The rise of food prices is now a global crisis, think about the consequences for hundred of millions of people around the world, and the link that this have with the ethanol production policies in the US.

“The demand for agricultural products has grown, though not as a result of population growth; instead as a result of increased demand for ethanol and other biofuels, and for food that requires more agricultural acreage to produce. Today, besides people and pigs eating corn, our motor vehicles “eat” corn that has been converted into ethanol.” ( Food Prices and Malthusian Economics–Richard Posner)

Read the entire piece here.

From PSD Blog – World Bank Group by Alan Pereira , April 10 2008:

Food prices haveincreased by an estimated 40 percentglobally since 2007. This increase has had a disproportionate effect on many developing nations, where families often spend more than half their income on food. The situation is particularly troublesome in countries such as Nigeria, Vietnam and Indonesia, where the percentage of income spent on food is respectively 73, 65 and 50 percent,as reported recently by the New York Times. As a resultriots have taken placein several countries as people protest the rising food prices.

TheIMF published a brief analysislast month predicting that the social implications in Sub-Saharan Africa may be severe. It also points to long term and temporary factors ??? including rising biofuels production and droughts ??? contributing to the current increase in food prices as well as guiding policy responses.

Oh, the Bob Marley tune that inspired the title of this blog post goes on to say that a “hungry mob is an angry mob.” How is that for a policy-guiding principle?