By the summer of 2008, the price of rice had increased five times from the average price in 2005. Photo: Thatcher Cook for Mercy Corps

The following post is from One Table, a Mercy Corps campaign to fight world hunger by investing in the world's women.

Today almost a billion people worldwide are unable to buy or grow enough food to avoid malnutrition. That's 120 million more than were hungry in 2006.

What happened? Basically, the world saw dramatic spikes in food prices. But there were many underlying causes of what's known as the global food crisis:

• Drought and other climate-related problems that resulted in smaller harvests
• Changing diets — rise of the middle class in India and China and an increased demand for food, especially meat, which requires large amounts of grain to raise
• Diversion of crops from food production to the production of biofuels
• High fuel prices during 2008 — if it costs more to transport food, prices go up
• Declining investments in agricultural productivity — total agriculture development aid to poor countries plunged from $8 billion in 1984 to $3.4 billion in 2004. At the same time, the developing world's cities have been ballooning with people who do not grow any of their food
• Export bans and restrictions last year in several major grain-producing countries like China as governments sought to lower food prices for their own citizens, with the result of reducing the global supply on hand.

While food prices have come down from their highs of 2008, they remain substantially above historic levels. Many economists feel this trend, which most severely affects those who can least afford it, is likely to continue for some time.

The economic, health and societal costs of the global food crisis have been severe. One of the first things Mercy Corps did to figure out how and where to direct our efforts was to survey the communities where we work. We discovered that within communities Mercy Corps serves, roughly 70 percent of income is spent on food, and 80 percent of the population had been affected by rising food prices over the past year. The survey also confirmed something we already suspected: that families were coping with higher prices by eating fewer meals, selling off household belongings, going into debt and removing children from school so that they can work.

In addition to being a record year for food prices, it's also been a record year for our food security team, allowing Mercy Corps to aggressively respond to this crisis. We now have 17 programs in 13 countries designed specifically to respond to this on-going problem. Through support from donors including USAID, the Bill & Melinda Gates Foundation, the Gap Foundation, the Hunger Site, and private individuals, our Food Crisis Response employs a strategy designed to ensure that the groundwork for increased prosperity in the future is laid — even while addressing the immediate problem of accessing sufficient food.

Food distributions, much of which are specifically targeted to improve child nutrition, are taking place in Tajikistan, Kyrgyzstan and Zimbabwe. Meanwhile, in the Central African Republic, India, Indonesia, Liberia, Nepal, Niger, Somalia, Sri Lanka, Uganda and again Zimbabwe, Mercy Corps is helping hungry households to access food by providing employment opportunities, agricultural training and inputs (such as seeds and tools), and helping people establish and grow small businesses.

Combined, these programs are reaching almost 1.5 million individuals who have been directly impacted by higher food prices. Overall, Mercy Corps’ Crisis Response will lead to a sustainable increase in income for these people, leading in turn to greater food security over the long-term.

Pirates stock up on goats, cigarettes and other supplies when they return to shore. Photo: CharlesFred (flickr)

Piracy along Somalia's coastline represents a very lucrative business — as the pirates collectively earned an estimated $150 million in 2008 — but what is piracy's effect on Somalia's economy?

Somalia's economy is in a fairly grim state. An estimated 73.4 percent of the country's population lives in general or extreme poverty and the average Somali earns only $600 per year, making Somalia one of the poorest countries in the world.

Fishing used to be one of Somalia's most profitable industries. But as piracy has increased — there were roughly 100 attacks in 2008 — the New York Times reports that foreign ships have become reluctant to brave the waters surrounding Somalia's coastline to buy fish and other exports. The amount of goods coming into Somalia, including aid, has also declined.

Pirate money has also skewed prices. In the town of Garowe, near Somalia's central coast, resident Mohamed Hassan told the BBC that "piracy has a negative impact on several aspects of our life," including a financial one:

They have made life more expensive for ordinary people because they "pump huge amounts of U.S. dollars" into the local economy which results in fluctuations in the exchange rate.

