THE World Bank Group (WBG), the International Monetary Fund (IMF), the World Trade Organization (WTO), and the United Nations World Food Programme (WFP) have all issued dire warnings about a worldwide food crisis looming unless world leaders act quickly.
The warning was contained in a joint statement published by the organizations’ chiefs — David Malpass, Kristalina Georgieva, Ngozi Okonjo-Iweala, and David Beasley – ahead of the IMF and WBG Spring Meetings, which will take place next week.
The statement highlighted the consequences of geopolitical tensions and a full-fledged war between Ukraine and Russia, saying that every one percentage point increase in food costs will push 10 million people into extreme poverty.
The leaders also revealed the work their organizations are undertaking to relieve the burden, while also urging the international community to assist vulnerable countries with funds to help them meet essential financial demands.
According to them, provision of emergency food supplies, financial assistance to individuals and countries, the promotion of unrestricted trade, and investment in sustainable food production are among the measures they have taken to support the progress toward food security.
“The world is shaken by compounding crises. The fallout of the war in Ukraine is adding to the ongoing COVID-19 pandemic that now enters its third year, while climate change and increased fragility and conflict pose persistent harm to people around the globe. Sharply higher prices for staples and supply shortages are increasing pressure on households worldwide and pushing millions more into poverty,” the statement said.
The report also reveals that the current threat is greatest for the poorest countries, who rely on imports for food, even as “vulnerability is rapidly increasing in middle-income countries, which host the majority of the world’s poor.”
The organizations noted that a dramatic increase in the cost of natural gas – a key ingredient in nitrogenous fertilizer – has exacerbated the rise in food prices, and that rising fertilizer prices, combined with significant cuts in global supplies, have serious implications for food production in most countries, particularly those that rely on fertilizer imports.
They warned that rising food prices and supply disruptions could exacerbate societal tensions in many of the nations impacted, particularly those already afflicted by violence.
“We call on the international community to urgently support vulnerable countries through coordinated actions ranging from provision of emergency food supplies, financial support, increased agricultural production, and open trade.
“We are committed to combining our expertise and financing to quickly step up our policy and financial support to help vulnerable countries and households as well as to increase domestic agricultural production in, and supply to, impacted countries. We can mitigate balance of payments pressures and work with all countries to keep trade flows open,” they pledged.
They stated that one way the international community could assist vulnerable countries is to fund emergency food supply and safety nets to meet the needs of the poor and smallholder farmers facing increasing input prices.
They also advocated for open trade and the elimination of restrictive measures such as food and fertilizer export bans, stating that it is critical to provide food security to insecure countries “in a coordinated manner,” as well as working with multilateral and bilateral partners to help countries “address this urgent crisis.”
Nigeria has had a worsening food price problem in the last two years, pushing headline inflation further away from the lower double-digit rate expected in 2021. The gap between food and core inflation had consistently been greater than five percent.
