After the 2008-2009 financial crisis, nations are faced with new challenges and risks. Soaring food prices are hurting the global economy especially poor countries. It is aggravating crises and intensifying inflation in different parts of the globe. Recovering countries are also being troubled by unemployment, a dilemma that may be a life sentence to the next generation.
- The biggest threat. Amidst disaster and political turmoil, the World Bank reported that the biggest threat for the poor around the world is soaring food prices. Global food prices have increased 36 percent from 2010. An additional 10 million people is projected to be pushed into poverty if prices increase another 10 percent.
- A lost generation. The International Monetary Fund noted that nations are currently absorbed on attaining growth and achieving fiscal balances; they pay no attention to meeting social demands like jobs. The IMF managing director warned that this could lead to a “lost generation” of jobless youth in the future.
- Food first, then jobs. The World Bank President advised that nations must prioritize food first. This entails addressing the driving factors of soaring food prices: excessive speculation and demand for biofuel. In addition, nations must divert their attention from growth and focus on addressing unemployment. Contrary to common knowledge, restoring growth will not always yield jobs.
Source:
AFP, “IMF, WB Warn on High Food Prices.” Philippine Daily Inquirer, 16 April 2011, p. B6.
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