The Empirical Analysis of Trade Policy in Promoting Food Security

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  • Topic: Food security, Food, 2007–2008 world food price crisis
  • Pages : 20 (6376 words )
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  • Published : January 16, 2013
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Assignment on
An Empirical Analysis of Trade Policy in Promoting Food Security Course No: 507

Submitted By
Md. Tawhid Ashraf
MSS- 2nd Batch, 1st semester,
BSS Roll-134
MSS Roll-1286
Session: 2011-12
Department of Economics

Submitted To
Dr. Selim Raihan
Professor,
Department of Economics

University of Dhaka

Abstract

In recent years food security has been the most challenging issue to meet. No perfect solution has not been made yet to eliminate and eradicate the world’s hunger. Most of the time food insecurity is seen among the poor nations of the world but now-a-days this has also been an invincible problem throughout the world as well as to many developed countries. Moreover some effective trade policies may be applicable to alleviate worldwide food insecurity. This short analytical note attempts to summarize some of the relationships between trade policy and food security, and pinpoint some of the changes that might be required if governments are to achieve their goals in this area.

Table of Content
Serial No.| Topics| Page No.|
1| Introduction| 4|
2| Definition of Food Security| 6|
3| A general review of worldwide food production, consumption & an export-import analysis| 7| 4| Reasons behind food insecurity| 11|
5| How well does international food market function| 17| 6| Global trade as part of solution| 18|
7| Responses by the international trade and aid community to food security| 23| 8| Conclusion| 26|
9| References| 28|

Introduction

In early 2008, world prices of major agricultural commodities, including wheat, rice, maize and oilseed crops reached their highest levels in nearly three decades. Stocks of the major commodities had been reduced to their lowest levels, yet food prices continued to mount, straining the budget of low income households all around the world. This led to some political tensions too – as people took to the streets in more than 30 countries, demanding their governments take action. There were even violent food riots that toppled governments, such as the one in Haiti. What is puzzling, however, is that the rising food prices caught the world by surprise. In November 2009, heads of state and government are due to meet in Rome at the World Summit on Food Security, to try to reach agreement on a new global goal of eliminating hunger by 2025. For such a goal to have any chance of being achievable, it will be vital for governments to ensure that trade policy is supportive of efforts to overcome hunger, and not detrimental to them. Experts currently predict that, in order to provide food security to a growing global population, in the context of a changing climate, and increased pressure on scarce land and water resources needed by agriculture, productivity will have to be enhanced substantially – especially in developing country regions where climate change is expected to have a particularly serious impact. However, there is a wide consensus that trade rules and policies have in the past very often served to discourage agricultural investment in developing country agriculture, thereby also undermining productivity. Some of the effects of this under-investment were readily apparent in late 2007 and early 2008, when sudden and unexpected price increases for key agricultural commodities prompted urgent attention, in the media and amongst policy-makers, to the ‘food crisis’ - and in particular to its impact in developing countries. The price spikes appear to have reversed earlier progress towards ending hunger, and have made it less likely that governments will achieve their agreed target of halving, between 1990 and 2015, the proportion of people who suffer from hunger. While analysts, negotiators and policy-makers have long been aware of the trade barriers...
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