Publication:
Rising Food Prices and Coping Strategies : Household-level Evidence from Afghanistan

Loading...
Thumbnail Image
Files in English
English PDF (789.49 KB)
804 downloads
English Text (105.05 KB)
248 downloads
Published
2010-11-01
ISSN
Date
2012-03-19
Author(s)
D'Souza, Anna
Editor(s)
Abstract
This paper investigates the impact of rising wheat prices -- during the 2007/08 global food crisis -- on food security in Afghanistan. Exploiting the temporal stratification of a unique nationally-representative household survey, the analysis finds evidence of large declines in real per capita food consumption and in food security (per capita calorie intake and household dietary diversity) corresponding to the price shocks. The data reveal smaller price elasticities with respect to calories than with respect to food consumption, suggesting that households trade off quality for quantity as they move toward staple foods and away from nutrient-rich foods such as meat and vegetables. In addition, there is increased demand in the face of price increases (Giffen good properties) for wheat products in urban areas. This study improves on country-level simulation studies by providing estimates of actual household wellbeing before and during the height of the global food crisis in one of the world's poorest, most food-insecure countries.
Link to Data Set
Citation
D'Souza, Anna; Jolliffe, Dean. 2010. Rising Food Prices and Coping Strategies : Household-level Evidence from Afghanistan. Policy Research working paper ; no. WPS 5466. © World Bank. http://hdl.handle.net/10986/3947 License: CC BY 3.0 IGO.
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    The Economic Value of Weather Forecasts: A Quantitative Systematic Literature Review
    (Washington, DC: World Bank, 2025-09-10) Farkas, Hannah; Linsenmeier, Manuel; Talevi, Marta; Avner, Paolo; Jafino, Bramka Arga; Sidibe, Moussa
    This study systematically reviews the literature that quantifies the economic benefits of weather observations and forecasts in four weather-dependent economic sectors: agriculture, energy, transport, and disaster-risk management. The review covers 175 peer-reviewed journal articles and 15 policy reports. Findings show that the literature is concentrated in high-income countries and most studies use theoretical models, followed by observational and then experimental research designs. Forecast horizons studied, meteorological variables and services, and monetization techniques vary markedly by sector. Estimated benefits even within specific subsectors span several orders of magnitude and broad uncertainty ranges. An econometric meta-analysis suggests that theoretical studies and studies in richer countries tend to report significantly larger values. Barriers that hinder value realization are identified on both the provider and user sides, with inadequate relevance, weak dissemination, and limited ability to act recurring across sectors. Policy reports rely heavily on back-of-the-envelope or recursive benefit-transfer estimates, rather than on the methods and results of the peer-reviewed literature, revealing a science-to-policy gap. These findings suggest substantial socioeconomic potential of hydrometeorological services around the world, but also knowledge gaps that require more valuation studies focusing on low- and middle-income countries, addressing provider- and user-side barriers and employing rigorous empirical valuation methods to complement and validate theoretical models.
  • Publication
    It’s Not (Just) the Tariffs: Rethinking Non-Tariff Measures in a Fragmented Global Economy
    (Washington, DC: World Bank, 2025-10-22) Taglioni, Daria; KEE, Hiau Looi
    As tariffs have declined, non-tariff measures (NTMs) have become central to trade policy, especially in high-income countries and regulated sectors like food and green technologies. Although NTMs may serve legitimate goals, they could also sort countries and firms into or out of markets based on compliance capacity and differences in product mix. Documenting recent advances in the estimation of ad valorem equivalents (AVEs), this paper uncovers new patterns of use and exposure of NTMs. High-income countries rely more heavily on NTMs relative to tariffs, while low- and middle-income countries face steeper AVEs on their exports. Firm-level evidence shows that NTMs disproportionately affect smaller firms, leading to market exit and concentration. Poorly designed NTMs can harm productivity and welfare, while coordinated, capacity-aware use can deliver inclusive outcomes. Policy design, transparency, and diagnostics must evolve to reflect the growing role—and risks—of NTMs in a fragmented global trade landscape.
