Exploring the Logic Behind Southern Africa's Food Crises
Summary Government action during food crises in southern Africa frequently exacerbates the problems, driving food staple prices well beyond import parity. We argue that an inability to make credible commitments, due largely to a lack of trust between public and private sectors, contributes to this dynamic. Empirical policy analysis can facilitate resolution only within a consultative process involving a broad range of stakeholders. The policies emerging from such a process are not likely to approximate first best recommendations. Yet the precise policies may be less important than the fact that they exist and that main stakeholders find them credible.
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