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The Political Economy of Food Price Policy: A Synthesis

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  • Watson, Derrill D. II

Abstract

This paper identifies nine political economy factors that influenced governments’ policy choices during the most recent global food price crisis. While the most common policy stances may be explained by a simple, welfare-maximizing model, the variety of responses and the policy failures require more complex models. Policies are favored that maintain government legitimacy and produce private benefits for the best-connected stakeholders. Policy interventions were frequently ad hoc and delayed because of lack of market information, conflicts among government agencies in all governments, and extended deliberations among competing stakeholder groups. Widespread mutual mistrust between governments and the private sector was a major challenge. Governments’ unpredictable policy behavior and lack of transparency contributed to the hoarding, speculation and inefficient business transactions they condemned in the private sector, which further contributed to low transparency and instability. Breaking this vicious circle appears to be very important to improve food policy.

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  • Watson, Derrill D. II, 2015. "The Political Economy of Food Price Policy: A Synthesis," 2015 Conference, August 9-14, 2015, Milan, Italy 212637, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:212637
    DOI: 10.22004/ag.econ.212637
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    Cited by:

    1. Derrill D. Watson, 2017. "The political economy of food price policy during the global food price crisis of 2006-2008," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(3), pages 497-509, June.
    2. Watson, Derrill D. II, 2015. "The Political Economy of Food Price Policy: A Synthesis," 2015 Conference, August 9-14, 2015, Milan, Italy 212714, International Association of Agricultural Economists.
    3. Watson, Derrill D. II, 2015. "The Political Economy of Food Price Policy: A Synthesis," 2015 Conference, August 9-14, 2015, Milan, Italy 212714, International Association of Agricultural Economists.

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