“Rush to restrict trade in basic foods” (Financial Times) [View All]

[jody]

Rush to restrict trade in basic foods

Governments across the developing world are scrambling to boost farm imports and restrict exports in an attempt to forestall rising food prices and social unrest.

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But economists warned that such actions risked provoking an upward spiral in global food prices, which have already been pushed higher by rising demand from emerging markets like China and India and pressure on land from the growing production of bio-fuels.

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Disputes over sharing the costs and benefits of higher food prices have shot up the political agenda in many developing countries as sharp reductions in purchasingpower, particularly for the urban poor, have put increasing pressure on governments.

Global rice prices have risen by a third since the turn of the year, and higher soyabean costs have sparked protests in countries such as Indonesia.

If restricting food exports is essential to help society and a feasible government policy, why isn’t restricting imports of consumer products to help domestic production and employment also a feasible government policy?