Question

Title: World Food Price Rises Threaten Aid 1

Key Concepts: political economy, global economy, trade, globalization, levels of economic development

Notes: As rising food prices threaten to disrupt food supplies, countries like Pakistan are guarding their subsidized wheat to ensure that the supply is large enough to feed those in greatest need. One man says he actually left work to stand in line to receive food. He has eight people who depend on him.

Certain regions of Africa have been hit especially hard by the rising food prices and there is concern that despite aid efforts, some people might go hungry. The United Nations’ World Food Programme budgeted £600 million to cover the costs of the food and fuel it provides worldwide in 2008, but rising prices mean that now about £850 million is needed to cover the cost of the same quantities. A spokesperson for the World Food Programme notes that it costs about 40 percent more to fill the same cup as it did last year. The organization is hoping that donor nations like the United States will step up to cover the shortfall.

Several factors have played a role in the recent rise in food prices. Ironically, one reason that prices have risen so dramatically is because more people particularly the Chinese have been so successful in recent years. With their success comes the means to buy more food and other goods. More successful people also tend to consume more meat. To satisfy the demand, more farm animals are raised – farm animals that consume grain that might have been consumed by humans. Demand for alternative sources of fuel has also contributed to the rise in food costs. Biofuels like ethanol use corn as a main ingredient. Higher corn prices make it more attractive for farmers to plant corn than other types of crops.

Discussion Questions: find current event topics to address the following questions.

1. Increased demand for bio-fuels has been identified as one factor behind the rise in food prices. What role do governments like the United States play in creating new demand for bio-fuels?

2. How might a policy of free trade in the United States and European Union cause food prices to drop? Should the United States eliminate the subsidies it pays to corn farmers? How might a free trade policy facilitate the efforts of the United Nations’ World Food Programme?

3. Consider the social implications of trade policy that is pro-producer. Is such a policy ethical when considered from the perspective of non-producers?   What are the drawbacks of following a policy designed to protect the interests of certain groups within a country?

4. Protectionism in agriculture has been a central issue for the World Trade Organization in recent years. Given the current implications of the rising costs of food for the world’s poor, should the World Trade Organization do more?

Submit your document below in APA format. Page limit is based on the thoroughness of your answers.

Answer 1

Ask each question separately

Q1) Increased demand for bio-fuels has been identified as one factor behind the rise in food prices. What role do governments like the United States play in creating new demand for bio-fuels?

Governments like United States play a key role in creating a new demand for bio-fuels. Being the environment friendly nature of the bio-fuels and there low emission characteristics motivates government like USA to provide incentives and promote the bio-fuels. They subsidize the engines and machines that use bio-fuels as well as provide tax benefits for corporation that implements such fuels. For various certification and regulations demands that green building should use fuels like bio fuels and CNG for alternative energy requirements.

Such incentives and regulations increase the demand of the bio-fules.