Immediate, long-run fixES needed in food crisis--IFPRI
By Missy Ryan
WASHINGTON, May 28 (Reuters) - The world must act quickly, but keep an eye toward the future to reverse the food crisis that has plunged millions into hunger and has raised new doubts about the future of global agriculture, a leading research center said on Wednesday.
"Global and international action is needed now," said Joachim von Braun, director general of the International Food Policy Research Institute (IFPRI), to calm tumultuous commodity markets and help those buffeted by the record surge in the cost of basic staples such as wheat and rice.
IFPRI, a Washington-based research center supported by governments, the World Bank and private foundations, rolled out its blueprint on Wednesday for climbing out of the morass that threatens to keep prices sky-high for years.
The surge in world food prices, which jumped 43 percent in the year through March, is usually blamed on a confluence of factors that alone might be cause for cheer: rising incomes in emerging economies such as China and growing reliance on crop- based biofuels, in addition to paltry harvests.
But the high prices and sporadic concerns about supplies, have deepened political instability and prompted demonstrations in some fragile countries.
While prices for several key crops have moderated somewhat in recent weeks, the issues is likely to be on the minds of G8 leaders when they meet in Japan this July.
IFPRI has proposed several other steps it says must be embraced right away, including:
* Expanded humanitarian assistance to those broadsided by high prices, with greater food distribution or cash vouchers that encourage families to keep children in school.
* An end to export restrictions and export bans, especially in major food-exporting nations.
In a desperate bid to slow inflation at home, at least a dozen countries have imposed these measures, which IFPRI estimates account for 30 percent of the recent price spike.
But formulating such rules, which are now permissible under world trade rules, could be tricky, especially when it comes to sensitive issues of food security.
* Back off biofuels. The research center wants policymakers, especially in the United States, Europe and Brazil, to consider freezing production of the crop-based fuel at current levels or even prohibiting temporarily the use of grains and oilseeds to make biofuels.
* Support for farm productivity in the poorest countries, for instance by subsidizing seeds, fertilizer or water.
IFPRI also urged countries to take other steps it said would bear fruit in the long run.
* A conclusion to the World Trade Organization's Doha negotiations, which would force countries such as the United States to lower farm subsidies and would shackle others from using high tariffs to shield their farm sectors.
* Tighter regulation for commodity markets, including monitoring of speculative capital or limits to futures trading, which might curb some of the recent market volatility. IFPRI also recommends regional or global grain reserves, perhaps following the central bank gold reserve model.
* A renewal of government, and international donor, support of agriculture, including training farmers in poor countries in new techniques, building infrastructure and research.
IFPRI recommends that at least an annual $15 billion to $20 billion needs to be added to what donors and governments in the developing world are spending on agriculture.
* Greater social protection in poor countries, including microfinance and health care. (Editing by Andre Grenon)
WASHINGTON, May 28 (Reuters) - The world must act quickly, but keep an eye toward the future to reverse the food crisis that has plunged millions into hunger and has raised new doubts about the future of global agriculture, a leading research center said on Wednesday.
"Global and international action is needed now," said Joachim von Braun, director general of the International Food Policy Research Institute (IFPRI), to calm tumultuous commodity markets and help those buffeted by the record surge in the cost of basic staples such as wheat and rice.
IFPRI, a Washington-based research center supported by governments, the World Bank and private foundations, rolled out its blueprint on Wednesday for climbing out of the morass that threatens to keep prices sky-high for years.
The surge in world food prices, which jumped 43 percent in the year through March, is usually blamed on a confluence of factors that alone might be cause for cheer: rising incomes in emerging economies such as China and growing reliance on crop- based biofuels, in addition to paltry harvests.
But the high prices and sporadic concerns about supplies, have deepened political instability and prompted demonstrations in some fragile countries.
While prices for several key crops have moderated somewhat in recent weeks, the issues is likely to be on the minds of G8 leaders when they meet in Japan this July.
IFPRI has proposed several other steps it says must be embraced right away, including:
* Expanded humanitarian assistance to those broadsided by high prices, with greater food distribution or cash vouchers that encourage families to keep children in school.
* An end to export restrictions and export bans, especially in major food-exporting nations.
In a desperate bid to slow inflation at home, at least a dozen countries have imposed these measures, which IFPRI estimates account for 30 percent of the recent price spike.
But formulating such rules, which are now permissible under world trade rules, could be tricky, especially when it comes to sensitive issues of food security.
* Back off biofuels. The research center wants policymakers, especially in the United States, Europe and Brazil, to consider freezing production of the crop-based fuel at current levels or even prohibiting temporarily the use of grains and oilseeds to make biofuels.
* Support for farm productivity in the poorest countries, for instance by subsidizing seeds, fertilizer or water.
IFPRI also urged countries to take other steps it said would bear fruit in the long run.
* A conclusion to the World Trade Organization's Doha negotiations, which would force countries such as the United States to lower farm subsidies and would shackle others from using high tariffs to shield their farm sectors.
* Tighter regulation for commodity markets, including monitoring of speculative capital or limits to futures trading, which might curb some of the recent market volatility. IFPRI also recommends regional or global grain reserves, perhaps following the central bank gold reserve model.
* A renewal of government, and international donor, support of agriculture, including training farmers in poor countries in new techniques, building infrastructure and research.
IFPRI recommends that at least an annual $15 billion to $20 billion needs to be added to what donors and governments in the developing world are spending on agriculture.
* Greater social protection in poor countries, including microfinance and health care. (Editing by Andre Grenon)
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