ECONOMICS ESSAY

Economics Essay

Economics Essay

Q-1.What… security?

According to the report of CSIS, the world in 2050 will be facing acute food shortage. The article “The role of markets and trade” has mentioned the same facts. The challenges that we face according to articles are shortage of cultivable land, water for crops and additional environmental constraints. One of the most dangerous threats above all the inhabitants of poor countries is the shortage of food and its inflationary trend, the product of a series of economic events, environmental and political factors that suggest a transformation in the structure supply and global demand for food, so food shortages and escalating prices upward is not temporary, but lasting . What are the causes and effects of this phenomenon?

First, the orientation of the development model out neglected rural productive sector organizing production to the world market and consequently discouraging food production, while such policies applied throughout the developing world. The lack of agricultural policies has negatively impacted by four key passages: the almost total absence of technology transfer to agriculture in poor countries, lack of technical training for small and medium producers, agricultural credit and no discrimination against agricultural products in the world market resulted in a decline, in global production and productivity of food in the world.

It can ensure that this, more than a possibility, has been part of a systematic policy of governments entranced by global policies of organizations like the World Trade Organization (WTO) and International Monetary Fund (IMF), which organize production and global trade in goods and service standards under the riddle of competitiveness, which is not competitive and does not contribute to capital if capital does not contribute to bring to market, it does not make the market should be dismissed.

The upward climb of oil prices at international level contributed to some countries whose base is agriculture, began to produce bio fuel from sugar cane and corn, the former apparently introduced a fundamental change in the global supply and demand for food due to increased production of bio fuels and as a consequence of this was reinforced by the rise in food prices.

Fourth, the growing demand from China and India has led to increased "significant and enduring" of prices in the agricultural sector. According to Peter Brabeck stated in the "Financial Times" rising food prices not only reflect temporary factors but changes in the structure of supply and demand, so that its effects are short-term but not long lasting.

The food shortage has a direct impact on overall inflation recorded especially in the countries of Latin America, because the consumer price index weighs up the cost of food. Now may be that the high food prices boost inflation indirectly through inflation expectations (Hebebrand & Wedding, 2010).

Q-2.Write a brief essay … to each.

The World Trade Organization (WTO) is the organization that ensures that trade rules prioritizes business interests over national and common interests. WTO has come to rival the International Monetary Fund as the most powerful, secretive, and anti-democratic international body on ...