For a considerable proportion of the world’s population, an increase in food prices results in an almost automatic rise in poverty levels. Food price volatility is made worse by distortionary measures adopted by some national governments, such as tariffs, non-tariff barriers, government procurement policies, subsidy policies, and export restrictions, among others. Most small holder farmers in the developing world are not capable of integrating themselves into global food markets. While many G-20 member nations have social safety nets that lessen the impact of high food prices on the poor, others must face hunger as both a cause and a consequence of major economic and political problems. What degree of progress do you think will be achieved towards a solution (notably, trade liberalization) in the Los Cabos Summit? Given that emerging economies suffer from domestic food-security-related problems, is the incipient role they play in international finance and the international financial community relevant? In light of the present challenges faced by Europe (namely, the financial crisis, globalization, an aging population), are the kinds of social safety nets found in that continent sustainable in the long term? Homi Karas, “The G-20 and the Global Food Crisis”, The G-20 Cannes Summit 2011: Is the Global Recovery Now in Danger?, Global Economy and Development Program, The Brookings Institution.
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