RIYADH: Global food prices increased dramatically following the Ukraine-Russia war leading to food insecurity shocks in countries dependent on imported goods like the Middle East and Africa region, according to a recent report by Moody’s.
The report explained that three factors will combine to keep global food security fragile and vulnerable to shocks which are rising global demand for food, exposure to geopolitical disruption and physical climate risks.
Countries like Mozambique, Rwanda, Zambia and Ethiopia are amongst the most exposed and vulnerable to food insecurity shocks, the report stated.
As the Russian invasion of Ukraine has shown, geopolitical conflict, disrupting agricultural production and trade flows of agricultural goods and input, can be a significant driver of global food insecurity.
Moreover, rising global temperatures, changing precipitation patterns and increasingly frequent and severe climate shocks such as droughts, wildfires, floods and heatwaves are already making food production less reliable.
The report also stated that food insecurity greatly affects economic and social aspects creating malnutrition deficiencies in population that also reflects on education and household spending.
“Food scarcity and higher food prices can force low income households to reallocate resources away from health and education, damaging human capital and ultimately the economy’s long-term growth potential,” the report stated.
It added that undernutrition and chronic malnutrition result in increased child wasting and stunting, chronic illnesses, lower educational achievements and less productivity.
Around 21 African economies lose between 1.9 percent and 16.5 percent of gross domestic product annually because of the cost of undernutrition on health, education and productivity, according to the African Union Commission’s 2022 Cost of Hunger report.
Social and political risks also rise with food insecurity and surging prices resulting in poor urban households that fuel sociopolitical instability.
Moody’s stated that national and international policy responses will only partially offset food shocks predicting that 2023 will witness another global surge in food prices.
