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Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Wednesday, March 07, 2012

US BUDGET CUTS FOREIGN AID: ISOLATIONISM RETURNS!

US BUDGET CUTS FOREIGN AID: ISOLATIONISM RETURNS!

Erle Frayne D. Argonza

The US Congress has cut down budgetary allocations for foreign aid, an act that had caused chagrin on many developmentalist circles across the globe. The bad thing about the allergic congressional aid constriction is that even health research & aid funding for poor countries is also shrinking.

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News has come out openly about the voting patterns regarding the subject. It has turned into a bi-partisan pattern, which contrasts to the 20th century pattern whereby Republicans were the exclusive bulwark of anti-foreign aid discourse and action.

For those who aren’t familiar with foreign policy frames in America, the term for that allergy to anything foreign and the drive to focus budgets exclusively on domestic affairs is called Isolationism. Republicans are the most afflicted with that “anything foreign is Bogey Man” fanaticism which explicates the predominance of Isolationism in the US Congress’ House of Representatives.

The trouble with Barak Obama is that he lacks a definitive foreign policy frame. He is perceived as having endorse the whole basket of foreign policy initiatives to Sec. Hillary Clinton who exhibits a definitive foreign policy frame: Wilsonian. That framework posits that America’s negotiations in the diplomacy field must be guided largely by the negotiating country’s observance of civil rights.

Wilsonian frame is largely concentrated in the US Department of State, whereas Isolationism’s bulwark is the US Congress. Neo-Conservatism, dominant during the Bush eras, is largely concentrated in the Defense & Intelligence agencies. Nationalism, a hallmark of trade policies in diplomacy, is concentrated in the Department of Trade.

Isolationism’s zealous return means that all other foreign policy frames are lameduck, and that spells trouble for the development stakeholders across the globe as a whole.

[Philippines, 07 March 2012]

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Source: http://www.devex.com/en/news/will-congress-starve-the-2013-foreign-aid-budget-2/77613?source=ArticleHomepage_Headline

Will Congress 'starve' the 2013 foreign aid budget?

inShare

There is notice from Capitol Hill regarding President Barack Obama’s 2013 foreign aid budget request: It is unlikely to be fully funded.

Senators heard U.S. Secretary of State Hillary Clinton on Tuesday (Feb. 28) as she testified before the Senate Appropriations subcommittee and Senate Foreign Relations Committee. Clinton was making the case for the $51.6 billion budget request for the State Department and the U.S. Agency for International Development. But Democrat Sen. Patrick Leahy from Vermont, who also sits as chairman of the subcommittee, told Clinton it is going to be “difficult” to get a bill through this year, the Washington Post reports.

Clinton spoke of five budget priorities, including support for the democratic transitions in Iraq, Afghanistan and Pakistan, and the $770 million Middle East and North Africa Incentive Fund. She also made note of America needing to maintain power in the Pacific by building stronger networks and relationships in the region.

In addition, the secretary discussed using diplomacy and development to create American jobs. She said America needs to make strategic investments today to meet its foreign policy goals in the future.

The budget request is likely to face opposition from lawmakers in coming months. While foreign aid is commensurate to the country’s national security and international interests — as history can prove in Colombia and South Korea — it has been a “frequent target” of budget-cutting lawmakers, notes The Foreign Policy Initiative.

Democrat Sen. John Kerry of Massachusetts agrees. He said there are no global “Grover Norquists” pushing a pledge not to slash the State Department budget, nor millions of AARP seniors rallying to protect America’s investments overseas.

In an opinion piece for the Wall Street Journal, Kerry, chairman of the Senate Foreign Relations Committee, said there is nothing “fiscally conservative” in starving the foreign policy budget today to spend a trillion dollars years later in armed conflict. He said all foreign policy initiatives and foreign aid programs account for only one-tenth of America’s annual military expenditure.

“We’ve got a tax code that spans more than 72,000 pages and a federal budget of $3.8 trillion — surely we can find enough tax loopholes to close and wasteful spending to cut in order to preserve the $57 billion required for our global investment,” Kerry said.

Read more:

Read more on U.S. aid reform online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders – emailed to you FREE every business day.

Monday, March 05, 2012

INDUSTRIAL COMPETITIVENESS IN VIETNAM

INDUSTRIAL COMPETITIVENESS IN VIETNAM

Erle Frayne D. Argonza

Industrialization is the crux of Vietnam’s development agenda. This is the signal being beaconed by the first industrial competitiveness report of the same country.

