Rising Food and Energy Prices in Europe and Central Asia

The purpose of this paper is to illustrate the channels through which rising commodity prices might affect countries in the Europe and Central Asia Region (ECA) in the short run and to indicate which countries are most likely to be significantly affected. This paper discusses the effects of the global food and energy price increases on ECA countries from two perspectives: (a) impacts on the macro-economy through inflation, the trade balance, fiscal accounts and growth; and (b) distributional impacts within countries. It aims to highlight vulnerabilities to rising commodity prices and discusses some policy interventions to mitigate the impact of rising prices. It puts the ECA experience in the context of the last commodity price increase as well the recent global economic crisis. Section one summarizes the state of global commodity markets. Section two discusses the main macroeconomic channels through which commodity price increases affect the economy. Section three discusses the potential poverty impacts of the price increases and the ability of countries' social assistance systems to deal with the heightened need for social assistance. It also discusses country responses to the crisis to date with reference to policies followed during the 2008 price hikes. Section four examines ECA's agriculture sector and potential responses to the commodity price increase and price volatility. Section five discusses the energy sector. Bank support to ECA countries to help deal with commodity market a development is discussed in annexes one.

Bibliographic Details

Main Author:	World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2011
Subjects:	AGRICULTURAL PRODUCTION, AGRICULTURE, APPROACH, AVERAGE HOUSEHOLD CONSUMPTION, BALANCE, BREAD, CLIMATE, COMMODITY, COMMODITY MARKETS, COMMODITY PRICE, CONSUMPTION PATTERNS, COTTON PRICES, CRUDE OIL, CURRENCY, CURRENT ACCOUNT BALANCES, CURRENT ACCOUNT SURPLUS, DEBT, DEMAND FOR FOOD, DEMAND MANAGEMENT, DEVELOPING COUNTRIES, DISTRIBUTIONAL IMPACTS, DOMESTIC INFLATION, ECONOMIC ACTIVITY, ECONOMIC CONDITIONS, ECONOMIC CRISIS, ECONOMIC STRUCTURES, EMERGING MARKET, EMERGING MARKET COUNTRIES, EMPLOYMENT, ENERGY COSTS, ENERGY EFFICIENCY, ENERGY EFFICIENCY INVESTMENTS, ENERGY EXPORTS, ENERGY MARKET, ENERGY PRICE, ENERGY PRICING, ENERGY PRODUCTS, ENERGY SUBSIDIES, ENERGY SYSTEM, ENERGY USE, EQUILIBRIUM PRICE, EXCHANGE RATES, EXPENDITURES, EXTERNAL FINANCING, EXTERNAL SHOCKS, EXTREME POVERTY, FINANCIAL CRISIS, FISCAL DEFICITS, FISCAL POLICIES, FOOD CONSUMPTION, FOOD IMPORTS, FOOD MARKETS, FOOD PRICE, FOOD PRICE INFLATION, FOOD PRODUCTION, FOREIGN FUNDS, FRUITS, FUEL, FUEL PRICES, FUEL SUPPLY, FUTURE PRICE, GAS, GAS PRODUCTION, GLOBAL ECONOMY, GLOBAL MARKET, GROWTH RATE, GROWTH RATES, HIGH ENERGY INTENSITY, HIGHER ENERGY PRICES, HOUSEHOLD BEHAVIOR, IMPORT PRICES, IMPROVEMENTS IN ENERGY EFFICIENCY, INCOME, INFLATION RATES, MARKET CONDITIONS, MARKET DEVELOPMENTS, MARKET PRICES, MIDDLE-INCOME COUNTRIES, MONETARY POLICY, NATURAL GAS, OIL EXPORTERS, OIL MARKETS, OIL PRICE, OIL SUPPLY, OUTPUT, PENSIONS, POLICY RESPONSE, POWER, PRICE CHANGES, PRICE CONTROLS, PRICE DECREASES, PRICE INCREASE, PRICE INDEX, PRICE INDICES, PRICE INFLATION, PRICE OF OIL, PRICE VOLATILITY, PRICING POLICIES, PUBLIC FINANCE, PURCHASING, PURCHASING POWER, RENEWABLE ENERGY, RENEWABLE ENERGY PRODUCTION, RISING COST, SAFETY NETS, SAVINGS, SOCIAL PROTECTION, SOCIAL SAFETY NET, SUBSTITUTE, SUPPLIERS, SURPLUS, SUSTAINABLE DEVELOPMENT, TAX, TAX REVENUE, TRADE DEFICIT, TRADE DEFICITS, VEGETABLES, WHEAT, WORLD DEVELOPMENT INDICATORS, WORLD MARKETS,
Online Access:	http://documents.worldbank.org/curated/en/462391468024643915/Rising-food-and-energy-prices-in-Europe-and-Central-Asia https://hdl.handle.net/10986/27354
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