Wednesday, April 02, 2008

You want another reason?

OK, so water is becoming dearer, what about food?

Well, the BBC has this excellent webpage charting the current rises in food costs this has lead to social disturbances around the world especially recently in Ivory Coast and Argentina. It will especially hit hard those countries already dependent on food aid, according to the UN. Even Australia where the persistent drought has slashed wheat exports.

The bottom line is, despite the capacity to produce, and the availability of wheat and water sufficient to feed the current and an even greater population, the market, which is based solely on effective demand not need, is failing to produce and distribute this food.

And don't think just because the demonstrations and riots are happening in far flung lands this won't have an effect here. We live in a global word, political instability spreads, and we're part of that market for food. Just as with water, when teh price starts to rise, it will be the poorest who are hardest hit first.

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