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Global Food Policy
The surge of food prices in global arena was mooted as a hot bound question during the formal meetings of the International Monetary Fund and the World Bank on 12th -13th April 2008. These spring meetings were scheduled for discussing role of the World Bank and International Monetary Fund in curtailing down poverty rate in global economy, especially in Africa by checking inflation rate. The meeting was started amidst of discussions on the rising goods cost and problems which in turns endangering the progress rate in developing countries. All these themes were also visible in the World's Bank 2008 Global Monitoring Report, which was released before the meetings. Apart of it, respective finance ministers and delegations of the World Bank and from 185 member nations of the International Monetary Fund raised up the issues concerning to progress rate in Africa, climatic change and financial stability. They raised the alarming call for stabilizing rising inflation rate in all over the world. As it has been stated in the rising Food Prices: Policy Options and World Bank Response, that the wheat prices has reached 181% in 36 months, ended on February 2008 in throughout the world. This has resulted into increase in food prices by 83% all over the world. The price of food crops is projected to remain high both during 2008 and 2009 but they will more likely to be diminish afterwards. The World Bank President, Robert B. Zoellick said that increasing inflation could force 100 million into deep poverty well. He reiterated on using the 'One Percent Solution', in which one percent of US$3 trillion would be diverted towards the investment programmes of underdeveloped nations, where millions of people are facing the high rise of food prices and soaring commodity cost. The presented members showed their deep consent on the overall impact of rising pricing phenomena. The households which are net producers themselves, will benefited from such rise but high prices of staple foods will make living conditions in several countries deteriorated and miserable. Indeed those nations and areas where all poverty reduction programmes and policies are going through a difficult phase, continuously price spikes can reverse back all progress and achievements which have been earned during last 6 to10 years. It could affect the targets of wiping out poverty and malnutrition in several nations. Like in Yemen, it is estimated that doubling of wheat prices in 2007, could undermine all progress witnessed in poverty alleviation programmes during 1998 and 2005. The high prices of oil and climatic changes are propelling governments to increase bio fuel production in their countries. The increase in food prices set back the changes in energy sector, fertilizer cost, weak dollar and also invites taxes and export/import restrictions. Mr. Danny Leipziger, the World Bank Group Vice President for Poverty Reduction and Economic Management (PREM) said "Policy responses to protect the poor from food price rises are urgent, and need to be designed in a way that is conducive to stimulating greater agricultural production in the long run" To curb down the aftermaths of increasing prices, government in throughout the world have started their action programmes -
The World Bank is paving its footprints in maintaining inflation rate stable in global arena and is helping in maintaining food prices stable. The World Bank has showed deep concern over influence of credit crunch and has outlined priority actions for encouraging inclusive and sustainable development in throughout the world. It works in the following directions:
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