President Robert Mugabe called for the lifting of "illegally imposed sanctions" on his
regime.
'Food prices a time bomb'
Article By:
Thu, 05 Jun 2008 13:42
The rising cost of food was a time bomb that could result in
uprisings, ANC president Jacob Zuma told the World Economic Forum on
Africa on Thursday.
"The issue of food prices is actually a time bomb," he told a
plenary of the forum, being held in Cape Town.
"With those who have the budgets to adjust, [it] is one thing. But
with those who have no money to buy at all, once the food price goes
up, they are cut out, even from the possibility of buying food.
"Then you are sitting with a situation that an uprising would
emerge."
Escalating cost of wheat
Zuma was speaking against the background of a global doubling in the
price of wheat in the past year, and an almost 80 percent hike in the
African and Asian staples maize and rice over the same period.
Soaring food costs have already sparked riots in Egypt, Indonesia,
Cameroon, Peru and Haiti.
United Nations Secretary General Ban Ki-moon warned this
week that
food production had to rise by 50 per cent by the year 2030 to meet the
rising demand.
Zuma told the WEF meeting he did not think there was a lot that
governments could do about the issue, and that politicians were being
asked to solve problems beyond their control.
"We must have global solutions to global problems... a multilateral
approach to identify where the problems begin and what then must be
done," he said.
Finance Minister Trevor Manuel, speaking at the same plenary, said
that in addressing the problem there was a need to focus on governance
broadly, and multilateralism was an important part of this.
"But part of what we don't want to talk about is what lies upstream
from agriculture, and one of the issues upstream is clearly the oil
price," he said.
He said that in South Africa about 34 percent of the price of a loaf
of bread emanated from the wheat price and 36 percent from the
logistics chain.
The
oil price factor
Oil prices were driving up food prices, and if that was not changed,
they would continue to soar.
Manuel warned that governments should not allow themselves to be
dragooned into taking short-term decisions.
"We need to ensure there is support for agriculture, but we must
guard against the introduction of subsidies that become an end in
itself," he said.
He said the 50 percent call by Ban was "interesting" but did not
know whether the goal was reachable.
Unlocking Africa's potential meant more than just buying fertiliser:
it also meant establishing infrastructure such as roads, water
harvesting, and storage capacity.
All of this required a measure of government support, which could be
done in the short-term.
Manuel also said governments should take a stand on "demand
management".
"You know, in the United States, every individual consumes the
equivalent of 40 kilograms of
chicken at the moment. In 1980 it was 20
kilograms per year.
"That kind of demand is unsustainable because we are dependent on
factors of production like soil and climate, over which we have no
control.
"Governments must be involved in communication on demand management,
failing which I think the wealthy are going to take everything leaving
the poor destitute."