Food Security As Defined by the World Thesis

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Food Security as defined by the World Food Summit is "when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life" (1). Food security and preservation is a very contentious issue among many nations. Nations that are particularly interested in food security are emerging nations (2). These nations, known as the BRICS have very large populations and thus must support them with adequate amounts of food. The problem arises out of each nation's capability to do so effectively. Many of the emerging nations have a burgeoning middle class but many are well below the poverty line. As such, they may not have the means to provide for themselves the necessities of life. A subsequent increase in the price of food poses a significant threat to emerging nations who rely especially on imported goods and services (Refer to appendix for price volatility charts). Any kind of attack that reduces supply without a corresponding decrease in demand will create a rising price structure in regards to food and its security. This fact is further compounded by inflation producing measure enacted by many developed nations such as the U.S. To help stabilize its own economy (3). I believe in order to adequately address these issues; emerging nations must first decrease their reliance on foreign supplies.

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I believe the most significant risk posed to food security is not that of terrorist attack, but instead that of a fiscal and monetary policy. Our equity and commodity markets are becoming more global. As such, they are becoming more intertwined with the intricacies of market volatility and investor psychology. I believe the recent U.S. downgrade provides a perfect example of how market volatility and investor psychology can have adverse consequences on food security.

As our economies become more global, so too do standards governing global activities. Commodities such as wheat, corn, and oil are no different in this regard. There is little difference now between wheat in America and wheat produced in Europe. The same goes for other commodities produced elsewhere in the world. As such, price volatility in one commodity in America can potentially affect prices in those of other countries. This concept is popularly termed, "systemic risk." Now emerging countries such as the BRIC nations, have a heavy reliance on food and commodities. This is primarily due to there rising middle class and increased standard of living. With such a rapid population growth rate, the demand for food and its subsequent protection is imperative. For one, with ample food supply, the nation can be better supported physically and thus continue its….....

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