GM foods can save the day Soaring prices for staple foods are creating political tensions from North Africa to Southeast Asia, and the world is scrambling for solutions. Last week, wealthy countries pledged hundreds of millions of dollars in crops, seeds, vouchers and funds for "food security." That may help to stave off the current emergency, but what are the long-term solutions? Two experts from Columbia University have chimed in with their ideas. Here are excerpts from short articles by Jagdish Bhagwati, author most recently of In Defence of Globalisation, and Jeffrey Sachs, whose new book is called Common Wealth: Economics for a Crowded Planet BHAGWATI T he current food crisis raises questions concerning the appropriate respons es in the short term, to take care of the immediate problems, and then in the long term. To understand both issues, it is useful to go back to the food crisis, no less alarming, that broke out after the failure of Indian, Chinese, Russian and other harvests simultaneously and dramatically in 1972. The current crisis is less a result of droughts (except for Australia) and more a result of diversion of crops such as corn to bio-fuels production. The growth in demand from the developing countries such as China and India, with their dramatic growth rates, has also increased demand sharply. As before, hoarding has fol lowed, as has the proliferation of export restrictions. The present crisis reflects long-run factors which will likely not disappear. It needs to be addressed differently. For the short-term, it is practically impossible to tell governments not to hold back supplies. On the other hand, for the importing countries, the International Monetary Fund can provide short-term assistance for balance-of-payments support, so imports can be financed at higher prices. The permanent loss of income from paying more for imports can be offset by enhanced aid flows from multilateral and bilateral agencies for the poor countries. For the long-term, the measures to moderate the prices of foodgrains will require attention to at least three policies where we will have to rethink matters: (1) a moderation of the planned reliance on bio-fuels and turning to nuclear energy instead; (2) the acceptance of genetically modified foods which promise to continue the green revolution in the modern age; and (3) the shift in governmental investment priorities to agriculture.