The Poverty in the World - Essay Example

? The poverty in the world – analysis of the article ‘Droughts, Floods and Food’ (Krugman P., Feb 6 Summary The global food crisis has been a critical issue for politicians, economists and academics worldwide. The continuous increase of food prices in markets worldwide seems to be out of control of governments or the international organizations. The above issue is discussed in the article ‘Droughts, Floods and Food’ of Paul Krugman. The specific article, published in February 2011, reflects the current trends and views on the causes of the global food crisis. Effort is made by the author in order to persuade the readers that the actual reasons of the food crisis worldwide can be identified in phenomena that cannot be controlled, like the damages of corps because of extreme weather events, or in activities that are difficult to be limited, like the industrial activities which are continuously increased especially in emerging countries worldwide. The author also notes that the global food crisis affects mostly poor people – who have to spend most or all of their income on food. Using various examples of extreme weather events worldwide, the author argues that political or economic decisions may be related to the food crisis, but their role in the rapid expansion of the crisis can be doubted; rather the weather, as affected by the increased pollution, should be characterized as the main cause of the global food crisis. The views of the author, as briefly presented above, are critically discussed and evaluated using appropriate literature, i.e. academic studies which focus on the global food crisis. 2. Issues discussed in the paper – presentation and analysis In the article under analysis, Krugman aims to present the key causes of the global food crisis. Aiming to show that the Federal Reserve Bank or the increase in the commodity prices worldwide are not the actual causes of the above crisis, Krugman emphasizes on the role of the extreme weather events – as a result of the global climate changes – in the increase of food prices and the expansion of the food crisis worldwide. The article of Krugman refers to the current aspects of the particular crisis as these aspects can be identified in countries worldwide. The article is not limited in terms of geography, rather it refers to the food crisis as developed globally. However, extreme weather events - recent ones - in specific countries are used in order to prove the relationship between the global financial crisis and the specific events. More specifically, reference is made to the fires in Russia, the flooding in Australia and the dry weather in Brazil. It is noted that extreme weather events are more likely to influence the food prices – compared to the commodity prices, which cannot have an impact, in accordance with Krugman, on the food prices. However, no data or relevant reports are used for supporting the specific view. Instead, the events are mentioned followed by the personal views of the author, without using appropriate literature or findings of research made on the specific issue. The key point of the article is that the global climate change which has led to natural phenomena such as the La Nina, is the key cause of the global food crisis and for this reason the claims that ‘Ben Bernanke has blood on his hands’ (Krugman, p.1 & 3) should be opposed as non-valid. Instead, measures should be taken in order to control the global food crisis that, in accordance with Krugman, is expected to further expand, as a result of the increase of greenhouse gases. 3. Evaluation of the author’s perspective In accordance with the issues discussed above, the global food crisis, as expanded quite rapidly in the international community is quite difficult to be controlled, mostly because it is related to events that cannot be foreseen and they are quite difficult to be confronted. In fact, no matter the technology available, certain of these events, cannot be managed, like in the case of fires in Russia and the flooding in Australia – two examples used by Krugman in order to justify his view that the global food crisis is not manageable – as some people may argue. The literature published in this field could help to understand whether the views of Krugman, as developed in the article under analysis, are valid or well justified. Cohen and Clapp (2009) note that the increase in food prices are rather difficult to be stabilized; rather they are likely to be further increased at least up to 2015 – reference is made to a relevant report of the US Department of Agriculture (Cohen and Clapp 2009, p.13); this view is common with that of Krugman – who also emphasizes on the continuation of the increase of food prices in the future. The above authors note that the causes of the increase of food prices – which is the basis of the global food crisis - would be categorized as follows: short term causes and long term causes. The first category includes: decrease in agricultural production and increase in demand, decline in the stocks of grain worldwide, increase of the cost of energy used in the production, increase of demand in emerging countries and replacement of crops for promoting biofuels (Cohen and Clapp 2009, p.14-19). As for the long-term causes of the increase of food prices, these would include: reduction of investment on agricultural production, reduction of the involvement of the state – through regulation – in