Among the high-growth economies of East Asia, Vietnam’s growth has been truly remarkable. Vietnam’s policy makers have hinged their growth goals on physical economy frameworks as a way to growth and income redistribution, rendering it as a model for social markets that began their development trajectories from old mode socialism.

There is no reason that Cambodia and Laos shouldn’t follow the footsteps of Vietnam. May I add Nepal which, for some time after the overthrow of the ancien regime of monarchy there, has been governed by popularly elected socialist parties.

Below is an update report on the report from the UNIDO media center.

[Philippines, 29 February 2012]

Source: http://www.unido.org/index.php?id=7881&tx_ttnews[tt_news]=992&cHash=6c50fb11e63729562523cbb35b2b91e6

Viet Nam’s first Industrial Competitiveness Report launched

HANOI, 13 December 2011 - The United Nations Industrial Development Organization (UNIDO) and the Ministry of Industry and Trade today launched the 2011 Viet Nam Industrial Competitiveness Report.

The report will contribute to the existing policy debate in Viet Nam by providing a conceptual framework for understanding the drivers of industrial competitiveness, positioning Vietnamese industries in the international context, identifying industrial bottlenecks that can be addressed by policy, and presenting specific recommendations for the leaders of the country.

The report makes the case that industrialization is at the core of Viet Nam’s economic growth. This is in line with empirical and historical evidence which shows that a fast-growing economy needs a vibrant industrial sector. Boosting the manufacturing sector is likely to be even more important in the future if Viet Nam is to create more wealth and employment.

The report argues that structural change towards certain strategic technology intensive sectors can speed up the industrialization process, thus providing the right conditions for sustained growth.

The Deputy Minister of Industry and Trade, Le Duong Quang, said that “the 2011 Viet Nam Industrial Competitiveness Report will be deemed a useful document which supports policymakers in the formulation of industrial and trade policies that meet the requirements of the realities of the new stage in Viet Nam’s industrial development”.

He emphasized two major issues of concern highlighted in the report: the evaluation of the role of trade liberalization in recent years for economic and productive restructuring, and the need for a re-formulation of industrial policy and strategies to take account of national priorities, as well as of global threats and opportunities. The release of the report is timely as it raises important policy implications, said Le Duong Quang.

UNIDO Managing Director, Wilfried Luetkenhorst, pointed out that “industrial competitiveness is not – or at least not entirely – determined solely by a country’s factor endowment. Competitive advantages can be created”. He added that the report advocated this idea by arguing that Viet Nam needed to move up into technologically more sophisticated and higher value added activities.

The 2011 Viet Nam Industrial Competitiveness Report is a collaborative product between the Ministry of Industry and Trade and UNIDO in the context of the One UN funded programme “Building National Capacity in Industrial Diagnosis and Trade Competitiveness Analysis”.

The report was prepared by UNIDO staff and the Industrial Competitiveness Group, an inter-ministerial working group consisting of young professionals trained by UNIDO. It also benefited from the inputs and supervision of an Advisory Board composed of high-level senior government officials and advisors.

For further information, please contact:

Patrick Gilabert
UNIDO Representative
Viet Nam Country Office
Tel: +844-38 22 44 90

Tuesday, February 21, 2012

CAN SMART FARMING REVERSE CLIMATE CHANGE IMPACT?

CAN SMART FARMING REVERSE CLIMATE CHANGE IMPACT?

Erle Frayne D. Argonza

Can smart farming equalize or even totally reverse the deleterious impact of climate change? What parameters and factors (soil? seeds? water? skills? technology?) need to have some control altogether to see the positive effects of the interventions?

That question is the subject of intense response today by stakeholders in Malawi, Vietnam and Zambia that have embarked on smart farming pilot works. FAO and the European Commission have bankrolled the pilot projects.

It may take at least three (3) years of experimentations and observations before the projects can bear fruit. Smart farming is no new concept actually, as the International Rice Research Institute or IRRI had already introduced similar interventions—applied to rice production—since its launching in 1964 yet.

Let’s see what will happen to these pilot projects.

[Philippines, 08 February 2012]

Source: http://www.fao.org/news/story/en/item/119835/icode/

FAO-EC project to promote climate-smart farming

16 January 2012, Rome - FAO and the European Commission announced today a new €5.3 million project aimed at helping Malawi, Vietnam and Zambia transition to a "climate-smart" approach to agriculture.

