Grasroots International signed on as part of the U.S. Working Group on the Food Crisis
By Maria Aguiar
March 24,2009
Dear Mr. President:
In 2008, the price of basic food staples rose by incredible proportions. Between May 2007 and March 2008, hard red winter wheat rose 137 percent, from July 2007 to June 2008 corn prices rose 98 percent. Other food commodities rose in a similar fashion putting daily sustenance out of reach for 200 million more people in the developing world.
Families used to buying kilos of food were only able to buy cups of the same food items. People went hungry. Children stopped growing for months at a time, others perished. The steep price run-up was followed by a sudden slide in commodity prices. Currently, some food commodity prices have decreased to levels that have forced farmers in the developing world and the United States from their farms. The world's food commodities' markets have become dangerously and unacceptably volatile.
A significant part of last year's price fluctuations were the result of excessive speculation in the commodities markets by the very hedge funds and investment banks that helped create the current economic meltdown. The surging prices were undeniably impacted by increasing demand for agrofuels and a lack of grain reserves. And the current global economic crisis has brought down overall demand leading to falling prices. Nonetheless, it is clear that excessive speculation in the U.S. commodity futures markets dramatically exacerbated the volatility of world food prices. It was more than simple supply and demand issues that led to the 2008 food crisis.
The deregulation of the commodities futures markets, beginning in the 1990s and culminating in the Commodity Futures Modernization Act of 2000, encouraged major investors to enter the futures market for the first time since before the Great Depression. These major investors of pension funds, hedge funds, sovereign wealth funds and others increased the massive price fluctuations that we witnessed in 2008. This could have been stopped with sensible rules that, if enforced, would have staved off the malnutrition and starvation that was caused by excessive gambling on food prices. Important reforms are needed now to prevent mega-investors from viewing the futures market like a casino where they can gamble on hunger.
It is because of this that the 76 undersigned U.S.-based groups and 108 international organizations from 29 countries, concerned about world food and energy prices, write to request that you work to rapidly re-regulate the food and energy commodities futures markets to remove excessive speculation that has so clearly increased price volatility in the last few years. By doing this, you will help to create a more stable and effective world commodities market. We cannot allow our basic food needs to be subject to the whims of investors.
cc:
Representative Nancy Pelosi, Speaker of the House
Representative John A. Boehner, House Minority Leader
Senator Harry Reid, Senate Majority Leader
Senator Mitch McConnell, Senate Minority Leader
Representative Collin C. Peterson, Chairman, House Committee on Agriculture
Representative Frank D. Lucas, Ranking Member, House Committee on Agriculture
Senator Tom Harkin, Chairman, Senate Committee on Agriculture, Nutrition and Forestry
Senator Saxby Chambliss, Ranking Member, Senate Committee on Agriculture, Nutrition and Forestry
Representative Barney Frank, Chairman, House Committee on Financial Services
Representative Spencer Bachus, Ranking Member, House Committee on Financial Services
Senator Christopher J. Dodd, Chairman Senate Banking, Housing and Urban Affairs Committee
Senator Richard C. Shelby, Ranking Member Senate Banking, Housing and Urban Affairs Committee
For more information:
David Kane, Maryknoll Office for Global Concerns: dkane@maryknoll.org
Patrick Woodall, Food & Water Watch: pwoodall@fwwatch.org
Sincerely,
U.S. - based organizations (76)
- Action Aid USA
- Africa Faith and Justice Network
- Agricultural Missions, Inc.
