan conditions, such as those promoted by Zoellick, have made 
food sovereignty impossible.

This is why, when we see Dominique Strauss-Kahn of the IMF wailing 
<http://ap.google.com/article/ALeqM5i7EAtIpIs4oZP8lIPHXobu2zPZnQD900JE600> 
about food prices, or Zoellick using 
<http://www.reuters.com/article/americasCrisis/idUSN11133675> the 
crisis to argue with breathless urgency for more liberalisation, the 
only reasonable response is nausea.

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