Agriculture — and the communities who depend on it for their livelihoods and food security — are highly vulnerable to climate change impacts. At the same time agriculture, as a significant producer of greenhouse gases, contributes to global warming.

"Climate-smart agriculture" is an approach that seeks to position the agricultural sector as a solution to these major challenges.

It involves making changes in farming systems that achieve multiple goals: improving their contribution to the fight against hunger and poverty; rendering them more resilient to climate change; reducing emissions; and increasing agriculture's potential to capture and sequester atmospheric carbon.

"We need to start putting climate-smart agriculture into practice, working closely with farmers and their communities," said FAO Assistant Director-General for the Economic and Social Development Department, Hafez Ghanem. "But there are no one-size-fits-all solutions — better climate-smart farming practices need to respond to different local conditions, to geography, weather and the natural resource base," he added.

"This project will look closely at three countries and identify challenges and opportunities for climate-smart agriculture and produce strategic plans tailored to each country's own reality," Ghanem said. "While not all solutions identified will be universally applicable, we can learn a lot about how countries could take similar steps and begin shifting to this approach to agriculture."

Tailor-made solutions

The EU is providing €3.3 million to support the effort; FAO's contribution is €2 million.

Working closely with agriculture and other ministries in each of the partner countries, and collaborating with local and international organizations, the three-year project will:

  • Identify country-specific opportunities for expansion of existing climate-smart practices or implementation of new ones
  • Study the constraints that need to be overcome to promote wider adoption of climate-smart agriculture, including investment costs
  • Promote integration of national climate change and agricultural strategies to support the implementation of climate-smart agriculture
  • Identify innovative mechanisms for linking climate finance with climate-smart agriculture investments
  • Build capacity for planning and implementing climate-smart projects capable of attracting international investments


FAO will take the overall lead on the project, working in partnership with national policy and research institutions, as well as global organizations such as the Global Crop Diversity Trust.

By tackling the urgent need to incorporate climate change concerns into agricultural development planning, this new project represents a concrete step forward, said Ghanem. "The problems of climate change are increasingly being felt on the ground, and thus early actions to address the problem are needed, even as international negotiations continue in the search for a global climate agreement," he said.

Sunday, February 12, 2012

SEAWEED BIOFUELS, WHAT’S YOUR TAKE?

SEAWEED BIOFUELS, WHAT’S YOUR TAKE?

Erle Frayne D. Argonza

Kelp off the coast of Chile is being developed into a source of biofuels today. The strategy is aquafarming and not the open biomining of available seaweeds. Which means that biotech can be applied to treble the quantities of yields of the bi-product.

What’s your take of the new development in biofuels? Techno-innovators would surely welcome this development, among whom are budding entrepreneurs eager to cash in on the aquafarming promise? However, this development may not sink in well with hardline greens or eco-fascists who may view the aquafarming as another anamolous engagement to pollute the seas.

The sci-tech news is shown below.

[Philippines, 04 February 2012]

http://www.scidev.net/en/climate-change-and-energy/biofuels/news/breakthrough-in-quest-to-turn-seaweed-into-biofuels-1.html

Breakthrough in quest to turn seaweed into biofuels

Paula Leighton

19 January 2012

[SANTIAGO] Brown seaweed's potential as a vast source of biofuels has been highlighted with the announcement that scientists have found a way of converting all its major sugars into ethanol.

A team reported in Science today (19 January) that it has engineered a microbe that will convert the sugars to ethanol, overturning one of the main obstacles to making the use of brown macroalgae, or seaweed, as a biofuel feedstock competitive.

The prospective ethanol yield from brown seaweed is approximately two times higher than that from sugarcane and five times higher than maize, from the same area of cultivation.

But its full potential cannot be reached because of the inability of industrial microbes to break down alginate, one of the three most abundant sugars in brown seaweed, commonly known as kelp, which is the most widely grown seaweed in the world.

Now, researchers based in Chile, France and the United States say that they have developed the first microbe capable of fermenting all the major sugars found in a common species of brown seaweed (Saccharinna japonica).

"This [development] makes [brown seaweed] a viable biomass for the production of renewable fuels and chemicals," Yasuo Yoshikuni, co-author of the study and chief science officer at Bio Architecture Lab (BAL) Inc — a US company that has built four seaweed farms off the coast of Chile — told SciDev.Net.

The team engineered Escherichia coli bacteria, which has the natural ability to metabolise glucose and mannitol — the other two main sugars in brown seaweed — and Vibrio splendidus a microorganism containing all necessary genes to metabolise alginates.

