National Policy Responses to High Food Prices
The prices of many staple food commodities have increased substantially over the past year. As a result, many developing countries are facing larger food import bills. The cereal import bill of the world’s poorest countries is forecast to rise by 56 percent in 2007/08, following an already significant increase of 37 percent in 2006/07. Given the growing dependency of many developing countries on imported food commodities and on foreign aid, as well as their generally high levels of debt, increasing food prices have important implications for growth and development.
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