Sunday, July 27, 2008
Secret report: biofuel caused food crisis
The Guardian, Friday July 4 2008
Biofuels have forced global food prices up by 75% - far more than previously estimated - according to a confidential World Bank report obtained by the Guardian.
The damning unpublished assessment is based on the most detailed analysis of the crisis so far, carried out by an internationally-respected economist at global financial body.
The figure emphatically contradicts the US government's claims that plant-derived fuels contribute less than 3% to food-price rises. It will add to pressure on governments in Washington and across Europe, which have turned to plant-derived fuels to reduce emissions of greenhouse gases and reduce their dependence on imported oil.
The use of crops to produce Bio-fuels is clearly a factor in soaring global food prices. Although this is the first report (from the World Bank no less) I’ve seen that indicates the significance of the relationship between Bio-fuels and increasing food prices.
Bio-fuels seem to be just another example of Capitalism’s focus on short term profit while ignoring more long term consequences such as sustainability and social costs. The conflict between the use of land resources to grow crops for fuel instead of human consumption was inevitable. Sadly the US and EU support of Bio-fuels for their self interests have impacted food prices and has had a disproportionately negative effect on poor developing nations.