As a result, the scientists were able to get a yield of bioethanol directly from seaweed equivalent to 15,000-20,000 litres per hectare per year.

An analysis by the US Department of Energy has previously reported that, if technical barriers were overcome, brown macroalgae could produce 19,000 litres per hectare per year.

Brown seaweed "does not compete with food crops or terrestrial plants for land and fresh water, and seaweed aquafarming can absorb excess nutrients in the ocean [which can cause oxygen depletion]", said Yuki Kashiyama, head of BAL Chile.

Stephen Mayfield, director of the San Diego Center for Algae Biotechnology at the University of California, San Diego, United States, told SciDev.Net: "This is a great engineering feat but, at least for right now, kelp is not a viable feedstock for ethanol production, and won't be until we can figure how to grow it and transport it to a processing site in an easy and energy efficient way".

According to Yoshikuni, to demonstrate "overall process economics more in depth" an experimental pilot facility is being built in Chile and is scheduled to start scaling up the process by July. For this stage BAL has received a grant from CORFO (see Chile is committed to algae-based biofuels, in Spanish), the Chilean agency that promotes innovation.

Link to full paper in Science

References

Science doi:10.1126/science.1214547 (2012)

Tuesday, February 07, 2012

MEKONG LEADERS PLAN AHEAD

MEKONG LEADERS PLAN AHEAD

Erle Frayne D. Argonza

An end-of year (2011) good news was the meeting of Mekong leaders to plan ahead for tomorrow. A 10-year plan was forged among them, with the ADB acting out as process facilitator and co-convenor.

The Mekong region comprises a huge section of the continental Southeast Asia which by itself is a subregion of significant proportions. Boosting development growth in the subregion will surely impact greatly for the entire ASEAN. U.S. $14 Billion was earmarked for the projects, on top of the $5 Billions that was already expended by the ADB for the program.

Note that a $100-Billion Integrated Mekong River Project is now on-going, with China providing the biggest bulk of the funding. When finished, the gigantic project, which will be led by a system of hydro-electric dams, may turn out to be the world’s biggest ever.

Peoples of ASEAN should look forward to seeing the success of the development projects in the subregion.

[Philippines, 02 February 2012]

Source: http://beta.adb.org/news/mekong-leaders-agree-wide-ranging-development-plan-next-decade

Mekong Leaders Agree on Wide-Ranging Development Plan for Next Decade

Date

20 December 2011

MANILA, PHILIPPINES – At the conclusion of the 4th Greater Mekong Subregion (GMS) Summit today, leaders of the six nations that share the Mekong River agreed on a new 10-year plan to boost growth, development and poverty reduction across the GMS.

In a joint declaration issued at the conclusion of the Summit, GMS leaders endorsed a strategic framework for 2012 to 2022 that calls for a range of new measures to strengthen regional cooperation, including more effective resource utilization and more careful balancing of development with environmental concerns.

“The new Strategic Framework for 2012-2022 will move the GMS to the next level through multisector investment projects, policy development, and inter-sector coordination,” said ADB President Haruhiko Kuroda.

GMS leaders also endorsed strategies to enhance agricultural development, including food safety and security; accelerate the development and implementation of the pro-poor sustainable tourism industry, with the creation of multi-country tour packages to help spread revenues more widely; and promote low-carbon development and enhance management of the sub-region’s richly diverse ecosystems.

Since its inception in 1992, the GMS program has helped bring an area once divided by conflict increasingly together with investments of about $14 billion in projects with broad subregional benefits, including roads, airports and railways; telecommunications; energy; urban development; tourism; environmental protection; and the prevention of communicable diseases.

Since the start of the economic cooperation program, gross domestic product growth in the subregion has averaged about 8% a year, while real per capita incomes more than tripled between 1993 and 2010. As of September 2011, ADB assistance for the program totaled about $5 billion.

GMS members include Cambodia, Lao People’s Democratic Republic, Myanmar, Thailand, Viet Nam, and Yunnan province and the Guangxi autonomous region in the People’s Republic of China.

Saturday, January 28, 2012

MOROCCO JETTISONS CLEAN ENERGY, KUDOS!

MOROCCO JETTISONS CLEAN ENERGY, KUDOS!

Erle Frayne D. Argonza

The Middle East and North Africa or MENA has some good news going concerning clean energy. This surely freshens the region a bit that has been mired in bloody conflicts between the youth-driven anti-Old Order movements and the status quo of Stone Age prinzeps-military dictatorships-family oligarchies.

