Although international food prices have fallen since peaking in 2008, local food prices in many developing countries have not come down. As a result of food insecurity, poor people eat less, switch to cheaper foods, or forgo spending on health and education. High food prices not only worsen malnutrition and poverty; they aggravate the conditions of people living under conditions of conflict, instability, and drought.
9 million people in the Horn of Africa are facing hunger from the worst drought in 60 years.
$14 billion a year is needed in public agriculture investment for all developing countries to halve hunger and poverty by 2015.
As the ongoing global financial crisis has demonstrated, events in high- and middle-income countries can have important effects on poorer ones. Low-income countries lack the capacity to deal with the financial crisis, given their inadequate access to resources and limited economic diversification.
2.5%GDP growth in 2010 in 136 developing countries, less than half of pre-crisis peak of 6%
Natural disasters claim countless lives every year, while also wiping out decades of development gains in mere moments. People in the poorest countries are typically the worst affected, because they are more likely to live on the most fragile lands, reside in unsafe structures, and have fewer resources to work with.
> 250,000 deaths from natural disasters occurred in 2010; the average from 2000-2009 was 78,000 a year
Food prices remain volatile. Local food prices in many countries haven’t come down, although international food prices have fallen.
Global crises relating to food, finance, and natural disasters have severely affected developing countries, which are most vulnerable to these kinds of threats. IDA is exploring new ways of creating social safety nets to buffer low-income countries from the effects of severe shocks, including a more systematic approach to crisis response.