When certain information proves challenging to entrenched political or ideological commitments it can be easy for policy makers to ignore, downplay or even dismiss that information. It is a common dynamic and knows no political boundaries.
Global Dashboard catches the Obama Administration selectively explaining the causes for increasing world food prices:
[O]n one aspect of US food policy, there’s a deafening silence: the government’s support for corn-based ethanol. Here’s Robert Hormats, Under-Secretary of State for Economic, Energy and Agricultural Affairs, on USAID’s blog:
World food prices have been increasing over the past six months, due to weather-related production losses and strong global demand. The growing demand is fueled by rapid expansion of middle-class households in emerging markets.
Er, hello? Let’s stop by at FAO’s Food Price Index (February data out today – you guessed it, another record high). What do they think is driving cereal prices upwards?
The increase in February mostly reflected further gains in international maize prices, driven by strong demand amid tightening supplies, while prices rose marginally in the case of wheat and fell slightly in the case of rice.
In other words, this is mainly about corn. And who’s the biggest corn exporter in the world? The United States.
And where is 40% of US corn production going this year? Ethanol, for use in US car engines.
And will USAID acknowledge that this has anything at all to do with spiking food prices? Don’t hold your breath.
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