IMF issues oil and food warning

World financial body says nations need to change economic policies to avert crisis.

    Food prices have also risen in rich countries like the US [AFP]

    The IMF chief called for more co-operation between nations to tackle higher oil and food prices.

    The world financial body's stated aim is protect global financial stability but critics have accused it of acting to protect the interests of more powerful nations such as the US.

    Peter O'Driscoll, the executive director of Action Aid USA, a development aid organisation, told Al Jazeera that the IMF was to blame for much of the current food crisis.

    O'Driscoll said the IMF had encouraged developing countries to grow crops for the export market, putting their food security at risk, and that the body had pushed governments to end subsidies of domestic agricultural industries.

    Rocketing inflation

    The IMF report said poorer countries were having to pay out billions of dollars more for imported oil and food.

    High oil prices are also causing problems for developing nations [GALLO/GETTY]
    Its findings were released as world oil prices continued to surge above $142 dollars a barrel.

    The fund said countries should strive to protect the poor by expanding social programmes, but that they should avoid steps that could result in economic instability.

    In the past the IMF has advocated cuts in public spending by governments and has promoted expanding the free-market as a solution to economic problems.

    The report said global food inflation almost doubled in 2007.

    While food inflation in major industrial nations was relatively low - around three per cent - it reached 10 per cent in developing countries and would have been higher without food subsidies, the IMF said.

    Preliminary data showed food inflation in 120 developing nations had risen to 12 per cent in March this year, the report said.

    SOURCE: Al Jazeera and agencies


    Interactive: How does your country vote at the UN?

    Interactive: How does your country vote at the UN?

    Explore how your country voted on global issues since 1946, as the world gears up for the 74th UN General Assembly.

    'We were forced out by the government soldiers'

    'We were forced out by the government soldiers'

    We dialled more than 35,000 random phone numbers to paint an accurate picture of displacement across South Sudan.

    Interactive: Plundering Cambodia's forests

    Interactive: Plundering Cambodia's forests

    Meet the man on a mission to take down Cambodia's timber tycoons and expose a rampant illegal cross-border trade.