Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices

Global food prices have increased substantially since mid-2010, as have prices in many developing countries. In this study we assess the poverty impact of the price changes between June and December 2010 in twenty-eight low and middle income countries. This is done by gathering detailed information on individual households' food production and consumption levels for thirty-eight agricultural and food commodities to assess the impacts on household welfare. This study estimates that this sudden food price surge increased the number of poor people globally, but with considerably different impacts in different countries. The heterogeneity of these impacts is partly related to the wide variation in the transmission of global prices to local prices and partly to differences in households' patterns of production and consumption. On balance, the adverse welfare impact on net buyers outweighs the benefits to net sellers resulting in an increase in the number of poor and in the depth of poverty. We estimate that the average poverty change was 1.1 percentage points in low income countries and 0.7 percentage points in middle income countries with a net increase of 44 million people falling below the $1.25 per day extreme poverty line.

Bibliographic Details

Main Authors:	Ivanic, Maros, Martin, Will, Zaman, Hassan
Language:	English
Published:	2011-04-01
Subjects:	ADVERSE IMPACTS, AGRICULTURAL COMMODITIES, AGRICULTURAL ECONOMICS, AGRICULTURAL INCOMES, AGRICULTURAL PRODUCTIVITY, AGRICULTURE, BANANAS, BEEF, BEETS, BEVERAGES, CALORIE INTAKE, CASH CROPS, CASH TRANSFERS, CASSAVA, CHANGES IN POVERTY, COCOA, COMMODITY PRICE, COMMODITY PRICES, CONSUMER PRICES, CONSUMPTION BASKET, COOKING, DAIRY, DECOMPOSABLE POVERTY, DEFINITIONS OF POVERTY, DIETARY DIVERSITY, DIVERSIFICATION, DOMESTIC MARKETS, DOMESTIC PRICES, ECONOMIC GROWTH, EDIBLE OILS, EGGS, ENERGY PRICES, EXPENDITURE, EXPENDITURES, EXTREME POVERTY, EXTREME POVERTY LINE, FOOD BUYERS, FOOD COMMODITIES, FOOD CONSUMERS, FOOD GRAINS, FOOD ITEMS, FOOD POLICY, FOOD POLICY RESEARCH, FOOD PRICE, FOOD PRICES, FOOD PRODUCTION, FOOD SALES, FOOD STAPLES, FOOD STOCKS, FOOD SUPPLY, FRUITS, GLOBAL POVERTY, GRAINS, GROUNDNUT, GROUNDNUT OIL, GROUNDNUTS, HOUSEHOLD BUDGET, HOUSEHOLD INCOME, HOUSEHOLD SURVEY, HOUSEHOLD WELFARE, IMPACT ON POVERTY, INCOME, INCOME DISTRIBUTION, INCOME GROWTH, INFLATION, INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE, LIVING STANDARDS, MAIZE, MALNUTRITION, MEAT, MILK, MUTTON, OILS AND FATS, ORANGES, PALM OIL, PEANUTS, POOR, POOR CONSUMERS, POOR FARMERS, POOR HOUSEHOLDS, POOR PEOPLE, POOR PRODUCERS, PORK, POTATOES, POVERTY ASSESSMENT, POVERTY ESTIMATES, POVERTY GAP, POVERTY GAP INDEX, POVERTY IMPACT, POVERTY INCREASE, POVERTY LINES, POVERTY POVERTY, POVERTY POVERTY CHANGE, POVERTY RATE, POVERTY REDUCTION, PRICE CHANGE, PRICE CHANGES, PRICE FLUCTUATIONS, PRICE INCREASE, PRICE INCREASES, PRICE INDEX, PRICE VOLATILITY, REDUCTION IN POVERTY, RICE, RURAL, RURAL AREAS, RURAL DEVELOPMENT, RURAL POOR, RURAL WELFARE, SAFETY NET, SAFETY NET PROGRAMS, SOYBEAN, SOYBEANS, SUBSTITUTE, SUBSTITUTES, SUGAR, SUGAR CANE, TARGETING, TEA, TOTAL POVERTY, VEGETABLES, WAGE RATES, WHEAT, WORLD MARKETS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110413081249 https://hdl.handle.net/10986/3399
Tags:	Add Tag No Tags, Be the first to tag this record!