A/HRC/9/23 page 30 resulting situation was not sustainable. Even in the cases where these food-importing countries could feed their population, particularly the growing number of urban poor having left the countryside, thanks to relatively cheap food dumped on the international markets, the decline of the agricultural sector made these countries extremely vulnerable to external shocks, and particularly to sudden rises in prices of commodities traded on international markets. This is the crisis they now face. 3. The impacts57 6. The increase of 2006-2008 in the prices of food commodities on international markets was almost unprecedented by its scale and brutality. The impact has been severe on the ability of international agencies to provide food, especially where the levels of food aid provided by governments are calculated in prices rather than in volumes. The surge in prices has also increased the import bills of poor net-food-importing countries. The food import bill of the Low-Income Food-Deficit Countries is expected to reach US$ 169 billion in 2008, 40 per cent more than in 2007. Developing countries as a whole could face an increase of 33 per cent in aggregate food import bills, coming on the heels of a 13 per cent increase the year before. The balance of payments effects of food price increases are thus significant, especially when combined with the impacts of rising fuel prices, which are often even more important. According to data from the World Bank, Africa and Asia are the main losers from the food price increase as most of these countries are net food importers. Most of the developed world, Russia, Latin America, and South East Asia improve their trade balance as a result of the food price increase. However, since all food commodity prices have not increased to the same extent, consumption patterns vary across countries and countries tend to import some commodities while exporting others a careful analysis is needed to determine which countries gain and lose due to the current food price increases. In addition exchange rate changes can lower or worsen the impact of change in international food prices. Even net food exporting countries could worsen their trade balance if the commodities they import show far higher increase in prices as compared to commodities they export. So a case by case analysis is needed to determine the impact on the country level. 7. 57 The map below depicts the impact on trade balances of countries: The Special Rapporteur acknowledges the contribution of Mr. Rahul Lahoti to this part of the analysis, for which the Special Rapporteur bears full responsibility.

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