Rising Food Prices in Sub-Saharan Africa : Poverty Impact and Policy Responses
The increase in food prices represents a major crisis for the world's poor. This paper aims to review the evidence on the potential impact of higher food prices on poverty in sub-Saharan Africa, and examines the extent to which policy response...
Main Authors: | , |
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Format: | Policy Research Working Paper |
Language: | English |
Published: |
World Bank, Washington, DC
2012
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2008/10/9899936/rising-food-prices-sub-saharan-africa-poverty-impact-policy-responses http://hdl.handle.net/10986/6938 |
Summary: | The increase in food prices represents a
major crisis for the world's poor. This paper aims to
review the evidence on the potential impact of higher food
prices on poverty in sub-Saharan Africa, and examines the
extent to which policy responses will benefit the poor. The
paper shows that rising food prices are likely to lead to
higher poverty in sub-Saharan Africa as the negative impact
on net poor consumers outweighs the benefits to poor
producers. A recent survey shows that the most common policy
response in sub-Saharan African countries is reducing taxes
on food while outside the region price controls or targeted
consumer subsidies are the most popular measure. Sub-Saharan
African countries also have a higher prevalence of
food-based safety net programs which are being scaled up to
respond to rising prices. The review suggests that the
benefits from reducing import tariffs on staples may accrue
largely to the non-poor. Social protection programs show
more promise, but geographic targeting is likely to be
crucial in ensuring that benefits reach the neediest. The
paper also argues that anti-poverty interventions ought to
retain their focus on rural areas where poverty remains
highest even after taking into account the adverse impact on
the urban poor due to the rise in food prices. |
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