Advanced Search
MyIDEAS: Login to save this paper or follow this series

Rising food prices in Sub-Saharan Africa : poverty impact and policy responses

Contents:

Author Info

  • Wodon, Quentin
  • Zaman, Hassan

Abstract

The increase in food prices represents a major crisis for the world's poor. This paper aims to review the evidence on the potential impact of higher food prices on poverty in sub-Saharan Africa, and examines the extent to which policy responses will benefit the poor. The paper shows that rising food prices are likely to lead to higher poverty in sub-Saharan Africa as the negative impact on net poor consumers outweighs the benefits to poor producers. A recent survey shows that the most common policy response in sub-Saharan African countries is reducing taxes on food while outside the region price controls or targeted consumer subsidies are the most popular measure. Sub-Saharan African countries also have a higher prevalence of food-based safety net programs which are being scaled up to respond to rising prices. The review suggests that the benefits from reducing import tariffs on staples may accrue largely to the non-poor. Social protection programs show more promise, but geographic targeting is likely to be crucial in ensuring that benefits reach the neediest. The paper also argues that anti-poverty interventions ought to retain their focus on rural areas where poverty remains highest even after taking into account the adverse impact on the urban poor due to the rise in food prices.

Download Info

If 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.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2008/10/01/000158349_20081001111809/Rendered/PDF/WPS4738.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4738.

as in new window
Length:
Date of creation: 01 Oct 2008
Date of revision:
Handle: RePEc:wbk:wbrwps:4738

