The final declaration of the Conference on World Food Security: Challenges of Climate Change and Bioenergy strongly affirms the need for investing in agriculture, a very positive development. It is noteworthy that governments recognize the need to dramatically increase food production and to provide assistance to small-scale farmers in developing countries to boost their productivity. This focus on agriculture is very much needed and long-overdue.

However, the summit declaration is weak in four other areas: trade, biofuels, safety nets for vulnerable people and accountability for implementation. Looking forward, strong action is needed in each of these areas.

•               Trade: Export bans and other trade distorting measures only exacerbate the crisis. Unfortunately, the summit barely came to a consensus for recognizing the problem, let alone taking action. International Food Policy Research Institute (Ifpri) research found that the elimination of export bans would stabilize grain-price fluctuations, reduce price levels by as much as 30 percent and enhance the efficiency of agricultural production. The G-8 summit and international meetings should take a stronger stance on this issue.

•               Biofuels: Biofuels that use grains and oilseeds contribute significantly to food-price inflation. Ifpri analysis shows that these types of biofuels accounted for 30 percent of the rise in grain prices between 2000 and 2007. Corn-based ethanol accounted for 40 percent of the increase in maize prices during this period. Nevertheless, the summit shied away from distinguishing between beneficial and risky types of biofuels. Ultimately, the declaration dodged the issue by calling for “in-depth studies.”

•               Safety nets: Poor people are hit hardest by food-price increases. Governments need to invest more in measures such as child nutrition, school feeding and conditional-cash and food-transfer programs to mitigate the price effects for people living on the edge. Safety nets like these help avoid the suffering of people who are unable to afford enough food, and they increase the long-term resilience of poor people to crises. A substantial body of research by Ifpri and other organizations has confirmed that well-designed safety-net programs have high payoffs, both in terms of economic productivity and poverty reduction.

•               Implementation: The declaration lacks clarity as to who is responsible for its implementation. Without these specifics, the outcome could be similar to the previous two food summits in 1996 and 2002: a lot of good intentions, but few results. Global hunger has barely declined since 1996, and is now getting worse in light of the current food crisis.

Progress must be made on these issues to address the global food crisis. Throughout much of the world, the poorest people are being squeezed by high food prices. They need action now.

The world’s largest producer of petroleum would be the last country one would expect to be troubled by skyrocketing fuel prices. At a time when 60 percent of what the rest of humanity pays for gasoline, diesel, kerosene and other oil byproducts goes to its coffers, Saudi Arabia, along with other oil producers, should be the least concerned—or should it?

Just last month, a Los Angeles Times story by Bruce Wallace somewhat lent perspective on what can be expected from the Arroyo administration in the months to come:

Faced with never-ending fuel-price increases beyond his control, Angelo Reyes, AFP chief of staff prior to being appointed secretary of defense, then interior, then environment, and then energy, solved the problem by ordering oil-and-gas dealers not to talk about price increases.

The Way Forward: A time for leaders

The grave challenges now facing the nation and the world make plain that we need strong leadership for our country today: not popular, movie star-like leadership that transforms citizens into fans; but gritty, tough-minded and effective leadership that can solve problems and meet goals and objectives.

Market Files: Racing-club issue

Before the Supreme Court came into the picture, the issue of corporate governance and transparency on the conduct of the business affairs of listed Philippine Racing Club Inc. (PRCI) has been the focal point of the local business community.

William Pesek: Obamamania alive and well on Indonesian beach

Detta is all of 11 years old, and the precocious Indonesian youth is an avid Barack Obama fan. She’s wearing the “Go Obama”
T-shirt to prove it.

Food Summit: Some progress, but more needs to be done

The final declaration of the Conference on World Food Security: Challenges of Climate Change and Bioenergy strongly affirms the need for investing in agriculture, a very positive development.