July 16, 2008
Source:
The Global Crop Diversity
Turst
As Mae
West, the wickedly funny siren of Hollywood movies in the 1930s,
put it: “one figure can sometimes add up to a lot.” In the case
of the hastily called and recently concluded Food Summit in
Rome, many figures may not add up to much at all. We’re talking
about the sums pledged by governments, and the purposes to which
they might be put, to address the current world food crisis.
Writing from Rome, the
Economist
magazine gave voice to what many of us on the inside feared from
the outset. Although there are certainly some notable
exceptions, such as the Saudi Arabian pledge of $500 million for
emergency food aid, most of the new pledges will, in its words,
“turn out to be old promises repackaged.”
Food aid is
certainly needed. In just two months the price of rice in the
global marketplace has risen 75%. Wheat is up 120% in the last
year. Maize has doubled since the beginning of 2006. More than
100 million people have been added to the ranks of the poor and
hungry globally as a result – 30 million in Africa. As Table 1
shows, rising food costs are the major component of overall
consumer price inflation in many countries.
Table 1. Food and Inflation
Country |
% of
Inflation Attributable to Rising Food Prices |
U.S. |
17 |
Argentina |
28 |
South
Africa |
30 |
Japan |
31 |
Indonesia |
41 |
Colombia |
49 |
Russia |
57 |
Philippines |
63 |
Brazil |
70 |
China |
89 |
Source: Goldman Sachs
Real pain
is hard to block. In streets the world over there have been
protests and even food riots, some violent. People have been
killed - in Burkina Faso, Cameroon, Côte d’Ivoire, Egypt,
Mauritania, Haiti and other countries. The World Bank says that
high food prices are creating a risk of serious civil unrest in
33 countries. In fact, substantial new funding for food aid is
needed.
But,
ultimately, food aid is a palliative, not a solution. We can’t
keep on addressing food crises by ordering “take-out.” Indeed,
there is something maddeningly shortsighted, though familiar,
about our being obsessed with the effect, and oblivious to its
cause. To be clear, high food prices are the effect. The cause
is a supply-demand imbalance that threatens to become
entrenched. Chief among the many causes of this imbalance is
that “we forgot to invest in agriculture,” as the Danish
Agriculture Minister put it at the food summit.
Some were
precocious in their forgetfulness. As the food crisis unfolded
earlier this year, they were announcing both big cuts in funding
for agricultural research and even larger increases in funding
for food aid - as if the world could buy its way out of a global
supply shortfall, instead of producing its way out of it.
Since at
least the 1980s, crop yield improvements have been the single
greatest contributor to increased production. But the rate of
increase has been dropping steadily as shown in Figure 1 from
the Washington-based International Food Policy Research
Institute. Wheat and rice are not even within sight of their
peak growth rates of 10% and 4% in the early 1960s.
Figure 1. Annual growth in cereal yields, 1967–82, 1982–94, and
1995–2020
Source:
IFPRI, 1999.
Not
coincidentally, since 1980 the share of overseas development
assistance earmarked for agriculture has plummeted from more
than 16% to less than 4% as shown in Figure 2. Similarly,
developing countries have reduced the percentage of their
national budgets going to agriculture.
Figure 2. The Decline in Overseas Development Assistance (ODA)
to Agriculture
Source:
OECD, FAOSTAT
UN
Secretary-General Ban Ki-moon has called for a 50% increase in
food production by 2030. If current trends in yields persist,
he’ll get less than half of that. Even half may be optimistic.
Current yields are situated in current conditions. The future,
with changes to climate and shortages of water, will be far more
challenging.
Little
wonder supply problems have ignited a global food crisis!
Hype Detector
The
indicator of the international community’s resolve to face the
underlying causes of the food crisis is not its willingness to
hold summit meetings. It is not the language of declarations
issued by the attendees. It’s not even the sums of money
pledged. Instead, it is whether the resources we do muster are
used properly, carefully, deliberately, and with real effect.
If these
resources neither secure crop diversity, the foundation of
agriculture, nor restore vitality to breeding programs, then the
food summit commitments will have been rendered infertile, or
worse yet, shown to be insincere.
Most
governments will certainly have other things they’d rather do
with their money. In the midst of a food crisis, however, they
could come to realize that making the necessary investments in
agriculture is a necessary evil. So perhaps it’s time for them
to contemplate another of Mae West’s maxims: “Between two evils,
I always choose the one I never tried before.” |