Call for coordinated action on food security

WASHINGTON • The World Bank, the International Monetary Fund (IMF), the United Nations' World Food Programme (WFP) and the World Trade Organisation (WTO) have called for urgent, coordinated action on food security, and appealed to countries to avoid banning food or fertiliser exports.

In a joint statement on Wednesday, the leaders of the four institutions warned that the war in Ukraine was adding to pressures from the pandemic, climate change and increased fragility and conflict, threatening millions of people worldwide.

Sharply higher prices for staples and supply shortages were increasing pressure on households, they said. The threat is greatest to the poorest countries, but vulnerability is also increasing rapidly in middle-income countries, which host the majority of the world's poor.

The compounding crises could fuel social tensions in many of the affected countries, especially those that are already fragile or affected by conflict, they warned.

IMF managing director Kristalina Georgieva, World Bank president David Malpass, WFP executive director David Beasley and WTO director-general Ngozi Okonjo-Iweala issued their joint statement ahead of next week's Spring Meetings of the IMF and World Bank.

They said the rise in food prices was compounded by a dramatic increase in the cost of natural gas, a key ingredient of nitrogenous fertiliser, which could threaten food production in many countries.

"Surging fertiliser prices along with significant cuts in global supplies have important implications for food production in most countries, including major producers and exporters, who rely heavily on fertiliser imports," they said.

In their joint statement, the four leaders called on the international community to provide emergency food supplies to vulnerable countries, boost agricultural production and keep trade flows open.

For their part, they said they would step up their respective policy and financial support to help vulnerable countries and households, and mitigate balance of payment pressures.

They urged the international community to provide grants and other funding for immediate food supplies to help the poor and small farmers facing higher input prices.

It was important to keep trade open and avoid restrictive measures such as export bans on food or fertiliser, they said, underscoring the need to avert any restrictions on humanitarian food purchases by the WFP.

US Treasury Secretary Janet Yellen, who will convene a meeting of top international financial officials next week to address the global food security crisis, also expressed grave concerns during a speech at the Atlantic Council think-tank, noting that over 275 million people worldwide were facing acute food insecurity.

The food summit will take place in Washington alongside the Spring Meetings. Participants will include ministers representing the Group of Seven and Group of 20, Dr Georgieva and Mr Malpass.

Treasury spokesman Alexandra LaManna said: "The event will bring attention to the different dimensions of the worsening food security crisis, and mobilise the (international financial institutions) to accelerate and deepen their response to assist affected countries."

REUTERS, BLOOMBERG