The Challenges of High Food and Fuel Prices
The increase in the price of oil and food carry major adverse poverty and macroeconomic implications especially for fragile and small states and for low income households in all developing countries. In terms of their impact on income distribution,...
| Main Author: | |
|---|---|
| Format: | Other Public Sector Study |
| Language: | English en_US |
| Published: |
Washington, DC
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/10/16461515/challenges-high-food-fuel-prices http://hdl.handle.net/10986/12692 |
| Summary: | The increase in the price of oil and
food carry major adverse poverty and macroeconomic
implications especially for fragile and small states and for
low income households in all developing countries. In terms
of their impact on income distribution, inflation, and
poverty food prices are of greater and more immediate
concern than high fuel prices. However, the impact of the
oil price increase on economic growth is likely to be
negative and the challenge of crafting appropriate policy
responses to the food crisis is made much harder in a
context of rising oil prices and ensuing fiscal and balance
of payments pressures. This paper describes what has
happened to fuel and oil prices over the past two years and
links these developments to the macro-economic international
context. It goes on to describe the consequences of the oil
and food price increase for developing countries and
especially for fragile and small states in the commonwealth.
The paper also discusses policy instruments that may
contribute to ameliorate the impact of the changes. Finally,
it describes how the World Bank can support countries'
efforts in addressing these price shocks. |
|---|