US $9 Billions was allocated recently by stakeholders in Morocco to leapfrog the renewable energy or RE sector there. The project is largely in the domain of solar panel power production, which I find truly appreciable. The project could spin off RE across the entire region, or at least North Africa, so let’s cross our fingers that a new light will spark off human development in the entire region.

Below is a report on the subject from the World Bank.

[Philippines, 28 December 2011]

Source: http://menablog.worldbank.org/morocco-lights-way-clean-energy-future

Morocco lights the way to a clean-energy future

Submitted by Inger Andersen on November 18, 2011

Some countries of the Middle East and North Africa region are once again lighting up a new path. Following the social revolutions which showed the world the effect of combining non-violent protest with new media technology, an energy revolution is now underway. It also utilizes cutting-edge technology with the potential to lead the world into a new energy era. Pointing beyond fossil fuels, this revolution aims to harness an older and more abundant resource: sunshine.

Morocco has launched a National Solar Plan that is as bold as it is ambitious. Using Concentrated Solar Power technology, this $9 billion project aims to build five commercial-scale solar plants, with a generating capacity of 2,000 megawatts, the equivalent of a large nuclear power plant. The first solar plant will be constructed on the Ouarzazate plateau, south of the Atlas mountains, and is expected to begin generating power by 2014, with the full project slated for completion in 2020.

Morocco might be classified as a developing nation, but it is making a huge investment in its future, and championing the challenges of climate summits in Copenhagen and Cancun to fundamentally change our energy consumption models to protect the environment. This is no small feat for a country almost wholly reliant on coal and oil. Ouarzazate represents the first step in a radical transformation that by 2030 aims to cut the country's consumption of oil by 40 percent. Morocco currently imports 97% of its primary fuels, and this move toward domestic production will both provide significant energy security and eventually convert it into an energy exporter.

Apart from the economic benefits gained from nurturing a new industry - with the new jobs and skills it will create - the investment will also be a boon to the environment. It is calculated that the first phase of the Ouarzazate project will spare the atmosphere the equivalent of 240,000 tons of carbon dioxide per year, while the full solar project will reduce annual emissions by three million tons.

The Middle East and North Africa (MENA) is on the sharp end of climate change. Significant action to mitigate its effects is a necessity, not a subject for debate. Of the 19 countries that experienced record temperatures in 2010, five were in MENA.

From a development standpoint, this sort of extreme weather can have disastrous social and economic consequences; reversing gains and driving people back into poverty. The effect of lower precipitation and droughts is one example and precious water resources will become increasingly scarcer forcing people to spend more time looking for it, potentially foregoing critical activities such as education. In Yemen, where the search for water is the culturally defined job of young women, water scarcity could have a multi-generational impact on gender parity.

Climate change is the defining issue of our time, and while MENA is already grappling with its very real consequences, Morocco is showing a way forward. It is moving beyond pronouncements and translating commitments into actions. It is taking advantage of its wide open spaces and abundant sunshine. Although the World Bank and the Clean Technology Fund are supporting the project with low-cost financing, the leadership is Morocco's own. It is the first to launch a project under the MENA Concentrated Solar Power Scale-Up Program, a landmark World Bank development initiative that is designed to fund eight other commercial-scale power plants in the region.

Concentrated Solar Power technology has proven dependable in generating consistent levels of electricity, and the Moroccan plan will prove its suitability to large-scale industrial application. It will also prove to all the participants of the COP 15 and 16 climate summits, that mitigating the effects of climate change through the gradual replacement of fossil fuels with renewable energy is possible. It just means taking the summit pronouncements seriously, and turning them into bold actions.

There is no GDP test for innovation. It is not size that matters, but vision and commitment, and Morocco is displaying plenty of both. The progress of the National Solar Plan will be watched closely by its neighbors, eager to follow in its footsteps. Morocco could very well unleash a green energy revolution in the heart of the sunshine belt.

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Friday, January 13, 2012

IS SOMALIA’S FAMINE HOPELESSLY IRREVERSIBLE?

IS SOMALIA’S FAMINE HOPELESSLY IRREVERSIBLE?

Erle Frayne D. Argonza

Is the Somalia famine hopelessly irreversible? If the catastrophe can be reversed, can the interventions be sustained without aid from external donors?

