World Bank Approves US$10 million Grant for Liberia 

The Board of Directors of the World Bank has approved a total grant of US$10 million to finance Liberia 's Emergency Food Crisis Response Program. Liberia is among the first batch of countries receiving emergency assistance from the Bank's Global Food Price Crises Response Trust Fund.

Globally, prices of staple food commodities have increased dramatically, adversely impacting poor people by increasing hunger, malnutrition, and reliance on food aid.

For example, wheat prices have increased by 200 percent, while overall food prices have risen by 33 percent. According to the U.N. Food and Agriculture Organization, of the 36 countries that are in the grip of a severe food security crisis, 21 are in Africa .

The Bank is taking a holistic approach to helping affected countries manage the risks posed by high food prices, including providing policy advice in countries where the social risks are greatest. Recognizing the critical need to boost food production, the Bank is expecting to nearly double its lending for boosting agricultural production in Africa to $700 million (up from $420 million).

In Liberia , the increases in oil and food prices have resulted in an acceleration of inflation during the first quarter of 2008. Food costs 25% more in January 2008 compared to one year before. Since Liberia imports 70% of its food needs, higher food and fuel prices are also likely to have an adverse impact on the country's external balance