Janet Yellen Issues “Call to Action” Over Food Shortages and Soaring Fertilizer Prices – Mish Talk

Tackling Food Insecurity 

Please consider these snips from Yellen’s Call to Action on Tackling Food Insecurity

I wish we were meeting under different circumstances. But the reality is that we are facing rising global food insecurity .Even before the war, over 800 million people were suffering from chronic food insecurity. That’s 10 percent of global population, and more than the populations of our panelists’ five home countries combined.

The war has made an already dire situation worse. Price and supply shocks are already materializing, adding to global inflationary pressures, creating risks to external balances, and undermining the recovery from the pandemic.

I want to be clear: Russia’s actions are responsible for this. But the United States is urgently working with our partners and allies to help mitigate the effects of Russia’s reckless war on the world’s most vulnerable. 

Let there be no doubt – even as we continue escalating our sanctions and other economic measures against Russia, we reiterate our commitment to authorizing essential humanitarian and related activities that benefit people around the world – ensuring the availability of basic foodstuffs and agricultural commodities. 

Today, Russia’s destruction of the Ukrainian economy and its infrastructure is a key factor affecting global commodity prices. The war further exacerbates pre-existing price and food supply pressures. Some countries and regions, which were already food insecure and facing emergencies, are now confronting additional price increases and supply disruptions for imported food, fuel, and fertilizers. Early estimates suggest that at least 10 million more people could be pushed into poverty in Sub-Saharan Africa due to higher food prices alone.

Second, we should focus on how we can apply valuable lessons learned from past global food price crises to the current context. We know that we must avoid export restrictions that could further increase prices. We must quickly support the most vulnerable populations with social safety nets and provide targeted support for smallholder farmers so they can continue to produce. 

And finally, let’s get concrete about the actions the international financial institutions can take to deliver an effective response.