Hunger: the real economic crisis

Executive Director, Oxfam International

©Reuters

Hunger affects about 1 billion people around the world, and as the economic crisis continues, the push for growth can actually make matters worse.

The world financial crisis of 2008 and the subsequent recession have dominated the thoughts and minds of the OECD economic leaders for these past four years. But a more permanent and visceral crisis, one that marks the failure of the global economy for a large number of the 7 billion people living on the planet, points to the need for a new way to talk about the economy if we are to successfully meet the challenges of the 21st century. The real crisis lies not in the rise and fall of stocks and shares but in the bellies of a billion people, an everyday ache which stunts opportunity, arrests development and leaves a large segment of humanity without that most basic of needs: food.

Efforts, of course, are being made to tackle global hunger. Following food riots in dozens of countries in 2008, global leaders did promise action. The G8 leaders’ meeting in L’Aquila, Italy, agreed that agriculture and food security should be placed “at the core of the international agenda”. Importantly, later that year the Committee on Food Security (CFS) was reformed to strengthen the governance of the world food system.

These efforts have either yet to bear fruit (the reformed CFS is still in its infancy) or have simply been unfilled. Following the 2008 food crisis, the G8 promise at L’Aquila to provide €20 billion in support for agriculture over three years has turned out to be largely recycled from past promises or double-counted against other commitments.

Many of the policies which contributed to the food crisis continue as before. Biofuel production, for example, is still being encouraged by the EU and the US; this is despite evidence that it was a major cause of food price increases in 2008 and a significant driver of food price volatility, while perversely contributing to, rather than diminishing, carbon emissions.

In the meantime, the pressure on people living in poverty has continued to grow as the resources, land and water they depend upon to provide food are increasingly targeted by powerful interests, eager to access these valuable assets.

In developing countries, as many as 227 million hectares of land—an area the size of western Europe—has been sold or leased since 2001, mostly to international investors, often seeking not just the land but the access to vital water resources it comes with. Oxfam has already seen how many so-called investments in land have in fact been resourcegrabs— with the poorest often left without land, without compensation and without food security.

The failure to address seriously the challenge of global warming is another carve-out of scarce resources by developed countries. So far, they have refused a fair climate deal which would allow poor countries to develop without resorting to massive use of fossil fuels. Meanwhile, agriculture in developing countries suffers as the seasons go haywire and the number of extreme weather events hit global food supplies.

With the world seemingly unwilling to take the urgent action necessary to tackle climate change and with the world population set to increase by another 2 billion people by 2050, the pressure is set to increase on global resources and on the world’s poor—those least able to cope. Research commissioned by Oxfam in 2010 predicts international price rises of key staples by 120-180% by 2030, with 50% of that increase attributable to climate change.

The solutions to this crisis are at hand. There is sufficient food in the world to ensure that everyone has enough to eat today and in the decades to come; at issue are questions of distribution and political will. The realisation that we are in a resource-constrained world forces us to place equity at the heart of global economic thinking. Finite resources also force us to take the issue of sustainability seriously—not as a piece of rhetoric to be deployed periodically but as an integral element of economic thinking. Instead of equality, we see booming inequality. As the world’s hungry grew to 925 million in 2010, the number of dollar millionaires grew by 8%, even in countries with hundreds of millions of people living on less than US$1.25 a day.

Instead of addressing resource constraints, many governments have simply sought to restore growth with barely a nod to its impact on the world’s carrying capacity. Green investments were just 7% of the UK’s initial spending stimulus following the 2008-09 crisis, just 6% in Spain and 3% in Japan. Instead of delivering a climate change deal, talks drag on as the world continues to grow warmer.

It’s clear that the current way of discussing and managing the world economy is not fit for purpose; it’s failing hundreds of millions now and is set to fail billions in the coming decades. Governments have defaulted to their old tools and solutions: short-termism and competitive negotiations, rather than a collaborative long-term approach.

A new, ethical economy for the 21st century is needed, one which judges its success by the fulfilment of rights, by maintaining rather than diminishing the world’s envelope of resources and by keeping equity at its heart. A simple touchstone for this new ethical economy is hunger and how we make sure it is ended.

