Paul Krugman, Professor of Economics and International Affairs at Princeton and columnist for the NY Times, writes about how we are in the midst of a global food crisis. The cause? Bad energy policy, slow and inadequate action on climate change policy and economic growth in emerging markets like China.
"Consider the case of wheat, whose price has almost doubled since the summer. The immediate cause of the wheat price spike is obvious: world production is down sharply. The bulk of that production decline, according to U.S. Department of Agriculture data, reflects a sharp plunge in the former Soviet Union. And we know what that’s about: a record heat wave and drought, which pushed Moscow temperatures above 100 degrees for the first time ever".
In a time when international food prices are highly volatile, it is critical for both national and sub-national governments to make smarter decisions about what they grow and in what quantity. "Consider the case of wheat, whose price has almost doubled since the summer. The immediate cause of the wheat price spike is obvious: world production is down sharply". Moscow had an egregious heat wave this summer which is argued to be the source of this hike.
There are many solutions to this problem .Globally, we should better identify those critical commodities (wheat, sugar, grain) and discuss strategies on how to grow and keep them in a "contingency" pool. The rationale is precautionary action of course, as climate change is quite sporadic in its impacts but detrimental on international food markets.
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