IMF concerned about food crisis in Africa
The International Monetary Fund expressed concern on Tuesday about the global food crisis but dismissed accusations that its policies helped cause the problem.
"We are concerned about it because higher food prices (and) higher oil prices mean higher import bills, and it can slow down economic growth," the head of the IMF's Africa department Benedicte Vibe Christensen told journalists.
The IMF forecast earlier this month that Sub-Saharan Africa would see economic growth this year of 6.5 percent and inflation of 8.5 percent.
However, Christensen warned that inflation "would be higher" than forecast due to soaring food prices, which created a "very high" risk of triggering social tensions.
She said that the IMF recommended "targeted measures" to help the most vulnerable people, but she urged governments against resorting to export bans in their response, which she said would only worsen the situation.
"We are prepared to give technical assistance to find the best response, to implement the measures," she said. "We are also willing to give more financial assistance."
However, Christensen dismissed criticism from non-governmental groups that the IMF and World Bank helped create the current crisis by encouraging poor countries to plant cash crops for export.
"I don't think the current increase in food and fuel prices is due to policies of the IMF," she said. "But I think we show flexibility in terms of adapting the policy advice to a new situation. That's what we are doing right now."
AFP
