Back into Poverty
Increase in food prices has pushed back into poverty at least 100 million people in 2008 and, according to the United Nations Standing Committee on Nutrition (here, p. 60),
erase at least four years of progress towards the Millennium Development Goal (MDG) 1 target for the reduction of poverty. The household level consequences of this crisis are most acutely felt in LIFDCs [Low-Income Food-Deficit Countries] where a 50% rise in staple food prices causes a 21% increase in total food expenditure, increasing these from 50 to 60% of income. In a high income country this rise in prices causes a 6% rise in retail food expenditure with income expenditure on food rising from 10 to 11%. FAO estimates that food price rises have resulted in at least 50 million more people becoming hungry in 2008, going back to the 1970 figures.
According to the World Bank (here) this means that between 200,000 and 400,000 more children will died every year for malnutrition until 2015.
Thursday, 18 June 2009