We tend to forget that the worldwide plunge into recession last year was the result of three separate phenomena that combined to breed disaster. The financial crisis was joined by a food crisis and a fuel crisis as the prices of food and energy soared, triggering food riots across the world.
And now there are ominous signs of another food crisis in the making this year, spurred in part by the ongoing credit crunch that has made it difficult for farmers to get loans. "I think the world would like to focus on one crisis at a time, but we really can't afford to," warned Josette Sheeran, executive director of the U.N. World Food Program.
Food supplies are tight and prices still high, she said, and more people in poor countries are unable to afford what they need because of the recession. "These are not separate crises. The food crisis and the financial one are linking and compounding," she noted, adding that food shortages often trigger political instability. "I'm really putting out the warning that we're in an era now where supplies are still very tight, very low and very expensive."
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