Committee for the Abolition of Third World Debt
CADTM

Ploughing through the meanders in Food Speculation

23 September 2011 by Monica Vargas , Olivier Chantry

The figures of the Food and Agriculture Organization of the U.N. (FAO) show that in 2010, the number of persons suffering from hunger in the world was 925 million, and that this number is likely to increase in the future. They also record an upward trend in the prices of staple foods, as can be observed in chart 1. This spring’s disturbances in the Maghreb are not unconnected with this. We must not forget that the popular revolts currently spreading through the Arab countries are linked to escalating food prices. The application of the Green Revolution in this region and the overall package of Neo-liberal measures has made this region, formerly a major agricultural producer, highly vulnerable to the dancing international prices of staple grains. Egypt is an extreme case in point, being the planet’s principal importer of wheat (Vivas 2011).

It is important to remember, firstly, that a food crisis is not a situation-dependent phenomenon. The problem of access to decent and healthy food for everyone is, sadly, very widespread. The food crisis is the hunger that is striking many peoples, even though we use the same words to refer to a situation at a particular time, such as now, when food prices are spiralling. Since capitalist globalization became established over the past three decades and agricultural and food policies were consequently dismantled, hardship has been of a structural nature (GRAIN 2008a). Furthermore, it is inherent in the world food system, whose bases were written by the World Bank and the International Monetary Fund. That is why movements such as Vía Campesina are campaigning to rewrite the script of this story.

When explaining the rise in food prices, people usually mention factors of different kinds. Some of the factors most commonly cited are the claimed scarcity of food and the reduction of world reserves – which, as we shall see, is not only a fallacy but is also the carrot used to drive the upward movement in prices which those who speculate with foodstuffs wish to bring about.

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Ploughing through the meanders in Food Speculation
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