Implications of higher global food prices for poverty in low-income countries, Vol. 1 of 1

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Implications of higher global food prices for poverty in low-income countries

Author:	Ivanic, Maros; Martin, Will;	Collection Title:	Policy Research working paper ; no. WPS 4594
Country:	World;	Date Stored:	2008/04/16
Document Date:	2008/04/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	The World Region
Report Number:	WPS4594	SubTopics:	Achieving Shared Growth; Rural Poverty Reduction; Markets and Market Access; Population Policies
Volume No:	1 of 1

Summary: 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.


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