Rapidly rising food prices have led to instability in many countries and have fuelled inflation in less developed economies where food spending is a greater proportion of overall consumer spending. A number of factors have contributed to this rapid rise in prices, but one important contributory factor is the move towards growing crops that can be used as bio-fuels in the developing world and this shift in production is having a knock-on effect in world food markets.
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|Identify the main factors that have led to rising world food prices.
|Assess the extent to which the move towards bio-fuels has contributed to the rise in world food prices.
|Explain how the impact of rising food prices differs in the developed and developing world.
|Discuss policies that governments could adopt to ameliorate the impact of rising food prices on the level of economic growth.