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| Content Provider | OECD iLibrary |
|---|---|
| Author | Abbott, Phil |
| Abstract | Conventional best practice advice for risk management strategies tends to focus on long-run agricultural development, trade liberalisation, the provision of safety nets and private market solutions to risk. However, if world price spikes like those observed in 2008 are an infrequent but real event, policy recommendations need to take into account the greater prevalence of market failures in many developing countries and associated underdevelopment of marketing institutions. While policy should rely on liberal trade in most years, a short-run stocks policy may be a viable option, due to delays in import arrival, imperfect information on the harvest, and inter-seasonal price dynamics. Moreover, trade policy adjustments are likely to be perceived as necessary when infrequent world price spikes reoccur. The challenge to implementing such policies lies in ensuring consistent, predictable and transparent governance so that interventions make outcomes better, not worse. |
| Page Count | 60 |
| Starting Page | 109 |
| Ending Page | 168 |
| Language | English |
| Publisher | OECD Publishing |
| Publisher Date | 2012-03-02 |
| Access Restriction | Open |
| Subject Keyword | Agriculture and Food Development |
| Content Type | Text |
| Resource Type | Chapter |
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