agricultural production (Cohen and Clapp 2009, p.20-21), ‘the removal of agricultural tariffs’ (Cohen and Clapp 2009, p.22) and the increase of exports of crops (Cohen and Clapp 2009, p.24). In other words, extreme weather events are not considered as having a role in the increase of global food prices; instead emphasis is given on the role of the regulatory and the economic decisions of the governments in the development of the food crisis worldwide. At this point, there is a clear differentiation from the views of Krugman who emphasizes on the extreme weather events – as critical factors for the global food crisis – and argues that political and economic decisions of governments cannot influence the global food prices. In the study of Himmelgreen and Kedia (2010) a similar view with that of Cohen and Clapp (2009) regarding the global food crisis is presented; in accordance with Himmelgreen and Kedia (2010) the global financial crisis led to ‘the increase of food and fuel prices’ (Himmelgreen and Kedia 2010, p.194). It is explained that the above phenomenon affects mostly the people in developing countries (Himmelgreen and Kedia 2010, p.194). Moreover, the above authors consider the expansion of global food crisis so rapid and catastrophic that they use the term ‘silent tsunami’ (Himmelgreen and Kedia 2010, p.194) to describe the rapid development of the phenomenon. At the next level, the case of Ethiopia (Himmelgreen and Kedia 2010, p.78) where the food prices were highly increased in the period 2007-2008 – leading to a severe food crisis across the country – is mentioned as an example indicating the close relationship between the economic decisions and the global food crisis. Again, a differentiation seems to exist between the above authors and Krugman regarding the key causes of the global food crisis; unlike Krugman, Himmelgreen and Kedia (2010) consider that the food crisis – at regional and global level – is related to the economic decisions and policies developed by governments or financial institutions worldwide; extreme weather events do not consider as having the power to affect the global food prices. The increased influence of the economic conditions and decisions on the global food crisis is also emphasized in the study of Minot, Pender, Robles and Von Braun (2008); the above authors note that the increase in commodity prices worldwide has negatively influenced the food prices internationally (Minot, Pender, Robles and Von Braun 2008, p.4). At the same time, it is noted that the increase in global demand and the decrease in global food supply have a key role in the global food crisis (Minot, Pender, Robles and Von Braun 2008, p.4). As for the role of the extreme weather events in the development of the global food crisis, this is not discussed – probably being considered as of minor importance for being mentioned. At this point, a contradiction results, again, regarding the key causes of the global food crisis as presented in the study of the above authors and the article of Krugman. Economic decisions and policies are considered as highly contributing – along with global supply and demand – in the development of food crisis worldwide while extreme weather events are not related to the specific crisis, even if in the article of Krugman these events are presented as the key causes of the crisis. Towards the same direction, as in the literature presented above, Behnassi, Draggan and Yaya (2011) argue that the global food crisis has been resulted and expanded because of a series of factors; the changes in the global climate are considered to have an important role in the above crisis; however, other factors, like the shortage of energy, the lack of effective regulations and policies focusing on the agricultural production (Behnassi, Draggan and Yaya 2011, p.98-105) and ‘the national and international policies on economics’ (Behnassi, Draggan and Yaya 2011, p.106) are also considered as strongly affecting the global food prices contributing in the expansion of the food crisis worldwide. It is made clear that the economic and regulatory policies have a key role in the development of the global food crisis. In all studies reviewed, no reference has been made to extreme weather events as key factors for the global food crisis. The perspectives of Krugman on the reasons of the food crisis worldwide should be therefore strongly criticized as not sufficiently justified; the reference to certain of these events is not adequate in order to establish a relationship between the specific events and the global food crisis. A more in – depth review of the problem using relevant data and reports would be used by Krugman in order to verify his arguments, which seem rather as reflecting the author’s view on the causes of the crisis rather than summarizing the scientific and academic research on the particular subject. Bibliography Behnassi, M., Draggan, S. & Yaya, S. (2011). Global Food Insecurity: Rethinking Agricultural and Rural Development Paradigm and Policy. London: Springer Cohen, M. & Clapp, J. (2009). The global food crisis: governance challenges and opportunities. Waterloo: Wilfrid Laurier University Press Himmelgreen, D. & Kedia, S. (2010).The Global Food Crisis. Hoboken: John Wiley and Sons Minot, N., Pender, J., Robles, M. & Von Braun, J. (2008). Global food crises: Monitoring and assessing impact to inform policy responses. Washington: International Food Policy Research Institute Read More