Financial Food Speculation and the Global Food Crisis

29 March 2023

Sophie is a Development Economist and in the webinar she argues that financial speculation is the main driver of the food price surge.

The UN World Food Programme (WFP) has announced a global food crisis with those living in acute food insecurity reaching a record 349 million people in 2022. In the UK, a cost-of-living crisis has thrown many into poverty with inflation rates reaching double digits for the first time in 40 years. The main driver behind rising hunger, food insecurity and poverty is a steep increase in the prices of food and fuel commodities. Ongoing disruptions in supply chains since the Covid-19 crisis and the war in Ukraine are routinely blamed for food shortages and high prices. However, there is no shortage of food globally. In contrast to the common narrative, she argues that financial speculation is the key driver. The world is facing a food price, not a food supply crisis. The consequences can be equally severe, but policy solutions differ.