Policy-Makers Responses to Food PriceCrises: Results from a 14-CountryPolitical Economy StudyPer Pinstrup-AndersenIFPRIMay...
14 Participating Countries (Bangladesh, Brazil, China, Egypt, Ethiopia, India, Kenya,Malawi, Mozambique, Nigeria, Senegal,...
Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trenda...
Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trenda...
Food Price Over TimeFood Price Over Time
Wheat Weekly Price MinusWheat Weekly Price Minus12-Month Moving Average12-Month Moving Average
Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trenda...
Wheat Prices in the World Market,South Africa and Bangladesh, 2005-2012Source: Baltzer (2013)
Rice Prices in the World Market,China and India, 2005-2012Source: Baltzer (2013)
Maize Prices in the World Market,Malawi and Zambia, 2005-2012Source: Baltzer (2013)
Increase in the Domestic FoodPrice as a Percent of the Increasein World Prices, June 2007-2008Source: Minot, N. 2010. Tran...
Estimates and Projections of UndernourishedEstimates and Projections of UndernourishedPeople Worldwide, 1990-2015People Wo...
Real Food Price Indices in the EU andthe World Market 2005-2012 (2005=100)Source: Swinnen, Knops, and Herck (2013)
Cereal Prices in the EU andCereal Prices in the EU andWorld Market 2005-2012World Market 2005-2012Source: Swinnen, Knops, ...
Coefficients of Variation for SelectedFood Price Indices (2005-2012)Source: Swinnen, Knops, and Herck (2013)
U.S. Ethanol and Maize Prices, 2004-2006Source: Rausser and de Gorter (2013)MaizeEthanol
U.S. Maize and Ethanol Prices, 2007-2012Source: Rausser and de Gorter (2013)Maize price Ethanol price
Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trenda...
The Policy Response (1)The Policy Response (1)1. Slow down domestic food price increasesand volatility Trade policies to ...
The Policy Response (2)The Policy Response (2)2. Reduce negative impact on select groups Targeted cash transfers Targete...
Process andProcess andImplementation Issues (1)Implementation Issues (1)1. Ad hoc, delayed action2. High fiscal costs Rev...
Process andProcess andImplementation Issues (2)Implementation Issues (2)4. Poor targeting (intentional or not) Transfers,...
Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trenda...
Political Economy Lessons (1)Political Economy Lessons (1)1. Protecting government legitimacy2. Pursuing domestic policies...
Political Economy Lessons (2)Political Economy Lessons (2)6. Increasing urban bias7. Smallholders versus larger farms8. Mu...
Lessons for Development AssistanceLessons for Development Assistance1. Do not assume unitary governmentdecision-making pro...
Full papers and research briefs available at:http://www.wider.unu.edu/research/current-programme/en_GB/Political-Economy-o...
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IFPRI Policy Seminar: Policymakers’ Responses to Food Price Crises

Policy Seminar presentation by Per Pinstrup-Andersen, Cornell University at IFPRI Policy Seminar on "Policymakers’ Responses to Food Price Crises" May 3, 2013
Published on: Mar 4, 2016
Published in: Technology      Economy & Finance      
Source: www.slideshare.net


