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Possible Solution to Global Food Crisis
Introduction
Food security has three components. These are availability of food, access to the
available food and use of the available food. Food security is based on enough supply,
distribution and access to culturally, decent food for everybody. Attaining food security should
be the target of every nation of the world, and each country should focus on producing not only
to consume locally but also for export. Enough quantities of food should be there to everybody
consistently.
The problem of food access in poorer areas will be addressed by formulating the
production and trade rule strategies, allowing states to save and invest in domestic industrial
agriculture and doing more to subsidize and protect small farmers from the competition with
large agri-businesses. The world needs to take emergency measures to make food accessible to
poor people. There can never be a good future for the wealthy if there is no prospect for a better
future for the poor (Life and Death, potlocker.com).

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Foreign Direct Investment (FDI)
FDI is extremely important for countries seeking resources for economic growth, which
amounts basically to all countries. The fact that Transnational Corporations (TNCs) are the
institutions that allocate FDI resources makes them critical actors in IPE. It, therefore, increases
wages and employment. As a result of Mexicos agriculture industry, it has reduced its excessive
reliance on a single market. Its FDI has risen over time. In India, FDI is not allowed for retailing.
FDI is permitted on exports, bulk imports, cash-and-carry wholesale trading and other import of
services or goods provided at least 75% is for procurement and sale of services and goods bet the
companies of the same group. In 2011, India received $50.8 billion as FDI, and it has been rising
since then. Mexico received $25 billion in 2007.
Liberalization I believe somehow improves chances for the access of food to the poor,
especially in the third world countries. When imports come from another country which has a
surplus for a certain commodity, it gives a chance to the local people to access what they dont
produce. Although this has a negative effect on the countrys economy due to balance of trade,
most of the countries happen to have at least a commodity that they can export. E.g. in
developing countries like Kenya, the main export happen to be coffee and tea and at the same
time, Kenya imports motor vehicles and machinery.
I believe that subsidizing and protecting small farmers is the best that the world can
embark on to eliminate the global food crisis. When farming industry is subsidized, a more stable
farming infrastructure is created. Commodities from agriculture are subject to price fluctuation
due to changes in weather patterns and volatility of the market. When the government fails to
support farmers in relieving the impact of these fluctuations, many people who do farming will
be rendered insolvent (Bono, n.d). This will have some negative effects on the whole economy.
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Therefore, governments must continue to support farm programs, which assure farmers a decent
return on their labor and in turn guarantee food security (Cohen and Clapp 97).
Governments and International financial institutions should support agricultural practices
that are capable of being sustained. They should also embark on improving rural infrastructures.
They should realize that small farmers and cooperatives require policies that guard land
ownership, provide appropriate transfer of technology, offer credit facilities, provide technical
assistance, and guarantee mechanisms of pricing that reflect the actual production costs.
Investing in agriculture should enhance local knowledge and sustainable and organic systems of
production rather than artificial pesticides, fertilizers and herbicides that degrade the
environment increase risks to communities.
Since prices for agricultural produce fluctuate from year to year, consumers sometimes
find it extremely hard to afford foodstuff. With the government support, consumers will not be
blocked from accessing the already produced food when harvests are poor. It will also help
because farmers will not abandon farming and, therefore, a constant supply of food will be
guaranteed. Assuming that the income of families is consistent, price fluctuations for basic foods
can really affect the standards of living of the people, especially the poor population.
Agricultural produce prices are very unpredictable, but when the government comes in and
supports farmers, enough food supply is guaranteed. Food is very unique because it is impossible
to live without. It should be the duty of governments to ensure that all the people access a
sufficient supply.
Agricultural sector should be supported by programs that are required to develop self-
sufficiency of everybody in the food supply. This is a prerequisite to achieve national and
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international food security. It also enhances the welfare of all the people. Global food security is
critical especially now that the world economy is very unpredictable. Subsidies will make
countries progress towards reducing dependence on foreign aids (Braun, Sheeran and Ngongi
15).
When the governments get rid of financial assistance, benefits that are associated with it
will not be felt. It will be better to reform subsidizing policies rather than abolishing them
altogether. Small farmers really require governmental support. Governments should set up a fund
from which small farmers can access financial support. Most of the large agricultural
corporations do not produce for the local market. This is risky because most world nations rely
on locally produced and distributed food. The governments should, therefore, seal loopholes that
make small farmers receive unfair amount of subsidy pie.
Global food security can be guaranteed if global agricultural policy is geared towards
attaining stability in the world markets. Programs aimed at managing world demand for food
commodities should be put in place. These programs are also known as commodities agreements.
They help to maintain food supply in relation to demand, such that players in the agricultural
sector dont produce a surplus that would affect prices negatively. These program help to keep
food prices above a price floor i.e. the least price above the cost of production that farmers
expect to survive.
