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A New Era of Food Insecurity?

With the world in the midst of the most serious economic downturn since the Great Depression and soft commodity prices depressed, it is easy to forget that barely a year ago sky-rocketing food prices were generating serious political and social strife in more than 30 countries around the world. Were these dramatic increases in price merely a cyclical aberration or do they foreshadow a structural shift in supply and demand that will prove the pessimists right? The price of food is a matter of profound importance for the economic well-being of billions of people and the political stability of the most affected states. Unfortunately, policies aimed at improving short-term food-security issues can end up damaging food security in the long term. Export restrictions or price controls help lower prices for consumers today at the cost of discouraging production and investment tomorrow. All this indicates that we have entered a period of increased uncertainty regarding the future trajectory of food prices, which is likely to have major consequences for future food security and the world economy.