The Global Food Crisis has Affected Prices for Costa Rica’s Staple Foods.

International news is full of stories of global need, starvation, and growing hunger. Basic staples are rising in price, and its not just the poorest of the poor that are feeling the affects. In the face of this growing global food crisis, Costa Rica has announced that it will allot $70 million dollars to help confront the nutrition problems that the country faces.

Last week, the Costa Rican government announced that it would make a $15 million investment to boost production of local grains. With Costa Rica food costs growing more expensive everyday, a significant increase in local rice, beans, and white corn will go a long way to help the country.

The latest $70 million investment plan was announced during a summit on Seguridad y Soberanía Alimentaria (Nutritional Safety and Sovereignty, also called “Food for Life”) in Managua, with Nicaraguan president Daniel Ortega. Arias states that he will ask Congress for the $70 million as an emergency budget of sorts today, designed to prevent a nationwide food shortage.

With these funds, Arias plans to give technical aid and credits to finance agricultural machinery, and help local farmers produce more at lower costs. The Instituto de Desarollo Agrario (IDA, or Institute for Agricultural Development) will receive approximately $15 million for farming, infrastructure, and technical assistance. Also receiving immediate aid will be small farmers, which are promised an additional $15 million. $22 million will be spent on the financing of farming machinery and equipment for Costa Rican farmers, and the last $18 million have yet to be allocated.

Despite this new plan, Arias declined to join other heads of state in a food declaration at the Food for Life summit. Though the Casa Presidencial is remaining tight-lipped, their official stance is that several of the summit participants favored a state-centered solution, with a larger fund and more taxes. Arias did not feel that was the solution to Costa Rica’s current problems.

In addition to the $70 million investment, Arias has stated that Costa Rica is trying to go global, and would like to finalize negotiations with the European Union during 2009, as well as with India and China. These ties will serve to help the country in several aspects, including food supply and preparedness.

Though $70 million is a hefty price tag, Arias believes that all Costa Ricans will support this plan. Granting funds for increased production, support of IDA, purchasing stronger seeds, and helping out small and large national farmers is in the interest of all citizens, and Arias firmly believes that Congress will understand this and, regardless of political party, approve the aid. To help recover costs, Arias has also announced a savings plan for other governmental expenditures, so that more country resources may be directed to the problem at hand without negatively affecting the people financially.

Today, many ticos will hope for congressional approval, as wallets are growing lighter and lighter with every trip to the supermarket. And with the rest of the world indicating that the problem has not immediate reprieve in sight, this may be Costa Rica’s best shot at avoiding a major national food crisis.

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Filed under: Costa Rica News on May 8th, 2008