May 22 2008
India blames World Bank, IMF for food, fuel crisis!
After Bush has blamed Indian middle class behind the soaring food prices, India has blamed the policies of World Bank and IMF and “excessive and unsustainable” demand in developed countries for the crisis.
“This consumption trend has existed for more than a decade,” said Indian UN Ambassador Nirupam Sen.
He pointed out that over last two years, the demand for oil has gone up one per cent but prices in dollar terms have risen by 90 per cent. The issue was sparked off after the US and EU said the growth of India and China which has led to rise in consumption level has led to the shortage.
Addressing a special meeting of the United Nations economic and social council to consider the issue of rising food prices, he held financial crisis leading to weakening dollar and diversion of grains to production of bio-fuels among the major causes.
Policies followed by the Bretton Woods Institutions (BWI) are also behind the inflation according to Sen. He severely criticized their advice to countries to shift from food crops for domestic population to cash crops for exports.
“They seem to feel that subsidies are good for the rich but bad for the poor,” Sen said such policies had “predictable negative impact” on food production.
The debate came in the backdrop of UN agencies warning that more than one billion could added to those already needing food assistance because of high prices.
