The Real Impact of the Economic Crisis

After my last post I figured I needed to balance out this whole economic crisis and how it's really affecting our planet. The rise of fuel and food prices has definitely added some discomfort to our lives here in the West. In the United States, the price of eggs jumped 29% last year. Dairy products are up more than 7%. And the price of corn has tripled in the last four years but these changes which are manageable for us are having devastating effects elsewhere.

First of all understand that from March 2007 to March 2008, food prices rose 57% worldwide. That is on top of a 23.6% increase the year before. With the world's poor spending around 75% of their income on food this kind of increase will push them further into poverty and will definitely make more of them hungry.

From Webster:
Hunger - a craving or urgent need for food or a specific nutrient; an uneasy sensation occasioned by the lack of food; a weakened condition brought about by prolonged lack of food

While the world produces more than enough to feed its entire population of some 6.5 billion, more than 850 million people go hungry every day.

Check out this stat that I found here.
"The FAO estimates it will take $30bn a year to eliminate global hunger. For the price of the bail-out, we could make sure no one on earth goes hungry for the next 23 years."

With most of the talk radio shows I've heard in the States, this whole bail out plan was pretty ridiculous to begin with. Even unnecessary! So to know that it's somewhat unnecessary and that the money could ELIMINATE global hunger for the next 23 years is just maddening.

Half of the increase in food prices is due to the purchase of grain by the US and EU to produce biofuels, according to a World Bank study. This action alone has increased the price of grain (the kind that poor tend to purchase) by 75-80% (vs a total food price increase of 170% over the last year). In fact, corn reached $7.60 per bushel recently compared with less than $2 per bushel in 2005. "About 25% of that rise may be due to U.S. biofuels policy" Daniel Sumner, professor and director of the University of California Agricultural Issues Center at UC Davis.

So needless to say the economic crisis has spilled out and is affecting the poor of the world in a much worse way. More than 30 countries have experienced rioting over food shortages, according to the World Bank. The Prime Minister in Haiti was even forced out due to food riots!

Please remember the poor. They are still with us, they will always be with us, they are hurting, they need our prayers and anything else we can offer to help out.

I've always been a fan of World Vision click here to go to their site and join them in making a difference.

Sources & related articles:
San Francisco Chronicle
Washington Post
International Herald Tribune