Rising Food Prices In Sub-Saharan Africa: Poverty Impact And Policy Responses

Wodon, Quentin; Zaman, Hassan

doi:10.1596/1813-9450-4738

Cited by 64 publications

(60 citation statements)

References 34 publications

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“…The study conducted by Wodon et al (2008) highlights this aspect. The authors estimate the short run impact of food imported prices on poverty using the method developed by Deaton (1989) in twelve West and Central African countries.…”

Section: Empirical Literature Reviewmentioning

confidence: 87%

Impact of Rising World Rice Prices on Poverty and Inequality in Burkina Faso

Badolo

Traoré

2015

Development Policy Review

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Between January 2006 and April 2008, the prices of most agricultural products rose considerably in international markets. Empirical studies show that this spike in world food prices increased the number of poor households in developing countries, but the extent was not the same in all countries. This article assesses the impact of rising rice prices on poverty and income inequality in Burkina Faso, using a methodology based on the concept of compensating variation combined with the net benefit ratio (NBR) developed by Deaton (1989) and a living standard survey (QUIBB, 2003). The results show that higher prices have a negative impact on income and poverty in the regions with a large proportion of households that are net buyers of rice. The poverty rate increases by 2.2 to 2.9 percentage points depending on the assumptions, the increase being higher in urban areas than in rural areas. Rising rice prices also increase income inequality, which increases particularly in urban areas and in relatively rich regions, but decreases in poor regions with a large proportion of rice producers.

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Section: Empirical Literature Reviewmentioning

confidence: 87%

Impact of Rising World Rice Prices on Poverty and Inequality in Burkina Faso

Badolo

Traoré

2015

Development Policy Review

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“…Most studies confirm the link between rising food prices and the recent waves of revolutions that have marked the geopolitical landscape of developing countries over the last couple of months (World Bank, 2008;Wodon & Zaman, 2010). The premises of the Arab Spring and hitherto unanswered questions about some of its dynamics could be traced to poverty; owing to unemployment and rising food prices.…”

Section: Introductionmentioning

confidence: 93%

“…Whereas the literature on the causes and impacts of the crisis in global food prices in the developing world has mushroomed in recent years (Piesse & Thirtle, 2009;Wodon & Zaman, 2010;Masters & Shively, 2008), we are unaware of studies that have closely examined how financial policies affected consumer prices. Remedial policy and pragmatic choices aimed at fighting inflation that have been documented include both short and medium term responses (SIFSIA, 2011).…”

Section: Introductionmentioning

confidence: 99%

Fighting Consumer Price Inflation in Africa. What Do Dynamics in Money, Credit, Efficiency and Size Tell Us?

Asongu

2012

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Design/methodology/approach -We limit our sample to a panel of African countries for which inflation is non-stationary. VAR models from both error correction and Granger causality perspectives are applied. Analyses of dynamic shocks and responses are also covered. Six batteries of robustness checks are applied to ensure consistency in the results. Terms of use: Documents inFindings -(1) There are significant long-run equilibriums between inflation and each financial dynamic. (2) When there is a disequilibrium, while only financial depth and financial size could be significantly used to exert deflationary pressures, inflation is significant in adjusting all financial dynamics. In other words, financial depth and financial size are more significant instruments in fighting inflation than financial efficiency and activity. (3) The financial intermediary dynamic of size appears to be more instrumental in exerting a deflationary tendency than financial intermediary depth. (4) The deflationary tendency from money supply is double that based on liquid liabilities.Practical implications -Monetary policy aimed at fighting inflation only based on bank deposits may not be very effective until other informal and semi-formal financial sectors are taken into account. It could be inferred that, tight monetary policy targeting the ability of banks to grant credit (in relation to central bank credits) is more effective in tackling consumer price inflation than that, targeting the ability of banks to receive deposits. In the same vein, adjusting the lending rate could be more effective than adjusting the deposit rate. The insignificance of financial allocation efficiency and financial activity as policy tools in the battle against inflation could be explained by the (well documented) surplus liquidity issues experienced by the African banking sector. 3 campaigns involving strikes, demonstrations, marches, rallies and political crises that seriously disrupt economic performance could be mitigated. Social implicationsOriginality/value -As far as we have perused, there is yet no study that assesses monetary policy options that could be relevant in addressing the dramatic surge in the price of consumer commodities.

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“…Firstly, with the dramatic rise in the price of stable food commodities over the past decade 2 , while the literature on the causes and impacts of the crisis in global food prices in the developing world has mushroomed in recent years (Piesse & Thirtle, 2009;Wodon & Zaman, 2010;Masters & Shively, 2008), we are unaware of studies that have closely examined how financial policies affected consumer prices. Hence, correcting inflation is particularly important in fighting poverty (Funjii, 2011) on the one hand and; on the other hand directly (Ibeh et al, 2007;Acquaah et al, 2008;Musila & Al-Zyoud, 2012) or indirectly (Asongu 2012(Asongu , 2013aBartels et al, 2009;Rolfe & Woodward, 2004;Tuomi, 2011) eases the doing of business in Africa.…”

Section: Introductionmentioning

confidence: 99%