Political Economy Rice (4) – AAP
Is there really a threat to world food crisis? Previously, what causes an increase in food prices so sharply? Massive subsidies the U.S. government-based biofuel industry and government mandates the EU to produce biofuels. As a result, the incentive to plant for the purpose of human consumption dropped dramatically, moving to plant for biofuel. To put it bluntly, humans compete with the car (SUV) to get food. Humans also compete with animals. India and China are more “prosperous” to change his diet to be less dependent on grains and tubers (plant) and began to consume more meat. The problem, animals need food from the plant as well. Thus, the demand will remain high plants. In addition, the process of animal-based food production requires a lot more energy than a plant-based. Then the demand for fuel has also increased. Disruption of nature: floods, droughts, etc. causing crop failure everywhere. U.S. dollar depreciation against major currency currency, causing more expensive goods valued dlaam dollars. Speculation: the price disparity is a major incentive for speculation / arbitration. Export detention policies: making the world increasingly thin markets, provide upward pressure to prices. What effect might occur, if there is no solution? According to Bob Zoellick (World Bank), 100 million people will become poor. According to Peter Timmer (Center for Global Development), 10 million people at risk of early death (premature death). What’s the solution? Can not, there must be coordination at the global level (or at least regional). Because, the world in a position prisoner’s dilemma: no one wants to go first to export, for fear that prices soared in his own country, even if all do export, kuatitas world and the possibility of increasing malnutrition and hunger smaller. In the short term, there needs to be coordination between the least India, China, Thailand, Vietnam, Indonesia and the Philippines. According to Timmer, at least they have agreed to open themselves to each other for 6 months, for while thinking about plans for the longer term.