Aid is not enough to address food price crisis, says Oxfam

World leaders at a UN meeting in Switzerland must go beyond immediate aid to address the root causes of the global food price crisis, said international agency Oxfam today.

"Aid is urgently needed to address the immediate threat to poor people posed by higher food prices but money is not enough. World leaders must take this opportunity to address structural problems such as under-investment in agriculture and unfair trade rules, which are exacerbating the problem," said Celine Charveriat, Oxfam International's Deputy Advocacy Director.

Among those attending the two-day meeting called by UN Secretary General Ban-Ki Moon, are World Bank president Robert Zoellick and WTO Director General Pascal Lamy, along with the heads of 20 other agencies. Oxfam is calling on them to consider long-term, structural solutions to the crisis and to see it as an opportunity for reform.

High on Oxfam's list of recommendations is an end to current biofuels mandates in rich countries, widely recognized as fuelling price rises and speculation. Experts have predicted that biofuels targets may result in an extra 600m people being hungry by 2025.

Charveriat: "Biofuels are not only a major cause of increasing prices but are also linked to labour rights abuses and land grabs in developing countries. Furthermore, research suggests they may make climate change worse. In this context it is absolute madness to have mandatory targets."

Oxfam also accused rich countries and global institutions of hypocrisy for criticizing poor countries' policy responses, while failing to acknowledge their own culpability.

Charveriat: "The EU, US, and World Bank have criticized developing countries for imposing export bans but they have largely failed to point the finger at themselves. Decades of trade liberalization and dumping have increased poor countries' dependency on food imports and vulnerability to shocks. Export bans may well not be the ideal response, but without coordinated global support they are among the only options poor countries have."

Oxfam is calling for fairer trade rules and increased investment in agriculture in developing countries, focused on small-scale producers and women. Donors should provide support for this and help fund safety nets and social protection schemes for the most vulnerable people.

Oxfam warned that increasingly erratic weather caused in part by climate change would cause further disruption in world food production and undermine poverty reduction in the future, unless dramatic and immediate action was taken.

Charveriat: "Rich countries must step up to the plate on climate change by increasing funding for adaptation and taking immediate action to mitigate against further warming. Now is also the perfect time to reform the global food aid system, which is inefficient and has created dependency in many countries."