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Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 11:16 AM
Original message
The 25 countries that will be crushed by food inflation

Food inflation is now a reality for much of the world. It contributed to the overthrow of the Tunisian government, has led to riots across the Middle East and North Africa, driven up costs in China and India, and may only be getting started.

Whether you blame a bad crop or bad monetary policy, food inflation is here.

Nomura produced a research report detailing the countries that would be crushed in a food crisis. One, Tunisia, has already seen its government overthrown.

Their description of a food crisis is a prolonged price spike. They calculate the states that have the most to lose by a formula including:

Nominal GDP per capita in USD at market exchange rates.
The share of food in total household consumption.
Net food exports as a percentage of GDP.

We've got the top 25 countries in danger here and the list, including a major financial center, may surprise you



Read more: http://www.businessinsider.com/governments-food-price-inflation-2011-1##ixzz1BsMC0stk
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msongs Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 11:38 AM
Response to Original message
1. out of control hetero sex -> free condoms/birth control for everyone on request nt
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shimmergal Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 01:07 PM
Response to Original message
2. Can't get the list of 25 countries
to come up. It just keeps going back to the article's introductory page.

Is there another link, or a similar article somewhere else? This is an important topic.
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salvorhardin Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 01:31 PM
Response to Reply #2
3. About what you'd expect. Here's the 25:
Edited on Sun Jan-23-11 01:32 PM by salvorhardin
#25 Venezuela
#24 Vietnam
#22 Latvia
#23 China
#21 India
#20 Ukraine
#19 Bulgaria
#18 Tunisia
#17 Dominican Republic
#16 Libya
#15 Pakistan
#14 Kenya
#13 Philippines
#12 Romania
#11 Angola
#10 Azerbaijan
# 9 Hong Kong
# 8 Sudan
# 7 Sri Lanka
# 6 Egypt
# 5 Lebanon
# 4 Nigeria
# 3 Algeria
# 2 Morocco
# 1 Bangladesh

You can try this link for the details: http://www.businessinsider.com/governments-food-price-inflation-2011-1#25-venezuela-1
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donco Donating Member (717 posts) Send PM | Profile | Ignore Sun Jan-23-11 02:18 PM
Response to Reply #3
4. Where’s Haiti? nt
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bhikkhu Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 10:22 PM
Response to Reply #4
12. Crushed already. n/t
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Lucky Luciano Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 02:27 PM
Response to Reply #3
5. Hong Kong is surprising.
Rent in Hong Kong is even higher than in NYC, so I am surprised that the cost of food would be such a high percentage of one's income so that it makes this list.
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reggie the dog Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 03:05 PM
Response to Reply #3
6. I doubt the rest of the EU will let Latvia, Romania, and Bulgaria
go hungry...
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freedomnorth Donating Member (237 posts) Send PM | Profile | Ignore Mon Jan-24-11 06:00 AM
Response to Reply #6
16. EU is handing out food aid
for the poor even in the rich countries.
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cutlassmama Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 05:01 PM
Response to Reply #3
9. It's comforting not to see the U.S. on that list
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bhikkhu Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 10:24 PM
Response to Reply #9
13. We are one of the very few countries with food surplusses
Not that we won't get crushed economically, or the "bottom 95%" of us anyway who live paycheck to paycheck", but there is no real scarcity projected for the near future here.
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Peace Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 03:43 PM
Response to Original message
7. Since I know something about Venezuela (bottom of the list at #25), I question the premises
Edited on Sun Jan-23-11 03:53 PM by Peace Patriot
of the article (and when they suggest 12 places you would want to be in a food crisis, they get downright silly talking about big gold mines and what not).

No question that Venezuela has a food security problem, brought on by decades of rightwing misrule, which allowed a huge portion of Venezuela's farm land to fall into disuse--while peasant farmers (the best farmers) were driven from the land into urban squalor. Most of the land ended in the control absentee landowners or the very rich who don't even raise cattle. Meanwhile, the rich and the powerful created a well-off urban elite dependent on the oil riches and on imports, including food imports. And they in turn built practically nothing--neglected local manufacturing, even imported machine parts for the oil industry--and disdained the poor majority, couldn't care less about them or the social viability of their country. They let the jobless migrants, pushed off their farm lands, live in shantytowns in Caracas, built on steep hillsides imperiled by rain and flood, with no streetlights, no police protection or other services, and, of course, they utterly neglected education, job training, health care and other bootstrapping of the poor that decent societies undertake. The "get rich quick" lure of the oil profits led to atrocious social policy and loss of food security.

One great tragedy of this sort of fascist/neo-liberal ("free trade for the rich") policy (or lack of policy) is that people who could have been feeding their families and communities, with good organic food, who have the know-how to do this, have been doing it for thousands of years, are not only deprived of the little plots of land they needed to grow food, but they lose their knowledge of farming. It is not passed to the next generation. This is a worldwide phenomenon, and there is a worldwide campesino (small farmer) movement trying to counter it.

