IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Food security and storage in the Middle East and North Africa

  • Larson, Donald F.
  • Lampietti, Julian
  • Gouel, Christophe
  • Cafiero, Carlo
  • Roberts, John

In times of highly volatile commodity markets, governments often try to protect their populations from rapidly-rising food prices, which can be particularly harsh for the poor. A potential solution for food-deficit countries is to hold strategic reserves, which can be called on when international prices spike. But how large should strategic stockpiles be? This paper develops a dynamic storage model for wheat in the Middle East and North Africa (MENA) region, where imported wheat dominates the average diet. The paper uses the model to analyze a strategy that sets aside wheat stockpiles, which can be used when needed to keep domestic prices below a targeted price. This paper shows that if the target is set high and reserves are adequate, the strategy can be effective and robust. Contrary to most interventions, strategic storage policies are counter-cyclical and, when the importing region is sufficiently large, a regional policy can smooth global prices. This paper shows that this is the case for the MENA region. Nevertheless, the policy is more costly than the pro-cyclical policy of a targeted intervention that directly offsets high prices with a subsidy similar to food stamps.

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/2012/05/02/000158349_20120502095732/Rendered/PDF/WPS6031.pdf
Download Restriction: no

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6031.

as
in new window

Length:
Date of creation: 01 Apr 2012
Date of revision:
Handle: RePEc:wbk:wbrwps:6031
Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
Email:


