IMF Warns Rising Food Prices May Spark More Riots Like Haiti
By: Andrew Gumbel - Independent
The head of the International Monetary Fund has warned of dire consequences if
the price of food staples continues to rise around the world, suggesting last
week's food riots in Haiti could just be the warm-up for much more widespread
global unrest.
Dominique Strauss-Kahn, the IMF's managing director, told a meeting in
Washington over the weekend that he foresaw widespread starvation and economic
disruption if food prices did not come under control. "The consequences will be
terrible," he said.
The IMF is now forecasting inflation rates in developing countries of an
average 7.4 per cent this year, up from a January forecast of a 6.4 per cent
increase. The price of rice has almost doubled over the past year, and wheat
has increased by 130 per cent, including a 10 per cent jump just last Friday.
In Haiti, where food riots led to an emergency cut in the price of rice and the
dismissal of the Prime Minister over the weekend, fresh violence erupted as a
United Nations peacekeeper carrying food for his unit was dragged from his car
in the capital, Port-au-Prince, and shot, execution-style, in the back of the
neck. It was the first time a UN peacekeeper had been killed since the current
mission to Haiti began four years ago, and suggested a new rage that is
unlikely to abate.
President Réne Préval responded to last week's riots – triggered by a
doubling in the price of a bag of rice – by shaving 15 per cent off the price
increase. That was seen on the street as little more than a palliative measure
that would do nothing to dampen the unpopularity of his government or of the UN
mission.
The UN Food and Agriculture Organisation estimates that 36 countries now face
an outright food crisis. Big rice producers such as China, Egypt, Vietnam and
India have started cutting back on their exports to keep more of their
domestically grown rice at home – adding pressure to world prices.
Food riots have erupted in Niger, Senegal, Cameroon and Burkina Faso as well as
Haiti, and protests have flared in Morocco, Mauritania, Ivory Coast, Egypt,
Mexico and Yemen.
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