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Navigating the Perfect Storm: Reflections on the Food, Energy, and Financial Crises

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  • Headey, Derek D.
  • Malaiyandi, Sangeetha
  • Fan, Shenggen

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. Lastly, 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.

Suggested Citation

  • Headey, Derek D. & Malaiyandi, Sangeetha & Fan, Shenggen, 2009. "Navigating the Perfect Storm: Reflections on the Food, Energy, and Financial Crises," 2009 Conference, August 16-22, 2009, Beijing, China 53212, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:53212
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    References listed on IDEAS

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    Cited by:

    1. David Dawe, 2014. "Transmission of global food prices, supply response and impacts on the poor," Chapters,in: Handbook on Food, chapter 5, pages 100-121 Edward Elgar Publishing.
    2. Derek Headey & Olivier Ecker & Jean-Francois Trinh Tan, 2014. "Shocks to the system: monitoring food security in a volatile world," Chapters,in: Handbook on Food, chapter 3, pages 41-71 Edward Elgar Publishing.
    3. Keil, Alwin & Saint-Macary, Camille & Zeller, Manfred, 2011. "Agricultural Commercialization in the Uplands of Northern Vietnam: How to Achieve Both Poverty Reduction and Environmental Sustainability Goals?," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114487, German Association of Agricultural Economists (GEWISOLA).
    4. David Matesanz & Benno Torgler & Germán Dabat & Guillermo J. Ortega, 2014. "Co-movements in commodity prices: a note based on network analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 13-21, November.
    5. Annastiina Silvennoinen & Susan Thorp, 2016. "Crude Oil and Agricultural Futures: An Analysis of Correlation Dynamics," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 36(6), pages 522-544, June.
    6. Peri, Massimo & Baldi, Lucia, 2013. "The effect of biofuel policies on feedstock market: Empirical evidence for rapeseed oil prices in EU," Resource and Energy Economics, Elsevier, vol. 35(1), pages 18-37.
    7. Marc Jim M. Mariano & James A. Giesecke & Nhi H. Tran, 2015. "The effects of domestic rice market interventions outside business-as-usual conditions for imported rice prices," Applied Economics, Taylor & Francis Journals, vol. 47(8), pages 809-832, February.
    8. repec:dau:papers:123456789/11399 is not listed on IDEAS
    9. Naude, Wim, 2009. "The Global Economic Crisis after One Year: Is a New Paradigm for Recovery in Developing Countries Emerging?," WIDER Working Papers UNU-WIDER UNU Policy Brie, World Institute for Development Economic Research (UNU-WIDER).
    10. Bachewe, Fantu Nisrane & Berhane, Guush & Minten, Bart & Taffesse, Alemayehu Seyoum, 2015. "Agricultural growth in Ethiopia (2004-2014): Evidence and drivers:," ESSP working papers 81, International Food Policy Research Institute (IFPRI).
    11. Naude Wim, 2011. "Global Finance after the Crisis: Reform Imperatives and Vested Interests," Global Economy Journal, De Gruyter, vol. 11(2), pages 1-22, July.
    12. Murathi Kiratu, Nixon, 2014. "An Assessment of the Impact of Kilimo Plus Subsidy Program on Smallholder Farmers' Food Security and Income in Nakuru North District, Kenya," Research Theses 243470, Collaborative Masters Program in Agricultural and Applied Economics.

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