What impact do high food and energy prices have on development?

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High food and energy prices divert development spending and affect livelihoods
High food and energy prices remain elevated as countries try to secure supplies, and this shifts money away from social and economic development. Prime Minister Datuk Seri Anwar Ibrahim said the result is that “billions of dollars” that could have been used for development are instead diverted to securing essential goods, with impacts that go beyond figures to affect livelihoods.
Billions of dollars are redirected from development to essentials
Anwar said that when food and energy prices stay high, countries spend more to secure essential goods rather than funds going to social and economic development. He described this as the diversion of billions of dollars that would otherwise support development priorities.
Livelihoods are directly affected, not just market numbers
Anwar characterised the impact as immediate for households, saying the situation is not “mere statistics on paper” because it affects livelihoods. With both food and energy costs remaining high, the pressure is felt in day-to-day living.
The pressure is linked to supply security concerns
The remarks connect price pressures to broader efforts by countries to secure supplies amid instability affecting trade routes. In this context, reopening the Strait of Hormuz to international shipping was described as an urgent priority, alongside strict adherence to ceasefire terms.
Development goals face strain through reduced resources
By diverting funds from social and economic development, high prices reduce the pool of resources available for development work. In practical terms, the outcome described is that less money is available for development while more is directed toward securing essentials.

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What impact do high food and energy prices have on development?

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