In any case, it hit urbanized Venezuela pretty hard. It is a VERY DIFFICULT problem, at that late stage of the game (unlike, say, Bolivia, which still has a considerable campesino population actively farming food). For one thing, you can't force people back to the farm, in a democracy. You have to entice them. For another, knowledge and skill have been lost. For another, the rightwing and their U.S. multinational corporate/war profiteer allies will fight you every step of the way. For another, if your constitution protects private property rights--as Venezuelan's new constitution does--you have to find government land and untitled or questionably titled lands to restore to food farming. And for another, you have first to help the vast poverty-stricken poor majority, most of which is urban--much of it jobless, uneducated, and suffering poor nutrition and handicaps of every kind.

The Chavez government began immediately to address the food security problem, with a new, and very well-thought out land reform program. Past land reform had failed in Venezuela and other places because it was not sufficiently regulated and became corrupt--the rich using land giveaways to benefit the rich--and it didn't produce food. The Chavez program requires five years of good food production to earn title to the farm land. It also requires and provides training, and it provides generous loans and other farmer assistance. The government food security program is also providing assistance to fisherfolk and other food producers and it is siding with the campesinos in on-going struggles with big landowners (which employ methods like death squads and other oppression) to regain rightful campesino farm lands. And they have now created a government-run supermarket system--and have just started a restaurant system--which guarantees low cost food to the poor, and provides the new food producers with steady markets.

To turn an urbanized country and economy that is importing much of its food back into a country that can feed itself is not only difficult, it takes time--decades. The government has to commit to this over a long period of time. Lands need to be surveyed, and land titles researched, and lands need to be evaluated for what they can best grow, and fertile land restored if that is possible. Agriculture training centers and science centers need to be established. New farmers, of course, suffer crop failures and other problems and need a lot of help along the way. And the entire system of production, transport, marketing and consumption needs to be evaluated, created or improved. One more thing, the Chavez government is trying to convert their agriculture to organic--to give up chem fertilizers and pesticides--which is not as easy as it sounds, when so much traditional knowledge has been lost and needs to rediscovered, and of course with corporate interests fighting that as well.

I don't have stats on on-going accomplishments, successes or failures. I know they are very serious about it, there is a lot of activity and it has been on-going for most of the decade. I read an excellent analysis of this food security program at the "Food First" web site--which I will try to find and post here.

This article or lame-brained study, or whatever it is, published by "Business Insider," does NOT include or evaluate the government's commitment to food security and to providing food for its people, nor the intelligent attention to this problem that is evident, for instance, in the Chavez government--the effort to address the problem, the long term planning and indications that the government is "of, by and for the people"--rather than the tool of rich or violent elites. Is the government stable, viable and popular? How is it addressing food issues, and how would it likely behave in a crisis? And what are the pressures--for instance, Venezuela has some private food producers and retailers in league with the rightwing and the U.S., who have hoarded food trying to drive up prices and bring down the government. They haven't succeeded, because the Chavez government is like the "New Deal" government was in the U.S.--strong leftist leadershiip on behalf of the poor. Is that true of Sudan or Kenya? This is a very important part of the equation, as to a food "price spike" crisis hitting the country.

One other factor, as to Venezuela being a place imperiled by food "price spikes": the Chavez government has ALSO worked on trade alliances, and in particular on barter trade alliances (the new trade group, ALBA). It has traded cheap or free oil for food. Venezuela has LOTS of oil--the biggest reserves in the world--twice the reserves of Saudi Arabia, according to the USGS. It has a lot of bargaining power and it has worked hard on establishing new kinds of trade. It is also strongly allied with numerous other countries with leftist governments in Latin America--including Brazil, Bolivia, Ecuador, Argentina, Paraguay, Uruguay, Nicaragua, Cuba and others. It has friends. It has strong working relationships with nearby countries that have a common set of goals including social justice. It has additional economic partners around the world, including China and Russia, and it just signed a peace pact with Colombia, re-starting trade over their long mutual border. This also makes a big difference in a crisis. What are the country's regional alliances? What are the region's prospects for cooperation?

Finally--something this uninformative article doesn't mention--Venezuela was just designated THE most equal country in Latin America, on income distribution, by the UN Economic Commission on Latin America and the Caribbean. The Chavez government has reduced poverty by half and extreme poverty by over 70%. "GDP per capita" is an average. It does not reflect how wealth is distributed--and that is very, very, very important, as to a country's current food distribution, and how a country will respond to a food crisis. A country where the rich rule and hoard the wealth may well see mass starvation in a food crisis. But a country with a government committed to equality and empowerment of the poor majority will strongly act to spread out the impacts of a crisis more evenly, and to solve the problem.

I don't think the criteria used for this list were at all adequate to make any predictions. And I question the placement of Venezuela first--in the photographs and on the list--when it is actually #25 in their own worthless evaluation. Is this typical anti-Chavez propaganda, of the kind that we have seen relentlessly in the corpo-fascist press? Could be accidental, but I wonder.

