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Rising food prices threaten world's poor people
Date:12/4/2007

tries, which are net importers of cereals, would suffer from the resulting high prices, but India, a net exporter would benefit. Overall, the majority of poor people, who live in households that are net buyers of food, will be worse off and increased food prices will make it even more difficult for them to eat healthy, well-balanced diets.

A more open global trade in agriculture, however, would generally benefit developing countries. IFPRI research shows that opening up and facilitating market access between industrialized and developing countries would bring significant economic gains, although poverty would not be significantly reduced except in certain contexts.

Climate Change

World agricultural output is projected to decrease significantly due to global warming, and the impact on developing countries will be much more severe than on industrialized nations. Africa is particularly vulnerable to climate change because of its high proportion of low-input, rainfed agriculture, compared with Asia or Latin America. Exposure to rainfall variability also extends to livestock, which mostly depend on range and grasslands that are affected by environmental shocks, such as climate change. To address these risks, investments to improve agricultural productivity need to increase and innovative insurance mechanisms should be explored to compensate rural communities and smallholder farmers when rains fail.

Policy Recommendations

Given the various risks and challenges posed by the rapidly changing world food situation, current market trends and government policies could exacerbate hunger and poverty, especially for the worlds poorest people. Policymakers thus must take explicit measures to mitigate the negatives effects on poor households. While tackling long-term challenges is vital, the report recommends that policymakers also take immediate action:

  1. Developed countries should facilitate flexible responses to drast
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Contact: Jeff Haskins
jhaskins@burnesscommunications.com
86-136-931-176-573
CGIAR
Source:Eurekalert

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