Hani Yaafouri writes on escalating food prices and food shortages

This commentary lays out the reasons behind the escalating food prices and the shortages in food supply in the developing nations. In its state of security report in 2006, the UN Food and Agriculture Organization (FOA), estimated that 854 million people worldwide suffer from hunger and malnutrition including 820 million in developing countries due to shortages in food supply.

The increase in food prices is due to several factors. First, economic growth in some developing nations like China and India is straining our natural resources as demand for food has reached historic levels. Second, the rapid rise in petroleum prices due to constant unrest in the oil rich Middle East (Libya, Egypt, Yemen, Syria) and the escalating cost of shipping food supply across the globe are putting an unprecedented pressure on food prices due to the increase in transportation costs. Third, continuous increase in temperature due to climate change has impacted fresh water supply which is affecting crop production and supply. Fourth, the unprecedented demand from the biofuels sector is also affecting food prices.

Food shortages and escalating food prices are serious threats facing our world. The main reasons are attributed to unprecedented demand on our natural resources from the developing world, continuous increase in oil prices and the huge demand from the biofuels sector for agricultural lands. In order to mitigate these challenges, we need new agricultural policies and a new sustainable food frame work that increase the participation of developing nations in order to mitigate these challenges.

Hani Yaafouri
Masters of Resources Law Studies program graduate

Editor's note: Mr. Hani Yaafouri, who is originally from Lebanon, graduated from Denver Law's Masters of Resources Law Studies program in 2010.

Hani Yaafouri, MRLS Graduate 2010, Writes About Political Tension in Libya: Lots of Oil, Little Economic Growth

In the last few months, we have witnessed unprecedented revolutions in several oil-rich Middle Eastern countries. People in Egypt, Tunisia, and most recently Libya, have taken to the streets to demand change from their governments. Demonstrators in these countries are protesting for better governments, economic reform and the end to corruption.

Libya has the largest proven oil reserves in Africa with 42 billion barrels of oil and over 1.3 trillion cubic meters of natural gas. Libya was listed ninth in the world in oil reserves in the last few years. In 2010, Libya was Europe’s largest oil supplier. Libya has massive reserves and the country has a lot of unexplored areas. Western oil companies are desperate to get the rights to oil explorations in Libya. Libya’s oil is in high demand because it is light sweet crude oil. This type of oil is very desirable because it is clean, low in sulfur and easy to refine and burn.

With all of this valuable oil, why is Libya behind most countries in economic growth?

There are several reasons for Libya’s lack of growth. First, Libya has a ruling family that has been in power for over 40 years. They have tightened the grip on the country’s natural resources. Second, the ruling family has confiscated the oil wealth, closed off education and oppressed its people.

Third, the money from the Libyan Sovereignty Fund (the country’s oil fund), which has more than $100 billion USD in investments, is used by the ruling family for personal interest. Fourth, the United States imposed economic sanctions on Libya between 1982 and 2004 which hampered economic growth.

Fifth, the country’s natural resources are mismanaged and there is no accountability or transparency of the government. Lastly, the money that comes from oil production goes towards buying ammunition and weapons to support the regime.

The recent political unrest is due to corruption, a lack of transparency and more importantly, a lack of accountability in the use of Libya’s natural resources. The country has enormous wealth and huge potential. In order for the country to grow and prosper, Libya’s natural resources have to be well managed and wisely used. Unless the current practices stop, corruption will continue to breed political unrest.

Hani Yaafouri, a Lebanon native, is a 2010 graduate of the Master of Resources Law Studies Program at the University of Denver Sturm College of Law