Speech by the President of Brazil, Luiz Inácio Lula da Silva, at the special meeting of the UN Economic and Social Council (ECOSOC) on the world food crisis — New York, 20 May 2008.

I wish to congratulate Ambassador Léo Mérorés – president of ECOSOC and permanent representative of Haiti– on convening this meeting. I also wish to greet Secretary-General Ban Ki-Moon and the permanent representatives, delegates and UN high officials.

Ever since my first day in office I have devoted myself to the fight against hunger and poverty, both in Brazil and elsewhere in the world.

Almost four years ago, in this chamber, before dozens of world leaders, we launched the International Action against Hunger and Poverty. Our mobilisation has yielded important results, particularly in the area of health. We are fully aware, however, that much remains to be done.

The challenge has been made more dramatic by the recent rise in food prices worldwide. There have been demonstrations by starving men and women in various places, in some cases jeopardising institutional stability. We are facing the genuine threat of a humanitarian disaster of great magnitude. It is a disaster affecting the poorest – those who spend proportionally more of their income on food. The prospect of this setback in the fight against hunger and malnutrition makes the Millennium Development Goals look even more distant.

We need to act on a number of fronts. As an emergency measure we must quickly contain the most adverse effects of the current crisis. Brazil is playing its part in Haiti, by providing food aid and supporting the rehabilitation of local agriculture.

A thorough analysis of the problem is also needed, so as to be able to tackle it more effectively. This is a complex issue that requires objective and calm analysis, without jumping to conclusions. Secretary General Ban Ki-Moon correctly observed that the crisis has multiple causes.

The increase in the price of oil – and, consequently, of fertilizers, energy and transport – has been a major factor in the rising production costs of food. Seasonal price fluctuations, aggravated by serious crop failures due to climatic reasons, are also part of the equation. The realignment of exchange rates, and financial speculation with regard to agricultural commodities, have also played a role.

However, the worrying pressures on the world’s food stocks should not stop us recognising a new and welcome fact: in many developing countries an increasing number of people are now eating more and eating better.

The expanding circle of those with enough to eat shows that the current international structures and practices are unable to smoothly incorporate these new consumers. We need to produce more food, and to distribute it better. Above all, however, we must create the conditions in which poor countries can produce their own food.

Hunger spreads through those poor countries that find themselves vulnerable in two ways: they aren’t able to afford to import ever-more expensive foodstuffs, and at the same time they don’t produce enough to feed their own populations.

How do you explain the fact that vast regions that are clearly suitable for agriculture have not invested in the cultivation of foodstuffs so as to at least guarantee the subsistence of their populations? The answer lies essentially in the distortions in international agricultural trade, especially in the protectionism practised for decades, indeed centuries, by industrialised countries. Poor small farmers cannot compete against the enormous subsidies rich countries grant to their farmers. Unable to support themselves, farmers in many poor countries become dependent on imported food and on foreign aid. Agricultural subsidies reward inefficiency, perpetuate the privileges of a few, and aggravate the hunger of many.

A desire to eliminate these distortions explains Brazil’s commitment to a balanced outcome from the Doha Round. We seek an agreement that will once and for all place agricultural products under the multilateral disciplines of the WTO.

Enforcing fair rules in international agricultural trade is of fundamental importance not only in order to eliminate world hunger, but also to face another crucial challenge of our time – that of reconciling environmental protection with energy security.

We need to unmask those campaigns, fostered by trade protectionism and the vested interests of oil groups, that seek to demonise biofuels. These campaigns blame biofuels for the rise in food prices, and for global warming.

Such campaigns disregard Brazil’s successful experience with ethanol made from sugarcane. In the last 30 years we have drastically cut our CO2 emissions at the same time as we have reduced demand for fossil fuels to the point of virtually achieving self-sufficiency in energy. We have achieved this without any adverse effect on food production. On the contrary, over the same period, agricultural production in Brazil has risen exponentially due to gains in productivity, including in the production of sugarcane.

The fight against hunger and poverty must commence by awakening the dormant productive potential of the most vulnerable countries. Brazil is playing its part. We invest heavily in research and crop improvement. We offer to share our experience and knowledge with other developing countries, as shown by the opening last year of an office of the Brazilian Agricultural Research Corporation (EMBRAPA) in Accra, Ghana.

Biofuels can play a part in reducing this vulnerability, particularly in the field of energy. And that is not to mention the fact that, as an energy source, biofuels are not only renewable but also clean and cheap. They also generate income and employment, above all in rural areas, which will help to sustain a flourishing agricultural sector. At a time when the international community is discussing alternatives to fossil fuels, what point is there in taxing imports of ethanol but not those of oil?

Brazil does not seek to impose its model. We want the potential of biofuels to be assessed according to the reality of each country. If adopted correctly, they can help rescue countries from food and energy insecurity. In the face of rising energy prices and the threat posed by global warming, it is irresponsible to preclude, out of prejudice, a strategic option for countries that have neither oil nor food, nor the means to buy them.

Brazil will not shy away from this debate. On the contrary, I am inviting government officials, scientists and members of civil society from all interested countries to participate in the International Conference on Biofuels in São Paulo in November.

A comprehensive and objective examination of all aspects of the issue will be a valuable contribution in building a genuine global partnership for sustainable development. Let us work together so that a dignified and prosperous life is within reach of all people, while also guaranteeing energy security and preserving the planet for future generations.

In this endeavour, Mr President, the role of the United Nations, and specifically that of ECOSOC, is of fundamental importance. I wish you success in your work.

Thank you very much.