A Food Import Compensation Mechanism: A Modest Proposal to Reduce Food Price Effects on Poor Countries

Fachartikel 428

Fachbereich
Volkswirtschaftslehre
Fachrichtung
Handelspolitik
Artikel
2010
Sprache
englisch

Beschreibung

Much higher food prices are putting the health and lives of the world’s poorest at severe risk.
This paper proposes a mechanism to compensate for the effects of higher import prices on the poor, which can be implemented immediately. Help against hunger must be without conditions. Historical experience suggests that in order to avoid undue conditionality creeping in, any meaningful compensation mechanism must be based at the UN, rather than the Bretton Woods institutions or any other organisation dominated by the North. Finally, to emulate a successful feature of the Marshall Plan, self-monitoring by recipients preparing and implementing anti-hunger programs is proposed.

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