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BG-Global Foods Crisis

Huang Shi No.2 Middle School Model United Nations Association

Topic: The global food crisis
Chair: Background guide , senior 2 student

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CONTENTS WELCOME LETTER FROM THE CHAIR------------------------------------------2 Topic: The global food crisis Ⅰ) Introduction to topic---------------------------------------------------------------3 Ⅱ) Background and Development----------------------------------------------------3 Ⅲ) Relevant histories-------------------------------------------------------------------5 Ⅳ) relevant prompting------------------------------------------------------------------6 Ⅴ) Recommendations for Formulating Resolution---------------------------------7 Ⅵ) Questions to consider---------------------------------------------------------------7 Ⅶ) Resources----------------------------------------------------------------------------8


Huang Shi No.2 Middle School Model United Nations Association

WELCOME LETTER FROM CHAIR Dear Delegates: Welcome to attend the first conference of HS MUN! It’s a great honor to deliver my regards to you at the coming beginning of the conference. And as we all see, from the head of the new year, you’ve been working hard to train yourselves, improve yourselves, and express yourselves. The process was hard, but the result was obviously nice, all had made big progress, especially in the conference of Tianjin, you made our voices heard. And I hope you can keep moving, making a great beginning in HS MUN Conference. MUN has been a part of my life for one and a half years; I gain a load of experience and international knowledge since I stepped into the long road of MUN, And the more I learned, the more I find it is to share the world with the young generation, our peers. As Samuel Erman wrote over sixty years ago: Youth is a matter of the will, a quality of the imagination, a vigor of the emotion, it is the freshness of the deep spring of life. And now you want to build your will, your imagination, and your emotions towards MUN. So we are to help you become more confident, achieve goals and turning into a strong MUN leader. AND YOU ARE THE REAL LEADERS IN THE CONFERENCE, dear delegates! Food problem has troubled people all over the world for a long time, for it is the daily necessity. The shortage of food exits in many developing countries and areas, such as India, Africa, and Middle East and so on, while in some developed countries, companies made alcohol (C2H5OH) from corn for the fuel of the engine. The conflicting became sharper than ever nowadays. Besides, there are many other problems remained for people to solve. One tip: prepare carefully, obey the rules and try your best! Enjoy yourselves , The chair of the conference


Huang Shi No.2 Middle School Model United Nations Association

Introduction to topic Food is the basic condition of human existence, not only about the economic lifeline of the countries and the people’s livelihood, but also about the development of globalization and security. Now over millions of people are facing the threat of starvation, while the increasing of the price of the food will continue to enlarge this number of the people. restricting the schedule of these countries’ development goals with millennium will affect the balance and development of the economy around the world.

Background and Development In the current world, the causes of the food crisis are pretty complex including the factor of supply and demand, the manmade manipulate of the food market and many-headed expectations. In recent years, the price of food ups and downs, food crisis makes wide and significant effect on the economy all over the world, even the international order. Food supply is relatively stable, but the causes of affecing balanced supply are increasing now. First, global economy and financial economy makes price of the products around the world a linkage . The increase of the price of the oil causes the high prices of the chemical manure, pesticide, and some transportation leading the raise of the cost and selling price. Second, although climate change has an effect on food production it is not the main cause. The variable of the weather and climate has already became the constant of agriculture and market.The amplitude of the crop yield caused by climate change is just between 1%-2%, while in the local area, the agricultural production and famine which deeply caused by extreme disaster of the weather effect are not that apparent. Third, ignoring of food production and reserve. The income of the agriculture is a little bit low, of course the food grown is much more lower. Driven by profits, more and more developing countries ignore food production and reserve seriously. As we know, on one side, the Green Revolution can make some countries be self-sufficient and reserve enough,on the other side, it also has damage and future troubles of which is ignoring food production and reserve causing insufficiency o domestic demand of food production. Food production has threatened a healthy development of its national economy, and food security is more important than oil security and gas security for the people’s lives. The main fcator of influencing food price fluctuation is the demands, especially the demand of industry. First, the fundamental demand. With the development of economy and the improvement of living standard, the developing countries increase


Huang Shi No.2 Middle School Model United Nations Association

food demand, especially the up-growing middle class causes consumption upgrade, as well as the meat. Research shows that producting 1 kilo of beef needs about 8 kilograms grain, namely 1:8 , pork is about 1:3, chicken is about 1:2, the improvement of dietary structure leads to inflation, now it grows with an average of 2100 tons/year. The United Nations estimates, until the year of 2050, the world population will increase from the current 66 million to 92 million. So , the basic demand of food will be increasing. Developed countries will always blame the economy increase of the developing countries for foods crisis making many theories (such as “growth limited”) and solutions try to limit the development of developing countries. Second, industry demand. The basic demand of the human is progressive, but it’s not the main reason of recent years food prices rise considerably even rocketed. On one hand, USA strives to develop Bio-energy plan in order to reduce the dependence of oil resources, actually it not only reduces the dependence of oil resources but also knows that foods can’t be enough for oil refining. On the other hand, USA wants to control the Bio-energy to effect the relation of foods demand to keep its predominance. According to the recent technological capability in USA, one domestic jeep full of oil will waste 200 kilos corns correspond to a grown man in poor country ---Burkina faso in Africa one year foods. The year of 2007, USA makes 25% corns into ethanol and up to 28% in 2008 reaching 1.14 million tons.The consumption in Europe is the same as USA. European “machine eating foods” corresponds to 5 million people’s food. Then The United States criticize rigorously, even USA changes all food into Bio-energy, just enough for 18%cars in all , so using food to make fuel is a “crime against human”. Third, speculative demands. The quota of USA and the weak dollar policy that have an affair with the speculator of the financial and agriculture in USA will cause over general liquidity lasting for a long time,and a great deal of idle capital will chase limited resources,then leads to where the idle capital goes where the price increase. In recent years, energy and some bulk stock have been became the object that international idle capital chases. USA Chicago commodity exchange leading the general commodities futures market in the world, has already became the weatherglass of the global foods prices. The financial capital of USA is more conveniently, financial oligarchs have wise planning for future needs, and food will be their chase after oil. They will make use of inventory reduction of the world, demand increase, and climate change to speculate, then earn more and more money so that foods speculation becomes usually. The manipulation of foods is bound with many-headed expectations of crisis. The increase of foods is bound with foods production and trading. About foods production, USA, Australia and Brazil are in monopolistic status, for USA only, the foods export account for about 35% in the world, and the wheat is about


