• About
  • Privacy Policy
  • Terms
  • Contact
Friday, January 27, 2023
Financial Eye News
  • Home
  • Markets
    • Stock Market News
    • Commodities
    • Forex
    • Renewables
  • Cryptocurrency
    • Ultimate Guide to Crypto
  • Business
    • News
    • Companies
    • Technology
    • Climate
    • Politics
  • Reports
    • Ultimate Guide to Crypto
  • VideosNew
No Result
View All Result
  • Home
  • Markets
    • Stock Market News
    • Commodities
    • Forex
    • Renewables
  • Cryptocurrency
    • Ultimate Guide to Crypto
  • Business
    • News
    • Companies
    • Technology
    • Climate
    • Politics
  • Reports
    • Ultimate Guide to Crypto
  • VideosNew
No Result
View All Result
Financial Eye News
No Result
View All Result

Putin’s war threatens millions with hunger

March 22, 2022
in Latest Financial News
Reading Time: 3 mins read
47 4
ADVERTISEMENT

Russia’s army is attempting to starve the people of Mariupol into submission in an act of barbarity that almost certainly constitutes a war crime. But the knock-on effects of Vladimir Putin’s invasion of Ukraine threaten hunger, even starvation, for millions of people beyond the immediate theatre of war.

Russia and Ukraine are major food producers, accounting for roughly 30 per cent of global exports of wheat and barley. Russia alone exports 15 per cent of global fertiliser, while Belarus, also under sanctions, is an important producer of potash, crucial for growing soyabeans that in turn go into animal feed. If farmers around the world use less fertiliser, next year’s harvests in Brazil, Argentina and other agricultural powerhouses could collapse.

Ukraine’s wheat exports are being blockaded by Russian ships. Ukrainian farmers don’t have seeds or fuel for their tractors. Grain prices are a third higher than when the war began and two-thirds above where they were a year ago.

For people in the rich world, the coming food shock will put further upward pressure on grocery bills already affected by the highest inflation in decades. For poorer countries, engulfed by the economic consequences of Covid, higher food prices may spell catastrophe.

Millions of people in countries affected by conflict — including Yemen, Ethiopia and South Sudan — are teetering on the brink of famine. Food importers from India to Indonesia face higher bills. Egypt subsidises bread, a staple, for 70mn people, a huge drain on the exchequer. Leaders of other countries in a similar fix will remember the kind of social unrest, including the Arab uprising, that can follow rising food prices.

Given how badly the world has done in distributing vaccines equitably, the omens for how it will deal with a food crisis are not good. The chronically underfunded World Food Programme says rising costs mean it will have to cut rations for millions of people, reallocating food from the merely hungry to the outright starving.

The quickest remedy would, of course, be to end the war in Ukraine. In the longer term, the world should reduce its reliance on Russian food and fertiliser. It should invest more in raising agricultural yields in Africa, which still has plenty of underutilised arable land, and cut down on scandalous food waste in the developed world.

In the short term, there is a clear case for richer countries to increase funding. Sanctions against Russia are entirely justified but richer countries must cushion the blow for poorer ones caught in the crossfire.

One possibility is to look again at the reallocation of Special Drawing Rights, effectively free money, $650bn of which was created within the IMF last year as part of the global pandemic response. Most of it went to rich countries while plans to on-lend a portion to poorer nations have got bogged down.

Individual countries remain free to donate allocations. They should consider doing so. Some mechanism could surely be found to use SDRs more generally to help countries with their balance of payments problems. If that proves impossible, the IMF will need to find emergency resources to help the most vulnerable nations meet their rising food bill.

In the modern era, famines are almost always man-made. Amartya Sen, the Nobel economist, said they could not happen in a democracy because of the free flow of information and the consequent public outrage. But democracy is ever more under attack. Putin is the latest aggressor. Unless he is stopped, hunger will follow.

Source: Financial Times

ADVERTISEMENT
Share6Tweet4Share1SendShareSend

Related Posts

Latest Financial News

Oil tanker jam forms off Turkey after start of Russian oil cap

December 5, 2022
Latest Financial News

The west’s messy Russian oil price cap begins to bite

December 5, 2022
Latest Financial News

Coinbase bonds: FTX saga saps credibility of Wall St wannabe

December 5, 2022
Latest Financial News

Crypto group Circle abandons $9bn deal to go public through Bob Diamond’s Spac

December 5, 2022
Latest Financial News

Trafigura secures $3bn loan facility to provide Germany with natural gas

December 5, 2022
Latest Financial News

Market turmoil threatens to undermine efforts to curb inflation, says BIS

December 5, 2022

Popular Stories

  • AIG to launch cut-price IPO of life and asset management unit

    48 shares
    Share 19 Tweet 12
  • EY boss targets $10bn boost from Silicon Valley tie-ups after break-up

    32 shares
    Share 13 Tweet 8
  • Tesla delays plan to restore Shanghai output to pre-lockdown levels -memo

    32 shares
    Share 13 Tweet 8
  • TV production giant Banijay to go public via Arnault-backed Spac

    30 shares
    Share 12 Tweet 8
  • Nio to Invest $32.8M Building R&D Labs in Shanghai By Financial Eye

    30 shares
    Share 12 Tweet 8
ADVERTISEMENT

Latest News

Taylor Swift Fans Sue Ticketmaster’s Parent Company

December 5, 2022

Fisker trades down following price cut at Citi By Financial Eye

December 5, 2022

UAW president faces run-off election as reformers make gains

December 5, 2022

Felipe Valls, 89, Whose Cuban Restaurant Became a Political Hub, Dies

December 5, 2022

Longroad buys 98-MW solar farm in California

December 5, 2022
Facebook Twitter LinkedIn

Financial Eye is one of the most trusted news sources for Financial News, global news and local USA news, we provide the news from the most trusted sources.

LEARN MORE »

Recent News

  • Taylor Swift Fans Sue Ticketmaster’s Parent Company
  • Fisker trades down following price cut at Citi By Financial Eye
  • UAW president faces run-off election as reformers make gains

Sections

  • Business
  • Climate
  • Commodities
  • Companies
  • Cryptocurrency
  • Cryptocurrency
  • Forex
  • Green Energy
  • Latest Financial News
  • News
  • Politics
  • Stock Market News
  • Technology
  • Videos

© 2022 Financial Eye News Media

No Result
View All Result
  • Home
  • Markets
    • Stock Market News
    • Commodities
    • Forex
    • Renewables
  • Cryptocurrency
    • Ultimate Guide to Crypto
  • Business
    • News
    • Companies
    • Technology
    • Climate
    • Politics
  • Reports
    • Ultimate Guide to Crypto
  • Videos

© 2022 Financial Eye News Media

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Subscribe To Our Daily News Round-Up.

The top ten most-read stories direct to your inbox

You have Successfully Subscribed!

You have Successfully Subscribed!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.