  • Publication
    Monitoring Global Aid Flows: A Novel Approach Using Large Language Models
    (Washington, DC: World Bank, 2025-11-04) Luo, Xubei; Rajasekaran, Arvind Balaji; Scruggs, Andrew Conner
    Effective monitoring of development aid is the foundation for assessing the alignment of flows with their intended development objectives. Existing reporting systems, such as the Organisation for Economic Co-operation and Development’s Creditor Reporting System, provide standardized classification of aid activities but have limitations when it comes to capturing new areas like climate change, digitalization, and other cross-cutting themes. This paper proposes a bottom-up, unsupervised machine learning framework that leverages textual descriptions of aid projects to generate highly granular activity clusters. Using the 2021 Creditor Reporting System data set of nearly 400,000 records, the model produces 841 clusters, which are then grouped into 80 subsectors. These clusters reveal 36 emerging aid areas not tracked in the current Creditor Reporting System taxonomy, allow unpacking of “multi-sectoral” and “sector not specified” classifications, and enable estimation of flows to new themes, including World Bank Global Challenge Programs, International Development Association–20 Special Themes, and Cross-Cutting Issues. Validation against both Creditor Reporting System benchmarks and International Development Association commitment data demonstrates robustness. This approach illustrates how machine learning and the new advances in large language models can enhance the monitoring of global aid flows and inform future improvements in aid classification and reporting. It offers a useful tool that can support more responsive and evidence-based decision-making, helping to better align resources with evolving development priorities.
  • Publication
    The Macroeconomic Implications of Climate Change Impacts and Adaptation Options
    (Washington, DC: World Bank, 2025-05-29) Abalo, Kodzovi; Boehlert, Brent; Bui, Thanh; Burns, Andrew; Castillo, Diego; Chewpreecha, Unnada; Haider, Alexander; Hallegatte, Stephane; Jooste, Charl; McIsaac, Florent; Ruberl, Heather; Smet, Kim; Strzepek, Ken
    Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.
  • Publication
    The State of Global Services Trade Policies: Evidence from Recent Data
    (Washington, DC: World Bank, 2025-10-28) Baiker, Laura; Borchert, Ingo; Echandi, Roberto; Fernandes, Ana M.; Hans, Ishrat; Magdeleine, Joscelyn; Marchetti, Juan A.; Colomer, Ester Rubio
    The economic environment for services trade has changed dramatically over the past 15 years, driven by rapid technological progress that has expanded the possibilities for exchanging services. How has trade policy responded to these changes? How do policy stances in a wide range of service sectors compare across economies? With its unprecedented global coverage, the Services Trade Policy Database and the associated Services Trade Restrictions Index, developed jointly by the World Bank and the World Trade Organization, help address these questions. This paper makes three principal contributions. First, it offers an in-depth discussion of the current state of services trade policies and their differences across 134 economies and 34 services subsectors. Second, the paper reveals how recent (2016–22) changes in policy stances have seen progressive liberalization by lower-income economies but stabilization or even slight policy reversals in high-income economies. This dynamic differs fundamentally from the trend that unfolded after the Great Recession over 2008–16. Third, the paper shows the implications of policy changes over the past six years on services trade costs, and it showcases how the Services Trade Policy Database’s regulatory information can inform trade negotiations, regulatory analysis, and policy making. Alongside these contributions, the paper documents updates to the Services Trade Policy Database’s economy and sector coverage and explains the latest methodological improvements made to the World Bank–World Trade Organization Services Trade Restrictions Index.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Poverty and Food Security in Afghanistan
    (World Bank, Washington, DC, 2012-02) Islamic Republic of Afghanistan, Ministry of Economy; World Bank
    Afghanistan faces a severe problem of poor nutrition and food insecurity. Chronic malnutrition among Afghan children is one of the highest in the world. This report investigates the status of food insecurity in Afghanistan with a focus on mapping provincial differences and an emphasis on understanding the impact of rising food prices on key measures of food security. It synthesizes findings from analysis of rising food prices and their impact on different measures of food access and utilization (such as calorie intake, protein consumption and the quality of diet) in Afghanistan. The findings are based on the analysis of data from the National Risk and Vulnerability Assessment (NRVA) 2007/08, a sample of over 20,000 households from all 34 provinces of Afghanistan. This analytical work is an integral part of the on-going collaboration between the Government of Afghanistan and the World Bank in the domain of poverty and vulnerability assessment. It aims to further the understanding of household wellbeing and vulnerability from the standpoint of food security and complements the earlier work presented in 'poverty status in Afghanistan. Finally, given that poor nutrition and food insecurity affect a sizeable proportion of the Afghan population year-round but more so during bad times, there is genuine need for a scaled-up and well-targeted safety nets program in Afghanistan.
