US, global banks show plan to ease food crisis

BONN, Germany — The U.S., several global development banks and other groups Wednesday unveiled a multibillion-dollar plan to stave off a worldwide food security crisis worsened by Russia’s war in Ukraine, a key danger facing an increasingly fragile world economy.

The Feb. 24 invasion has touched off a sharp increase in energy and food prices that are now contributing to a slowdown in growth, prompting Treasury Secretary Janet Yellen to note the risk of stagflation at a news conference.

“The economic outlook globally is challenging and uncertain,” she said ahead of a Group of Seven finance ministers meetings this week. “And higher food and energy prices are having stagflationary effects, namely depressing output and spending and raising inflation all around the world.”

Yellen added that the United States is “best positioned” to meet this economic challenge because of its strong jobs market.

The Treasury Department announced that several global development banks are “working swiftly to bring to bear their financing, policy engagement, technical assistance” to prevent starvation prompted by the war, rising food costs and climate damage to crops.

The Asian Development Bank will contribute funds to feeding Afghanistan and Sri Lanka and the African Development Bank will use $1.5 billion to assist 20 million African farmers, according to Treasury.

The European Bank for Reconstruction and Development, the Inter-American Development Bank, the International Fund for Agricultural Development and the World Bank will also contribute tens of billions to support food producers and address supply shortage issues.