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Distortions to Agricultural Markets (Paperback)
Loot Price: R2,221
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Distortions to Agricultural Markets (Paperback)
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Food prices have a large impact on many people's daily lives,
especially in developing countries where some people's survival is
a daily fight against hunger. Food price levels, volatility and
extreme price spikes impact especially the population in countries
where a large share of income is spent on food and earned from
farming, which is the case in many African and other low-income
countries. The worst market effects of a poor harvest caused by
extreme weather events, floods, droughts, fires or other natural
disasters can be eased through international trade, yet governments
routinely restrict such trade, often in an attempt to stabilise
their domestic food markets. This study analyses patterns and
underlying political economy causes of long-run trends and
short-run fluctuations in national distortions to agricultural
incentives and food prices, capturing the most recent international
food price spike and governments' reactions to it. The analysis
shows, among other things, the very considerable extent to which
countries contribute to international food price volatility through
altering their trade restrictions.
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