Implementing physical and virtual reserves to protect the poor and prevent market failure.

摘要: "The 2007–08 international food price crisis caused hardship on a number of fronts. The steep rise in prices led to economic difficulties for the poor and generated political turmoil many countries. could also result long-term, irreversible nutritional damage, especially among children. There is global interest preventing such events from recurring. was triggered by complex set long-term short-term factors, including policy failures market overreactions. One important factor entry significant financial resources into futures markets, commodity which contributed spike during first six months 2008. This episode highlights need modify architecture agricultural markets address problem spikes, their effects livelihoods poor. Although guiding principles regulating should be developed recent inappropriate trade instruments as export bans reviewed, these actions are not sufficient avoid extreme spikes ensure that world can respond emergency needs food. We propose two collective meet goals. First, small physical reserve established facilitate smooth response emergencies. Second, an innovative virtual up help prevent keep closer levels suggested long-run fundamentals like supply demand. brief offers some specifics implementing proposal described our earlier IFPRI titled Physical Virtual Global Food Reserves Protect Poor Prevent Market Failure (June 2008). Price instability general feature markets. proposals made here designed stabilize generally, but damaging spikes. proposed will entail costs, modest costs required organizational elements must balanced against benefits more effective architecture. These include prevention hardship, improved efficiency, stronger incentives investment agriculture, instability." Author's text