US citizens scramble for food aid - 11 Feb 09

The number of unemployed Americans continues to rise and some are now struggling to put food on the table, becoming increasingly dependent on food stamps to help them get by.

Food stamps are a state-subsidised programme that helps people with a low income buy food at lower prices. But for many US citizens it may not be enough to help them weather the economic crisis, as Lucy Keating discovers in the US town of Knoxville in Tennessee.

Add a new Crisis. Food prices risen to the tip of the Iceberg.

What a relief to see gas prices falling - some places are selling as low as $1.80 a gallon. There are a number of factors that can effect costs, including long term contracts, weather conditions, even global demand for different foods. Retail food prices have jumped on average 6 percent this year — triple the normal inflation rate of around 2 percent. The economics of the food business are partly to blame. Though crude oil is the main ingredient of gasoline, processed foods like cereal, crackers or cookies use only a small amount of corn, wheat and other grains, limiting manufacturers' pricing power. So why aren't food prices falling as well?

Add another economic worry to inflation and deflation: ecoflation, the rising cost of doing business in a world with a changing climate.

Ecoflation could hit consumer goods hard in the next five to 10 years, according to a report by World Resources Institute and A.T. Kearney, a global management consulting firm.

Companies that make fast-moving consumer goods, everything from cereal to shampoo, could see earnings drop by 13 percent to 31 percent by 2013 and 19 percent to 47 percent by 2018 if they do not adopt sustainable environmental practices, the report said.

The costs of global warming are showing up now in the form of worse heat waves, droughts, wildfires and possibly more severe tropical storms but they are not yet reflected in consumer prices, said the institute's Andrew Aulisi after the report's Dec. 2 release.

Instead, these costs are paid by governments and society, Aulisi said in a telephone interview. That could change if President-elect Barack Obama and the U.S. Congress push for a system that puts a price on the emission of climate-warming carbon dioxide, Aulisi said.

This is unlikely to happen next year in time for a December 2009 deadline to craft an international pact to fight climate change but it is more likely to happen in 2010.

These rising costs and possible tightening regulation of greenhouse gas emissions are not necessarily a bad thing, he said.

"The message we don't see in this study is that regulation is going to cost ... a lot of money," Aulisi said. "We think the analysis is a catalyst to convince companies to take greater action on these important issues."

LESS PLASTIC

In fact, some companies are already looking at ways to cut their emissions in advance of any new regulation, said Daniel Mahler of A.T. Kearney.

One example is consumer giant Procter & Gamble (PG.N: Quote, Profile, Research, Stock Buzz), which has a team looking across the company's varied laundry, hair-care and health-care businesses to see how they can use less plastic, a fossil-based material, Mahler said by telephone.

But the changes may need to go deeper and wider, he said, spreading to the basics of how supply chains are managed.

For instance, companies that presumed U.S. transportation costs would be low and U.S. labor costs would be high had their goods made in countries where employees would work for less. But a new cost to the carbon emitted by long-distance transport could change that equation, making foreign manufacturing less attractive, Mahler said.

Within the United States, there could be a move away from big, centralized manufacturing plants to smaller, more widely dispersed ones, according to Mahler.

"That is not a little tactical change," he said. "It is an infrastructure change that we see companies ... addressing much more aggressively than they had been in the past

Under the ecoflation scenario, the world's major economies are likely to set a price on carbon emissions of $50 a tonne, Aulisi said.

That is between five and 10 times the price of carbon being traded on voluntary markets in the United States now. There is no mandatory U.S. carbon market, though the first regional market will begin trading in January

Expects 10,000 deaths in cyclone. Hundreds of thousands 'in dire need'





YANGON, Myanmar - The death toll from the cyclone that ravaged Myanmar is expected to reach 10,000, a top official said Monday, with at least 4,000 people already listed as killed and nearly 3,000 others unaccounted for.

Foreign Minister Nyan Win told foreign diplomats at a briefing that the death toll could reach 10,000, according to diplomats who spoke on condition of anonymity because the meeting was held behind closed doors.

“The basic message was that they believe the provisional death toll was about 10,000 with 3,000 missing,” a diplomat present at the meeting told Reuters in Bangkok.

Tropical Cyclone Nargis hit the Southeast Asian country, also known as Burma, early Saturday with winds of up to 120 mph, leaving hundreds of thousands of people homeless.

In the former capital Yangon, food and fuel prices have soared as aid agencies scrambled to deliver emergency supplies and assess the damage in the five declared disaster zones, home to 24 million people.

The government had previously put the death toll countrywide at 351 before increasing it Monday to 3,939.

A radio station broadcasting from the country’s capital, Naypyitaw, said that 2,879 more people are unaccounted for in a single town, Bogalay, in the country’s low-lying Irrawaddy River delta area where the storm wreaked the most havoc.

