The IMF announced that costs have increased due to the food crisis, and that import costs may increase by $9 billion in 2022 and 2023.
The International Monetary Fund (IMF), stating that financial costs have increased due to the global food crisis, reported that import costs may increase by $ 9 billion in 2022 and 2023 due to the increase in food and fertilizer prices in countries that are highly exposed to food insecurity.
The IMF has published its report titled “Tackling the Global Food Crisis: Impact, Policy Response and the Role of the IMF”.
The report pointed out that the world is facing a food crisis as major price shocks exacerbate food insecurity.
MANY FACTORS ARE EFFECTIVE
In the report, which stated that many factors contributed to food insecurity, including conflict, climate shocks and the impact of the Kovid-19 epidemic, since 2018, the war started by Russia in Ukraine intensified the pressures on international prices of basic foodstuffs and fertilizers. The situation was reported to have deteriorated sharply.
In the report, it was emphasized that international prices remained significantly above the 2020-2021 averages despite the recent easing.
‘RIGHT NOW THERE IS A CRISIS EQUAL TO THE CRISIS IN 2007’
Underlining that high prices for fertilizers and energy, as well as significant downside risks, adversely affected the outlook, the report said, “The world is currently in a crisis equal to the 2007-2008 crisis, which left many countries with severe food shortages and caused great suffering and many deaths. facing a food crisis”.
In the report, it was pointed out that although the food crisis is a global phenomenon, it affects the low-income countries the most, and it was noted that the food crisis has great economic costs as well as creating human suffering.
’50 BILLION DOLLARS NEEDED‘
In the report, the crisis is worst in 48 countries, mostly low-income countries, which are highly dependent on imports from Ukraine and Russia. reported to increase.
In the report, it was noted that approximately $ 50 billion is needed to eliminate acute food insecurity in 2022, and this figure may increase in the long run.
In the report, it is stated that Sudan, Kyrgyzstan, Belarus, Tajikistan and Armenia are the countries most dependent on food imports from Ukraine and Russia as a percentage of their gross domestic product (GDP). , Paraguay and Kyrgyzstan were reported.
CALL TO ACTION FAST
In addition, IMF Director Kristalina Georgieva and IMF officials Björn Rother and Sebastian Sosa wrote a joint blog post on the subject.
The article underlined that the unprecedented humanitarian challenge requires quick action to alleviate the suffering of those who do not have enough food and to provide financing to countries in need.
Pointing out that policy makers in many countries are taking financial measures to protect people from the current food crisis, it was noted that for this year alone, countries with high levels of food crisis are estimated to need $7 billion to help the poorest families cope with it.
In the letter, it was stated that people should be supported quickly and adequately, continued open trade, increased food production, improved distribution and invested in climate resilient agriculture.
NEW FINANCE WINDOW
On the other hand, IMF Director Georgieva announced that a new “Food Shock Window” has been created to help countries address food insecurity.
Georgieva stated that the new financing window will provide additional access to emergency finance to countries with urgent balance of payments needs and those experiencing acute food insecurity, a sharp food import shock or a grain export shock.
Stating that the new financing window will be open for one year, Georgieva stated that with the new financing window, the IMF will provide additional assistance to help people in fragile countries.