The World Bank supports the creation of an emergency food reserve that could help cushion the impact of high food prices on vulnerable countries like the Philippines, which is a net food importer.
World Bank President Robert Zoellick said the Washington-based lender has been backing the World Food Program (WFP) and other institutions in developing a mechanism to create a food reserve. Zoellick said he hopes that in next week’s meeting of the Group-of- 20 nations (G-20), this move would also be supported.
“One of the ideas that the G-20 is going to look at is whether there could be a special pilot program that the World Food Program is developing with the Ecowas [Economic Community Of West African States] countries in West Africa and it’s not reserves in terms of how they manage the price; it’s basically having stocks available in the event of emergencies. The World Bank has been trying to support the World Food Program and others in developing that system. I hope next week the G-20 will [support the program] and see how it works,” Zoellick said in a press briefing on Thursday.
Zoellick said a food reserve is important especially in times of crises. For instance, in 2008, a food-price crisis saw rice prices rise to unprecedented levels. In the Philippines, the price increase caused many Filipinos to form long queues just to buy a kilo of cheap rice sold by the government.
The Philippines is one of the developing countries that is vocal about the creation of an emergency food reserve. The country is known to be a major importer of staples, such as rice and wheat.
To prevent a repeat of the 2008 food-price crisis, Zoellick encouraged governments the world over to help farmers increase production and productivity. This would help insulate countries from global price shocks and increase incomes of farmers.
Zoellick said governments worldwide must address problems that prevent farmers from increasing production and productivity. These problems are varied—from land titles to seeds, fertilizers and irrigation facilities.
“In addition—and this applies to all countries—we can also take advantage of high prices and make this into an opportunity for farmers. If we help, farmers will increase their production and productivity, including right here in the Philippines, we can take advantage of higher prices to help boost income,” Zoellick said.
On the second day of his visit to Manila, Zoellick pledged support for the Philippines as the country implements its program for good government and overcoming poverty, especially in creating opportunities for poor and vulnerable Filipinos.
Zoellick said the World Bank’s private-sector arm, the International Finance Corp., is intent on increasing its support for the country’s enterprises by raising its rural investments, promoting inclusive urban growth and encouraging government improvements for private-sector development.
“My visit has helped me better understand the importance of President Aquino’s program for good governance and the government’s priorities to improve the business climate, develop infrastructure, increase investments in health and education, and protect the most vulnerable people,” Zoellick said.
