Food summit blames trade barriers, queries biofuel | U.S. | Reuters
Posted by Graham on June 3rd, 2008
–The statement is so inconsistent I don’t know where to start. If biofuels are causing increased starvation because the market favours fuel over food because profits on the international markets are blind to hunger in developing nations, then how is it that more profit driven markets directing distribution and growth are going to help the starving? The answer is that they are not. Export barriers are not the problem either. When governments impose export barriers it is in response to angry people who cannot buy food. There is an artificial increased demand (for a short time) and thus prices come down. However, if the heads of countries want a longer term solution they they are going to have plan and co-ordinate the distribution in their own countries before they see what is available to export. Making developing countries open their boarders to food export when their population is starving is not only immoral, it is a policy that will lead to massive civil unrest. It is also completely hypocritical for the developed world to demand free markets only for the developing world. Until we get a rational system of trade and development established using new economic theories (not this 19th Century liberal nonsense) we are not going to be able to solve these issues.