- Alliance for Global Justice
- American Jewish World Service
- Bay Area Community Services
- Benedictine Sisters of Mt. Angel, OR
- BOLDJustice (Broward Organized Leaders Doing Justice)
- Caney Fork Headwaters Association
- Catholic Charities of Kansas City-St. Joseph
- Catholics in Alliance for the Common Good
- Catholics United
- Center of Concern
- Claretian Missionaries
- Columban Justice, Peace and Integrity of Creation Office
- Commission on Peace and Justice of the Roman Catholic Diocese of Albany
- Community Food Security Coalition
- Conference of Major Superiors of Men (CMSM)
- Congregation of the Sisters of St. Paul de Chartres, Marquette, Michigan
- Consumer Watchdog
- Cumberland Countians for Peace & Justice
- Daughters of Charity of St. Vincent de Paul, UN-NGO office
- Family Farm Defenders
- Farmworker Association of Florida
- Farmworkers Self-Help, Inc.
- Food & Water Watch
- Food First
- Foreign Policy In Focus
- Friends of ETC Group
- Glenmary Commission on Justice
- Global Citizen Center
- Global Exchange
- Grassroots International
- Greater Grand Rapids Food Systems Council
- Heartland Center/Office of Peace, Justice, and the Integrity of Creation for the Diocese of Gary, IN
- Holy Cross International Justice Office
- Institute for Agriculture and Trade Policy
- Institute for Policy Studies, Global Economy Project
- Interfaith Center on Corporate Responsibility - ICCR
- JustFaith Graduates Network of Miami
- Justice and Witness Ministries, United Church of Christ
- Laughery Valley Growers, Inc., IN
- Leadership Council of the Sisters, Servants of the Immaculate Heart of Mary Monroe, MI
- Liaison Rural Life Committee, Diocese of LaCrosse, WI
- Maryknoll Affiliates
- Maryknoll Office for Global Concerns
- Medical Mission Sisters, Sector North America
- Mennonite Central Committee US
- National Catholic Rural Life Conference
- National Family Farm Coalition
- Network for Environmental & Economic Responsibility, United Church of Christ
- NETWORK, A National Catholic Social Justice Lobby
- New Rules for Global Finance Coalition
- Nicaragua Network
- Northwest Atlantic Marine Alliance
- Oakland Food Policy Council
- Oblates of Mary Immaculate, Justice, Peace/Integrity of Creation Office
- Office of Peace and Justice, Sisters of Charity of New York
- Office of Peace, Justice and Creation Stewardship, Catholic Charities, Gallup, NM
- Pax Christi USA
- Public Citizen
- Quixote Center
- RFK Center for Justice & Human Rights
- School of the Americas Watch
- Sierra Interfaith Action For Peace
- Sisters of Charity Federation
- Sisters of Notre Dame de Namur Justice and Peace Network
- Sisters of Saint Mary of Namur of the Eastern Province
- Sisters of St. Mary of Namur of the Western Province
- Society of the Sacred Heart, NGO Office at the United Nations
- The Congregation of Holy Cross
- The Oklahoma Black Historical Research Project, Inc
- The Second Chance Foundation
- United Methodist Church, General Board of Church and Society
- Washington Office on Latin America
- World Hunger Year
International (108)
- AceA Onlus, Associazione Consumi Etici e Stili di vita solidali (Ethical Consumer and Fair Lifestyles Association), Italy
- AEFJN (Africa Europe Faith & Justice Network) - Belgium
- Agribusiness Accountability Initiative, International
- Alianza Mexicana por la Autodeterminacion de los Pueblos - AMAP (Mexican Alliance for the Auto determination of People), Mexico
- Alianza Social Continental (Hemispheric Social Alliance)
- Asian Farmers' Association for Sustainable Rural Development (AFA)
- Asociación Latinoamericana de Micro, Pequeños y Medianos Empresarios - ALAMPyME (Latinamerican Association of Micro, Small and Medium Businesspeople), Mexico
