The Financial Crisis and its Impacts on Global Agriculture

26 Pages Posted: 20 Apr 2016

See all articles by Justin Y. Lin

Justin Y. Lin

Peking University - China Center for Economic Research

Will J. Martin

International Food Policy Research Institute (IFPRI)

Date Written: September 1, 2010

Abstract

The financial crisis arose in the industrial countries, but has affected developing countries through higher interest rates, sharp changes in commodity prices, and reductions in investment, trade, migration and remittances. For most low-income countries, shocks that affect food prices or wage rates for unskilled workers seem likely to have the largest impact on poverty, with the declines in key food prices associated with the crisis helping to reduce poverty, while declining trade, investment, and remittance flows have had adverse impacts on the poor. Policies to address the crisis must include measures to deal with financial sector problems, the resulting reductions in aggregate demand, and the particular vulnerabilities of poor people. Given the complexity of the impacts from financial crises and commodity price shocks, there is a strong case for developing better social safety net policies that can offset the adverse impacts of a wide range of different shocks on poor people without creating costly market distortions.

Keywords: Emerging Markets, Debt Markets, Economic Theory & Research, Markets and Market Access, Currencies and Exchange Rates

Suggested Citation

Lin, Justin Yifu and Martin, William J., The Financial Crisis and its Impacts on Global Agriculture (September 1, 2010). World Bank Policy Research Working Paper No. 5431, Available at SSRN: https://ssrn.com/abstract=1683902

Justin Yifu Lin (Contact Author)

Peking University - China Center for Economic Research ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

William J. Martin

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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