Those are pretty tough questions to answer. Admittedly, the famine in the Horn is too large a human & nature predicament, with over 11 millions of hungry people affected at its peak some couples of months ago. Somalia seems to be a classic basketcase of the catastrophe, as the problem there is complicated by peace & order challenges.

Below is a reportage on the subject by the UNDP. Note that the UNDP experts have taken the standpoint that the problem can be reversed but with substantial assistance from benevolent sources.

[Philippines, 21 December 2011]

Source: http://www.beta.undp.org/undp/en/home/presscenter/articles/2011/11/21/famine-in-somalia-can-only-be-reversed-with-continued-assistance.html

Famine in Somalia can only be reversed with continued assistance

21 November 2011

Water tanks have also been placed along the routes being used by displaced people. (Photo: OCHA/Buhaene)

Nairobi – Increased humanitarian assistance to Somalia has had a significant impact in the famineaffected parts, bringing the three southern regions of Bay, Bakool and Lower Shabelle out of famine.

However, according to the latest data compiled by the Food Security and Nutrition Analysis Unit and Famine Early Warning System in southern Somalia, famine persists in parts of the Middle Shabelle region and in the areas hosting internally displaced persons in the capital Mogadishu and along the Afgooye corridor, northwest of the city.

Malnutrition and mortality rates in many parts of southern Somalia continue to be the highest in the world.

“Any improvements can only be sustained if the current level of humanitarian assistance continues,” said Mark Bowden, the UN Humanitarian Coordinator for Somalia, who also serves as the UN Development Programme’s Resident Representative.

“If humanitarian activities are interrupted or reduced in southern Somalia, many areas will fall back into famine. It is only thanks to the generosity of donors that we have been able to save tens of thousands of lives in the past three months. We need this support to continue or the price we pay will be the loss of thousands of lives.”

The UN and other partners are working to increase access to food, markets and health services. UNDP has been working in Mogadishu and in some of the famine-affected districts building shallow wells, boreholes and water pumps, rehabilitating essential agricultural infrastructure, and helping to create short term jobs which allow households to improve access to food.

Somalia continues to face the largest humanitarian crisis in the world with over half of its population in urgent need of assistance.

Three million out of the four million people in crisis are in southern Somalia, where access to the population in need remains a major challenge.

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Wednesday, January 11, 2012

GLOBAL FOOD UPDATE: PRICES REMAIN HIGH!

GLOBAL FOOD UPDATE: PRICES REMAIN HIGH!

Erle Frayne D. Argonza

Here’s the bad news for everyone across the globe: global food prices remain high. In the Horn of Africa particulary, food crisis remains as the calamity that recently hit the area bordered a catastrophe of drought cum famine.

As Zoellick of World Bank had contended, the food crisis is far from over. Calamities after calamities have struck different parts of the globe in a super-convergent fashion, thus contributing to the high price index of food as a whole. Thailand is still under flood waters as of November, thus hampering the overall grains production, leading to further speculation in the cross-border prices of grains.

Below is a summary of the bad news going about food prices.

[Philippines, 20 December 2011]

Source: http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:23036667~pagePK:64257043~piPK:437376~theSitePK:4607,00.html

Global Food Prices Remain High and Volatile Affecting Poorest Countries the Most

Press Release No:2012/134/PRM

Floods in Thailand add further uncertainty. Food crisis in the Horn of Africa continues

WASHINGTON, November 1, 2011–Global food prices remain high and volatile, hitting the poorest countries hardest and adding to the strains facing the global economy, according to the World Bank Group’s new Food Price Watch released ahead of the G-20 Summit in Cannes, France. While the Bank’s food price index has dropped 5 percent from its February 2011 peak and dipped marginally in September by one percent, it remains 19 percent above its September 2010 levels.

“The food crisis is far from over,” said World Bank Group President Robert B. Zoellick, who has urged the G-20 to put food first. “Prices remain volatile and millions of people around the world are still suffering. The World Bank has been working closely with the French Presidency of the G-20 and our partner international organizations on actions to protect the most vulnerable from the dangers of food price volatility, while also addressing some of its root causes. Let's remember, averting crisis is not just about banks and debt. Millions of people around the world face a daily crisis of hunger and malnutrition. At Cannes, the G-20 can and should take steps to address their needs."

The Group of 20 heads of government, who are meeting in Cannes Nov. 3– 4 to discuss the global economy, are expected to endorse a package of concrete actions to improve transparency and policy coordination to detect and correct problems early; to help countries manage price volatility using sound risk management tools; to promote more productive and resilient agriculture; and to get food to the needy fast through emergency regional humanitarian food reserves and agreement not to ban exports of food for World Food Programme. As the world population reaches a staggering 7 billion people, it is more important than ever for the global community to galvanize around actions to improve food security.