- Asociación Nacional de Empresas Comercializadoras de Productores del Campo - ANEC (National Association of Rural Producers), Mexico
- Associacao em areas de assentamento no estado de Maranhao (Association of land settlements in Maranhao), Brazil
- Bangladesh Krishok Federation, Bangladesh
- Bharatiya Krishak Samaj, India
- Bia'lii, Asesoría e Investigación, A.C., Mexico
- Centre For Social Concern, Malawi
- Centro de Estudios Urbano Regionales (Center of Regional Urban Studies), Bolivia
- Centro de Promoción y Educación Profesional "Vasco de Quiroga," A.C. (Professional Education and Promotion Center "Vasco de Quiroga"), Mexico
- Centro Ecuménico Diego de Medellín (Diego de Medellin Ecumenical Center), Chile
- Colectivo Ecologista de Jalisco - CEJ (Jalisco Ecological Collective), Mexico
- Comboni Missionaries
- Comisión Mexicana de Defensa y Promoción de los Derechos Humanos, A.C. - CMDPDH,
(Mexican Commission for the Defense and Promotion of Human Rights), Mexico
- Comité para la abolicion de la Deuda del Tercer Mundo (CADTM), France
- Congregation of Holy Cross
- Consumers' Association, Kerala, India
- Coordenador Nacional do Serviço Paz e Justiça - SERPAJ (National Coordinator for Peace and Justice Service), Brasil
- Coordinadora Estatal de Productores de Cafe de Oaxaca (Oaxaca State Coordination of Coffee Producers), Mexico
- Coordinadora Nacional Indígena y Campesina - CONIC (National Indigenous and Farmers' Coordination), Guatemala
- Daughters of the Sacred Heart, Malta
- Earth Cluster of Franciscans International
- Eastern and Southern Africa small scale Farmers Forum - ESAFF
- Edmund Rice International, Switzerland
- El Grupo Red de Economía Solidaria (Solidarity Economy Network Group), Peru
- Equipo Pueblo (People Team), Mexico
- Equity and Justice Working Group Bangladesh (EquityBD)
- EQUIVITA Scientific Committee, Italy
- Espacio DESC (Economic, Social and Cultural Rights Coalition), Mexico
- ETC Group (Action Group on Erosion, Technology and Concentration)
- Faida Market Link, Tanzania
- Federación de Cooperativas de la Reforma Agraria Región Central - FECORACEN
(Federation of Agrarian Reform Cooperatives, Central Region), El Salvador
- FoodFirst Information and Action Network - FIAN International
- Foro "Corriente de Opinión Ciudadana" (Citizen Opinion Forum), Argentina
- Forum Solidaridad Perú (Peru Solidarity Forum)
- Frente Civico de Mexico (Mexican Civic Front)
- Frente Democrático Regional del Callao - Institución Autónoma (Regional Democratic Front in Callao), Peru
- Fundación Centro de Estudios Nacionales de Desarrollo Alternativo - CENDA (Center for National Studies on Alternative Development Foundation), Chile
- Fundación Menonita Colombiana para el Desarrollo - MENCOLDES (Colombian Mennonite Foundation for Development), Colombia
- Grupo de Estudios de America Latina - GEAL (Latin America Study Group), Argentina
- Grupo de Solidaridad-Arenal - GRUDESA, Nicaragua
- Heifer International
- Informationsgruppe Lateinamerika - IGLA (Latin America Information Group), Austria
- Instituto de Regeneración Ecológica (Ecological Regeneration Institute), Ecuador
- Instituto para el Desarrollo Sostenible - INDES (Institute for Sustainable Development), Nicaragua
- International Federation of Rural Adult Catholic Movements
- International Movement of Catholic Agricultural and Rural Youth - MIJARC, Belgium
- JPIC Central Commission of the Mccj (Comboni Missionaries)
- Jubilee Scotland
- Jubilee South
- Justice and Peace Group of the Missionaries of Africa in the Netherlands
- Justice, Peace and Integrity of Creation Office of the Order of Friars Minor, Rome, Italy
- Korean Advanced Farmers' Federation (KAFF)
