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Navigating the perfect storm: Reflections on the food, energy, and financial crises

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Author Info
Headey, Derek
Malaiyandi, Sangeetha
Fan, Shenggen

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Abstract

"The closely interlinked food, fuel and financial crises pose a significant new challenge to the global effort to reduce poverty. In short run, the oil-biofuels nexus was clearly the driving force behind the surge in food prices, but export restrictions and panic purchases turned a tightened market situation into a crisis. New evidence reveals that food prices rose sharply in many countries and that global poverty levels have increased markedly. The good news is that the supply response in many countries was strong. The impacts of the financial crisis on poor countries have yet to fully roll out, but it is clear that additional people will fall into poverty and become food insecure. In the long run, there are strong indications that the global food system is fundamentally changing in a number of dimensions. Biofuels are here to stay, and energy and food prices have adjusted to a higher equilibrium, albeit with large volatility. Trade protection has also resurfaced, but so too have renewed investments in the agricultural sector. These fundamental shifts bring with them opportunities and risks that require internationally coordinated responses with strong national buy-in, as well as timely and relevant research." from authors' abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 889.

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Date of creation: 2009
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Handle: RePEc:fpr:ifprid:889

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Related research
Keywords: Food crisis; Energy crisis; Financial crisis; Agricultural development; Poverty; Public investment; Development strategies;

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  1. Peter Warr, 2008. "World food prices and poverty incidence in a food exporting country: a multihousehold general equilibrium analysis for Thailand," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 525-537, November. [Downloadable!] (restricted)
  2. Pallage, Stephane & Robe, Michel A, 2001. "Foreign Aid and the Business Cycle," Review of International Economics, Blackwell Publishing, vol. 9(4), pages 641-72, November. [Downloadable!] (restricted)
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  3. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank. [Downloadable!]
  4. Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November. [Downloadable!] (restricted)
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  5. Ravallion, Martin & Chen, Shaohua & Sangraula, Prem, 2007. "New evidence on the urbanization of global poverty," Policy Research Working Paper Series 4199, The World Bank. [Downloadable!]
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  6. Channing Arndt & Rui Benfica & Nelson Maximiano & Antonio M. D. Nucifora & James T. Thurlow, 2008. "Higher fuel and food prices: impacts and responses for Mozambique," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 497-511, November. [Downloadable!] (restricted)
  7. Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank. [Downloadable!]
  8. von Braun, Joachim & Meinzen-Dick, Ruth Suseela, 2009. ""Land grabbing" by foreign investors in developing countries: Risks and opportunities," Policy briefs 13, International Food Policy Research Institute (IFPRI). [Downloadable!]
  9. Alberto Zezza & Benjamin Davis & Carlo Azzarri & Katia Covarrubias & Luca Tasciotti & Gustavo Anriquez, 2008. "The Impact of Rising Food Prices on the Poor," Working Papers 08-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
  10. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low-income countries-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November. [Downloadable!] (restricted)
  11. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August. [Downloadable!] (restricted)
  12. Bezemer, Dirk & Headey, Derek, 2007. "Agriculture, Development and Urban Bias," MPRA Paper 7026, University Library of Munich, Germany. [Downloadable!]
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This page was last updated on 2009-11-20.


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