Asia's Role in Stabilizing Food and Agricultural Prices
AbstractEvery decade or so, food becomes newsworthy globally because of a price spike, either upwards (hurting consumers, as in 1973 and 2008) or downwards (hurting farmers in open economies, as in 1986). Most such price spikes are a consequence of major policy shifts, since local weather-induced supply shocks in a multi-country trading world tend to offset each other. Fluctuations in international food prices are exacerbated by trade restrictions that vary with those prices, and are worst for the most-insulated markets such as rice. Asian rice policies thus contribute to world food price instability. More broadly, however, the gradual reduction in anti-agricultural and anti-trade policies in many Asian emerging economies in the past quarter-century has contributed very substantially to global economic development and poverty alleviation. After examining how large the fluctuations in real international prices for food are relative to those for other primary products, this paper examines the extent of opening up of agricultural markets in Asia relative to other developing economies. It then examines what could be done by governments in Asia and elsewhere to achieve more efficient and equitable outcomes for food markets in the future that are both growth enhancing and poverty alleviating.
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Bibliographic InfoPaper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2009-06.
Length: 52 pages
Date of creation: 2009
Date of revision:
food price stabilization; distorted agricultural incentives; farm trade policy reforms; biofuels; Asian agricultural development;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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