- La Asociación Coordinadora de Asociaciones y Comunidades para el Desarrollo Integral del Pueblo Maya Ch´orti´-COMUNDICH (Coordinating Association of Communities for the Integral Development of the Maya Ch'orti' People), Guatemala
- La Convención Nacional del Agro Peruano - CONVEAGRO (National Convention of Peruvian Agriculture), Peru
- La Mesa de Coordinación Latinoamericana de Comercio Justo (Latinoamerica y el Caribe) - The Latin American Coordination for Just Trade
- La Red Peruana de Comercio Justo y Consumo Ético (Peruvian Network for Fair Trade and Ethical Consuming), Peru
- La Unión de Organziaciones de la Sierra Juárez, Oaxaca, S. C.- UNOSJO, S.C. (Union of Organizations of the Juarez Plateau), México
- Labour, Health and Human Rights Development Centre, Nigeria
- Latin American Solidarity Centre, Ireland
- Marcha Mundial de las Mujeres - MMM (Global March of Women), México
- Missionaries of Africa, Rome, Italy
- Movimento Campones Popular - MCP (Popular Peasants' Movement), Brazil
- Movimento dos Pequenos Agricultores - MPA (Small Farmers Movement), Brazil
- Movimiento de Agricultura Orgánica Costarricense - MAOCO (Costa Rican Organic Agriculture Movement), Costa Rica
- Movimiento de Saneamiento Político y Social - MSPS (Political and Social Cleaning Movement), Chile
- Mujeres para el Diálogo A.C. (Women for Dialog), Mexico
- National Labour Economic and Development Institute (NALEDI), South Africa
- National Union of Students of the Philippines (NUSP)
- Navdanya (Research Foundation for Science, Technology and Ecology), India
- NUCAFE - (National Union of Coffee Agribusinesses and Farm Enterprises), The Coffee Farmers Organisation in Uganda
- Núcleo de Estudos, Pesquisas e Projetos de Reforma Agrária - NERA (Nucleus for Studies, Research and Projects in Agrarian Reform), Brasil
- Otros Mundos, AC (Other Worlds), México
- Pax Romana
- Pesticide Action Network North America
- Platform earth, farmers, consumer - the Netherlands
- Pólo Sindical dos/as Trabalhadores/as Rurais do Submédio São Francisco (Workers' Center for Rural Workers), Brasil
- Programa Chile Sustentable (Sustainable Chile Project)
- Programas de Desarrollo para los Pueblos del Perú (Development Programs for the Peoples of Peru), Peru
- Red Mexicana de Acción frente al Libre Comercio - RMALC (Mexican Action Network on Free Trade)
- Red Nacional Género y Economía - REDGE (National Gender and Economy Network), Mexico
- Rede Colombiana de Acción frente al Libre Comercio (Colombian Network of Action on Free Trade, Colombia
- Rede Jubileu Sul Brasil (Jubilee South Network, Brazil), Brazil
- Rede Social de Justiça e Direitos Humanos (Network for Social Justice and Human Rights), Brazil
- Rural Coalition/Coalición Rural - U.S./Mexico
- Salesian Missions
- Servicio Internacional Cristiano de Solidaridad con los pueblos de América Latina (International Christian Service in Solidarity with the Peoples of Latin America
- Servicio Paz y Justicia en America Latina - SERPAJ - AL (Justice and Peace Service in Latin America)
- Servicios del Pueblo Mixe, A.C., Mexico
- Siembra A.C., Mexico
- Solidarité - France
- Terra Nuova (New Earth), Italy
- The International Presentation Association of the Sisters of the Presentation
- Third World Network
- Union de Comunidades Indigenas de la Zona Norte del Istmo - UCIZONI (Union of Indigenous Communities of the North Istmo Zone), Mexico
- Union Paysanne (Peasant Union), Canada
- Unión sindical de trabajadores de Guatemala - UNSITRAGUA (Guatemala Workers Union Federation), Guatemala
- Veterinarios Sin Fronteras (Veterinarians Without Borders), Spain
- Via Campesina Brasil
- Via Campesina Centro America
- VOICE, Bangladesh
- War on Want, United Kingdom
- World Development Movement, United Kingdom