Rise of food prices is beneficial to the economies in developing nations

Wednesday, July 9, 2008

(I)   THE CONTROVERSY OF FOOD  VS.  FUEL: 

Due to increase in prices of Petroleum products, the developed Nations are diverting their land for Bio-fuel production.  This is being objected to, by some people in the International community. The developing Nations, specially, the under-developed Nations in some parts of the Globe are highly dependent on food supply from the U.S., Canada and other Countries.  The present food crisis that have arisen for various reasons have created a confusing situation for the Governments Environmentalists as well as farmers.

The International community, which met at Rome in the 1 st week of June, has decided to initiate many steps to solve the crisis. The food crisis can be converted as a strategy to develop every Nation, specially in Africa & Asia to become self-sufficient in food.  This challenge is not difficult.  It requires a Plan of action with the involvement of International community, the National Governments and specially participation by the farmers in the developing Nations. 

(II)    SITUATION IN DEVELOPING COUNTRIES:

It is a well known fact that in all the developing Nations, the National Governments have  neglected Rural areas including Agriculture, wherein 60-80% people live.   These Countries have also diverted the resources provided by International community including World Bank for other purposes.

The reason is that the rural people (farmers) in the developing Countries are illiterate, having small holdings, lack of resources and highly un-organized.  They are neglected by Governments and exploited by the  Merchants.  In all these Nations opportunities can be created for increasing food produces.

(III) FOOD PRICE WILL HELP THE ECONOMIES OF DEVELOPING NATIONS:

As evident, the developing Nations have waste virgin lands, huge natural resources, excellent Animal Husbandry with traditional skills and limited productivity level.  What is required is to assist these Countries in the areas of:

a)    Suggesting a strategy on selected cereals, in order to achieve food security.  This can be done by providing access to Seeds which can be supplied by other Countries (Donor Countries).
b)    A small group of Enterpreneurist farmers who are living  in every Country can be trained as Model Farmers to adopt scientific practices.
c)    1:500 ratio can be the training of Model Farmers and Farm Women in the Crop Management/Animal Husbandry as para-Agricultural volunteers and para-Veterinary Assistants.  The
d)    The training can be arranged by any Donor Agency in the village itself.  The Trainers can be drawn from any part of the Globe.  For example, India, China, Thailand, South Africa, Egypt, can provide large pool of Trainers to go to the developing Countries and help local farmers in the above aspects.

(IV)   BENEFITS:

a)    Increasing productivity will help in retaining the people in the village itself.
b)    It will solve mal-nutrition and provide employment in rural areas.
c)    It will curtail social unrest.
d)    It will enable the National Economy to have the required Raw-material for Industry.
e)    The 60-80% people living in the rural areas of developing Nations will also become consumers of Industrial products.
f)    The increased price will help the overall economic growth of the Nation.
g)    The production within the developing Nations will help the Developed Nations  to divert their land/crops to use for Bio-fuel production.

Increase in food price in a developing Nation will have multi-dimensional benefits to the people of the Country.