Journalist Harald Schumann examines the complex relationship between investment and poverty in this report, commissioned by Foodwatch – a nonprofit organization that analyzes food industry practices. The report asserts that investments in commodity exchanges forcibly increase the price of food. With the caveat that many who are in favor of investing in agricultural commodities – and even see it as a worthwhile activity – argue persuasively in exactly the opposite direction, and that we are always politically neutral, getAbstract recommends this paper to those seeking to understand this important viewpoint about the ways that global capitalism affects food supply and poverty, how investments could benefit an investor and yet harm the poor, how these events fit together, and what you can do about them.
In this summary, you will learn
- How investors drive up the prices of commodity futures;
- How the price of agricultural futures relates to spot prices for food;
- Why, according to this report, this leads to greater hunger; and
- How the European Union could help limit the damage caused by excess speculation.
About the Author
Foodwatch commissioned Harald Schumann, a senior reporter for the Tagesspiegel in Berlin and an expert on international financial markets, to write this report.