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Responding to High Commodity Prices

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Author Info
Craig Sugden
Abstract

The recent commodity price boom resulted from rising demand in the face of a long period of low supply growth and market distortions. Structural factors are expected to return international commodity prices to relatively high levels as the global economy recovers. The Asian and Pacific economies and the region's poor will be among the most exposed to a rebound in prices. The recent response to high commodity prices can be improved upon. At the global level, the priority for Asian and Pacific governments is to seek a commitment to lessening distortions favouring bio-fuels. At the regional level, there is a need to address the use of trade restrictions on food commodities in Asia, notably rice. At a national level, the long-term neglect of the rural economy warrants correction; and efforts to expand and make social safety nets more 'market friendly' are called for. Copyright © 2009 The Author. Journal compilation © 2009 Crawford School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd.

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File URL: http://hdl.handle.net/10.1111/j.1467-8411.2009.01224.x
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Publisher Info
Article provided by 2004 Asia Pacific School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd in its journal Asian-Pacific Economic Literature.

Volume (Year): 23 (2009)
Issue (Month): 1 (05)
Pages: 79-105
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Handle: RePEc:bla:apacel:v:23:y:2009:i:1:p:79-105

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0818-9935

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This page was last updated on 2009-12-24.

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