The developing world is experiencing a serious food crisis, which is being widely ignored by the mainstream media according to Jayati Ghosh, professor of economics at Jawaharlal Nehru University in New Delhi, and Executive Secretary of International Development Economics Associates.

On April 6 Ghosh addressed the gathered crowd in Gordon Hall, located at the University of Massachusetts, to present a lecture titled “The Impact of Financial Speculation on Commodity Prices in Developing Countries.”

Ghosh chronicled the intricate economics behind the “historic” rise of food prices and how she believes this rise has affected the world’s poorest citizens.

Bob Pollin, professor of economics and co-director of the Political Economy Research Institute (PERI), introduced Ghosh with a quote by economist John Maynard Keynes which outlines what he believes to be the qualities of an outstanding economist. 

“Master-economists must possess a rare combination of gifts,” read Pollin.

“He must be a mathematician, historian, statesman, philosopher – in some degree. He must understand symbols and speak in words. He must contemplate the particular in terms of the general, and touch abstract and concrete in the same flight of thought,” continued Pollin.

Adding that Ghosh possessed all of the qualities of an outstanding economist, Pollin introduced Ghosh to the audience.

Beginning her presentation, Ghosh criticized the lack of coverage of the food crisis by the mainstream media.

“In the middle of 2007 and 2008 the global food in sub-Saharan Africa and India crisis was all over the news, but disappeared because of coverage of the economic crisis,” said Ghosh.

“However in many countries the food crisis is much worse,” continued Ghosh.

“Maybe some food riots in India would cause the media to pay greater attention to the problem,” said Ghosh.

According to Ghosh, India has seen food prices increase by 45 percent over a two-year period.   

 “What we are seeing is large population food prices are going up really sharply and families are skipping meals, children aren’t getting enough to eat, children are being born with low birth weight,” said Ghosh describing the impact on human life due to the price hikes.

Ghosh argued that the “historic” rise in food prices was driven by speculation on commodity prices and deregulation by the U.S. Ghosh described the use of speculation as highly volatile.

According to Ghosh, the food crisis in developing countries is “intimately related” to the current financial crisis.

The deregulation resulted from the passing of the Commodity Futures Modernization Act in 2000. According to Ghosh, the act allowed financial companies into futures market which allowed banks to influence the prices of food.

According to Ghosh, a popular explanation for the increase in prices is increased demand from China and India. However, Ghosh added that India and China have consumed less, leading her to conclude that the increase in food prices was not caused by regular supply and demand.

“She gave us a very different look at the state of India,” said Pollin following her presentation, “It is very important that [Ghosh] is documenting this problem.”

“[Ghosh] goes back to an older tradition of economists,” said Pollin. “Not only is she a very good technical economist, but also thinks from the human standpoint.”

Gerald Epstein, professor of economics and fellow co-director of PERI, said Ghosh’s talk was “very convincing.”

“Ghosh has shown speculation can lead to extreme volatility in commodity prices,” said Epstein, “and can impoverish people in poor countries while making profits for bankers.”

Ghosh was described by Pollin as an economic and political activist and has played an important role in the political scene of her native country of India and is a regular columnist in newspapers.

Bobby Hitt can be reached at [email protected].