Rice Crisis Forensics: How Asian Governments Carelessly Set the World Rice Market on Fire
AbstractThe world rice market was aflame last spring and for several months it looked as if the trading edifice that had exhibited such resilience over the last two decades was going to burn to the ground. World prices trebled within less than four months and reached a 30-year inflation-adjusted high. Many market observers thought the previous record set in 1974 would soon be toast. The fire was man-made, not the result of natural developments. While the governments in India, Vietnam, and the Philippines did not to set the world market on fire, that was the unintended result of their actions which threatened both innocent bystanders (low-income rice importers as far away as Africa and Latin America) and, ultimately, poor rice consumers at home. This paper describes what sparked the fire and the accelerants that made a bad situation nearly catastrophic. Fortuitously, when the flames were raging at peak intensity, rain clouds appeared, the winds [market psychology] shifted, and conditions on the ground improved, allowing the fire to die down. It remains to be seen, however, if the trading edifice has been seriously undermined by the actions of decision makers in several key Asian rice exporting and importing countries. In describing the cascading negative effects of these seemingly rational domestic policies, this paper aims to help policy makers in the rice exporting and importing nations to avoid a repeat of the disastrous price spike of 2008.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 163.
Length: 43 pages
Date of creation: Mar 2009
Date of revision:
Contact details of provider:
Web page: http://www.cgdev.org
rice; inflation; prices;
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Luc Christiaensen, 2010.
"Revisiting the Global Food Architecture: Lessons from the 2008 Food Crisis,"
- L. Christiaensen, 2009. "Revisiting the Global Food Architecture. Lessons from the 2008 Food Crisis," Review of Business and Economic Literature, Intersentia, vol. 54(3), pages 345-362, September.
- Luc Christiaensen, 2009. "Revisiting the Global Food Architecture. Lessons from the 2008 Food Crisis," Review of Business and Economics, Katholieke Universiteit Leuven, Faculteit Economie en Bedrijfswetenschappen, vol. 0(3), pages 3345-361.
- Luc Christiaensen, 2009. "Revisiting the Global Food Architecture: Lessons from the 2008 Food Crisis," Working Paper Series WIDER Discussion Paper 20, World Institute for Development Economic Research (UNU-WIDER).
- Gibson, John & Kim, Bonggeun, 2013.
"Quality, Quantity, and Nutritional Impacts of Rice Price Changes in Vietnam,"
Elsevier, vol. 43(C), pages 329-340.
- John Gibson & Bonggeun Kim, 2011. "Quality, Quantity and Nutritional Impact of Rice Price Changes in Vietnam," Working Papers in Economics 11/16, University of Waikato, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Roodman).
If references are entirely missing, you can add them using this form.