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Entered By: Mark
Entry Date: 2008-05-15 14:09:48
Subject: Food Protests

Yesterday schools were shut down in Honduras while teachers and others protested the high price of food in Honduras (ie beans, rice and corn). Basic grains have become very expensive and scarce because the government of Honduras sold its reserves in order to buy more diesel. There are a lot of forces at play here. First of all because Honduras is a blend of market and command economies; the government manages things such as fuel imports (because it also subsidizes fuel to help with public transportation). Last week the diesel and gasoline were being rationed. This week we have fuel for automobiles, but food has become dangerously expensive for the poor. Since prices of basic items like food and fuel are rising globally, the government was caught off guard. They were not charging enough for fuel in order to buy more. They had a cash shortage and made up for it by selling the nation's food reserves. As mentioned in a previous journal, the conversion of corn to ethanol (in order to relieve America's dependence on oil imports) has a lot of implications. Not to mention that making ethanol from corn is very inefficient. It helps American farmers (which are largely comprised of multi-billion dollar corporations), but at the expense of American taxpayers and the world food markets. Ethanol is much more efficiently made from sugar cane, but the heartland of America has too cool of a climate for sugar cane. With the world increasingly dependent on global food markets, we really need to trade corn for sugar cane or ethanol if we want to use ethanol. We are going to do our best this year to help the local community with food production. We will grow beans and keep a lot of them in reserve if the same happens next year. There were many times in the last year when beans doubled or tripled in price. A good thing about God's design is that he gave us the ability to think and manage the world around us. We can only effectively manage if we acknowledge God as creator and Lord. Let us pray that policies be changed so that the people of the world have enough to eat.
Replies to this message
re: Food Protests  by Judy Campbell on Saturday May 17, 2008

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