According to Food Price Watch, a quarterly report, recent floods in Thailand−the worst in 50 years−may add uncertainty in the short run following estimated production losses of between 16 to 24 percent of total production. In the meantime, the food crisis in the Horn of Africa continues, affecting over 13.3 million people in the region–an additional million since August, and the outlook remains frightening.

The report said prices of grains rose 30 percent (September 2010–September 2011), with maize increasing by 43 percent, rice by 26 percent and wheat 16 percent. Soybean oil went up by 26 percent. Over the last quarter, however, an increase of 3 percent in the price of grains was roughly offset by a 3 percent decline in the prices of fats and oils.

Volatility, which is higher in low income countries, is expected to persist in the medium term due to multiple global and domestic factors. Structural factors contributing to the volatility include rising populations and changing diets, increasingly intertwined relations between food and energy prices, and increasing production of biofuels.

On the other hand, a favorable outlook on supply and stocks is likely to relieve some of the pressure on global food prices. Latest forecasts show global wheat stocks reaching a 10-year high in 2011-12, global production of maize to rise by 4 percent from increased production in Argentina, Brazil, China, Russia, and Ukraine. Global rice output is also likely to get a boost in 2011-12 due to an expected bumper harvest in India following very favorable monsoon rains.

These production gains in some markets underscore the critical need to keep international markets open, to get food where it is needed, provide incentives to farmers who expand production, and avoid panic behavior created by export bans.

While a troubled global economy could dampen demand and push food prices down, the effect on developing countries would be mixed−hurting food exporting countries and poor producers in rural areas, and benefiting food importers and consumers. The problem, Food Price Watch warns, is that developing countries might have now limited resources to protect vulnerable populations following the economic crisis and stimulus spending.

In addition, fears associated with the global economy may affect medium to long-term investments in agricultural research and more productive agricultural techniques, especially amid persistent volatility.

Among the ongoing efforts to improve volatility-related information, the G-20 agriculture ministers introduced the Agricultural Market Information System (AMIS), officially launched in September, to increase market transparency on the short-term global food outlook, especially stocks, and to identify abnormal international market conditions in order to prompt early responses.

How the World Bank Group is helping to put food first

In the Horn of Africa, the World Bank Group is providing $1.88 billion to save lives, improve social protection, and foster economic recovery and drought resilience. More than 13 million people are affected by the crisis.

A first-of-its-kind World Bank Group risk management product, provided by the International Finance Corporation (IFC), will enable up to $4 billion in protection from volatile food prices for farmers, food producers, and consumers in developing countries.

The Global Food Crisis Response Program (GFRP) is helping some 40 million people through $1.5 billion in support.

The World Bank Group is boosting its spending on agriculture to some $6 to $8 billion a year from $4.1 billion in 2008.

Supporting the Global Agriculture and Food Security Program (GAFSP), set up by the World Bank Group in April 2010 at G-20’s request, to assist country-led agriculture and food security plans and help promote investments in smallholder farmers. To date, six countries and the Gates Foundation have pledged about $971.5 million over the next three years, with $571 million received.

The World Bank Group is coordinating with UN agencies through the High-Level task Force on the Global Food Security Crisis and with NGOs.

The World Bank Group supports the Consultative Group for International Agriculture Research (CGIAR), which it helped to establish in 1971. In 2008, the CGIAR with the support of the World Bank and other donors launched a reform process, which culminated in the adoption of a comprehensive strategy that determines the new global research programs and a new funding model that prepares CGIAR to absorb and attract vastly more program funding, with a target annual budget of $1 billion by 2013, to which the World Bank contributes some $50 million per year. With agriculture production needing to rise some 70 percent by 2050, and with a five- to ten-year window to develop new varieties and get them to farmers, increased funding from the international community for global research is critical.

