Action needed on climate, food crisis says Oxfam

Oxfam International Press Release
21 April 2008

As the Bretton Woods Institutions meeting this week for the Spring Meetings, Oxfam calls on them and governments to keep poverty top of the agenda. At a time when the global economy is facing a crisis, Oxfam said the emphasis on the rich world must not eclipse action in developing countries where rapidly rising food prices, increased flooding and droughts due to climate change are wreaking havoc.

Finance and development ministers will gather in Washington DC this week, amid growing concerns over the state of the world economy, climate change, a worrying rise in food prices and the impact of these on the world's poorest.

Oxfam's Elizabeth Stuart: "Global economic uncertainty, high food prices, more frequent floods, drought and other impacts of climate change all pose a serious threat to vulnerable people in developing countries. The situation requires urgent action and more money from rich countries and yet, aid levels are falling for a second straight year. "

Oxfam calls for immediate action to be taken by donors and national governments to ensure that the poorest consumers are protected against high food prices and price volatility on food markets worldwide.

"The New Deal on targeting world hunger being promoted by President Zoellick is welcome. Past policies prescribed by the World Bank which fast-tracked liberalisation, including in the agriculture sector, have left many countries more vulnerable. Poor countries need to keep the flexibility to support and protect small-scale farmers," said Stuart.

Oxfam says that efforts must be also be made by national governments and donors alike to ensure that poor producers can take advantage of the opportunities higher prices may offer. The new situation should spur reform and greater investment in agriculture.

Climate change

The World Bank has also a vital role to play in fighting climate change and helping poor nations adapt to its impacts. But any new climate funds that Bank manages need to be linked to the UN climate process.

“It’s very encouraging that donors want to give more money to redress the devastating problem of climate change. But in doing so, they mustn’t undermine the ongoing UN negotiating process,” Stuart said.

IMF

The new Managing Director of the IMF, Dominique Strauss-Kahn, will be looking to give a facelift to the institution. But Oxfam says the governance reform that will be rubber stamped this week is a long way from what is actually needed.

“Ironically, this reform is perfect if the Fund wants to become completely irrelevant. By continuing to stymie the voice of so many countries of growing geopolitical importance, it’s ensuring that more stakeholders will walk away from the institution. You can’t call the proposal a real reform when the seven richest members hold more than 40% of the vote.”

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Oxfam Ireland is an independent member of Oxfam International- a group of thirteen non-governmental agencies dedicated to fighting poverty and related injustice around the world.

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