"Even with methanol in the mix, the shifting of the world from a petroleum to an alcohol standard would remain a great boon to farmers. Third World farmers as much as American growers would enjoy the benefits—not only from a vastly increased market for their products, but also from the collapse of petroleum prices (which currently threaten crushing fertilizer and tractor fuel prices). This adds a strong humanitarian case for the transition to flexible fuels.

By providing Third World populations with an extensive source of income, the alcohol economy would also give them the wherewithal to buy manufactured products from developed nations. We would end up selling far more tractors, harvesters, and hybrid seeds to Africans, for instance. That would improve economic outcomes for all nations."
http://www.taemag.com/issues/articleID.18976/article_detail.asp

{Linked from Instapundit}

It's an interesting read and I agree with most of it- the main thing I like is it's fairly easy to do politically- and it would work.