All around the world, from the Himalayas to the Great Plains, fresh water is starting to run low. It’s shaping up to be one of the 21st century’s great environmental and humanitarian challenges: People use water faster than nature can replenish it.
Some people argue that privatization is the answer to the water crisis. But others, including food journalist Frederick Kaufman, say that’s a recipe for disaster. The author of Bet the Farm: How Food Stopped Being Food, published in October by Wiley, Kaufman points to the recent history of food prices as an example of the dangers posed by modern finance.
In the last five years, food prices have gone haywire, rising steadily while spiking three times, causing global food shortages and social unrest. Many economists and some scientists blame food prices on speculation. Once the province of farmers and agriculture industry insiders looking to hedge their risks, food markets were opened in the 1990s to the financial industry. The market soon stopped working like it’s supposed to.