Feeding hunger and insecurity

5. The global response to high food prices: what is being done?5.2.4 The Scramble for AgriculturalLandThe high food prices have spurred a number of middleand upper-income countries to lease or buy agriculturalland in poorer nations with the intention ofshipping produce back to their own domestic marketsin an effort to protect national food security (Borger2008). In 2007, China acquired access to 1.24 millionhectares of Filipino land, in 2008, the Governmentof South Korea announced plans to purchase690 thousand hectares of arable land in Sudan andhas recently supported Daewoo Logistics negotiatea 99-year lease for 1.3 million hectares of land inwestern Madagascar (Borger 2008). China, SouthKorea and Saudi Arabia are the largest investors todate, but other countries, including the United ArabEmirates, Japan, Egypt, Libya, Qatar, Kuwait andIndia, are making similar advances, particularly inAfrica and South East Asia (Borger 2008).Generally, poorer nations have been pushed bybilaterals and multilaterals to attract foreign investments,but in the present political climate, there isan air of uncertainty surrounding the deals. Thereis certainly a danger of marginalised groups andpoor farmers with poor access to land losing outfurther – with the potential of sparking protest. InLaos, wealthy elites have been selling large tractsof land to foreign investors at prices below the marketrate, for forestry or agricultural purposes. Smallholderfarmers, who were forced to vacate their landfor minimal compensation have begun to rebel insome regions by burning the plantation crops andmachinery (MacKinnon 2008). Foreign investmentis regarded as necessary for economic development,but can have anti-developmental effects bycreating dependency and building inequality. Moreefforts must be made to support civil society groupsmonitor and influence the way national investmentsare negotiated.5.3 Case Study 3: Responses to theFood Crisis in Monrovia, LiberiaResearch conducted on behalf of Action AgainstHunger in Liberia provides a more localised pictureof responses to the Global Food Price Crisis. TheLiberian economy has been severely affected bythe two civil wars fought between 1989 and 2003.Petroleum and food are Liberia’s greatest importsat 25 and 24 percent of total imports (rice accountsfor 65 percent of food imports). This reliance onimported food and fuel has seen the Liberian tradedeficit widen gradually since 2005 as global pricesincreased – oil by 37 percent and food by 280 percentin this period.Despite great potential (some areas may permitthree harvests per year), food production has neverreally been developed, rendering local produceuncompetitive. Transportation networks are poor,restricting the commercialisation of local productionand forcing urban coastal populations to becomemore reliant on imports for food. Ninety-twopercent of rice consumed in urban Liberia is imported,making the population highly vulnerableto changes in global food prices as seen over thepast two years.Food and Oil Prices Increase DramaticallyThe cost of basic food stuffs in Monrovia has beenincreasing since 2006 – with a more pronouncedrise in prices starting in late 2007 – affecting rice,cassava, palm oil, vegetable oil, fish and meat.The Central Bank of Liberia estimated the 2007inflation rate of food at about 19 percent, 10 percentfor imported goods and 26 percent for localproduce (see figure 5.4 overleaf).Food price inflation in 2008 was higher than in2007. Imported rice is the primary staple food formost Monrovians, followed by cassava, but supplywas limited in early 2008, and prices increased by33 percent in the first few months of the year. Thereliance on rice imports has left the Monrovianmarket sensitive to external fluctuations in priceand supply. Trade restrictions on rice imposed byIndia and China significantly constrained rice importsin Liberia as the cost of importing a ton ofrice rose from US$ 400 in October 2007 to over$1,000 per ton in mid-2008 contributing to the highdomestic prices experienced in the annual lean46ACF International NetworkFeeding Hunger and Insecurity