The general increase in global food prices is one of the current crises that most of countries are suffering from. This crisis has begun by 2005 when the general food prices had faced an incredible increase in many countries across the globe (www.globalissues.org). However, many economists and spectators have confirmed the general increase in global food prices. For instance, The Economist's food-price index stated that food prices are higher today than at any time since 1845. Even in real terms, prices have jumped by 75% since 2005’ (economist.com 2007). Unluckily, these changes in food prices over the last 3 years have had some negative impacts on many countries and actually have spread tension and panic among large and small economies and created many political and economical problems in both poor and developed countries. However, in this paper I will try to critically analyze the major factors behind this crisis. Later, I will show the main effects of rising global food prices on individuals and nations and finally I will suggest some solutions to limit the impact of this crisis.
2-THE MAIN FACTORS BEHIND THE CURRENT INCREASE IN GLOBAL FOOD PRICES:
There are many reasons behind the general rising in food prices, such as
World population growths, increase the usage of biofuel, increase the oil prices, increase the consumers’ demand, natural disasters, Soil productivity losses, fresh water shortage, and global warming.(www.globalissues.org)
One of the main factors that could have affected the food prices is the increase of biofuel usage such as ethanol and biodiesel, where the world is redirecting around 100 million tons of grain to fuel yearly. This amount is actually very substantial compared to the total world wide grain production that was estimated just over 2000 million tons in 2007 (http://biofuel.org.uk/) The extensive usage of biofuel in last 5 years has generated less food available for human consumption and...