The Financial Crisis and Its Impacts on Global Agriculture

The financial crisis arose in the industrial countries, but has affected developing countries through higher interest rates, sharp changes in commodity prices, and reductions in investment, trade, migration and remittances. For most low-income countries, shocks that affect food prices or wage rates for unskilled workers seem likely to have the largest impact on poverty, with the declines in key food prices associated with the crisis helping to reduce poverty, while declining trade, investment, and remittance flows have had adverse impacts on the poor. Policies to address the crisis must include measures to deal with financial sector problems, the resulting reductions in aggregate demand, and the particular vulnerabilities of poor people. Given the complexity of the impacts from financial crises and commodity price shocks, there is a strong case for developing better social safety net policies that can offset the adverse impacts of a wide range of different shocks on poor people without creating costly market distortions.

Bibliographic Details

Main Authors:	Lin, Justin Yifu, Martin, Will
Language:	English
Published:	2010-09-01
Subjects:	ACCELERATOR, ADVANCED COUNTRIES, ADVERSE CONSEQUENCES, ADVERSE IMPACTS, AGGREGATE DEMAND, AGRICULTURAL COMMODITIES, AGRICULTURAL COMMODITY, AGRICULTURAL PRICE, AGRICULTURAL PRICES, AGRICULTURE, AMOUNT OF CAPITAL, BALANCE SHEETS, BANK POLICY, BASIS POINTS, BOOM-BUST CYCLES, CAPITAL FLOWS, CAPITAL GOODS, CAPITAL INFLOWS, CAPITAL REQUIREMENTS, COLLECTIVE ACTION, COMMODITIES, COMMODITY, COMMODITY PRICE, COMMODITY PRICES, COMPARATIVE ADVANTAGE, CONSUMER DURABLES, CONSUMERS, CORPORATE BONDS, CORPORATE BORROWERS, COST INCREASES, COST OF CAPITAL, COST OF FINANCE, CREDIT RATIONING, CREDIT RISK, CRISIS COUNTRIES, CURRENCY, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT BALANCES, CURRENT ACCOUNT DEFICIT, CURRENT ACCOUNT DEFICITS, DEBT, DEBT BURDEN, DEBT CRISES, DEFAULT RATES, DEFLATION, DEREGULATION, DEREGULATIONS, DEVALUATION, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT ECONOMICS, DEVELOPMENT FINANCE, DISCOUNT RATE, DOMESTIC DEMAND, DOMESTIC MARKET, DOMESTIC PRICES, DOMESTIC SAVINGS, DOWNWARD PRESSURE, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC OUTLOOK, ECONOMIC RESEARCH, ELASTICITY, EMERGING MARKET, EMERGING MARKET COUNTRIES, ENERGY PRICES, EXCHANGE RATE, EXPANSIONARY MONETARY POLICY, EXPENDITURES, EXPORT GROWTH, EXPORT GROWTH RATES, EXPORTERS, EXPORTS, FEDERAL RESERVE, FEDERAL RESERVE BANK, FINANCIAL ASSETS, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL FLOWS, FINANCIAL INNOVATIONS, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SECTOR POLICY, FINANCIAL SECTORS, FINANCIAL SYSTEM, FISCAL POLICY, FOOD PRICE, FOOD PRICES, FOOD PRODUCTION, FOREIGN CURRENCY, FOREIGN-CURRENCY BORROWING, FORWARD CONTRACTS, FUTURE PRICE, FUTURES, FUTURES CONTRACTS, GDP, GLOBAL DEVELOPMENT FINANCE, GLOBAL ECONOMIC PROSPECTS, GOVERNMENT DEBT, GOVERNMENT REVENUES, GOVERNMENT SUPPORT, GROWTH RATES, HOLDING, HOST COUNTRY, HOUSEHOLD INCOMES, HOUSEHOLD WEALTH, HOUSING LOANS, HOUSING MARKET, IMBALANCES, IMPORTS, INCOME, INCOME ELASTICITIES, INCOME LEVELS, INCOMES, INDIVIDUAL INVESTORS, INDUSTRIAL COUNTRIES, INFLATION, INTEREST COSTS, INTEREST RATE, INTEREST RATE SPREADS, INTEREST RATES, INTEREST RATES ON LOANS, INTERNAL RATE OF RETURN, INTERNATIONAL BANK, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL FLOWS, INVENTORIES, INVENTORY, INVESTING, INVESTMENT DEMAND, INVESTMENT GOODS, LABOR MARKET, LACK OF TRANSPARENCY, LENDERS, LEVERAGE, LIQUIDITY, LIQUIDITY PROBLEMS, LOAN, LONG-TERM ASSETS, LONG-TERM LIABILITIES, LOW-INCOME COUNTRIES, MACROECONOMIC MODEL, MACROECONOMIC POLICY, MARKET DISTORTIONS, MARKET FAILURE, MARKET INDEX, MARKET INDEXES, MARKET PRICES, MARKETING, MONETARY FUND, MONETARY POLICY, MORTGAGE, MORTGAGES, NATIONAL INCOME, NATIONAL MODELS, OIL EXPORTERS, OUTPUT, POLICY RESPONSE, POLICY RESPONSES, PORTFOLIO, PORTFOLIO MANAGERS, PORTFOLIOS, POVERTY REDUCTIONS, PRICE BAND, PRICE INDEXES, PRICE OF OIL, PRIVATE CAPITAL, PRIVATE CAPITAL FLOWS, PRODUCTION COSTS, PRODUCTIVITY GROWTH, PROTECTIONISM, PUBLIC GOOD, PURCHASING, PURCHASING POWER, RATE OF RETURN, RATES OF RETURN, REAL EXCHANGE RATE, REAL WAGE RATES, RECESSION, REGULATORY FRAMEWORK, REMITTANCE, REMITTANCES, RESERVES, RETURNS, RISK MANAGEMENT, RISK PREMIUM, RURAL INFRASTRUCTURE, SALE, SALES, SAVINGS, SAVINGS RATES, SECONDARY MARKET, SHORT-TERM LIABILITIES, SOCIAL PROTECTION, SOCIAL SAFETY NET, SPOT PRICE, SPREAD, STOCK EXCHANGE, STOCK MARKET, STOCK MARKET DECLINE, STOCK MARKET INDEX, STOCK MARKET INDEXES, STOCK MARKET PRICES, STOCKS, SURPLUS, SURPLUSES, SYSTEMIC RISKS, TAX, TAX RULES, TRADE CREDIT, TRADE FINANCE, TRADE OPPORTUNITIES, TRANSFER PAYMENTS, TRANSPARENCY, TREASURY, TREASURY BILLS, UNCERTAINTY, VOLATILITY, WAGE RATES, WAGES, WORKING CAPITAL, WORLD INTEREST RATES, WORLD MARKETS, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
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_20100927084005 https://hdl.handle.net/10986/3914
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