Food price volatility and domestic stabilization policies in developing countries
Christophe Gouel ()
FOODSECURE Working papers from LEI Wageningen UR
When food prices spike in countries with large numbers of poor people, public intervention is essential to alleviate hunger and malnutrition. For governments, this is also a case of political survival. Government actions often take the form of direct interventions in the market to stabilize food prices, which goes against most international advice to rely on safety nets and world trade. Despite the limitations of food price stabilization policies, they are widespread in developing countries. This paper attempts to untangle the elements of this policy co-nundrum. Price stabilization policies arise as a result of international and do-mestic coordination problems. At the individual country level, it is in the na-tional interest of many countries to adjust trade policies to take advantage of the world market in order to achieve domestic price stability. When countercyclical trade policies become widespread, the result is a thinner and less reliable world market, which further decreases the appeal of laissez-faire. A similar vicious circle operates in the domestic market: without effective policies to pro-tect the poor, such as safety nets, food market liberalization lacks credibility and makes private actors reluctant to intervene, which in turn forces government to step in. The current policy challenge lies in designing policies that will build trust in world markets and increase trust between public and private agents.
JEL-codes: F13 H8 Q18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
http://www3.lei.wur.nl/FoodSecurePublications/09_G ... ic-stabilizazion.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found
Chapter: Food Price Volatility and Domestic Stabilization Policies in Developing Countries (2014)
Working Paper: Food price volatility and domestic stabilization policies in developing countries (2014)
Working Paper: Food Price Volatility and Domestic Stabilization Policies in Developing Countries (2013)
Working Paper: Food price volatility and domestic stabilization policies in developing countries (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fsc:fspubl:9
Access Statistics for this paper
More papers in FOODSECURE Working papers from LEI Wageningen UR Contact information at EDIRC.
Bibliographic data for series maintained by Barbara van der Hout (). This e-mail address is bad, please contact .