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COLUMNISTS
TODAY'S STORIES
08.07.2008
The Truth Behind the World Bank's Biofuels Scandal

Turns out that Guardian may have been wrong about that secret biofuels report from the World Bank, which it claimed was suppressed for political reasons. World Bank officials told the Wall Street Journal today that the study--which argued that biofuels were responsible for 75% of the rise in food costs--was actually a working paper. As such, it was never made secret and doesn't reflect the official views of the Bank:

The report was meant to contribute to a World Bank position paper on rising food prices, which was released at the Bank’s spring meeting in mid-April.

The final April report didn’t include [the author, Donald Mitchell's] specific calculation. But, Mr. Mitchell says, “I never saw that as political.” Instead, he says he believes the changes were made because of “editing.” He said that he has been encouraged by World Bank management to explore the issue of biofuels and the overall rise in food prices. “I had input” into the final report that was released at the spring meeting, he said.

The World Bank plans to release a final version of the working paper this week, given all of the hubbub. And while the Bank might not ultimately agree with all of the author's figures--officials say they will continue to review his findings--that doesn't necessarily mean they'll be backpeddling on the issue. The Bank has continued to stand strongly behind its official claim that the U.S. ethanol industry is the main culprit for skyrocketing feedstock prices.

--Suzy Khimm

Posted: Tuesday, July 08, 2008 7:19 PM with 5 comment(s)

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teplukhin2you said:

The world bank is a marginal player. The real powers here are teh West's agribusiness lobbies, including King Corn in the US of A.

Why does the progressive party's progressive nominee support this deeply reactionary, nasty lobby and its ethanol scam?

July 8, 2008 3:57 PM

The Ignorant Populist said:

I'd like to know the answer to that question as well.

And it is at best, morally dubious to making fuel on the backs of the worlds most vulnerable. And to fund it with public money is just shocking.

I see those conspiracy nuts in the Senate might have had some impact on Crude. But also the fundamentals are starting to show, finally, for a quarter anyway.

See here for a quick sum up of the Locust swarm: http://tinyurl.com/5aj7yo

Money quote.

"Investors, like locusts, are opportunistic. They also move in swarms, descending on whatever is unprotected and likely to yield a bountiful harvest. This time around, hedge funds are widely blamed for leading the commodities frenzy, hiding behind what analysts call "supportive market fundamentals" while whipping up prices to the breaking point."

(I'd love to see that Locust swarm hit the Olympics. Come on the locusts!)

July 8, 2008 5:17 PM

wamba1 said:

Thanks for raising that question, which sent me straight to Google: the 5 midwestern swing states plus Ohio and Pennsylvania have a total of 106 electoral votes. They also planted 51% of the nation's corn acreage in 2007. My work is done here - now I'll check out coal production.

July 8, 2008 11:44 PM

AaronBBrown said:

Diary: Sierra Leone slum clinic

news.bbc.co.uk/.../7495161.stm

[The children here in Kroo Bay are eating less.

Before, they might have eaten three times a day.

Now most of them only eat twice, and some are surviving on just one meal a day.

Food prices have really gone up in the last year. Everything is so expensive.

Last year a bag of rice was 90,000 leones ($30). This year it is 120,000 or 130,000 leones ($40 or $45).]

July 9, 2008 9:39 AM

AaronBBrown said:

G-8 Says Oil, Food Prices Pose Risk to World Economy (Update2)

www.bloomberg.com/.../news

[We express our strong concern about elevated commodity prices, especially of oil and food, since they pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and increase global inflationary pressure,'' the statement said.]

[Record corn, wheat and rice prices have also contributed to accelerating inflation, which the International Monetary Fund predicts will be the fastest in advanced economies since 1995 this year even as growth is the slowest in seven years.]

[Corn surged 26 percent last month and soybeans jumped 15 percent as the worst Midwest floods since 1993 ravaged parts of the U.S.]

July 9, 2008 10:06 AM