The paper "Multilateral Trading System and Global Food Security" Is a wonderful example of a Macro and Microeconomics Case Study. The entire world entered a period of the great depression during 2008-2009 when the food and fuel prices escalated. The financial and food crisis recorded in the years 2008 and 2009 has given birth to poverty among many people across the world. The crises brought together great minds to resolve the situations. During this period, the prices of rice tripled while those of maize and wheat doubled. Indeed, this aspect resulted in the inflation rates skyrocketing which in the end led to poverty in many nations.
The biggest contributor to this great depression was China. The government stated that they will not sell their rare minerals anymore. Consequently, this resulted in the countries that relied on China to look for alternative sources. Most of them opted to engage in the mining of the minerals and with minimal technology and financial resources they ended up depleting their resources. In the end, they had to start borrowing from the World Bank and other nations to provide the services to their people.
However, this resulted in them overpricing their prices to ensure they meet their debt obligation. In the end, the false price alarm led to the entire globe increasing the prices of their commodities. A good example of a country that failed to recover from the crisis in Greece. It was plunged into much debt to the point they had to withdraw themselves from the European Union. Agriculture is the backbone of any economy, and any failure in the agricultural sector will result in the inability of the economy.
During the period of a crisis, the total cost incurred in purchasing essential commodities increased by a margin of 25%. For sure, this was an indication that the consumer disposable income decreased by the same margin. A decline in consumer purchasing power definitely will lower the GDP of a country resulting in an increase in poverty levels. Therefore, to salvage the situations, professionals from different fields came together to analyze the relationship between food security and international trade. However, this resulted in the WTO instituting policies that will be discussed in the essay to elevate the situation.
Indeed, the policies gear towards promoting global food security and eliminate hunger in the community (Markovic, 2006). The essay also proposes some new strategies that International Trade as well as WTO ought to be embrace to deal effectively with the issue of food security. That includes regulating the volatile commodity market and its diverse products to minimize fluctuations. (Cohen and Clapp, 2009). Indeed, the cross-disciplinary statutes allow scholars to get the know-how on the relationship between the environmental, political, and economic aspects of international trade.
In essence, the essay appeals to the so-called policymakers and trade practitioners who are in a position to institute changes. Food Security issues During 2008-2009, the entire globe was plunged into a situation of the dire need for food. In India for example, many deaths that occurred were attributed to the international food shortage. The most affected were the children; the country has 47% of its children who are underweight and 46% who are suffering from malnutrition. In this case, the analysis deliberates on the UNICEF and the WTO assessment of the country (Fisanick, 2010).
Therefore, there is a need for international bodies to intervene and deliberate changes in global food policies to come up with a comprehensive long-term and favorable solutions to serve all.
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