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The important announcement of the multilateral economic organization was released this Wednesday, in the context of the Russian invasion of Ukraine. According to the World Bank, the largest amount of money allocated will go to several African countries, Eastern Europe, the Middle East, Central and South Asia, some of the regions hardest hit by the pressing food insecurity crisis generated by the post-pandemic, inflation and the conflict on the ground of one of the main grain exporters.
A sum of 12,000 million dollars was allocated by the World Bank (WB) to combat the global food crisis.
Through a statement, the World Bank stressed that the aid will be directed to agriculture, providing “social protection to cushion the effects of rising food prices.”
This figure is in addition to another US$18.7 billion in reserve, which can be used for projects directly related to food and nutrition security issues.
According to the World Bank, “this represents more than 30 million dollars available for the fight against food insecurity during the next 15 months”.
“To inform and stabilize the markets, it is essential that countries now make clear statements about future production increases, in response to the Russian invasion of Ukraine,” said the president of the institution, David Malpass.
“The rise in food prices is having devastating effects on the poorest and most vulnerable,” he added. The manager also called for “eliminating policies that block imports and exports” or encourage unnecessary storage.
Thus, the main regions of the world that will benefit from the multi-million dollar plan announced by the World Bank are Africa and the Middle East, Eastern Europe and Central Asia and South Asia, which, in turn, are a large part of the territories most affected by the consequences of the pandemic as well as global warming, inflation and the collateral effects of the war in Ukraine.
Echoes of the plan in the world’s main economy
The US Treasury was not inert before the World Bank statement.
“The Russian war against Ukraine represents the latest global shock that is exacerbating the strong growth in food security, both acute and chronic, in recent years,” said the managing body of the public treasury in the North American nation.
The Russian war against Ukraine is the latest global shock contributing to the sharp increase in food insecurity, particularly in developing and emerging economies, in recent years driven by conflict, climate change, & economic downturns associated with the pandemic.
— Treasury Department (@USTreasury) May 18, 2022
The financial entity also identified other aspects that cause food insecurity. “Conflicts, climate change, and economic recessions, such as those associated with the Covid-19 pandemic.
The entity integrates a joint action plan with multilateral institutions and regional development banks to face this crisis.
Worrying rise in food prices
On its website, the World Bank highlights that “while global food supply prospects remain favourable, food prices rose sharply due to high input prices which, combined with other factors such as the price of transport or disruptions caused by the conflict in Ukraine , increase the cost of imports.”
Until May 5, the prices of agricultural products increased by 41% compared to the month of January 2021.
With reference to the same date, other inputs such as wheat and corn have increased their value by 60 and 54 percent respectively. Rice, however, is one of the most accessible foods in the basic food basket, with a 14% lower price.
As for fertilizers, the World Bank announced that the value of this necessary product skyrocketed in March, with an increase of 20 percent since January of this year.
with AFP
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