As countries wage full-on war on the coronavirus, they should also have a battle plan to lessen the shocks to their food supply chains. Here’s how.
The three-part model provides a visual representation of historical periods of excessive global price volatility from 2000 to present, as well as a daily volatility status. It can alert policymakers when world markets are experiencing a period of excessive food price volatility.
We propose three global collective actions to meet these goals: the creation of a small emergency physical food reserve; an international co-ordinated global food reserve; and a virtual reserve. These actions bring together developed and developing countries for a sustainable policy response to a global crisis.
The current food crisis has several causes—rising demand for food and feed, biofuels, high oil prices, climate change, stagnant agricultural productivity growth—but there is increasing evidence that the crisis is being made worse by the malfunctioning of world grain markets. Given the thinness of major markets for cereals, the restrictions on grain exports imposed by … Continue reading Policy Brief: Physical and Virtual Global Food Reserves to Protect the Poor and Prevent Market Failure
The complex causes of the current food and agriculture crisis require a comprehensive response. In view of the urgency of assisting people and countries in need, policy actions—an emergency package—consist of steps that can yield immediate impact.