Oxfam International 

See also: 

G8 Summit 2009 in L’Aquila

Committee on Food Security

©OECD Yearbook 2012




Economic data

E-Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Suscribe now

<b>Subscribe now!</b>

To receive your exclusive paper editions delivered to you directly


Online edition
Previous editions

Don't miss

  • Africa's cities at the forefront of progress: Africa is urbanising at a historically rapid pace coupled with an unprecedented demographic boom. By 2050, about 56% of Africans are expected to live in cities. This poses major policy challenges, but make no mistake: Africa’s cities and towns are engines of progress that, if harnessed correctly, can fuel the entire continent’s sustainable development.
  • “Nizip” refugee camp visit
    July 2016: OECD Secretary-General Angel Gurría visits the “Nizip” refugee camp, situated between Gaziantep and the Turkish-Syrian border, accompanied by Turkey’s Deputy Prime Minister Mehmet Şimşek. The camp accommodates a small number of the 2.75 million Syrians currently registered in Turkey, mostly outside the camps. In his tour of the camp, Mr Gurría visits a school, speaks with refugees and gives a short interview.
  • OECD Observer i-Sheet Series: OECD Observer i-Sheets are smart contents pages on major issues and events. Use them to find current or recent articles, video, books and working papers. To browse on paper and read on line, or simply download.
  • Queen Maxima of the Netherlands gives a speech next to Mexico's President Enrique Pena Nieto (not pictured) during the International Forum of Financial Inclusion at the National Palace in Mexico City, Mexico June 21, 2016.
  • How sustainable is the ocean as a source of economic development? The Ocean Economy in 2030 examines the risks and uncertainties surrounding the future development of ocean industries, the innovations required in science and technology to support their progress, their potential contribution to green growth and some of the implications for ocean management.
  • OECD Environment Director Simon Upton presented a talk at Imperial College London on 21 April 2016. With the world awash in surplus oil and prices languishing around US$40 per barrel, how can governments step up efforts to transform the world’s energy systems in line with the Paris Agreement?
  • Happy 10th birthday to Twitter. This 2008 OECD Observer interview with Henry Copeland said you’d do well.
  • The OECD Gender Initiative examines existing barriers to gender equality in education, employment, and entrepreneurship. The gender portal monitors the progress made by governments to promote gender equality in both OECD and non-OECD countries and provides good practices based on analytical tools and reliable data.
  • Once migrants reach Europe, countries face integration challenge: OECD's Thomas Liebig speaks to NPR's Audie Cornish.

  • Message from the International Space Station to COP21

  • The carbon clock is ticking: OECD’s Gurría on CNBC

  • If we want to reach zero net emissions by the end of the century, we must align our policies for a low-carbon economy, put a price on carbon everywhere, spend less subsidising fossil fuels and invest more in clean energy. OECD at #COP21 – OECD statement for #COP21
  • They are green and local --It’s a new generation of entrepreneurs in Kenya with big dreams of sustainable energy and the drive to see their innovative technologies throughout Africa. blogs.worldbank.org
  • Pole to Paris Project
  • In order to face global warming, Asia needs at least $40 billion per year, derived from both the public and private sector. Read how to bridge the climate financing gap on the Asian Bank of Development's website.
  • How can cities fight climate change?
    Discover projects in Denmark, Canada, Australia, Japan and Mexico.
  • Climate: What's changed, what hasn't, what we can do about it.
    Lecture by OECD Secretary-General Angel Gurría, hosted by the London School of Economics and Aviva Investors in association with ClimateWise, London, UK, 3 July 2015.
  • Is technological progress slowing down? Is it speeding up? At the OECD, we believe the research from our Future of ‪Productivity‬ project helps to resolve this paradox.
  • Is inequality bad for growth? That redistribution boosts economies is not established by the evidence says FT economics editor Chris Giles. Read more on www.ft.com.
  • Interested in a career in Paris at the OECD? The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents, find out more at www.oecd.org/careers .

Most Popular Articles

Poll

What issue are you most concerned about in 2016?

Unemployment
Euro crisis
International conflict
Global warming
Other

OECD Insights Blog

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2016