On the other hand, pirates are putting wealth back into the Somali economy — an estimated $1 million to $2 million is made from each captured ship.

Whenever a ship is seized, pirates stock up on sheep, goats, water, fuel, rice, spaghetti, milk, and cigarettes in towns up and down Somalia’s coast. Sugule Dahir, a local shop owner in Eyl, a town just off the coast in central eastern Somalia, feels the incoming money has had a positive impact. He tells ABC News that, because of the pirates, more businesses are beginning to emerge and the general public seems better off. "There are more shops and business is booming because of the piracy. Internet cafes and telephone shops have opened, and people are just happier than before."

Government officials are getting a fair sum of pirate money as well. By allowing the pirates to work in controlled areas, the regional Puntland Government is given shares of the pirate's earnings. About 30 percent of the collected ransom goes directly to government officials, Farah Ismael Eid, a captured pirate, tells Time.

Some Somalis are worse off because of piracy. But it's clear that the pirates do spread the wealth.

The U.S. Navy comes to the assistance of a Taiwanese-flagged fishing trawler been seized by pirates off the coast of Somalia. Photo: Open Democracy (flickr)

After 18 years of civil war, some good news is finally coming from Somalia. The recent election of Sharif Ahmed, a moderate Islamist, as Somalia’s new president brings the country a chance for peace and stability. But the country faces enormous problems and President Ahmed has a mammoth task on his hands — both domestically and internationally.

Perhaps the biggest challenges lay within Somalia’s own borders. Considered as a failed state since the early 1990s, Somalia has seen its worst spate of violence in decades over the past two years: Ethiopian troops invaded the country, at least 10,000 Somalis have been killed and more than one million displaced.

Much of this bloodshed and displacement comes from the poor security conditions and widespread lawlessness spawned by fighting between rival warlords, clans and other armed groups. This lack of national security poses a huge problem for Ahmed’s nascent presidency: Somalia’s two main insurgent groups, Hezbul Islam and Al-Shabaab, control “much of the south of the country” and refuse to recognize the election. Getting Somalia’s clans behind a centralized government is a task that previous Somali leaders have failed to meet.

In a country that has no almost running water or electricity, Ahmed also has numerous humanitarian challenges. The Red Cross considers Somalia's food crisis to be one of the worst in the world. And the country's infrastructure, already-limited agricultural systems and market linkages, has been severely damaged during the continuous internal conflict of past decades. As a result, more than a third of the population depends on food aid. Health care has also been decimated: Mogadishu, Somalia’s capital city of 3.6 million people has only two or three hospitals that barely operate at all.

Providing this critical food and health care will be very difficult, however, until some form of security is established. The government must find a way to ensure that youth have the education and economic opportunities they need so that they have less incentive to take a $15-a-day paycheck to join one of armed groups. But the already-precarious education gap is widening: at least 81 percent of Somalia's population is now illiterate — the highest such rate in Africa — and only 17 percent of Somali children go to school.

A moderate new government headed by an energetic and idealistic president has succeeded in giving Somalis hope — but delivering results is crucial to showing the country’s embattled population that their government is actually making a difference.

Police in Reykjavik, Iceland after a violent protest turned into a riot on January 20. Photo: finnur.malmquist (flickr)

It’s a lot worse than just about everyone thought. By some estimates, the economic crisis could cost 50 million jobs worldwide. That's a catastrophic number, and even their potential loss is already fueling some discontent and sounding alarms.

Worried about the ripple effects of widespread unemployment, the U.S. Central Intelligence Agency recently added the state of the economy to the agency's list of top security threats. Retired Admiral Dennis Blair, the U.S. Director of National Intelligence, warned that "economic crises increase the risk of regime-threatening instability if they persist over a one-to-two-year period."

On the international stage, United Nations Secretary-General Ban Ki-moon voiced his concern: "If not handled, today’s financial crisis will become tomorrow’s human crisis. Social unrest and political instability will grow, exacerbating all other problems."

