IMF, WB warn of food shortages

Leaders of the International Monetary Fund and the World Bank have warned that surging commodity prices are leading to serious food shortages in the developing world. The trend is prompting a new round of inflationary pressures amid a global economic downturn.

In developing countries, rising prices often means fewer meals. IMF's Managing Director warned that inflation may follow the rise of food prices, and this may affect especially African and Asian countries. He said the IMF would work to help solve the problem.

Dominique Strauss-Kahn, Int'l Monetary Fund Managing Director said "We're going to work, probably we are going to talk about this tomorrow and at the G-7 and see what kind of decision can be made to work together."

Meanwhile, the president of the World Bank said climbing food prices will set back efforts to reduce poverty. He called for emergency efforts to meet the new needs.

Robert Zoellick, World Bank President said "But we can't be satisfied with studies, papers and talk. This is about recognizing a growing emergency and acting and seizing opportunity too."

Zoellick said in developing countries, the poor spend up to 75 percent of their income on food. When prices of basic foods rise, they will be hit hard. Zoellick urged industrialized nations to make up a 500-billion-dollar food gap required by the UN's World Food Program to meet emergency needs.