The paradox of Latin America’s food crisis is that, although the region is a major food producer, it sometimes needs to rely on imports to prevent sporadic shortages. According to the World Bank, Latin America and the Caribbean exported $55 billion of foodstuffs in 2006; yet the continent’s poorest families spend 50% of their budgets on food, and this at a time when Latin America has been experiencing its best economic performance since the 1970’s.

Food prices, which have shot up 83%, are not likely to start falling until after 2009. For Latin America, this is more than a challenge; it is an opportunity. The central challenge is political: correcting state policies formulated when resources, including oil, natural gas and food commodities, were not considered a driving force in the global economy. The key here is to avoid the trap of protectionism and international isolation.