The Causes of Poverty (2): Bio-Fuels?

Three very similar cartoons about bio-fuels and food prices:

(source, source)

Very funny, but it’s a bit simplistic to blame the food shortages around the world on the increase in food prices “fueled” by the use of raw food materials for petrol alternatives. First of all, the rising costs of food transportation due to rising energy costs also plays a part. Just as the increasing demand for food from emerging markets, and bad harvest in particular places at particular times.

But more importantly, many of the poorest countries in the world buy only a very small percentages of their food from the international markets and hence do not feel the immediate effects of the rising food prices. The bulk of their food comes from national markets, and often these markets are managed poorly, suffer from natural disasters and drought, and are obstructed by the policies of local dictatorships (e.g. Zimbabwe where many of the problems are the direct effect of the misguided policies of the government) or failed states.