Monday, June 9, 2008

Agriculture Forecasts

With food and oil prices climbing, we are all watching with interest.... here is a OECD report of forcasts till 2017 Click here for report

I have a suspicion that- this is simply proof that our economic system a bit off the mark. Now im no economist as most of you know- but im going to make a few comments and pose a big question:

Food and oil prices are rising (stating the obvious)... because of several reasons a) to curb climate change by turning wheat fields for eating into wheat fields for bio fuel b) that as economies in the developing world are growing - particually big contries like india- and now instead of serving the developed world, they are now serving themselves and their ppeople due to a rise in wealth in the middle classes (which most would agree is a good thing)...

can anyone add anymore they have learnt or know of?

Point a) is jsut plain dopey on behalf of contries such as america etc... esp if the govt is subsidising farmers etc... easily solved.... stop and find a better alternitive wehre we can have biofuel and food to eat.. OR policy here is created by the wealthy to benefit the wealthy needs to be put under the microscope and challenged big time

Point b) is the worrying one... if the out come of our economy means that as soon as those who couldnt survive before -eat, ahve secure accomodation, education, build a livlihood, now can-ANd the effect is this (the blanced has tipped the other way and /or everyone suffers from high prices inculding those in developing nations).

This is a whacked system.... it is a system that breeds inequality- survives /thrives on inequality... this is not a system that our world needs.... How do we ensure a fair deal for everyone ( without calling me soem political label... like communist ... which i dont think that any political label would suffice what im asking for here...)

A subject i know not much on, but something grates me about whats happening...



  1. "High prices are good for some and bad for others. They are beneficial for many commercial producers in both developed and developing countries. However, many farmers in developing countries are not linked to markets and will draw little or no benefit from current higher prices. But the poor, and in particular the urban poor in net food importing developing countries, will suffer more. In many low income countries, food expenditures average over 50% of income and the higher prices contained in this Outlook will push more people into undernourishment." pg 3 (oecd report)

  2. Have a look at Jeffery Sachs, 2008, Common Wealth... Economics for a Crowded Planet.