India Blames World Bank, IMF for Food and Fuel Crisis

by VR Sreeraman on  May 22, 2008 at 5:12 PM General Health News   - G J E 4
 India Blames World Bank, IMF for Food and Fuel Crisis
India has blamed the policies of World Bank, IMF and "excessive and unsustainable" demand in developed countries for the present crisis arising out of rising food and fuel prices.

"This consumption trend has existed for more than a decade," said Nirupam Sen, India's Ambassador to UN. Thus rejecting the contention that rising consumption in developing nations was responsible for the soaring prices.

Sen held weakening dollar and diversion of grains for production of bio-fuels among the major causes leading to the present financial crisis while addressing a special meeting of the United Nations Economic and Social Council to consider the issue of rising food prices.

He criticized the policies followed by the Bretton Woods Institutions (BWI) and their advice to countries to shift from food crops for domestic population to cash crops for exports.

The issue was sparked off after the US and EU said that growth in India and China has led to rise in consumption level and shortage.

"They seem to feel that subsidies are good for the rich but bad for the poor," Sen said, adding that such policies had "predictable negative impact" on food production.

According to Sen, the initial conjunction of lower food prices and high oil prices led to sale of grain to energy producers for conversion into bio-fuels.

"It is this structural consequence that is disturbing and complicates policy," he added.

The financial crisis, Sen said, too has had an impact. "The consequence is that speculators, encouraged by the dollar's relative decline, 'invest' in food futures to profit from the 'commodities super cycle'", he said.

This is not a primary cause of the crisis, "but it makes it worse," Sen said.

Source: ANI

Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
User Avatar
* Your comment can be maximum of 2500 characters
Notify me when reply is posted I agree to the terms and conditions
Global warming is not the problem, many parts of the science are fake. Is that why the ice caps on mare are receding, because of our SUV's. We don't need to consume fossil fuels and we don't need to grow fuels.We have had the technology to solve all the problems for over 100 years. Do some research, Tesla, Stan Myres, Xogen. We will defeat the NWO and their illusion.
guest Monday, May 26, 2008
The blame game is on.....
guest Thursday, May 22, 2008

You May Also Like

View All