Wednesday, July 02, 2008

Let them eat (rice) cakes!

An excerpt from Foreign Policy:

The poor are not only being hurt by the food crisis more than anyone else, but they are also being blamed for it. U.S. President George W. Bush, for example, noted that when poor countries like India prosper, people there “start demanding better nutrition and better food.” Therefore, he said, “demand is high, and that causes the price to go up.” This view is widely shared by politicians, economists, and journalists alike. I echoed it myself in a recent column. But although the emergence of a global middle class is undoubtedly a factor in driving up food prices, it is not as important as most commentators think. We are blaming the wrong people.

That is one of the surprising conclusions of Donald Mitchell’s analysis of the food crisis. Mitchell, who is the World Bank’s expert on agricultural commodities, argues that while the poor, especially in Asia, are indeed eating more meat, this increased consumption is not the cause of the spike in food prices.

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