World Bank Issues Urgent Plea On Food Crisis For Help To Feed World's Poor

April 14, 2008 6:32 a.m. EST

Washington, D.C. (AHN) - Rapidly rising prices of food is expected to push 100 million people deeper into poverty because a higher percentage of their low incomes are used for food the head of the World Bank warned.

Robert Zoellick's warning came at a semi-annual gathering of the World Bank that coincides with that of the International Monetary Fund, whose leader had warned that hundreds of thousands of people were at risk of starvation.

World Bank and IMF officials have come up with a plan to ease the crisis that on Sunday caused a reorganization of the government after riots over food erupted there. The World Bank will respond to that crisis with a $10 million feeding plan.

The plan calls for richer nations to contribute $500 million to ease the burden, according to Al Jazeera news reports.

Over the past year, the prices of many basic foods have risen much faster than incomes have, with the price of corn going up 31 percent, while rice went up 74 percent, soya increased 87 percent and wheat prices went up a whopping 130 percent, according to BBC news reports.

Factors being blamed for the increases include increased demand for food, bad weather that has wiped out or reduced crops in some areas as well as an increase in the amount of land being used to produce biofuels for vehicles instead of staple food for people.

Along with Haiti, there have been food riots in countries in Africa, Asia and the Middle East and IMF officials warn that a continuing food crisis will ultimately result in trade disruptions that affect the economies of developed nations as well, Al Jazeera reports.