Huang Shi No.2 Middle School Model United Nations Association

60%.The total soybean production rate in USA,and some South American countries including Brazil , Argentina and Paraguay counts more than 90% in the world. Nowadays, the food production of multinational companies in the world dominates 80% of all trade, the main grain production potential concentrate in developed countries, especially USA. The foods policy of USA direct influence the international foods price if it’s high or low. It can be note worthy that foods crisis is similar to financial crisis, it has “self-affect”, namely, brewing of crisis, from creation to deterioration is bound with many-headed expectations, the deterioration of many-headed expectations makes crisis deteriorate. When production reduced, store gets down , price rises up, and then the foods embargo, export control, buying quota, social unrest and some derogatory information are reported, the threatened heart of human will increase every day, therefore make a vicious spiral, foods crisis will constantly upgrade.

Relevant histories Hunger and foods crisis are the special phenomenon in society, sudden price increase provide a new window for observation. As we know the opinion that Susan-Gorge has ---- hunger stands for social reproduction is continually broken is similar to the last section of fatalness of the progress with aggravation, this time , the foods crisis means that the society reproduction of originated in colonial of the long-term crisis is increasing, it is triggered by the development of capitalism of new liberalism. Colonial times, Europe established the relationship between squeeze and squeezed in the other part of the world, the benefits of the colonial countries replace the food supple system in the Africa, colonial area became a food and raw material supplier to support European development of capitalism. In recent years, deregulation or liberalization policies deepen the condition of many north countries became a global customers’ world farm, a few customers all concentrate in south countries and some important capital cities in the north. The circulation and to cause of the food production causes the long time foods shortage and hunger in the society. Between the year 2007 and 2008 , foods crisis attracted worldwide attention because of the afflation, and took all over the world into post


Huang Shi No.2 Middle School Model United Nations Association

food surplus area. The price of foods until 2005 increase 75%, and the foods reserves bottomed out, just can be enough for 54 days. Now the situation is in the peak oil, it is bound with energy demand and foods demand, the mixture of the two aggravates the increase of the food price by the need of energy and foods, because the competition made more profits in land grown and the others. Ai the same time, financial speculation deepen this problem, such as Chicago stock exchange, 47%pigs, 40%wheat, 36 % cows, 21 % corns are all controlled by Wall Street investment. Traditional expression ascribe plantation to extreme weather condition and ecological pressure. According to the Statistics that The United Nation made, there are 57 countries includes 29 African countries, 19 Asian countries, 9 Latin American countries all have been suffered from flood, the agricultural crop of South Asia, Europe and China, Sudan, Mozambique and Uruguay have been seriously affected by the drought and heat. As the agricultural fuel, OECD and FAO describe a series of reaction: the acreage of corn which can make ethanol is expanding now, but the acreage of oil crops is reducing, so the price of oil crops is increasing now, and on the other hand, the increase of the grain trough and biodiesel leads to the increase of vegetable oil demand also stimulate this trend, and make the increase of price develop into a perfect storm. This means that the crisis will be made by threat of the change of demand, supply gets down and some can’t be limited dimension.

Relevant prompting It is worthy to know the application of the transgenic technology, with it born, it wears identical aura and is expected to solve the food crisis with infinite hope, however transgenic technology has also exposed its disadvantages. First, the production of the transgenic technology seeds is gradually diminishing, and the transgenic technology is harmful for fertility, and the demand of transgenic technology and chemical fertilizer will increase unexpectedly. Second, The safety of transgenic technology remains to be confirmed, many scientists repeatedly guarantee its safety and reliable.Even their experiment have proved that it has some damage, something funny is that USA has admitted the patent of transgenic technology to make profits, while refusing to admit the different between transgenic and Non-GMO, banning for the mandatory declaration of the transgenic


Huang Shi No.2 Middle School Model United Nations Association

productions, and also not allowing other countries to refuse the import of the transgenic technology,with saying“without similarity”, and its manner is worthy to think. And, if the pollen of the transgenosis spread some insects, then it will cause another an unstable factors in the ecological system. The last, transgenosis is controlled by developed countries especially by Europe and USA, agricultural leaders will increase the control of the global agriculture,(such as terminator and defector ) so that the development of the global agriculture will become more and more imbalanced.

Recommendation for Formulating Resolution (1)global food crisis need to be highlighted by the national society, and take some actions. (2)Build more efficient policy responsing the disaster weather forecast. (3)The safeguard of the agricultural trade. (4)The attention to the imbalanced development of agriculture in all countries. (5)The system of the transgenic crops. (6)The attitude toward biology-made energy and foods-made oil.

Questions to consider (1) What causes food crisis ? Who will take the responsibility of it? (2) What kind of rules do all countries play? What profits can they get? (3) What are the differences and conflict between them? What is your country’s attitude? (4) What concessions can you make? What is the bottom line?


Huang Shi No.2 Middle School Model United Nations Association

Resources http://www.foods1.com/