Another day and another article has been published about the effects of increasing food and commodity prices on developing nations, especially countries like Haiti, Bolivia, and Nicaragua.

Today, the article from the Miami Herald, reports on recent violence in Haitii as a result of soaring food prices. Across Latin America countries are attempting to weather the crisis by imposing export bans in a bid to keep more goods within the country, and control commodity prices at the federal level.

All these recent media reports of the food crisis underscores the need for local, sustainable industry in countries like Nicaragua. By having a strong economy that is self-sustaining and supplies the local market, it will help reduce the heavy reliance on imports. Indeed, this may be the same motivation for Nicaragua president Daniel Ortega’s recent decision to grant a UK-based company rights to explore for oil off the Caribbean coast of Nicaragua. Nicaragua relies heavily on imported oil from countries like Venezuela, and by having a local oil industry will save the country millions while providing some very valuable oil exports.

There are so many issues at play here. To start a local industry you need money. Where is the money going to come from when the locals themselves are 90% unemployed? There is a silver lining here, with little reliance on North American and European trade, Nicaragua may be able to weather a global downturn triggered by a recession in the USA. It’s little consolation to a family who can barely afford food in the first place.

Technorati Tags: food, commodity, price, developing nations, Haiti, Bolivia, Nicaragua, Miami Herald, Latin America, crisis, export

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