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Russia’s attacks on Ukraine have created an unprecedented price crisis around the world, especially for food items, but the most exposed to these shocks are poor and developing countries like Albania.
The World Bank’s Director of Development Policy Management, Marie Elka Pangestu, said that the current price crisis is not unprecedented and advised every country around the world (including Albania) on how to act to reduce the damage that can be done. create this situation in the poor.
Albania, as one of the countries with the highest level of poverty in Europe according to the Bank (over 32% of the population live on less than 5.5 USD per day, the relative poverty line) will be even more affected by the crisis of pricing. According to the senior WB official, states should follow four main paths to reduce the consequences of high prices.
First, keep food trade links strong
Learning from experience, states and international organizations need to stay united again in their commitment to maintaining normal food trade. The G7 has called on all countries to keep their food and agricultural markets open and to guard against any unjustified restrictions on their exports.
Second, poor families need to receive extra financial support
Vulnerable consumers and households should be supported from rising prices through immediate financial assistance. The senior official calls that, at the moment, it is necessary to expand social protection programs that mitigate the impact on consumers.
Not only food availability, but also food affordability is a concern especially in low- and middle-income countries like Albania, where people tend to spend a larger portion of their income on food than in countries with it. high income.
Many households in countries where more food is spent were cutting spending even before the war due to reduced incomes and rising food prices. In a resource-constrained environment, governments should prioritize support for the most vulnerable families, Pangestu suggests.
Third, the support of farmers
While global food stocks are plentiful now, the World Bank warns it needs to protect and boost next season’s crops by helping food producers cope with a sharp rise in inputs, including fertilizer costs.
Governments need to remove input barriers to trade and focus on more efficient use of fertilizers. Governments should increasingly review public spending policies to better support farmers. These measures ensure increased production for the next six months.
The Bank’s senior expert says that it is time to invest more in Agricultural Research and Development. The nascent escalation of science for the application of biofertilizers, less dependent on fossil fuels than synthetic fertilizers, would increase sustainable options for farmers.
Fourth, increase food security
The economic crisis of 2008, the Covid pandemic 19 and now the war are showing how important food security is. Regardless of monetary capacity, economic strength and geographical position countries around the world need to work systematically for their country’s food security.
In the last two years alone, the World Bank has provided significant support for food security measures, about $ 17 billion a year, up from an average of $ 12 billion in the previous three years, mainly for agriculture and social protection measures.
“Transformed food systems can become a cornerstone of green, resilient and inclusive development, advancing the health of people, economies and the planet.”Said Pangestu.
In the long run, governments, private businesses and international partners need to work towards more productive, efficient, diversified and nutritious production systems to ensure food and food security in the face of growing climate risks, conflicts and economic risks. .
Spending public spending, mobilizing private funds, and investing in innovation and R&D will be key to producing more diverse food for a growing population, with less water and fertilizer, limiting land use change and emissions. gas.
Because Ukraine and Russia account for over a quarter of the world’s annual wheat sales, the war has led to a significant increase in the price of food, not only wheat, but also barley, corn and edible oil, which are the most exported mostly from two countries at war.
As disturbing as these trends may be, this is not the time to panic. Here is a fact that may surprise you: global stocks of rice, wheat and corn, the three main products in the world, remain historically high, says the WB official.
For wheat, the most war-affected commodity, stocks remain well above levels during the 2007-2008 food price crisis. Estimates also suggest that about three-quarters of Russian and Ukrainian grain exports were already delivered before the start of the war.
During the global food crisis 2007-2008, which initially started as a result of drought and rising oil prices. When large food-producing countries restricted exports due to concerns about their domestic food supply, this exacerbated rising prices and exacerbated malnutrition, especially for children.
In contrast, at the start of the Covid 19 pandemic, countries kept food trade flowing smoothly even though blockades affected ports, goods and mobility.
This cooperative behavior helped limit disruptions to global food supply chains and avoided worsening the situation, thus benefiting all countries. Monitor
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