Transcripts - IFPRI Policy Seminar: Policymakers’ Responses to Food Price Crises

  • 1. Policy-Makers Responses to Food PriceCrises: Results from a 14-CountryPolitical Economy StudyPer Pinstrup-AndersenIFPRIMay 2, 2013
  • 2. 14 Participating Countries (Bangladesh, Brazil, China, Egypt, Ethiopia, India, Kenya,Malawi, Mozambique, Nigeria, Senegal, South Africa, Vietnam, Zambia)European UnionUnited StatesCollaborating Institutions: Cornell University,UNU-WIDER, and University of CopenhagenBill & Melinda Gates Foundation
  • 3. Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trendand VolatilityPolicy ResponseImpactDomesticPrice-RelatedFactorsPolicyProcessPoliticalEconomy
  • 4. Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trendand VolatilityPolicy ResponseImpactDomesticPrice-RelatedFactorsPolicyProcessPoliticalEconomy
  • 5. Food Price Over TimeFood Price Over Time
  • 6. Wheat Weekly Price MinusWheat Weekly Price Minus12-Month Moving Average12-Month Moving Average
  • 7. Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trendand VolatilityPolicy ResponseImpactDomesticPrice-RelatedFactorsPolicyProcessPoliticalEconomy
  • 8. Wheat Prices in the World Market,South Africa and Bangladesh, 2005-2012Source: Baltzer (2013)
  • 9. Rice Prices in the World Market,China and India, 2005-2012Source: Baltzer (2013)
  • 10. Maize Prices in the World Market,Malawi and Zambia, 2005-2012Source: Baltzer (2013)
  • 11. Increase in the Domestic FoodPrice as a Percent of the Increasein World Prices, June 2007-2008Source: Minot, N. 2010. Transmission of World Food Price Changes toAfrican Markets and its Effect on Household Welfare. Paper presented atthe Comesa policy seminar, 25-26 January, Maputo, Mozambique.
  • 12. Estimates and Projections of UndernourishedEstimates and Projections of UndernourishedPeople Worldwide, 1990-2015People Worldwide, 1990-2015Source: 2012 Global Food Policy Report, IFPRI.
  • 13. Real Food Price Indices in the EU andthe World Market 2005-2012 (2005=100)Source: Swinnen, Knops, and Herck (2013)
  • 14. Cereal Prices in the EU andCereal Prices in the EU andWorld Market 2005-2012World Market 2005-2012Source: Swinnen, Knops, and Herck (2013)
  • 15. Coefficients of Variation for SelectedFood Price Indices (2005-2012)Source: Swinnen, Knops, and Herck (2013)
  • 16. U.S. Ethanol and Maize Prices, 2004-2006Source: Rausser and de Gorter (2013)MaizeEthanol
  • 17. U.S. Maize and Ethanol Prices, 2007-2012Source: Rausser and de Gorter (2013)Maize price Ethanol price
  • 18. Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trendand VolatilityPolicy ResponseImpactDomesticPrice-RelatedFactorsPolicyProcessPoliticalEconomy
  • 19. The Policy Response (1)The Policy Response (1)1. Slow down domestic food price increasesand volatility Trade policies to reduce price transmission Direct price control Removal of VAT on food Short term supply management Production expansions
  • 20. The Policy Response (2)The Policy Response (2)2. Reduce negative impact on select groups Targeted cash transfers Targeted and untargeted food subsidies Increasing public sector wages
  • 21. Process andProcess andImplementation Issues (1)Implementation Issues (1)1. Ad hoc, delayed action2. High fiscal costs Revenue losses Export bans Import tariffs Elimination of VAT Program costs1. Interference with price signal
  • 22. Process andProcess andImplementation Issues (2)Implementation Issues (2)4. Poor targeting (intentional or not) Transfers, safety nets Food and fertilizer subsidies4. Corruption5. Cross-border trading6. Selective enforcement of export bans7. Untimely government procurement
  • 23. Project OverviewProject OverviewFood Price Trend and Volatility in the World MarketPrice TransmissionDomestic Price Trendand VolatilityPolicy ResponseImpactDomesticPrice-RelatedFactorsPolicyProcessPoliticalEconomy
  • 24. Political Economy Lessons (1)Political Economy Lessons (1)1. Protecting government legitimacy2. Pursuing domestic policies irrespective ofinternational consequences3. Unitary government decision-making isunusual4. Repeating past or expanding currentpolicies5. Relative power of stakeholder group varied
  • 25. Political Economy Lessons (2)Political Economy Lessons (2)6. Increasing urban bias7. Smallholders versus larger farms8. Mutual mistrust between government andthe private sector9. Foreign agencies had little influence
  • 26. Lessons for Development AssistanceLessons for Development Assistance1. Do not assume unitary governmentdecision-making process2. Expect strong urban bias3. Expect strong bias in favor of large-scalefarming4. Rhetoric and priority action may differ wrtsmallholders5. Mutual mistrust between public and privatesector may be an important hindrance tobroad-based economic growth
  • 27. Full papers and research briefs available at:http://www.wider.unu.edu/research/current-programme/en_GB/Political-Economy-of-Food/Research briefs also available at:www.foodpolicy.dyson.cornell.edu

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