Publication:
Food Price Volatility and Domestic Stabilization Policies in Developing Countries

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dc.contributor.authorGouel, Christophe
dc.date.accessioned2013-04-12T17:21:40Z
dc.date.available2013-04-12T17:21:40Z
dc.date.issued2013-03
dc.description.abstractWhen 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 conundrum. Price stabilization policies arise as a result of international and domestic coordination problems. At the individual country level, it is in the national interest of many countries to adjust trade policies to take ad-vantage 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 protect 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 pub-lic and private agents.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/03/17493176/food-price-volatility-domestic-stabilization-policies-developing-countries
dc.identifier.doi10.1596/1813-9450-6393
dc.identifier.urihttps://hdl.handle.net/10986/13187
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6393
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURAL PRICES
dc.subjectAGRICULTURE
dc.subjectARBITRAGE
dc.subjectBENCHMARK
dc.subjectBORDER PRICE
dc.subjectBORROWING
dc.subjectCAPITAL ACCUMULATION
dc.subjectCEREAL PRICES
dc.subjectCHILD LABOR
dc.subjectCLOSED ECONOMIES
dc.subjectCLOSED ECONOMY
dc.subjectCOLLECTIVE ACTION
dc.subjectCOMMODITIES
dc.subjectCOMMODITY
dc.subjectCOMMODITY PRICE
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVE MARKETS
dc.subjectCONSUMERS
dc.subjectCONSUMPTION LEVELS
dc.subjectCRISES
dc.subjectDEBT
dc.subjectDEBTS
dc.subjectDEMAND CURVE
dc.subjectDEMAND FUNCTION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDIRECT MARKET
dc.subjectDOMESTIC MARKET
dc.subjectDOMESTIC PRICE
dc.subjectDOMESTIC PRICES
dc.subjectECONOMIC EFFICIENCY
dc.subjectECONOMIC GROWTH
dc.subjectECONOMICS RESEARCH
dc.subjectELASTICITY
dc.subjectEXCESS DEMAND
dc.subjectEXCESS SUPPLY
dc.subjectEXPECTED UTILITY
dc.subjectEXPECTED VALUES
dc.subjectEXPENDITURE
dc.subjectEXPORTS
dc.subjectEXTERNALITIES
dc.subjectFINANCIAL ASSETS
dc.subjectFLOOR PRICE
dc.subjectFLOOR PRICES
dc.subjectFOOD PRICE
dc.subjectFOOD PRICES
dc.subjectFOREIGN CURRENCY
dc.subjectFORMAL ANALYSIS
dc.subjectFREE MARKET
dc.subjectFREE TRADE
dc.subjectFUTURES
dc.subjectGLOBAL MARKET
dc.subjectGOVERNMENT ACTIONS
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME EFFECTS
dc.subjectINCOMES
dc.subjectINCOMPLETE MARKETS
dc.subjectINELASTIC DEMAND
dc.subjectINSURANCE
dc.subjectINTANGIBLE
dc.subjectINTERNATIONAL TRADE
dc.subjectITC
dc.subjectLIQUIDITY
dc.subjectLOW-INCOME COUNTRIES
dc.subjectMACROECONOMICS
dc.subjectMARGINAL BENEFITS
dc.subjectMARGINAL COST
dc.subjectMARGINAL UTILITY
dc.subjectMARKET BEHAVIOR
dc.subjectMARKET CONTROL
dc.subjectMARKET EQUILIBRIUM
dc.subjectMARKET FAILURE
dc.subjectMARKET FAILURES
dc.subjectMARKET INTEGRATION
dc.subjectMARKET LIBERALIZATION
dc.subjectMARKET PRICE
dc.subjectMARKET STABILIZATION
dc.subjectMARKET TRANSPARENCY
dc.subjectMARKET VALUE
dc.subjectMARKETING
dc.subjectMOTIVATION
dc.subjectMULTILATERAL TRADE
dc.subjectNATIONAL INCOME
dc.subjectNATURAL DISASTERS
dc.subjectOPEN ECONOMIES
dc.subjectOPEN ECONOMY
dc.subjectOPPORTUNITY COST
dc.subjectOPPORTUNITY COSTS
dc.subjectPECUNIARY EXTERNALITIES
dc.subjectPER CAPITA INCOME
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL UNREST
dc.subjectPORTFOLIO
dc.subjectPRICE BAND
dc.subjectPRICE BANDS
dc.subjectPRICE CEILING
dc.subjectPRICE CHANGE
dc.subjectPRICE CHANGES
dc.subjectPRICE FLUCTUATIONS
dc.subjectPRICE INCREASE
dc.subjectPRICE INCREASES
dc.subjectPRICE INDEX
dc.subjectPRICE INSTABILITY
dc.subjectPRICE LEVEL
dc.subjectPRICE MOVEMENTS
dc.subjectPRICE POLICY
dc.subjectPRICE RISK
dc.subjectPRICE RISKS
dc.subjectPRICE STABILITY
dc.subjectPRICE STABILIZATION
dc.subjectPRICE SUBSIDIES
dc.subjectPRICE TRENDS
dc.subjectPRICE UNCERTAINTY
dc.subjectPRICE VARIATIONS
dc.subjectPRICE VOLATILITY
dc.subjectPRIVATE MARKETS
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPUBLIC POLICY
dc.subjectPURCHASING
dc.subjectPURCHASING POWER
dc.subjectREDISTRIBUTIVE EFFECTS
dc.subjectRISK AVERSE
dc.subjectRISK AVERSION
dc.subjectRISK EXPOSURE
dc.subjectRISK MANAGEMENT
dc.subjectRISK MARKETS
dc.subjectRISK SHARING
dc.subjectSAFETY
dc.subjectSAFETY NET
dc.subjectSAFETY NETS
dc.subjectSALE
dc.subjectSALES
dc.subjectSAVINGS
dc.subjectSECURITY CONCERNS
dc.subjectSELLING PRICE
dc.subjectSELLING PRICES
dc.subjectSHARE OF STOCKS
dc.subjectSOCIAL PROTECTION
dc.subjectSPREAD
dc.subjectSTABILIZATION POLICIES
dc.subjectSTABILIZATION POLICY
dc.subjectSTOCK MANAGEMENT
dc.subjectSTOCK MARKET
dc.subjectSTOCKS
dc.subjectSURPLUS
dc.subjectSURPLUSES
dc.subjectTAX
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADES
dc.subjectTRANSACTION COSTS
dc.subjectURUGUAY ROUND
dc.subjectVALUATION
dc.subjectWAGE RATES
dc.subjectWORLD MARKET
dc.subjectWORLD MARKETS
dc.subjectWORLD TRADE
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWTO
dc.titleFood Price Volatility and Domestic Stabilization Policies in Developing Countriesen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleFood Price Volatility and Domestic Stabilization Policies in Developing Countries
okr.date.disclosure2013-03-01
okr.date.doiregistration2025-04-10T12:11:03.397179Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/03/17493176/food-price-volatility-domestic-stabilization-policies-developing-countries
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid843061468313513424
okr.identifier.doi10.1596/1813-9450-6393
okr.identifier.externaldocumentum000158349_20130327102642
okr.identifier.internaldocumentum17493176
okr.identifier.reportWPS6393
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/03/27/000158349_20130327102642/Rendered/PDF/wps6393.pdfen
okr.topicInternational Economics and Trade::Access to Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicPrivate Sector Development::Emerging Markets
okr.topicEconomic Theory and Research
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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