Food Prices and Poverty

Dani Rodrik wrote a blog post about whether high food prices are good or bad for the poor in developing countries. He points out that international organizations – Oxfam as well as World Bank – describe high or low food prices as bad for the poor, dependent on the situation in the food markets. When prices were low, for example in 2005, Oxfam wrote that this is bad for the poor peasants because the markets are flooded with highly subsidized agricultural products especially from Europe. 3 years later, when prices were high, the same organization wrote that this is bad for the poor in urban areas because they can’t afford to buy the food they need. Continue reading