Russia’s attack on Ukraine is causing a global food crisis, US Treasury Secretary Janet Yellen said food insecurity with representatives of the International Monetary Fund (IMF), the International Agricultural Development Fund (IFAD) and the World Bank. Said at the conference on.
Yellen said at a meeting on April 19 that even before the war between Russia and Ukraine, more than 800 million people, or 10% of the world’s population, suffered from chronic food insecurity. press release..
“The war has already exacerbated the dire situation. Price and supply shocks are already manifesting, increasing global inflationary pressures, risking the external balance and weakening the recovery from the pandemic. “Yellen said.
“I want to make it clear that Russia’s actions are responsible for this, but the United States has partnered with us to mitigate the effects of a reckless war against Russia, the most vulnerable in the world. We are urgently working with our allies, “she said.
Even when Washington is escalating sanctions against Russia, she said it is also acting to ensure that the world has enough produce along with basic food. ..
According to Yellen, the meeting was planned with three goals in mind. First, understand the factors that cause food insecurity in the world. Russia’s destruction of Ukraine’s economy and infrastructure is a “significant factor” affecting commodity prices around the world. These actions could put 10 million people from sub-Saharan Africa into poverty due to rising food prices.
The second is to apply the “valuable lessons” learned from the previous food crisis to the current scenario. Yellen emphasized how the G20’s major industrialized nations launched a global agriculture and food security program in response to the 2008 food crisis. The program aimed to promote investment in the poorest countries and develop agricultural market information systems.
The third step is how the Multilateral Financial Institutions (IFI) take concrete actions to “effectively respond”. IFI can use analytical tools to assess the macroeconomic impact of the war between Russia and Ukraine and to assess the specific needs of the affected countries. In addition, they can help ease supply chain crises, mitigate fertilizer shortages, and boost domestic food production, Yellen said.
IMF Managing Director Cristalina Georgieva announced on April 19 that her organization will respond to funding requests from countries affected by soaring food prices. press release Said.
“We look forward to coordinating with IFIs and donors to strengthen humanitarian assistance and grants to the most hit low-income countries, and to develop new resilience and sustainability trusts. We will help countries adapt their agriculture to a world of more frequent and severe climate shocks, “says Georgieva.
Food prices are currently at high levels, and the Food and Agriculture Organization’s Food Price Index is The biggest jump since 1990.. According to the organization, prices for commodities such as grains, meat and vegetable oils are at record highs.
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Naveen Athrappully is a news reporter on business and global events in The Epoch Times.