The world's poorest countries face famine and civil
unrest if global food prices keep rising, the
International Monetary
Fund has warned.
Speaking at a press conference in Washington, D.C. IMF managing
director Dominique Strauss-Kahn said the 48% rise in food prices
since 2006 may undermine gains the international community has made
to reduce poverty.
To ensure such millions of people in some of the world's poorest
countries avoid starvation Mr Strauss-Kahn called on rich countries
to increase the amount they give to tackle poverty.
Higher food prices will raise the cost of imports for poor
countries creating trade imbalances that could affect the economies
of developed nations, he said. "It's not only a humanitarian
question," he said.
World Bank calls on governments
In response, World Bank
president Robert Zoellick has been urging governments to act
quickly to help hungry people by committing emergency aid to the
UN World Food Program,
which is seeking $500m in emergency assistance by 1 May.
He has also sought backing for a new deal on global food policy
to combat hunger and malnutrition, and at the 13 April meeting of
the IMF-World Bank Development Committee, he won that support.
Speaking to reporters after the meeting, he warned that 100m
people could be pushed back deeper into poverty if action was not
taken. "We can't afford to wait," he said, adding that "we have to
put our money where our mouth is, now, so that we can put food into
hungry mouths. It's as stark as that."
Improved global financial stability
Since its previous meeting in October 2007, the IMF said, global
financial instability has increased, world economic growth has
slowed, and growth prospects for 2008 and 2009 have
deteriorated.
It agreed that "policymakers should continue to respond to the
challenge of dealing with the financial crisis and supporting
activity, while making sure that inflation is kept under
control.
While each country's situation is different, coherent action
must be taken, taking due account of cross-border
interactions."
As for emerging market and developing countries, it noted that
so far, they have "continued to grow strongly and show resilience
in the face of the ongoing financial crisis, though their growth
prospects have moderated and inflation risks have increased."