Ministers seek ways out of food crisis

The Commonwealth Finance Ministers Meeting opens in Castries, St Lucia, on Monday with the world’s twin crisis of food and fuel at the centre of discussion.

Ministers from 53 countries are expected to discuss the best way to resolve the two problems that have pushed prices of commodities up, leaving some states in extreme poverty.

Kenya is represented by Acting Finance minister John Michuki, who is leading a delegation that includes Treasury permanent secretary Joseph Kinyua and Central Bank governor Njuguna Ndung’u.

The government officials will also push for reforms in the World Bank and International Monetary Fund.

Commonwealth director of Economic Affairs Indrajit Coomaraswamy told journalists that the meeting was crucial.

Change policies

He said governments need to change policies as prices of the two commodities would have an adverse impact on development.

He said: “We have enjoyed a nice decade of non-inflationary growth but in the next two to five years we will suffer inflationary pressures and drop in growth.”

This, he noted, required a change in policy, hence the need for finance ministers to discuss the best way to run their treasuries in such times.

“This meeting will provide ministers and treasury officials with an opportunity to instil good discipline on designing policy,” he added.

Fuel prices have been on the high side, raising the cost of food and other commodities. On the other hand, food production has been on the decline.