The rapid rise in food prices has been a burden on the poor in developing countries, who spend roughly half of their household incomes on food. Soaring prices for staples such as rice, maize, and wheat have been compounded by rising prices at the gas pumps—leading to requests for emergency food aid in many countries around the world. “How we respond to this double jeopardy of soaring food and fuel prices is a test of the global system’s commitment to help the most vulnerable,” said World Bank President Robert B. Zoellick, speaking on the sidelines of the recent G8 Summit in Japan. “It is a test we cannot afford to fail.” In May 2008, the World Bank approved a new $1.2 billion rapid financing facility to address immediate needs arising from the food crisis. The Global Food Response Program (GFRP) aims to strike a balance between short-term food stabilization and measures to ensure countries are able to cope better in the medium term. Under the program, countries can select from a menu of actions and investments most relevant to their individual situations, including programs to address price policies, social protection and nutrition, and the supply of seeds and fertilizers. To date, the Bank has approved $137 million in 16 countries. Two projects totaling $15 million are pending approval. An additional $429 million is being earmarked for programs in 13 countries. |