Violent flare-ups over the economic recession and resulting unemployment are already occurring all over the globe.

In Pakistan, chronic power outages have forced many textile factories to close down for hours at a time, triggering thousands of angry protesters to set fire to the state-owned power company's office. Government cuts in Lithuania’s social programs prompted protesters to pelt the parliament building with eggs and rocks ; at least 14 people were injured and 84 detained. Chinese police officers are now undergoing special training to deal with expected social unrest over factory closings that have left millions of migrant workers out of a job.

Iceland and Latvia serve as extreme examples of the devastating consequences from the declining state of the worldwide economy: both countries’ respective governments collapsed under the pressure of the economic crisis.

However, security experts are concerned about other forms of collateral damage that extend beyond protests. Bruno Tertrais, a strategic and security expert at the Foundation for Strategic Research in Paris tells Time Magazine that he believes the biggest threat to international security is "the collapse of regimes vital to maintaining international order." Tertrais cites Somalia as an example — a place where, after the collapse of its government, piracy has gained a foothold and severely disrupted shipping routes along the horn of Africa.

Extreme poverty has always posed a threat, especially in the world’s emerging economies. However, the breadth and force of the current global economic crisis poses a threat to all nations, whether rich or poor.

The Saudi-owned oil tanker MV Sirius Star is shown at anchor on November 19, 2008, off the coast of Somalia. Photo: William S. Stevens/Reuters, courtesy of Alertnet.org

Ahoy, consumers. Beware of yer pocketbooks. Pirate attacks off the coast of Somalia are up 75 percent this year, threatening price hikes for everything from the gas in your car to the shoes on your feet.

The price of oil increased this week after Somali pirates hijacked a Saudi oil tanker in the Gulf of Aden. British researcher and author Roger Middleton says Asian exporters may be forced to ship their goods the longer route around the Cape of Good Hope to reach European and American shores.

The longer route would add up to three weeks to the delivery of goods from Asia and of oil and gas from the Middle East to European markets. Someone will have to pay for that extra time – very probably the consumer. For Europe and the eastern seaboard of America, this inflation is a real possibility.

The brashness of these modern-day pirates has also forced people to rethink their romantic, Disneyesque notions about pirates — and how desperate the Somali people truly are.

Millions are on the edge of starvation in the Horn of Africa due in part to severe drought. Photo: Filipe Moreira (flickr)

Somalia and Ethiopia are hovering at the edge of famine.

The Washington Post reported on the crisis in the “hungry horn” of Africa last week. In Somalia, U.N. officials predict that half of the population, about 3.5 million people, will need food aid. The New York Times explains the hunger is driven by rampant political insecurity, spikes in global food prices, devaluation of the local currency, and a severe drought.

The World Food Program is struggling to keep up, having already doubled the amount of food it distributes in Somalia and needing an additional 369,000 metric tons of food in Ethiopa. But Doctors Without Borders, a medical aid organization, says the situation just keeps getting worse as cereal prices in the Horn in the last year surged by as much as 375 percent. To make things worse, the drought has killed of most livestock, forcing formerly self-sufficient people to wait in line for food aid.

The next rainy season isn’t due till October, and the wells and watering holes that the people and animals depend on during the dry season are already drying up. Even the camels are hard pressed to survive.

Mercy Corps' country director in Somalia says "It's a life or death situation right now." A 72-year-old herder says it's "the worst I've ever seen."

International Medical Corps, another international medical aid organization in Somalia, is predicting grave starvation risks, with a recent 400 percent rise in the number of severely malnourished young children.

And the current drought — and its problems — are probably here to stay. Researchers have discovered that global warming is drying out the Horn of Africa — and it's happening much faster than anyone anticipated.

What will happen when current drought becomes a permanent shift to desert conditions? Somalia is only the first. Ethiopia is soon to follow.

Whether it is Somalia’s food crisis, the multi-year drought in Australia, or flooding in the American bread basket, climate change is going to vastly affect the world’s food markets.