Implications of Higher Global Food Prices for Poverty in Low-Income Countries

In many poor countries, the recent increases in prices of staple foods raise the real incomes of those selling food, many of whom are relatively poor, while hurting net food consumers, many of whom are also relatively poor. The impacts on poverty will certainly be very diverse, but the average impact on poverty depends upon the balance between these two effects, and can only be determined by looking at real-world data. Results using household data for ten observations on nine low-income countries show that the short-run impacts of higher staple food prices on poverty differ considerably by commodity and by country, but, that poverty increases are much more frequent, and larger, than poverty reductions. The recent large increases in food prices appear likely to raise overall poverty in low income countries substantially.

Bibliographic Details

Main Authors:	Ivanic, Maros, Martin, Will
Language:	English
Published:	World Bank, Washington, DC 2008-04
Subjects:	ADVERSE IMPACTS, AGRICULTURAL COMMODITIES, AGRICULTURAL EMPLOYMENT, AGRICULTURAL PRICES, AGRICULTURAL PRODUCTS, AGRICULTURAL RESEARCH, AGRICULTURAL WAGE, AGRICULTURAL WAGES, AGRICULTURAL WORKERS, AVERAGE PRICES, BASIC FOOD COMMODITIES, CEREAL PRICES, CHANGES IN POVERTY, CHILD LABOR, COMMODITY PRICE, COMMODITY PRICES, CONSUMER GOODS, CONSUMPTION DATA, COST OF LIVING, CULTURAL CHANGE, CUMULATIVE DISTRIBUTION, DEVELOPING COUNTRIES, DEVELOPING WORLD, DEVELOPMENT ECONOMICS, DEVELOPMENT INDICATORS, DEVELOPMENT POLICY, DEVELOPMENT RESEARCH, DISTRIBUTION OF LAND, DOMESTIC MARKETS, DOMESTIC PRICES, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC STUDIES, ECONOMICS, EGALITARIAN DISTRIBUTION, ENERGY PRICES, EXPENDITURE, EXPENDITURES, FACTOR PRICES, FAMILY FARMS, FARM HOUSEHOLDS, FARM PRODUCTIVITY, FARMERS, FINANCIAL CRISIS, FOOD BUYERS, FOOD COMMODITIES, FOOD CONSUMERS, FOOD ITEMS, FOOD MARKETS, FOOD POLICY, FOOD PRICE, FOOD PRICES, FOOD PRODUCTS, GLOBAL POVERTY, HOUSEHOLD CONSUMPTION, HOUSEHOLD DATA, HOUSEHOLD INCOMES, HOUSEHOLD LEVEL, HOUSEHOLD LIVING STANDARDS, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, IMPACT ON POVERTY, INCOME, INCOME DISTRIBUTION, INCOME LEVELS, INCOME QUINTILE, INCREASE POVERTY, INDIVIDUAL COUNTRIES, INFLATION, INFLATION RATE, INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE, LABOR MARKET, LABOR MARKETS, LACK OF INFORMATION, LARGE NUMBERS OF PEOPLE, LEVEL OF POVERTY, LIVING CONDITIONS, LONG RUN, LOW-INCOME COUNTRIES, MARKET LIBERALIZATION, MARKET PRICE, MARKET PRICES, MEASUREMENT OF POVERTY, MILK, NATIONAL POVERTY, NATIONAL POVERTY RATE, NEGATIVE IMPACT, NET FOOD CONSUMERS, NET INCOME, NUMBER OF HOUSEHOLDS, POLICY CHANGES, POLICY MEASURES, POLICY OPTIONS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POOR, POOR CONSUMERS, POOR COUNTRIES, POOR FARM HOUSEHOLDS, POOR FARMERS, POOR HOUSEHOLDS, POOR PEOPLE, POVERTY CHANGE, POVERTY COMPARISONS, POVERTY GAP, POVERTY IMPACT, POVERTY INCREASE, POVERTY INCREASES, POVERTY LINE, POVERTY LINES, POVERTY MEASURES, POVERTY OUTCOMES, POVERTY RATES, POVERTY REDUCTION, POVERTY REDUCTION STRATEGIES, PRICE CHANGE, PRICE CHANGES, PRICE INCREASE, PRICE INCREASES, PRICING POLICY, PRICING REFORMS, PRO-POOR, PROGRESS, PURCHASING, PURCHASING POWER, PURCHASING POWER PARITY, REAL INCOMES, REDUCTION IN POVERTY, REDUCTION OF POVERTY, RESPECT, RURAL, RURAL AREAS, RURAL HOUSEHOLDS, RURAL LABOR, RURAL PEOPLE, RURAL POOR, RURAL POVERTY, RURAL POVERTY RATE, RURAL POVERTY RATES, SALE, SALES, SMALL FARMERS, SUBSISTENCE, SUBSISTENCE FARMERS, SUBSTITUTES, SUPPLY FUNCTIONS, TRADE LIBERALIZATION, UNSKILLED LABOR, URBAN AREAS, URBAN POOR, URBAN POVERTY, VULNERABILITY, WAGE RATES, WELFARE IMPACT, WORLD MARKET, WORLD MARKETS,
Online Access:	http://documents.worldbank.org/curated/en/2008/04/9362411/implications-higher-global-food-prices-poverty-low-income-countries https://hdl.handle.net/10986/6723
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