Excerpt : Commodity Price Volatility and Inclusive Growth in Low-Income Countries

Information about Western Hemisphere Hemisferio Occidental

Explore other countries and regions »

Excerpt : Commodity Price Volatility and Inclusive Growth in Low-Income Countries
Get Code Buy
Book
Share
Series:
Miscellaneous Publication (Other)
Author(s):
Min Zhu
Publisher:
INTERNATIONAL MONETARY FUND
Published Date:
September 2012
Editor(s):
Min Zhu
DOI:
http://dx.doi.org/10.5089/CPVIEAEX.073
ISBN:
CPVIEAEX
Page:
28
In the years following the global financial crisis, many low-income countries experienced rapid recovery and strong economic growth. However, many are now facing enormous difficulties because of rapidly rising food and fuel prices, with the threat of millions of people being pushed into poverty around the globe. The risk of continued food price volatility is a systemic challenge, and a failure in one country has been shown to have a profound impact on entire regions. This volume addresses the challenges of commodity price volatility for low-income countries and explores some macroeconomic policy options for responding to commodity price shocks. The book then looks at inclusive growth policies to address inequality in commodity-exporting countries, particularly natural resource rich countries. Perspectives from the Middle East and North Africa, sub-Saharan Africa, emerging Asia, and Mexico are presented and, finally, the role of the international donor community is examined. This volume is a must read for policymakers everywhere, from those in advanced, donor countries to those in countries with the poorest and most vulnerable populations.
Back Matter

Back Matter

Author(s):
Min Zhu
Editor(s):
Min Zhu
Published Date:
September 2012
    Share
    • ShareShare
    Information about Western Hemisphere Hemisferio Occidental

    Explore other countries and regions »

    Show Summary Details
    References

      Berg, A. G., andJ. D.Ostry,2011, “Inequality and Unsustainable Growth: Two Sides of the Same Coin,” IMF Staff Discussion Note 11/08 (Washington: International Monetary Fund). Available via the Internet: http://www.imf.org/external/pubs/ft/sdn/2011/sdnl 108.pdf.

      • Search Google Scholar
      • Export Citation

      Dasgupta, P., andJ. E.Stiglitz,1977, “Tariffs versus Quotas as Revenue Raising Devices under Uncertainty,” American Economic Review, Vol. 67, No. 5, pp. 975-81.

      • Search Google Scholar
      • Export Citation

      Dynan, K. E.,J.Skinner, andS. P.Zeldes,2004, “Do the Rich Save More?” Journal of Political Economy, Vol. 112, No. 2, pp. 397-444.

      Fitoussi, J.-R,A.Sen, andJ. E.Stiglitz, eds., 2010, Mismeasuring Our Lives: Why GDP Doesn’t Add Up (New York: New Press).

      Newbery, D., andJ. E.Stiglitz,1984, “Pareto Inferior Trade,” Review of Economic Studies, Vol. 51, No. 1, pp. 1-12.

      Stiglitz, J. E.,2008, “Capital Market Liberalization, Globalization, and the IMF,” in Capital Market Liberalization and Development, ed. by J. E.Stiglitz andJ. A.Ocampo (New York: Oxford University Press), pp. 76-100.

      • Search Google Scholar
      • Export Citation

      United Nations,2010, The Stiglitz Report (New York: New Press).

    Josette Sheeran is Executive Director, United Nations World Food Programme. Adapted from remarks made at a seminar, “Commodity Price Volatility and Inclusive Growth in Low-income Countries,” held at the Annual Meetings of the World Bank Group and the International Monetary Fund in September 2011.
    1The G-20 is an informal group of 20 major economies (19 countries plus the European Union) and representatives from the International Monetary Fund and the World Bank. Central bank governors and finance ministers of the G-20 have met yearly since 1999, and chiefs of state and heads of governments (G-20 summits) since 2008.
    Joseph E. Stiglitz is a professor at Columbia University and recipient of the 2001 Nobel Prize in Economics. Adapted from remarks made at a seminar, “Commodity Price Volatility and Inclusive Growth in Low-lncome Countries,” held at the Annual Meetings of the World Bank Group and the International Monetary Fund in September 2011.
    2For more information, see Table H-9 of the U.S. Census historical tables, available at http://www.census.gov/hhes/www/income/data/historical/household/index.html.
    3Dominique Strauss-Kahn, “The Global Jobs Crisis—Sustaining the Recovery through Employment and Equitable Growth,” speech delivered in Washington, D.C., April 13, 2011; available at http://www.imf.org/external/np/speeches/2011/041311.htm.
    4Chapter 9 by the same authors in the present volume is based on Berg and Ostry (2011).
    5For a discussion of savings rates before the recession, see Dynan and others (2004). The authors find savings rates varying from zero for the lowest quintile of the American income distribution to in excess of 25 percent for the top.
    6Ic should be clear that there were other ways by which the deficiency of aggregate demand arising from the growth in inequality could have been offset, such as more progressive taxation. But the increase in inequality itself gives rise to a politics that makes these alternatives more difficult.
    7Proceedings from that conference were published by the IMF in 2012, in a volume called In the Wake of the Crisis.
    8See Dasgupta and Stiglitz (1977). Newbery and Stiglia (1984) show that, in fact, in the absence of good insurance markets, trade liberalization may make everyone worse off. Similarly, capital market liberalization may increase volatility (Stiglitz, 2008).
      You are not logged in and do not have access to this content. Please login or, to subscribe to IMF eLibrary, please click here

      Other Resources Citing This Publication

      look up citations for this publication in google scholar