PHA-Exch> UN Response to Global Food Price Rises

[Claudio Schuftan]

From: Vidar, Margret (ESAD) Margret.Vidar at fao.org

UN press statement: A unified United Nations response to the global food
price challenge

Berne, 29 April 2008 - We consider that the recent dramatic escalation in
food prices worldwide has evolved into a unprecedented challenge of global
proportions that has become a crisis for the world's most vulnerable,
including the urban poor.


This crisis has multiple causes, including rapidly increasing energy prices,
lack of investments in the agricultural sector, rapidly rising demand for
food, trade distorting subsidies, recurrent bad weather and environmental
degradation, subsidized production of bio-fuels that substitute food
production, and the imposition of export restrictions leading to hoarding
and
panic buying.


This challenge is having multiple effects with its most serious impact
unfolding as a crisis for the most vulnerable. Mounting hunger and
increasing
evidence of severe malnutrition is evident and the capacities of
humanitarian
agencies to meet these needs is under severe strain, particularly as pledged
funding remains undelivered.


This situation is increasingly resulting in social tension as governments
who
find themselves powerless to address this global crisis come under mounting
pressure. Inflationary pressures are rising and trade deficits are widening
in a number of countries.


---------


The Executive Heads of the United Nations specialized agencies, Funds and
Programmes and Bretton Woods institutions, meeting in Bern on 28 and 29
April
2008 under the chairmanship of the UN Secretary-General, agreed on a common
strategy in support of developing country governance to confront the global
food crisis and have decided the following:


1. First, we must FEED THE HUNGRY


The rapidly escalating price of food is severely impacting the poor in
developing countries, resulting in heightened vulnerability, reduced levels
of nutrition with serious health impacts, and rising social tensions.


The CEB calls upon the international community to urgently and fully fund
the
emergency requirements of US$ 755 millions for the World Food Programme and
deliver on its pledges and provide maximum flexibility to target the most
urgent needs.


This extraordinary appeal, together with WFP's voluntary funded budget and
newly assessed needs must be fully met. Without full funding of these
emergency requirements, we risk again the spectre of widespread hunger,
malnutrition and social unrest on an unprecedented scale.


2. Second, we must ensure FOOD FOR TOMORROW


Action must be taken to provide developing country farmers with the support
required to ensure the next harvest. Escalating energy, fertilizer and input
prices are leading farmers to plant less in the coming season and will lead
to even more severe food shortages in the coming year.


The FAO Emergency Initiative on soaring food prices has called for US$ 1.7
billion in funding to provide low income food deficit countries with seeds
and inputs to boost production.


IFAD is making available US$200 million to poor farmers in the most affected
countries to boost food production by providing essential inputs.


The World Bank is exploring with its Board the creation of a rapid financing
facility for grant support to especially fragile, poor countries and
quicker,
more flexible financing for others.


We need to address multi-faceted challenges in the short, medium and long
terms.


The Short to Medium Term


The UN system will co-operate together in crisis response, the development
of
emergency safety nets and social protection of the most vulnerable and rapid
employment and income generation programmes.


The UN system will fully deploy its capacity in the monitoring, quick
assessment and analysis of the rapidly evolving food price trends and their
impact on vulnerability to support the response of affected national
governments.


At the country level, UN Resident and Humanitarian Coordinators, Heads of
the
World Bank missions, and the UN country teams will urgently meet also with
WFP and other humanitarian agencies in affected countries to draw up support
strategies for national governments and vulnerable populations and seek
international support for their implementation.


The IMF will propose to its Executive Board additional financial support for
countries facing serious balance of payment gaps as a result of higher food
and oil prices.


The CEB calls upon countries that have imposed export restrictions on food
that have reduced supplies and contributed to price hikes to urgently
reconsider those policies.


The Medium to Long Term


The UN system will bring together its technical and analytical capabilities
to fill research and knowledge gaps in order to support governments with the
best information for agricultural decision-making to boost production and
productivity.


As assessment of the diverse impacts of the crisis, the development of sets
of tailored policy instruments and implementation capacity is required to
underpin an effective policy response.


Domestic policy measures that correct distortions and do not jeopardize the
supply response need to be put in place, together with budget support
measures and balance of payments support for the most affected countries.


The CEB calls for a rapid conclusion of the Doha Development Round resulting
in scaling down trade distorting subsidies that have damaged developing
countries production capacity.


The Long-Term


The CEB underscores the urgent necessity to address the structural and
policy
issues that have substantially contributed to this crisis and the challenge
posed by climate change to productive systems.


Further research must be undertaken on the impact of diversion of food crops
to bio-fuel production and all subsidies to food-based bio-fuels should be
reviewed.


We must make special effort to address the specific needs of Africa as the
most affected region, including through relevant African programmes such as
CADEP.


To this end, we must put in place the requirements to realize the promise of
a Green Revolution in Africa for which the UN Africa MDG Steering Group has
estimated will require US$8 to 10 billion annually.


The World Bank, IMF, IFAD and Regional Development Banks and relevant
agencies of the UN system will collaborate to develop a long-term strategy,
including the required macro-economic measures for increasing productivity,
production and marketing in agriculture and ensure availability of and
access
to food.


Immediate action


In order to create a prioritized plan of action and coordinate its
implementation, the CEB has decided that a Task Force on the Global Food
Crisis be established immediately under the leadership of the
Secretary-General and bringing together the Heads of the United Nations
specialized agencies, Funds and Programmes, Bretton Woods institutions and
relevant parts of the UN Secretariat.


Forthcoming Meetings


Forthcoming high-level gatherings, including the meetings of TICAD, of the
Economic and Social Council, the G-8 Summit and the September High-Level
Event of the General Assembly on MDGs, the ILO International Labour
Conference on Rural Employment, all provide opportunities to strengthen
political commitment to meet the challenge of this crisis.


In this regard, the UN Secretary-General calls on World Leaders to make
every
effort to participate in the High-Level Conference on Food Security in Rome
on 3 to 5 June 2008.
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