There’s been incredible economic development around the world, especially in the last few decades. Take the Asian Tigers for example: Hong Kong, Singapore, South Korea, and Taiwan. All four upheld notably high growth rates from the 1960’s to the 1990’s, and successfully rose from third-world economy status to being advanced, high-income economies. Stories of fast-developing countries aren’t as unique as before, one need only consider such giants as China and India and the “Tiger Cub Economies” such as the Philippines. While GDP is exhibiting an upward trend for these nations, what does this mean for the rest of the world? Specifically, what does this mean for food prices?
Food prices are at their highest point in real terms since 1984. The highest weighed factors influencing high prices are actually temporary. Drought and floods around the world, export bans, a weaker dollar (which makes restocking cheaper in local currencies), and recent current events surrounding oil all have pushed the prices of 
food upwards. The growth of countries is also positively correlated with the price of foods. Presently this factor isn’t as influential as one might think because the highest food “demanders,” China and India, are still living within their farmers’ crops. As we move into the future, this factor will have a greater impact on food prices. The most recent issue of The Economist states, “A good guess is that food production will have to rise by 70% by 2050 to keep pace with population growth, the explosion of developing countries’ megacities and the changes in diet that wealth and urbanization bring.”
Such dreary statistics seem like a cause for panic, but a look at basic economics outlines the general solution. As more people demand food, farming techniques must be improved to be more efficient, leading to higher returns to farmers. Prices of food will most likely continue to increase, but there will be enough.
While countries (like the Philippines) continue to see economic growth, it is interesting to examine the multi-faceted effects, both positive and negative, that arise. Economics will continue to be a necessary tool in analyzing current events and in predicting the future.
Image Source: Salvatore Vuono