  • Publication
    Food Security and Wheat Prices in Afghanistan : A Distribution-sensitive Analysis of Household-level Impacts
    (World Bank, Washington, DC, 2012-04) D'Souza, Anna; Jolliffe, Dean
    This paper investigates the impact of increases in wheat flour prices on household food security using unique nationally-representative data collected in Afghanistan from 2007 to 2008. It uses a new estimator, the Unconditional Quantile Regression estimator, based on influence functions, to examine the marginal effects of price increases at different locations on the distributions of several food security measures. The estimates reveal that the negative marginal effect of a price increase on food consumption is two and a half times larger for households that can afford to cut the value of food consumption (75th quantile) than for households at the bottom (25th quantile) of the food-consumption distribution. Similarly, households with diets high in calories reduce intake substantially, but those at the bottom of the calorie distribution (25th quantile) make very small changes in intake as a result of the price increases. In contrast, households at the bottom of the dietary diversity distribution make the largest adjustments in the quality of their diets, since such households often live at subsistence levels and cannot make large cuts in caloric intake without suffering serious health consequences. These results provide empirical evidence that when faced with staple-food price increases, food-insecure households sacrifice quality (diversity) in order to protect calories. The large differences in behavioral responses of households that lie at the top and bottom of these distributions suggest that policy analyses relying solely on ordinary least squares estimates may be misleading.
  • Publication
    Multisectoral Approaches to Addressing Malnutrition in Bangladesh : The Role of Agriculture and Microcredit
    (Washington, DC, 2008-04) World Bank
    The objective of this study is to demonstrate how the interaction between sectors can be improved to increase the effectiveness of sectoral interventions, and how the interventions in the agricultural sector and microfinance can be used to improve nutritional outcomes. The study will examine what has been done to improve nutrition through interventions in the agriculture sector and microcredit programmes in Bangladesh and around the world, how they were implemented and to the extent possible, what the impact of those interventions was. The populations of primary concern for this study are infants, children and women of childbearing age, the group that is the target of many of the millennium development goals. The study will also pay special attention to the extent to which programmes and policies are successful at reaching poor and vulnerable groups in society and thus, reduce inequalities in nutrition. The introduction provides the background and rationale for this work. Chapter two assesses the status of malnutrition in Bangladesh, provides a brief history of policies and programmes to address malnutrition in the country and lays out the case for a multi-sectoral response to malnutrition. Chapter three reviews the potential role of interventions in the agriculture sector, including existing evidence on the impact of such interventions and institutional and other challenges to enhancing the impact. Chapter four provides a similar review of the role of microcredit programmes in improving nutrition outcomes. Recommendations on using multi-sectoral approaches to improve nutrition in Bangladesh are the subject of chapter five.
  • Publication
    Agriculture for Nutrition in Latin America and the Caribbean : From Quantity to Quality
    (Washington, DC, 2014-03) World Bank; Inter-American Institute for Agriculture Cooperation
    The Latin America and Caribbean (LAC) region has been in many ways successful in increasing agriculture production and competitiveness, as well as tackling nutrition. Mainstreaming nutrition considerations into agriculture operations can increase the availability of and access to nutritious food, which can improve the nutrition status of individuals. The challenge is how to bridge the gap that exists in region between being an agriculture powerhouse and yet having to tackle nutrition problems from the same households that produce the food. The new challenge of integrating nutrition and agriculture should be achievable with political leadership and inter-institutional coordination. This guidance note seeks to bridge some of the important knowledge gaps on how best to identify, design, implement, monitor, and evaluate agriculture and food security interventions. This note describes first the current situation in LAC with respect to agriculture and nutrition, then offers practical guidance to task team leaders (TTLs) regarding the available levers for positively impacting nutrition outcomes of agriculture projects, and presents a series of country notes and steps to be followed in designing nutrition sensitive interventions.
