Food for thought

I got an unexpected call from our Swedish office today ("Monrovia, this is Stockholm calling. The results of the Swedish jury are...." Oh nevermind.) Swedish Radio had been in touch and wanted to talk to somebody in Africa as part of a programme about the ongoing food crisis. As the only Swedish-speaking member of ActionAid staff in Africa they picked me, albeit by default, to do the interview. I very excitedly dropped what I was doing and went about formulating some talking points in consultation with my colleagues. The interview was to be broadcast live and I wanted to make sure I was well prepared.

I nervously answered the phone at 2pm. It was the producer. I told him I was expecting the call and launched into the usual pleasantries. He then politely informed me that they wouldn’t be using me after all. Apparently I’d been a stand-by but in the end they got the head of UNICEF in Ethiopia to comment instead. I can’t imagine what possessed them to choose him/her over me. In any case, I thought the information I assembled in vain during the day might make an interesting blog post.

As you may or may not know, world leaders are currently assembled in Rome discussing the steep rises in global food prices that have occurred of late. Liberia was identified in a speech by UN Secretary General Ban-Ki Moon as one of the countries most at risk from the price hikes.

As you should already have gathered from my previous posts, Liberia still has a long way to go on its road to development. However, any gains being made with the current influx of aid money and support could be wiped away in one foul swoop if the food crisis deepens any further. The World Bank recently estimated that approximately 50% of typical household expenditure in Liberia is on food and that about half of this is on rice alone. The Liberian agricultural sector is in a pretty sorry state. Although the climate and terrain are ideal for growing rice, not to mention all manner of other crops, about 60% of the rice consumed here is imported, mainly from USA and Asia. In Januray alone rice prices rose by 25% and pushed the number of people living below the poverty line up from 64% to 70% during a period of one month. This obviously has knock-on effects as people depend so much on rice and are forced to spend less on other essentials like healthcare and education for their children.

Global food prices have been rising for a variety of complex and intertwined reasons. As anyone who drives will know, fuel prices are on the perpetual increase. Fuel is needed to power farm machinery, transport the food that is produced and oil products are also used in fertilizer. Higher oil prices therefore mean higher farm overheads and transport costs so consumers face higher prices for the final product. Furthermore, land being used for producing food is rapidly being turned over to the production of crops for biofuels. Increased demand for alternative fuels is a natural consequence of high oil prices but the subsidies being offered to farmers to produce biofuels are distorting the market even further. Another factor to throw into the mix the rapidly expanding middle-classes in countries like India and China. As their populations grow wealthier they tend to eat more meat which causes more crops to be diverted away from feeding people (to feed livestock instead), further increasing prices.

Many of the world’s main rice-producing countries have banned exports over the last few months in an attempt to ensure that there is enough food to feed their own populations. This has led countries relying on imports, such as Liberia, facing even higher prices as the supply on global markets is further reduced.

The World Bank has just approved emergency relief interventions to the value of USD $10 million to try and stave off the immediate short term effects of the price rises in Liberia. I am not sure of the exact content of what they are proposing to do. There has been a tendency in the past to send food aid to countries in similar predicaments. It is important to note however that sending food into a country in such a situation cannot be seen as a solution in the medium to long-term. What is important is that investments are made in the agricultural sector. Large-scale, mechanised domestic food production must start up in order for Liberia to move into a situation of food security. Thus far the problem is not actually a lack of food. There’s food here but people lack the purchasing power to buy it. Jobs also need to be created and household incomes increased so that vulnerability to price shocks is reduced.

One of the reasons why Liberia hasn’t reached anywhere near its full agricultural potential is the destruction and abandonment of farms that took place during the long civil war. However, other countries in the region that have never been to war are also reliant on food imports. Policies which continue to be pursued by the EU and USA including subsidising domestic production and putting up barriers to imports from other countries are a major factor. Fencing off rich country markets from external competition means that farmers in developing countries have lower incentives to increase production. This is one of the reasons why urban flight has been on the increase in Africa i.e. rural areas are being deserted with more and more people moving to cities to try and scrape a living.

OK, I’ve ranted enough for now…