----

Edited for typos.

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girl gone mad Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 04:22 PM
Response to Reply #7
8. Thanks for taking the time to write this.
I think that "Business Insider" should consider a name change, though I did recommend this thread, since at the very least it gets people thinking about the lingering effects of the financial crisis and how our fiscal and monetary policy may be impacting the rest of the world.

The anti-Venezuela bias in our media is very blatant sometimes. Last week many were decrying Venezuela's currency devaluation as a sign of broad economic failure, however, most developed countries are presently in a race to devalue their currencies as quickly as possible in order to increase exports, and our own leaders are desperate to see the dollar decline against the yuan, so these criticisms are hypocritical, at best.
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Peace Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 05:49 PM
Response to Reply #8
10. Thanks for your comment, and your perceptiveness about currency devaluations.
They dis Chavez about anything and everything--including a voluntary devaluation (which is actually a good move by the government).

They really hate Chavez, because he has said, 'No, you will not operate banks like ponzi schemes,' 'No, you will not dictate bullshit Wall Street policies here,' 'No, you will not hoard food to drive up prices,' 'No, you will not take ALL the oil profits,' 'No, you will not participate in a coup d'etat against the elected government and keep your broadcasting license to use the PUBLIC airwaves,' 'Yes, you will pay your fair share of social costs,' 'Yes, we will have public broadcasting to counter your relentless rightwing bullshit on TV,' etc., etc.

They don't like being dealt with like this. They are used to buying governments and dictating to the world. The Chavistas are very smart in their analysis of how the rich and the corporate oppress everybody else, and how to re-balance power in a society so that no group--let alone the majority--gets shafted by the few. We have a lot to learn from them and from the other grass roots movements that have elected leftist leaders in Latin America. And we have a lot to learn about Latin America as a region which has collectively done so much good work on honest, transparent elections. Workers, small business people, the jobless, the poor, the chronically poor, the sick, the elderly, children and oppressed minorities have no chance against the "powers that be" without clean, honest elections with transparent vote counting. It is the very foundation of democracy. We have lost that here. Oh, have we ever! We've got one far-rightwing corporation (ES&S, which just bought out Diebold) 'counting' most (80%) of our votes with 'TRADE SECRET' code--code that the public is forbidden to review--with virtually no audit/recount controls.

FYI, Venezuela uses electronic voting but it is an OPEN SOURCE code system--code owned by the public and anyone may review the code by which the votes are tabulated--and they do a whopping 55% audit (count of ballots against machine totals)--over twice the minimum needed to detect fraud in an electronic system. (Here, half the states do ZERO auditing and the other half a miserable 1% audit--in a "trade secret" system!)

The Carter Center helped Venezuela set up their election system, and they and other international election monitoring groups (the OAS, the EU) regularly re-visit it and have certified it as transparent, honest and aboveboard.

That is why they have a government working on their behalf, and we don't. I think Obama was elected, actually, but he was also permitted to be elected and that is the problem. The far rightwing has the power--the easy power!--to rig any election in the U.S. And, believe me, they have used it--back in 2004, to 're-elect' the Bush Junta, and in 2010 to put a bunch of real scumbags in charge of Congress. And, when Obama has outlived his usefulness as the blame-taker for the Bush Junta's wars and colossal looting, they will oust him and bring in Bush Junta II. We are in real trouble until we address this matter of 'TRADE SECRET' voting machines.

Most Latin Americans countries would never let a private corporation run their voting system--let alone one with far rightwing connections using 'TRADE SECRET' code. They are far in advance of us on clean elections, in every respect.
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sabrina 1 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-24-11 04:36 AM
Response to Reply #7
15. Great post, thank you. I read that article and as soon as I saw
the list, really doubted the credibility of the author, especially the list of 'where to go' if everything collapses.

If the rest of the world would follow Venezuela's example starting now, planning for the future, utilizing land as it was meant to be used, there would be no food crisis in the future.

I know it will take a long time to overcome the Capitalist failures in Venezuela over decades, but at they have begun to address the problem. Chavez is a smart man and seems to have put a lot of thought into the problems his country had long before he was elected.

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Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-24-11 09:12 AM
Response to Reply #7
17. Excellent post
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-23-11 08:56 PM
Response to Original message
11. This MIGHT Be the List of Nations the Corporations Have Targetted
as opposed to those that will inherently suffer due to the rampant speculation in foodstuffs that the banksters are instituting.

there is no excuse for permitting the speculators to operate in food.
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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-24-11 09:16 AM
Response to Reply #11
18. Exactly......

Once again, the big picture is missed entirely.


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JCMach1 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-24-11 12:11 AM
Response to Original message
14. Food inflation is very real in the Middel-East now
Meat prices and other foods have spiked in the last couple of months.
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