  • Publication
    Shorter, Cheaper, Quicker, Better : Linking Measures of Household Food Security to Nutritional Outcomes in Bangladesh, Nepal, Pakistan, Uganda, and Tanzania
    (World Bank, Washington, DC, 2013-08) Sherpa, Maya; Tiwari, Sailesh; Skoufias, Emmanuel
    Using nationally representative household survey data from five countries -- three from South Asia (Bangladesh, Pakistan, and Nepal) and two from Sub-Saharan Africa (Tanzania and Uganda) -- this paper conducts a systematic assessment of the correlation between various measures of household food security and nutritional outcomes of children. The analysis, following the universally accepted and applied definition of food security, is based on some of the most commonly used indicators of food security. The results show that the various measures of household food security do appear to carry significant signals about the nutritional status of children that reside within the household. This result holds even after the analysis controls for a wide array of other socio-economic characteristics of the households that are generally also thought to be associated with the quality of child nutrition. If using these food security indicators as proxy measures for the underlying nutritional status of children is of some interest, then the results show that simple, cost-effective, and easy-to-collect measures, such as the food consumption score or the dietary diversity score, may carry at least as much information as other measures, such as per capita expenditure or the starchy staple ratio, which require longer and costlier surveys with detailed food consumption modules. Across five different countries in South Asia and Africa, the results suggest that the food consumption score, in particular, performs extremely well in comparison with all other measures from the perspective of nutritional targeting as well as for monitoring nutritional outcomes.

Users also downloaded

Showing related downloaded files

  • Publication
    Doing Business 2014 : Understanding Regulations for Small and Medium-Size Enterprises
    (Washington, DC: World Bank Group, 2013-10-28) World Bank; International Finance Corporation
    Eleventh in a series of annual reports comparing business regulation in 185 economies, Doing Business 2014 measures regulations affecting 11 areas of everyday business activity: Starting a business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting investors, Paying taxes, Trading across borders, Enforcing contracts, Closing a business, Employing workers. The report updates all indicators as of June 1, 2013, ranks economies on their overall “ease of doing business”, and analyzes reforms to business regulation – identifying which economies are strengthening their business environment the most. The Doing Business reports illustrate how reforms in business regulations are being used to analyze economic outcomes for domestic entrepreneurs and for the wider economy. Doing Business is a flagship product by the World Bank and IFC that garners worldwide attention on regulatory barriers to entrepreneurship. More than 60 economies use the Doing Business indicators to shape reform agendas and monitor improvements on the ground. In addition, the Doing Business data has generated over 870 articles in peer-reviewed academic journals since its inception.
  • Publication
    World Development Report 2011
    (World Bank, 2011) World Bank
    The 2011 World development report looks across disciplines and experiences drawn from around the world to offer some ideas and practical recommendations on how to move beyond conflict and fragility and secure development. The key messages are important for all countries-low, middle, and high income-as well as for regional and global institutions: first, institutional legitimacy is the key to stability. When state institutions do not adequately protect citizens, guard against corruption, or provide access to justice; when markets do not provide job opportunities; or when communities have lost social cohesion-the likelihood of violent conflict increases. Second, investing in citizen security, justice, and jobs is essential to reducing violence. But there are major structural gaps in our collective capabilities to support these areas. Third, confronting this challenge effectively means that institutions need to change. International agencies and partners from other countries must adapt procedures so they can respond with agility and speed, a longer-term perspective, and greater staying power. Fourth, need to adopt a layered approach. Some problems can be addressed at the country level, but others need to be addressed at a regional level, such as developing markets that integrate insecure areas and pooling resources for building capacity Fifth, in adopting these approaches, need to be aware that the global landscape is changing. Regional institutions and middle income countries are playing a larger role. This means should pay more attention to south-south and south-north exchanges, and to the recent transition experiences of middle income countries.
  • Publication
    World Development Report 2006
    (Washington, DC, 2005) World Bank
    This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.
  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.