The Short-Term Impact of Higher Food Prices on Poverty in Uganda
World prices for staple foods increased between 2006 and 2008, and accelerated sharply in 2008. Initial analysis indicated that the adverse effects of higher food prices in Uganda were likely to be small because of the diversity of its staple foods...
| Main Author: | |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2010/02/11803258/short-term-impact-higher-food-prices-poverty-uganda http://hdl.handle.net/10986/24318 |
| Summary: | World prices for staple foods increased
between 2006 and 2008, and accelerated sharply in 2008.
Initial analysis indicated that the adverse effects of
higher food prices in Uganda were likely to be small because
of the diversity of its staple foods, high level of food
self-sufficiency, and weak links with world markets. This
paper extends the previous analyses, disaggregating by
regions and individual food items, using more recent price
data, and estimating the impact on consumption poverty. The
analysis finds that poor households in Uganda tend to be net
buyers of food staples, and therefore suffer welfare losses
when food prices increase. This is most pronounced in urban
areas, but holds true for most rural households as well. The
diversity of staple foods has not been an effective buffer
because of price increases across a range of staple foods.
The paper estimates that both the incidence and depth of
poverty have increased -- at least in the short run -- as a
result of higher food prices in 2008, increasing by 2.6 and
2.2 percentage points, respectively. The increase in poverty
is highest in the Northern region, which is already the
poorest in Uganda. The need for mitigating social protection
measures appears to be greater than previously recognized.
Not only are the negative impacts larger, but they are also
much more widespread geographically. This suggests the need
for continued close monitoring of the situation, including
monitoring the adequacy of existing safety nets and feeding programs. |
|---|