Amsterdam, Jul 13: World Bank president Robert Zoellick has said that he expected food prices to remain above 2004 levels until at least 2012.
He repeated that with food and fuel prices in a "danger zone" there was a need for 10 billion dollars to provide food and cash handouts for the world's poorest. Soaring oil and food prices have fuelled inflation across the globe at the same time as economies slow, posing a sharp dilemma for policymakers. Earlier this week, leaders of the Group of Eight rich nations in Japan agreed on the need to address global inflation, particularly elevated oil and food prices. "I think the statement on food security was a good statement, but the test will be on the delivery of the action," Zoellick said.
"During the meeting I tried to emphasise that I feel we are in a danger zone of high food prices and fuel prices and there is a great need for additional resources," he added.
Zoellick said that several countries had made substantial contributions towards the 10 billion dollars sum, but funds would be needed continuously over the next years.