More information through EDIRC

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. Brennan, Donna, 2003. "Price dynamics in the Bangladesh rice market: implications for public intervention," Agricultural Economics, Blackwell, vol. 29(1), pages 15-25, July.
  2. Peter Bardsley, 1992. "The Collapse of the Australian Wool Reserve Price Scheme," Working Papers 1992.17 EDIRC Provider-In, School of Economics, La Trobe University.
  3. Cafiero, Carlo & Bobenrieth H., Eugenio S.A. & Bobenrieth H., Juan R.A. & Wright, Brian D., 2011. "The empirical relevance of the competitive storage model," Journal of Econometrics, Elsevier, vol. 162(1), pages 44-54, May.
  4. Skees, Jerry & Varangis, Panos & Larson, Donald & Siegel, Paul, 2002. "Can financial markets be tapped to help poor people cope with weather risks ?," Policy Research Working Paper Series 2812, The World Bank.
  5. Srinivasan, P. V. & Jha, Shikha, 2001. "Liberalized trade and domestic price stability. The case of rice and wheat in India," Journal of Development Economics, Elsevier, vol. 65(2), pages 417-441, August.
  6. Larson, Donald F. & Coleman, Jonathan, 1991. "The effects of option hedging on the costs of domestic price stabilization schemes," Policy Research Working Paper Series 653, The World Bank.
  7. Deaton, A. & Laroque, G., 1989. "On The Behavior Of Commodity Prices," Papers 145, Princeton, Woodrow Wilson School - Development Studies.
  8. Wright, Brian D & Williams, Jeffrey C, 1984. "The Welfare Effects of the Introduction of Storage," The Quarterly Journal of Economics, MIT Press, vol. 99(1), pages 169-92, February.
  9. Massell, Benton F, 1970. "Some Welfare Implications of International Price Stabilization," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 404-17, March-Apr.
  10. Andrew Coleman, 2009. "Storage, Slow Transport, and the Law of One Price: Theory with Evidence from Nineteenth-Century U.S. Corn Markets," The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 332-350, May.
  11. Alderman, Harold & Haque, Trina, 2006. "Countercyclical safety nets for the poor and vulnerable," Food Policy, Elsevier, vol. 31(4), pages 372-383, August.
  12. Donald F. Larson & Jock R. Anderson & Panos Varangis, 2004. "Policies on Managing Risk in Agricultural Markets," World Bank Research Observer, World Bank Group, vol. 19(2), pages 199-230.
  13. Julian Lampietti & Sean Michaels & Nick Magnan, 2009. "Improving Food Security in Arab Countries," World Bank Other Operational Studies 10992, The World Bank.
  14. Elton Mykerezi & Bradford Mills, 2010. "The Impact of Food Stamp Program Participation on Household Food Insecurity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1379-1391.
  15. Yamey, Basil S, 1992. "The Tin Crisis (1985-86) and Futures Trading," The Economic Record, The Economic Society of Australia, vol. 0(0), pages 10-15, Supplemen.
  16. repec:cup:cbooks:9780521326162 is not listed on IDEAS
  17. Massell, Benton F, 1969. "Price Stabilization and Welfare," The Quarterly Journal of Economics, MIT Press, vol. 83(2), pages 284-98, May.
  18. Gilbert, Christopher L., 1996. "International Commodity Agreements: An obituary notice," World Development, Elsevier, vol. 24(1), pages 1-19, January.
  19. Cunha, Jesse & De Giorgi, Giacomo & Jayachandran, Seema, 2011. "The Price Effects of Cash Versus In-Kind Transfers," CEPR Discussion Papers 8581, C.E.P.R. Discussion Papers.
  20. Gouel, Christophe & Jean, Sebastien, 2012. "Optimal food price stabilization in a small open developing country," Policy Research Working Paper Series 5943, The World Bank.
  21. Donald F. Larson, 2007. "On inverse carrying charges and spatial arbitrage," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 27(4), pages 305-336, 04.
  22. Anderson, Jock & Blitzer, Charles & Cauchois, Tom & Grilli, Enzo, 1981. "A dynamic simulation model of the world jute economy," European Economic Review, Elsevier, vol. 16(2), pages 303-331.
  23. Byerlee, Derek & Jayne, T.S. & Myers, Robert J., 2006. "Managing food price risks and instability in a liberalizing market environment: Overview and policy options," Food Policy, Elsevier, vol. 31(4), pages 275-287, August.
  24. Takamasa Akiyama & John Baffes & Donald Larson & Panos Varangis, 2001. "Commodity Market Reforms : Lessons of Two Decades," World Bank Publications, The World Bank, number 13852, June.
  25. von Braun, Joachim & Torero, Maximo, 2009. "Implementing physical and virtual food reserves to protect the poor and prevent market failure:," Policy briefs 10, International Food Policy Research Institute (IFPRI).
  26. Salant, Stephen W, 1983. "The Vulnerability of Price Stabilization Schemes to Speculative Attack," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 1-38, February.
  27. del Ninno, Carlo & Dorosh, Paul A. & Subbarao, Kalanidhi, 2007. "Food aid, domestic policy and food security: Contrasting experiences from South Asia and sub-Saharan Africa," Food Policy, Elsevier, vol. 32(4), pages 413-435, August.
  28. Michael J. Roberts & Wolfram Schlenker, 2009. "World Supply and Demand of Food Commodity Calories," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1235-1242.
  29. Shiva S. Makki & Luther G. Tweeten & Mario J. Miranda, 1996. "Wheat Storage and Trade in an Efficient Global Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 879-890.
  30. Timothy J. Considine & Donald F. Larson, 2001. "Risk premiums on inventory assets: the case of crude oil and natural gas," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 21(2), pages 109-126, 02.
  31. Wright, Brian D & Williams, Jeffrey C, 1988. "The Incidence of Market-Stabilising Price Support Schemes," Economic Journal, Royal Economic Society, vol. 98(393), pages 1183-98, December.
  32. Brennan, Donna, 2003. "Price dynamics in the Bangladesh rice market: implications for public intervention," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 29(1), July.
  33. Paul Dorosh, 2008. "Food Price Stabilisation And Food Security: International Experience," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(1), pages 93-114.
  34. Knudsen, Odin & Nash, John, 1990. "Domestic Price Stabilization Schemes in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 539-58, April.
  35. Peters, May & Langley, Suchada V. & Westcott, Paul C., 2009. "Agricultural Commodity Price Spikes in the 1970s and 1990s: Valuable Lessons for Today," Amber Waves, United States Department of Agriculture, Economic Research Service, March.
  36. Wright, Brian D & Williams, Jeffrey C, 1982. "The Economic Role of Commodity Storage," Economic Journal, Royal Economic Society, vol. 92(367), pages 596-614, September.
Full references (including those not matched with items on IDEAS)

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

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6031. 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.