Monday, June 02, 2008

Consequences of rising food prices

I think it is fair to say that the soaring food prices, especially that of rice, have hurt most people. We in Asia are hit even harder because rice is our staple food.

The causes of the increasing prices are well-known enough: Higher demand in Asia because of new-found prosperity, crop damages in countries like Vietnam, the use of some agricultural produces (especially corn) to make biofuels and so on.

But what are the consequences? More specifically: What are the consequences that are not very obvious and may, therefore, often be ignored? I can think of one scenario that is caused directly by high price of rice.

I'm sure Cambodia is one of the countries hardest hit by this food price crisis. And I don't mean the poor people who are the victims here. I mean the political parties. They must be very sad. Soaring rice price in an election year simply spells disaster. Imagine when the parties have to give out free rice to potential voters during campaign rallies. One 50-kg bag of rice for one family is no longer possible unless the parties don't mind going bankrupt. The only way out is to give out free noodle, sarongs, or "MSG" instead of rice. A typical rally should sound something like this:

Politician: "So thank you very much brothers, sisters, uncles, and aunties for being here today. Our party will never forget you. In fact, we know very well the hardship of rural people like you all. I myself grew up in a poor farming family. If we are elected, we will help to the best of our ability. We will build new schools, irrigation systems, roads, and hospitals. As of now, we can only thank you by some small gifts from our hearts. Each family here will get two sarongs, 2 kramas, 2 T-shirts, 1 box of instant noodle, 2 bags of "MSG", and 10,000 riels in cash."

People: "No. We want rice! We want rice! We want rice!"

Politician: "Now see, brothers, sisters, uncles, and aunties, you don't understand. Recent researches have shown that eating too much rice can be detrimental to your health. Doctors have recommended that you start eating instant noodle instead."

People: "We don't care! We love rice! We want rice! We want rice! We want rice!"

Politician: "But, brothers, sisters, uncles, and aunties, the instant noodle we're giving out is MaMa. It tastes very good. It's not just some made-in-Vietnam noodle."

People: "We don't care! We love rice! We want rice! We want rice! We want rice!"

Politician: "Fine, fine fine! Only you know what you want best! After we get elected, we assure you that every family here will get not just 1 but 2 bags of rice. Is that agreed?"

People: (Whispering amongst themselves) "Ok, let's not waste time. Let's just go home and go back to our farms. Better grow our own rice than wait for it to rain down from the sky."

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