Korennova V.V., Pikiner V.V., Rieznik M.A.
Oles Honchar Dnipropetrovsk National University, Ukraine
THE WORLD FOOD CRISIS: ITS CAUSES AND WAYS TO OVERCOME
Ukrainian economy is increasingly dependent on the processes which take place in the world.
According to the estimates of experts, the number of people in the world will have reached nine billion by 2050. The rise in population is accompanied by the increase in the demand for food. The demand for food which is outgrowing its supply and the fact that there may not be enough food for everyone result in high food prices. In addition to that, the climate change leads to the temperature rise, that’s why many areas suffer from water shortages, abnormal natural phenomena, etc. This can significantly reduce future crop and result in so-called "perpetual food crisis".
The reasons for the aggravation of the food problem in the world can be grouped into several categories, such as natural and climatic, financial and speculative speculation, market and demographic.
A significant part of agricultural regions suffered from various natural disasters. The world witnessed such events as a drought in Russia (in 2010), a frost in the U.S. (in 2012), a flood in Pakistan (in 2010), a drought in China (in 2011), global climate changes, and many others.
The speculation in the commodity and stock exchanges have a negative impact on the state of the food market. Financial speculation and "financial bubbles" that it creates are the most important factor that contributes to the sudden price fluctuations in the world market of food and energy resources. In addition, the growth of prices of other goods and services, particularly the fee for housing and public utilities and the price of fuel, makes a huge impact on the food market.
The negative impact of IMF actions should also be noted. This fund provides loans to poor countries on very tough terms. In order to repay a loan developing countries are forced to export the best part of their agricultural products which is a prejudice to their national interests and leads to food shortages that residents of such countries are experiencing in the domestic market as the result of this policy.
A characteristic feature of the modern food market is its considerable monopolization. Large monopolistic corporations of the U.S. and the EU do not allow the smaller domestic firms to develop. Agricultural and food corporations grow a large amount of monocultures and charge dumping prices which makes their competitors leave the market. This contributes to the price inflated monopoly in the food market.
Another negative trend has become evident as the demand for raw materials for biofuels is rising. The world's arable land is used more and more often to cultivate the standing of crop for biofuels rather then grow food crops. For example, in Brazil 21 million hectares are used for this purpose, and in Argentina this number makes 14 million hectares.
The production of biofuels has led to the formation of a new relationship between the prices of agricultural commodities and oil prices.
The demographic factors have made a considerable impact on the world market conditions as well. The rapid growth of population in the third world countries pushes many countries off into the food pit and aggravates the problem of providing food that is already acute.
In Ukraine, in February 2011, the company Research & Branding Group carried out a survey on the food crisis. According to research findings, people of western regions (62% of the total number of respondents) consider the global food crisis to be a real treat for Ukraine. Regardless of the region, pensioners (56%) are afraid of the food crisis most. As we know, this is the most socially unprotected population group in our country. Among the respondents aged 18 to 29 years old the number of those who fear the approach of the food crisis is 10% less [1].
The food problem is global because of its humanistic significance and its close interrelation with the difficult task of overcoming the socio-economic backwardness of former colonies and dependent states.
The inadequate provision with food for the considerable part of population in developing countries is not only a brake on progress, but also a source of social and political instability in these countries.
The universal character of the problem shows itself in different ways. There is no state in the world where the production, distribution and foreign trade in food is not a responsibility of the government. While some countries are suffering from hunger and malnutrition, others strive for a adequate diet, and there are some countries that are struggling either with a surplus of food, or with an excess of consumption.
In our view, the solution of the global food problem should include not only the issue of the increase in food production, but also the issue of the development of strategies for the rational use of food resources, both at the level of each country and at the world level.
Let’s take Ukraine as an example. There is lot of desolate and uncultivated land in our country. According to estimates, Ukrainian land is able to feed more than 300 million people on condition of the due treatment. But the legal mechanism for the use of land resources in Ukraine is so complicated and multifaceted that its successful implementation may take years. The program to restore soil fertility which dropped to critical levels over the past century can serve as an example here. Unfortunately, Ukrainian chernozem which contains from 10 to 12 percent humus, the main soil organic matter, can nowadays be found only in the Institute named after Pasteur in Paris [2].
Our agricultural sector is experiencing one of the toughest times in its history. Increasing food dependency in the globalizing world economy undermines national security, exposes the internal market to the danger of its overtaking by foreign manufacturers. The country's authorities must understand the gravity of the current situation and take necessary measures to put an end to the collapse of a vital industry.
We believe that national food security should be a priority. Providing the optimal level of food security is not only a national concern. It affects various aspects of life of dozens of millions of people as well as the reproduction of future generations of our state. Strict government restrictions on the export of food in the lean years and the fight against speculative price increases in domestic markets must be a norm. The problem of the use of agricultural land for growing crops for biofuels in Ukraine is also quite pressing and it requires immediate consideration and settlement at the legislative level, because humanity may survive the deterioration of oil resources, but it is unlikely to survive the exhaustion of soil.
Literature:
1. Боровский А. Реакция общественного мнения на мировой продовольственный кризис в Украине [Електронний ресурс]. – Режим доступу: http://www.rb.com.ua/rus/ analitics/socyum/7401/
2. Нанавов А. «Зеркало недели. Украина» №7, 25 февраля 2011 «Продовольственный кризис – проблема глобальная» [Електронний ресурс]. – Режим доступу: http://zn.ua/ECONOMICS/prodovolstvennyy_krizis__problema_globalnaya-76287.html
3. Положение дел в связи с отсутствием продовольственной безопасности в мире [Електронний ресурс] – Режим доступу: http://www.fao.org/publications/sofi/ru
4. Продовольча безпека та місце України в її забезпеченні [Електронний ресурс]. – Режим доступу: http://agrodelta.com.ua/en/news/prodovolcha-bezpeka-ta-misce-ukraini-v-ii-zabezpechenni.html