Monday 30 June 2008

Rocketing Food and Oil Prices: What should be done - Part Three

By Louis Egbe Mbua

With food and oil prices soaring to new heights every day, many have their own theories as to the reasons for this economic misfortune for the majority consumers and in fact an economic and financial bonanza for the suppliers. Large wads of funds shift from West to East and to the South. Countries that were barely called nations fifty years ago or "Third World" are now rich beyond their wildest dreams or the imagination of generations barely 20 years ago: Kuwait, Saudi Arabia, Venezuela and others have so much reserve that they know not what to do with it. If this trends were to perpetuate themslves for more than four years, then the roles of the world will surely be reversed witht he first becoming the last and the last, the first. At the same time, it would be impossible to extract fuel if we have not food: no food, no oil. So what caused this problem? And what suggestions are there relating to fixing it?

Oppressive and tyrannical regimes installed in countries world wide are one of the causes of food shortages. Food emanates as a result of Agriculture; Agriculture is dependent on roads, bridges implements and vehicles to plough the land and transport the harvested crops to various centres. Without these tools, Agriculture will be impossible. The most recent shenanigans of the Burmese junta refusing to distribute grain to the Burmese people or corporate with the UN after the devastating typhoon that engulfed that country is a classic case of oppression that results in food shortages and hence food price rises.

In Cameroon, the present regime has neglected roads in the Southern Cameroons region, the bread basket of Central and West Africa. There are no roads linking Buea to Kumba, Kumba to Mamfe-Bamenda- Wum. The consequence is that food produced cannot be easily transported. The effect is poverty of farmers who may have no money to purchase equipment. These oppressive conditions exist the world over; and the multiplier effects are that world food shortages ensue together with soaring prices. The international community has the responsibility of either discouraging tyranny; and actively and financially promote good governance and democracy; or join forces to ensure that oppressive regimes are removed. These regimes affect the world adversely; as good regimes affect the world positively.

Furthermore, a dictatorial and corrupt regime is usually associated with theft of the countries resources and the raiding of the treasury. If this drags for years, the people become impoverished with no money for food and fuel. This has been the case in the Democratic Republic of Congo in the Mobutu years. It is alleged that Mobutu stole up to £4 billion from his people. In Cameroon, high ranking government members of the cabinet, politicians and MPs, civil servants and CEO of State Corporations stole so much that by 1990, a country that was classed as middle-income in 1982, became bankrupt overnight. In a nation where the rule of law exists, the present administration would have been taken to court for theft and mismanagement. Yet they continue to be rule almost twenty years after with the theft and looting continuing unabated.

It is understood that they actually hide their illicit and criminal activities and funds in European banks. The author's opinion is that banks that collect poor people’s money in Europe from dictators abraod are also as corrupt as these corrupt leaders. They should return the money to a special international account for each country to be held until such a time the thieving regime has be removed or is gone. If they refuse to comply, then the international community should black list such financial houses. It is interesting to note the Transparency International carries out a corruption index on corrupt countries but do not research the corrupt banks of Europe and the USA hoarding poor people’s money from tyrants like Obiang Nguema of Equatorial Guinea.

Violence, unwanted and unnecessary wars have contributed to world food and fuel scarcity as demand grows. War in Iraq; the seemingly irresolvable and unending Arab-Israeli conflict over the Palestinian question; the West’s long quarrel with Iran, a major oil producer; militant action in Nigeria and Cameroon by freedom fighters and rebel groups; Venezuela’s quarrels with the USA, all combine to destabilise these regions where petroleum is most prevalent, disrupting much needed supplies; followed by scarcity causing fuel prices to rise faster than before. While there may not be ready solutions to this crisis, it is worth noting that the international community and national governments fail to act to prevent conflicts only to act when it is too late. Conflicts should be resolved before they escalate to disrupt supplies.

The viciousness and greed that drive man to hunt and kill game animal to within limits of extinction; and the share monstrosity of over-fishing have depleted the protein chain. There are reports of stock shortages in parts of the North Sea and the coast of West Africa due to over fishing that creates scarcity. The recent riots in several countries as a result of rocketing food prices are evidence of this phenomenon. Although there are international and national laws against over fishing, it is often violated because it is difficult to police the high seas or those who fish in the night. Checks and policing of these fishermen and hunters may prove invaluable to maintain a respectable balance of fishing and replenishing.

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