Contacts:

In Washington: Alejandra Viveros, (202) 473-4306, aviveros@worldbank.org

For Broadcast Requests: Natalia Cieslik, (202) 458-9369, ncieslik@worldbank.org

To access Food Price Watch, please click:

http://go.worldbank.org/26VBL9Q3F0

Food Price Watch author, Jose Cuesta will take part in World Bank Live online discussion about Global Food Prices on Tuesday, November 8 at 10:00 am EST (15:00 GMT). Participate and submit questions in advance here: http://live.worldbank.org/qa-global-food-prices-nov-2011

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Thursday, November 24, 2011

A ‘WRETCHED OF THE EARTH’ SURMOUNTS HUNGER & POVERTY

A ‘WRETCHED OF THE EARTH’ SURMOUNTS HUNGER & POVERTY

Erle Frayne D. Argonza

The narratives from poor communities in developing countries about folks thriving on a mere once-a-day meal is classic story of the ‘wretched of the earth’. Getting to know them closely through participant observation could make one feel what a living hovel is which, in esse, far outweighs the subjects of Franz Fanon’s Wretched of the Earth.

In UN development parlance, such folks are concrete cases of those families earning below US $2 per day. The UN’s member countries were thus challenged to accelerate their poverty alleviation agenda so as to half the quantities of warm bodies falling within the ‘wretched’ criterion.

Below is an example of a human interest narrative coming from Asia that fits into the MDG success story.

[Philippines, 19 November 2011]

Source: http://www.beta.undp.org/undp/en/home/ourwork/povertyreduction/successstories/onemealadaytothree.html

From one meal a day to three

Asea Begum inside her home grocery store in Mymensingh district, northern Bangladesh. (Photo: UNDP)

Inside Asea Begum's home, shelves teem with jars containing pulses, grains, spices and dried biscuits. A little girl runs in with a small plastic bottle that Begum fills with cooking oil in exchange for a few coins.

Asea Begum runs a small grocery store out of her one-room house in the Mymensingh district of northern Bangladesh. The store is a primary source of income for Begum, and allows her to provide for her family.

Highlights

  • UNDP's UPPR initiative has improved living standards for more than 2.3 million people in Bangladesh.
  • UPPR has provided Slums in Bangladesh with 12,370 latrines, 2,122 tube wells, 46 kilometers of drains and 128 kilometers of footpaths.
  • More than 90 per cent of all posts in the UPPR initiative's community-led committees are held by women.

Not long ago, however, Begum and her family ate just one meal a day, consisting of plain rice and a few pieces of chili. Her children were always hungry and her husband, who pulls a rickshaw all day, was continually exhausted.

All this changed when Begum received a loan of 6,000 Bangladeshi Taka (about US$85) from her local community development committee. The loan allowed her to start a small grocery business and thereby signicantly increase her income.

After repaying the loan, she also borrowed cash to buy goats, which she raises and sells in front of her house. Her monthly income is now about US$15, after expenses, and she has become a member of her local community development committee.

These committees, made up of women like Begum, are the core of the United Nations Development Programme’s (UNDP) US$120m Urban Partnerships for Poverty Reduction (UPPR) initiative.

UPPR, which began in 2008 and will run until 2015, is implemented by various governmental and non-governmental partners and UN agencies. It currently has 100 government staff and 400 mostly national UNDP staff.

The project is the largest of its kind in Bangladesh and one of the largest in the world. Its goal is to reduce urban poverty in the country and improve the livelihoods and living conditions of Bangladesh's three million urban poor and extremely poor people, especially women and girls.

“Poverty reduction initiatives have the best effects when they target women,” explains programme manager Richard Geier, “because [women] are the most affected, under-employed, and they are the ones caring for children.”

UPPR’s committees provide the necessary support for members to embark on income-generating activities and obtain eco-friendly job skills training. They also assess the community’s needs in order to develop action plans for providing needed services, such as health facilities and legal assistance.

“We are mobilising community members, integrating them into community organisations, and this helps them become empowered to address their needs,” says Geier. “They used to be isolated, but now they know they can seek help.”

By the end of 2009, Bangladesh had more than 1,200 committees, consisting of 1.7 million people from 23 towns and cities.

The committees, which also encourage members to form savings and credit groups, are highly effective in promoting the kind of development local people want and need.

As a result of the committees’ work, the slums covered by the UPPR initiative now have 12,370 more latrines, 2,122 more tube wells, 46 more kilometres of drains and 128 more kilometres of footpaths.

The UPPR initiative’s strategy also includes policy advocacy, which helps to develop policies that support the poor and implement them at national and local government levels.

It’s a strategy that seems to be working so far.

By selling groceries and rearing goats, Begum has been able to replace her house’s flimsy bamboo walls with sturdier material and her family now eats three meals a day including vegetables and fish. Best of all, through her local community development committee she has a cadre of other women on whom she can rely for support.

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