How Biofuels Could Starve the Poor

With rising oil prices and growing demand for ethanol as an alternative fuel, US corn producers anticipate a huge boost in profitability. Any spike in corn prices caused by increasing ethanol consumption, however, could devastate the developing world. Billions of impoverished people depend on corn and other staples for their caloric intake, but higher corn prices would decrease affordability of basic foods. Adding to the complications: The biofuel industry is dominated not by market forces but by politics and the interests of a few large companies. As corn growers in the developed world receive hefty subsidies from their governments, counterparts in the developing world become less competitive in the global market. Political and corporate interests have also diverted funds away from investment in more efficient and environmentally-friendly sources of ethanol, more sustainable options in the long run.