“Reports are coming out of the delta coast, particularly the Irrawaddy region, that in some villages up to 95 percent of houses have been destroyed,” said Matthew Cochrane at the International Federation of the Red Cross and Red Crescent Societies’ Geneva headquarters.

“Widespread destruction is obviously making it more difficult to get aid to people who need it most,” said Michael Annear, regional disaster management coordinator for the federation.

The situation in the countryside remained unclear because of poor communications and roads left impassable by the storm.

Hundreds of thousands 'in dire need'

“It’s clear that we’re dealing with a very serious situation. The full extent of the impact and needs will require an extensive on-the-ground assessment,” said Richard Horsey, a spokesman in Bangkok, Thailand, for United Nations Office for the Coordination of Humanitarian Affairs.

“What is clear at this point is that there are several hundred thousands of people in dire need of shelter and clean drinking water,” Horsey said.

U.N. agencies were working with the Red Cross and other organizations to see how it can help those affected by the cyclone. UNICEF spokeswoman Veronique Taveau said the U.N. children’s agency alone has five teams assessing the situation in the country.

The World Food Program has pre-positioned 500 tons of food in Yangon and plans to bring in more relief supplies, said Elisabeth Byrs, spokeswoman for the U.N. Office for the Coordination of Humanitarian Affairs.

At a meeting with foreign diplomats and representatives of U.N. and international aid agencies, Myanmar’s foreign ministry officials said they welcomed international humanitarian assistance and urgently need roofing materials, plastic sheets and temporary tents, medicine, water purifying tablets, blankets and mosquito nets.

Neighboring Thailand announced that it would fly some aid in Tuesday.

In Washington, the State Department said the U.S. Embassy in Yangon had authorized an emergency contribution of $250,000 to help with relief efforts. But it added that the Myanmar government initially had refused to allow a U.S. Disaster Assistance Response Team into the country to assess damage.

“We have a DART team that is standing by and ready to go into Burma to help try to assess needs there,” deputy spokesman Tom Casey told reporters. “As of this moment, the Burmese government has not given them permission, however, to go into the country so that is a barrier to us being able to move forward.”

Two Indian naval ships loaded with food, tents, blankets, clothing and medicines would sail for Yangon soon, Indian’s Ministry of External Affairs said.

Largest city hit hard

The cyclone blew roofs off hospitals and schools and cut electricity in Myanmar’s largest city, Yangon. Older citizens said they had never seen the city of some 6.5 million so devastated in their lifetimes.

With the city’s already unstable electricity supply virtually nonfunctional, citizens lined up to buy candles, which doubled in price, and water since lack of electricity-driven pumps left most households dry. Some walked to the city’s lakes to wash.

Many roofs were ripped off even sturdy buildings, suggesting damage would be severe in the shanty towns that lie on the outskirts of the city of 5 million people.

At the city’s notorious Insein prison, soldiers and police killed 36 prisoners to quell a riot that started when inmates were herded into a large hall and started a fire to try to keep warm, a Thailand-based human rights group said.

State television showed military and police units on rescue and cleanup operations in Yangon, but residents complained the junta’s response was weak.

“Where are the soldiers and police? They were very quick and aggressive when there were protests in the streets last year,” a retired government worker told Reuters, referring to protests led by Buddhist monks last year that were swiftly crushed
Hotels and richer families were using private generators but only sparingly, given the soaring price of fuel.

Many stayed away from their jobs, either because they could not find transportation or because they had to seek food and shelter for their families.

“Without my daily earning, just survival has become a big problem for us,” said Tin Hla, who normally repairs umbrellas at a roadside stand.

With his home destroyed by the storm, Tin Hla said he has had to place his family of five into one of the monasteries that have offered temporary shelter to those left homeless.

His entire morning was taken up with looking for water and some food to buy, ending up with three chicken eggs that cost double the normal price.

Vote to go ahead Saturday

Despite the havoc wreaked by Nargis, the military government indicated that a referendum on the country’s draft constitution would proceed as planned on May 10.

“It’s only a few days left before the coming referendum and people are eager to cast their vote,” the state-owned newspaper Myanma Ahlin said Monday.

At the meeting with diplomats, Relief Minister Maj. Gen. Maung Maung Swe said the vote could be postponed by “a few days” in the worst-affected areas. However, the foreign minister intervened to say the matter would be decided by the official referendum commission.

Pro-democracy groups in the country and many international critics have branded the constitution as merely a tool for the military’s continued grip on power.

Should the junta be seen as failing disaster victims, voters who already blame the regime for ruining the economy and squashing democracy could take out their frustrations at the ballot box.

The secretive military, bunkered in their isolated new capital of Naypyidaw, 240 miles north of Yangon, has ruled for 46 years and has been shunned by Western governments after a violent crackdown on Buddhist monk-led protests last September