Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries

Aksoy, M. Ataman; Isik-Dikmelik, Aylin

Are Low Food Prices Pro-Poor? Net Food Buyers and Sellers in Low-Income Countries

Autores

Aksoy, M. Ataman

Isik-Dikmelik, Aylin

Editor

World Bank, Washington, DC

Descripción

There is a general consensus that most of the poor in developing countries are net food buyers and food price increases are bad for the poor. This could be expected of urban poor, but it is also often attributed to the rural poor. Recent food price increases have increased the importance of this issue, and the possible policy responses to these price increases. This paper examines the characteristics of net food sellers and buyers in nine low-income countries. Although the largest share of poor households are found to be net food buyers, almost 50 percent of net food buyers are marginal net food buyers who would not be significantly affected by food price increases. Only three of the nine countries examined exhibited a substantial proportion of vulnerable households. The average incomes (as measured by expenditure) of net food buyers were found to be higher than net food sellers in eight of the nine countries examined. Thus, food price increases, ceteris paribus, would transfer income from generally higher income net food buyers to poorer net food sellers. The analysis also finds that the occupations and income sources of net sellers and buyers in rural areas are significantly different. In rural areas where food production is the main activity and where there are limited non-food activities, the incomes of net buyers might depend on the incomes and farming activities of net food sellers. These results suggest the need for reevaluation of the consensus on the impact of food prices on food needs. Further work on the regional differences, and more important, on the second order effects, are necessary to answer these questions more precisely. Only on the basis of further analysis can we start generating better policy responses.

Palabras clave

AGRICULTURAL ACTIVITIES, AGRICULTURAL ACTIVITY, AGRICULTURAL ECONOMICS, AGRICULTURAL INCOMES, AGRICULTURAL INPUTS, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL PRODUCERS, AGRICULTURAL PRODUCT, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL PRODUCTIVITY GROWTH, AGRICULTURAL SECTOR, AGRICULTURAL SECTORS, AGRICULTURAL WAGE, AGRICULTURAL WAGES, AGRICULTURE, AVERAGE INCOMES, BENEFICIARIES, BUYER, CASH CROP INCOME, CASH CROPS, COMMODITIES, COMMODITY, CONSUMER, CONSUMER GOODS, CONSUMER PRICE INDEX, CONSUMERS, CONSUMPTION BASKET, CROP YIELDS, DATA SETS, DATES, DEVELOPING COUNTRIES, DEVELOPMENT ISSUES, DEVELOPMENT RESEARCH, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC REVIEW, EMPIRICAL QUESTION, EXPENDITURE DATA, FARM ACTIVITIES, FARM ACTIVITY, FARM INCOMES, FARM PRODUCTIVITY, FARMERS, FARMING ACTIVITIES, FOOD AID, FOOD AID PROGRAMS, FOOD BASKET, FOOD BUYERS, FOOD CONSUMPTION, FOOD CROP, FOOD CROP PRODUCTION, FOOD CROPS, FOOD EXPENDITURES, FOOD INTAKE, FOOD ITEMS, FOOD NEEDS, FOOD OUTPUT, FOOD POLICY, FOOD PRICE, FOOD PRICES, FOOD PRODUCERS, FOOD PRODUCTION, FOOD PRODUCTS, FOOD SALES, FOOD SECURITY, FOOD STAPLES, FOOD SURPLUS, FOOD SURPLUSES, FOODS, GROUNDNUT, HIGHER INCIDENCE OF POVERTY, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD COMPOSITION, HOUSEHOLD CONSUMPTION, HOUSEHOLD EXPENDITURES, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HOUSING, INCOME, INCOME DISTRIBUTION, INCOME FROM CASH CROPS, INCOME LEVEL, INCOME LEVELS, INCOME ON FOOD, INCOME SOURCE, INCOME SOURCES, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LAND HOLDINGS, LATIN AMERICAN, LIVESTOCK INCOME, LIVING STANDARDS, LIVING STANDARDS SURVEY, LOW INCOME, LOW INCOMES, LOW-INCOME, LOWER INCOMES, MAIZE, MARKETING, PER CAPITA CONSUMPTION, PER CAPITA INCOMES, POLICY IMPLICATIONS, POLICY RESEARCH, POLITICAL ECONOMY, POOR, POOR COUNTRIES, POOR GROUPS, POOR HOUSEHOLD, POOR HOUSEHOLDS, POOR RURAL HOUSEHOLD, POORER HOUSEHOLDS, POVERTY ALLEVIATION, POVERTY ASSESSMENT, POVERTY IMPACT, POVERTY INDEX, POVERTY MEASURES, POVERTY REDUCTION, PRICE CHANGES, PURCHASES, QUESTIONNAIRE, REAL INCOMES, REGIONAL DIFFERENCES, RELATIVE PRICES, RESEARCH ASSISTANCE, RICE, RURAL, RURAL AREAS, RURAL COMMUNITY, RURAL DEVELOPMENT, RURAL ECONOMY, RURAL HOUSEHOLDS, RURAL INCOMES, RURAL POOR, RURAL POPULATIONS, RURAL POVERTY, RURAL SECTOR, SMALL FARMERS, SOURCES OF INCOME, SPICES, STAPLE FOODS, SUBSISTENCE, TARGETED TRANSFERS, URBAN AREAS, URBAN HOUSEHOLDS, URBAN POPULATION, URBAN POPULATIONS, VULNERABLE HOUSEHOLDS, WELFARE MONITORING, WHEAT