Such policies will also help preserving and conserving natural resources while ensuring a
healthy farmland. Food subsidies in the developed countries are in reality good for the
developing countries. Subsidizing raises food supply, and because of that, there is a surplus. As a
result, food stuffs are exported to the poorer countries (Life and Death, potlocker.com). These
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include staple foods like maize, milk products, wheat and sugar. Subsidies assure the world that
the basic foods are made available and cheaply accessible. Consumers in poor countries will be
able to purchase the food stuffs because their production cost was low. When supported, small
farmers contribute to the net exports. When net exports rise the nations become more self-reliant.
Countries should promote their local economies by ensuring that foreign
competition does not interfere with domestic production. This will boost local markets and
ensure that local producers are not phased out. Domestic food production is the key to achieving
food security. Policies that encourage exportation are good because they motivate the
agricultural sector to produce more. Global agricultural policy should encourage free trade since
trade barriers lead to limited access to sufficient food supply.
WTO and other free trade agreements in agriculture have played a key role in removing
all barriers to trade. These barriers include price controls, supply management, tariffs and quotas,
as the policies favor multinational corporations, they should also be there to support agriculture
in terms of subsidies and market concentration.
Trade policy is also a significant factor to consider because it can affect the level of
access to food. Those who advocate for trade claim that it is more necessary than ever to
complete all the World Trade Organization (WTO) Development Agendas. They say that forces
of the market would better ensure the required production and distribution level. Policies have
been such a manner that developing countries do not benefit fully. Food crisis becomes worse if
subsidies are cut. Withdrawal or cutting of subsidies causes the production cost to rise. High
costs consequently will drive the food prices up, meaning that it would not be affordable. In the
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process, poor nations will not be able access it. Most of the developing countries majorly depend
on subsidized imported food (Life and Death, potlocker.com).
Increasing agricultural productivity around the globe is very crucial in trying to address
the significant increase of both consumption of food and use of land for uses other than food
production. At the national level, this should become a priority in the strategies of development.
Less developed countries (LDCs) have to devise a policy framework that develops the right
stimuli for agricultural investment and sets the appropriate mix between export and food crops.
They have to provide extension services and the required infrastructure. They should determine
their national policies of trade to encourage agriculture production; educate farmers and
eliminate tariffs on inputs of agriculture. At the global level, these efforts have to be supported
through removal of distortions in the global agricultural market.
Another thing that contributes to low productivity is the policies that weakened or
abolished the function of fundamental institutional support mechanisms. Those measures
include, for instance, extension services supported by the state, marketing boards, and subsidies
for agricultural materials e.g. fertilizers, seeds, herbicides and pesticides. Farmers are also
dissuaded from their activities by the presence of inexpensive food products on global markets,
due largely to subsidies of export in developed countries.
These subsidies have been associated with the rising rate of food importation in
developing countries. In fact, quite a big number of LDCs that were traditionally food-exporting
have turned into net importers of food over the past years. Jamaicas debt has risen to $7 billion,
and as a result, its capacity to produce for export is getting less. It is sad that these countries are
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affected the most by the global food crisis, a situation that has also been aggravated by rising fuel
prices.
In order to ensure national food security, economies will need both immediate and long-
term political commitments from the governments. A complete priority must be given to local
food production so as to reduce dependence on the global market. Peasants and small scale
farmers should be motivated through more favorable prices for their produce and steady markets
to produce food not only for their own consumption, but also for their communities. Landless
rural and urban families must get access to land, water and seeds, to produce their own food.
This will increase domestic food production (Life and Death, potlocker.com).
Conclusion
With all that is in the above discussion, we can conclude that subsidizing small farmers is
the most advisable thing that can be done to make sure that the poor population of the world gets
sufficient food supply, and thus food security. To eliminate food crisis we must stabilize the food
system. This involves re-regulating the market, lessening the power of the oligopolies of the
agricultural foods corporations, and energizes agro-ecologically flexible family agriculture. We
must make food more affordable by turning the food sector into a driving force for local
economic development.
In fact, this is the most significant way to start achieving economic growth. We require a
long-term vision for achieving food security and independence. A discreet reserves policy that is
able to stabilize food prices would reduce disputable farm subsidies by ensuring prices do not
fall. This in turn, will benefit farmers and consumers, other than leave our fates to the command
and dictates of unsteady global market.
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Works Cited
Joachim von Braun, Josette Sheeran, Namanga Ngongi. Responding to the Global Food Crisis
Three perspectives: IFPRI 2007-2008 Annual Report Essay. New York: Intl Food Policy
Res Inst, 2008.
Marc J. Cohen, Jennifer Clapp. The Global Food Crisis: Governance Challenges and
Opportunities. New York: Wilfrid Laurier Univ. Press, 2009.
Life and Debt, Theatre Film, Retrieved From:
Http://Www.Putlocker.Com/File/42BCGG6W9Q80KOCG#
The Globalization Of Foreign Direct Investment: Cui Bono