quimac.com

The World Bank chief Robert Zoellick has declared that “Global food prices are rising to dangerous levels and threaten tens of millions of poor people,”.  The World Bank has released it’s latest data that reveals an overall increase of 15% from October to January, 2011.  That is only 3% below the 2008 record.  The U.N.’s Food and Agriculture Organization index shows that the levels have already surpassed 2008 levels.

As the price of commodities such as oil, corn, wheat and soybeans rises, the price of food can only do the same.  The devastating weather patterns that have caused massive floods have destroyed many crops; in some cases quadrupling prices for staples such as potatoes, onions and tomatoes.

And while the crisis will only affect the developed, employed world by perhaps a 5% increase in food expenses, the rest of the developed, unemployed world, the third world and countries that are heavily dependant on imports will face tragic consequences.  And where one sees food shortages accompanied by high prices, the result is often times political instability.

The difficulties erupting across the Middle East, while not directly a result of this issue, can still count it as a factor fueling the anger.  In 2008, Egypt was among more than a dozen countries that saw food riots.  The World Bank managing director reports that “Food prices are not only rising, but they are also volatile and will continue this way into the future,”.