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Food&Beverage Industry; Rural Poverty Reduction; Safety Nets and Transfers; Population Policies;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Easterly, William & Fischer, Stanley, 2000. "Inflation and the poor," Policy Research Working Paper Series 2335, The World Bank.
  2. Ravallion, Martin & van de Walle, Dominique, 1991. "The impact on poverty of food pricing reforms: A welfare analysis for Indonesia," Journal of Policy Modeling, Elsevier, vol. 13(2), pages 281-299.
  3. Elena Ianchovichina & Will Martin, 2004. "Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 3-27.
  4. Jalan, Jyotsna & Ravallion, Martin, 2002. "Household Income Dynamics in Rural China," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Klugman, Jeni & Loening, Josef, 2007. "Welfare Impacts of Food Price Inflation in Ethiopia," MPRA Paper 24892, University Library of Munich, Germany.
  6. Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank.
  7. Budd, John W, 1993. "Changing Food Prices and Rural Welfare: A Nonparametric Examination of the Cote d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 587-603, April.
  8. Michael Lokshin & Martin Ravallion, 2000. "Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the Public Safety Net," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 269-295, July.
  9. Poulton, Colin & Kydd, Jonathan & Wiggins, Steve & Dorward, Andrew, 2006. "State intervention for food price stabilisation in Africa: Can it work?," Food Policy, Elsevier, vol. 31(4), pages 342-356, August.
  10. Ayele Gelan, 2006. "Cash or Food Aid? A General Equilibrium Analysis for Ethiopia," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 601-624, 09.
  11. Dessus, Sebastien & Herrera, Santiago & de Hoyos, Rafael, 2008. "The impact of food inflation on urban poverty and its monetary cost : some back-of-the-envelope calculations," Policy Research Working Paper Series 4666, The World Bank.
  12. Nganou, Jean-Pascal & Parra, Juan Carlos & Wodon, Quentin, 2009. "Oil price shocks, poverty, and gender: a social accouting matrix analysis for Kenya," MPRA Paper 28471, University Library of Munich, Germany.
  13. Emebet Kebede, 2006. "Moving from Emergency Food Aid to Predictable Cash Transfers: Recent Experience in Ethiopia," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 579-599, 09.
  14. Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April.
  15. Abdulai, Awudu & Barrett, Christopher B. & Hoddinott, John, 2005. "Does food aid Really have disincentive effects? New evidence from sub-Saharan Africa," World Development, Elsevier, vol. 33(10), pages 1689-1704, October.
  16. Gelan, Ayele Ulfata, 2007. "Does food aid have disincentive effects on local production? A general equilibrium perspective on food aid in Ethiopia," Food Policy, Elsevier, vol. 32(4), pages 436-458, August.
  17. Ravallion, Martin, 1991. "Reaching the Rural Poor through Public Employment: Arguments, Evidence, and Lessons from South Asia," World Bank Research Observer, World Bank Group, vol. 6(2), pages 153-75, July.
  18. M. Adato & L. Haddad, 2002. "Targeting Poverty through Community-Based Public Works Programmes: Experience from South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 1-36.
  19. 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.
  20. Ravallion, Martin, 2000. "Prices, wages and poverty in rural India: what lessons do the time series data hold for policy?," Food Policy, Elsevier, vol. 25(3), pages 351-364, June.
  21. Barrett E. Kirwan & Margaret McMillan, 2007. "Food Aid and Poverty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1152-1160.
  22. Daniel O. Gilligan & John Hoddinott, 2007. "Is There Persistence in the Impact of Emergency Food Aid? Evidence on Consumption, Food Security, and Assets in Rural Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 225-242.
  23. Ravallion, Martin, 1999. "Appraising Workfare," World Bank Research Observer, World Bank Group, vol. 14(1), pages 31-48, February.
  24. 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.
  25. Ravallion, Martin & Lokshin, Michael, 2004. "Gainers and losers from trade reform in Morocco," Policy Research Working Paper Series 3368, The World Bank.
  26. Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
  27. Teklu, Tesfaye & Asefa, Sisay, 1997. "Factors Affecting Employment Choice in a Labor-Intensive Public Works Scheme in Rural Botswana," Economic Development and Cultural Change, University of Chicago Press, vol. 46(1), pages 175-86, October.
  28. Wodon, Quentin & Tsimpo, Clarence & Backiny-Yetna, Prospere & Joseph, George & Adoho, Franck & Coulombe, Harold, 2008. "Potential impact of higher food prices on poverty : summary estimates for a dozen west and central African countries," Policy Research Working Paper Series 4745, The World Bank.
  29. Parra, Juan Carlos & Wodon, Quentin, 2008. "Comparing the impact of food and energy price shocks on consumers : a social accounting matrix analysis for Ghana," Policy Research Working Paper Series 4741, The World Bank.
  30. Tsimpo, Clarence & Wodon, Quentin, 2008. "Rice prices and poverty in Liberia," Policy Research Working Paper Series 4742, The World Bank.
  31. Thomas W. Hertel & Maros Ivanic & Paul V. Preckel & John A. L. Cranfield, 2004. "The Earnings Effects of Multilateral Trade Liberalization: Implications for Poverty," World Bank Economic Review, World Bank Group, vol. 18(2), pages 205-236.
  32. David Coady & Margaret Grosh & John Hoddinott, 2004. "Targeting of Transfers in Developing Countries : Review of Lessons and Experience," World Bank Publications, The World Bank, number 14902.
  33. Warr, Peter G., 2005. "Food policy and poverty in Indonesia: a general equilibrium analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), December.
  34. C. Peter Timmer & David Dawe, 2007. "Managing Food Price Instability in Asia: A Macro Food Security Perspective ," Asian Economic Journal, East Asian Economic Association, vol. 21(1), pages 1-18, 03.
  35. Ravallion, Martin, 1990. "Rural Welfare Effects of Food Price Changes under Induced Wage Responses: Theory and Evidence for Bangladesh," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 574-85, July.
  36. Javier Escobal & Máximo Torero, 2005. "Measuring the Impact of Asset Complementarities: The Case of Rural Peru," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 42(125), pages 137-164.
  37. Shaohua Chen & Martin Ravallion, 2004. "Welfare Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 29-57.
  38. Emmanuel Skoufias & Asep Suryahadi, 2000. "Changes in Household Welfare, Poverty and Inequality During the Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(2), pages 97-114.
  39. Nicholas Minot & Francesco Goletti, 1998. "Export Liberalization and Household Welfare: The Case of Rice in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 738-749.
  40. Makdissi, Paul & Wodon, Quentin, 2002. "Consumption dominance curves: testing for the impact of indirect tax reforms on poverty," Economics Letters, Elsevier, vol. 75(2), pages 227-235, April.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Minot, Nicholas & Dewina, Reno, 2013. "Impact of food price changes on household welfare in Ghana:," IFPRI discussion papers 1245, International Food Policy Research Institute (IFPRI).
  2. Seck, Papa A. & Tollens, Eric & Wopereis, Marco C.S. & Diagne, Aliou & Bamba, Ibrahim, 2010. "Rising trends and variability of rice prices: Threats and opportunities for sub-Saharan Africa," Food Policy, Elsevier, vol. 35(5), pages 403-411, October.
  3. Pedro Conceição & Sebastian Levine & Zuzana Brixiova, 2011. "The Food Price Spikes of 2008/09 and 2010/11: Impacts and Policies in African Countries," Working Papers 2011-003, United Nations Development Programme, Regional Bureau for Africa (UNDP/RBA).
  4. Abbott, Philip C. & Hurt, Christopher & Tyner, Wallace E., 2011. "What’s Driving Food Prices in 2011?," Issue Reports 112927, Farm Foundation.
  5. Iqbal, Muhammad & Amjad, Rashid, 2010. "Food security in South Asia: strategies and programmes for regional collaboration," MPRA Paper 38077, University Library of Munich, Germany.
  6. Wodon, Quentin & Tsimpo, Clarence & Coulombe, Harold, 2008. "Assessing the potential impact on poverty of rising cereals prices : the case of Ghana," Policy Research Working Paper Series 4740, The World Bank.
  7. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
  8. Joseph, George & Wodon, Quentin, 2008. "Assessing the potential impact on poverty of rising cereals prices : the case of Mali," Policy Research Working Paper Series 4744, The World Bank.
  9. Delphine Boutin, 2011. "D'une crise à l'autre : mesurer l'impact des prix alimentaires sur la pauvreté," Working Papers hal-00637608, HAL.
  10. Delphine Boutin, 2011. "D’une crise à l’autre : Mesurer l’impact des prix alimentaires sur la pauvreté," Larefi Working Papers 1106, Larefi, Université Bordeaux 4.
  11. Gelaw, Fekadu & Sileshi, Million, 2013. "Impact of Grain Price Hikes on Poverty in Rural Ethiopia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(2), August.
  12. repec:laf:wpaper:201106 is not listed on IDEAS

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4738. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.