While much of the world's attention is being paid to the financialcrisis, a UN agency is warning not to forget the ongoing food crisis. The Foodand Agriculture Organization says the financial turmoil could deepen the foodcrisis. So it's calling on world leaders to stick to the commitments they madeat the food crisis summit in Rome in June. The warning comes amid this week'smeeting of the agency's Committee on World Food Security.
David Hallam, head of the FAO's trade policyservice, spoke from Rome to VOA English to Africa Service reporter Joe De Capuaabout why the agency fears financial troubles could affect food security.
"There are a number of potentially adverseeffects that the financial crisis could have if it leads to the kind of globaldownturn in economic growth, which the IMF (International Monetary Fund), forexample, has been predicting? in its world economic outlook," he says.
He adds, "On world markets, the demand for someagricultural commodities is very much related to the levels of economicactivity and income. So, agricultural raw materials and also some of thoseproducts, which are more dependent on income levels for demand, things likesome of the livestock products and so on ? we'd expect perhaps to see adownturn in the demand for those and therefore a weakening in their prices."
He says that consumers could benefit from loweragricultural commodity prices if they actually filter down to that level. But hewarns, "It may compromise some of the efforts that we've been making to try andencourage investment in agriculture, especially in developing countries."
Asked whether it would be natural for countries,like the United States, to reduce overseas spending in times like these, hesays, "Yes. I mean it's something that I think?we've seen through history. Whenthere is a downturn like this there tends to be a tendency to look inwards andcut those kind of external areas of spending. We're concerned about thisbecause in the last year, of course, with the food crisis that we had, manydeveloped countries have pledged greater support to agriculture in developingcountries and we don't want to see that evaporate."
The FAO wants leaders to stand by their commitmentsto agriculture. "If we're going to try and restore stability in world foodsupplies and so on, then we really need that kind of productivity enhancinginvestment," he says.
However, he admits it's unclear just how thefinancial problems will play out. "There are different views at the moment onthe extent to which developed countries will go into recession. How long suchrecessions might continue. So obviously the deeper and more prolonged thegreater the risk is that funds for overseas development will be restricted," hesays.