Nobody downloaded yet

The Impact of Rising Food and Fuel Prices - Essay Example

Comments (0) Cite this document
The tremendous increase in food prices has affected even resource-rich countries such as Venezuela and Russia. Venezuela had a short supply of staple food in 2008. Russia also had a food shortage prior to its parliamentary election. Both governments responded to the price increases by imposing controls on food prices…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93% of users find it useful
The Impact of Rising Food and Fuel Prices
Read TextPreview

Extract of sample "The Impact of Rising Food and Fuel Prices"

Download file to see previous pages The rising trend in international food prices persisted and accelerated in 2008. U.S. wheat export prices skyrocketed from $375/ton in January to $440/ton in March. Thai rice export prices chalked up from $365/ton to $562/ton.
The governments of the developed and developing countries adopted various mitigation measures. Specific policy interventions were applied in three broad categories: (i) interventions to assure household food security by establishing food safety nets; (ii) interventions to lessen domestic food prices by way of penalty or administrative action, and (iii) interventions to develop supplies and production of longer-term food supply. Given the three categories of policies there are preferred options that are more reliable and equitable. The best options to address food insecurity is the targeted cash transfers to vulnerable groups. Cash transfers increase the purchasing power of the poor without changing the chain of incentives that are available to produce more food and without reducing the incomes of poor food sellers. The depth, targeting efficiency and value of the transfer programs depends on the country's level of development.
Another set of best options to decrease domestic prices cover the lowering of tariffs and other government taxes on key staples. Many countries impose tariffs on food imports so as to foster domestic production and produce reliable revenues. During a period of increasing prices, the consequent reductions in tariffs and taxes presents a measure of relief to existing consumers at a limited fiscal cost. The subsequent revenue loss arising from the reduction of the tariffs is very important and the fiscal result of implementing this with extra social protection expenditures can require cutbacks in less priority areas. Approximately twenty-four out of fifty-eight countries under study have recently reduced import duties and Value Added Taxes in the phenomenon of rising food prices. Others developing countries, such as the Philippines, implemented a regime of high tariffs to protect domestic food producers and manufacturers.
Other countries utilize a policy of implementing a bread or grain subsidies specifically targeted to the poor to handle household food insecurity. In some cases, the introduction of consumer subsidies for staples after the recent rise in food prices. The Government of Yemen provided wheat in public markets at subsidized rates following a rise in food prices. In 2008, the Government of Pakistan implemented a ration card system to distribute subsidized wheat. These measures can be made permanent given the persistent food increase which results in high fiscal costs. Moreover, if the application of all the consumer subsidies are countered by specific measures to keep producer prices low, this can be counterproductive in the end. The one exception to this situation is when price controls are introduced as a temporary measure and are deemed important in terms of a higher social goal. In these exceptional cases, the risks of entrenchment will be minimized.
For countries that are grain exporters, there exist political exigencies to ban or tax grain exports in high price years. Some of these countries have fullly applied these methods. These policies tend to have a limited impact on domestic price levels and a relatively negative effect on ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The Impact of Rising Food and Fuel Prices Essay”, n.d.)
Retrieved from
(The Impact of Rising Food and Fuel Prices Essay)
“The Impact of Rising Food and Fuel Prices Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Impact of Rising Food and Fuel Prices

The cost of rising gas prices

...). This unemployment that occurs due to rising gas prices affects the entire economy. It results in lower standard of living of those who lose their jobs and poverty prevails. The government also pays the price because its spending rises as unemployment befits have to be given to more people. Due to industrialization in the last century, every other commodity is produced by using machinery. Agricultural products, minerals, or manufactured goods, all the production processes use fuel at some stage. For instance, minerals are extracted using heavy machinery that consumes gas as fuel and crops have to be transported to retailers from...
3 Pages(750 words)Essay

Rising Oil Prices: Benefits Amidst Rapid Fuel Inflations

...Rising Oil Prices: Benefits amidst Rapid Fuel Inflations OBJECTIVE: To show how the rising oil prices contributed beneficially to some areas like the environment, road congestion, and energy conservation. METHODS: Data gathering from current news as well as other research articles published by scholars relating to the issue of rising fuel prices. This paper will provide discussion of the causes and initial impacts of the rise of fuel in the world market and economy as well as on low-income households. RESULTS: The rising oil prices do not affect the world economy in a macroeconomic stance but the negative impacts are experienced by the less developed, oil dependent economies including the low-income households. The benefits... will force...
5 Pages(1250 words)Research Paper

Food Prices

...the rise in the food prices this year by using economic analysis. Economics Analysis The increase in food prices can be traced back to last two years as FAO food Index rose by 9% in 2006 and 23% in 2007. (IFAD, 2008). This sharp increase suggests that there is a great increase in the prices of food items all over the world and many important factors are at play which is pushing the prices up. In order to make an economic analysis of this increase, we will outline and discuss different factors causing the prices to go up. (The World Bank, 2008) Agriculture...
4 Pages(1000 words)Essay

Rising Fuel Costs and US Transport Industry

...Running head: rising fuel costs vs. US transport industry The rising cost of fuel and its impact on the US transportation industry. Instructor: Course: Institution: Date: Introduction The effects of the rise in fuel are on a global scale, with the transport industry being the hardest hit owing to its operational dependence on oil. When fuel becomes expensive, commuters not only change their traveling habits, they are also forced to part with more cash (Coyle, Bardi & Novack, 2006). The future of some of the industries related to transport is in doubt, owing to the susceptibility of the sector to...
5 Pages(1250 words)Essay

Fuel Prices

...Assignment on Fuel Prices Executive Summary- This report analyses the recent prices of unleaded regular gasoline, unleaded premium gasoline and diesel in all states across the US. All states, except Alaska and Hawaii, show fairly high regular gasoline prices which are consistently rising. As an example, the prices in Colorado for the past 8 weeks have been investigated. Alaska and Hawaii show exceptionally high fuel prices due to the current market scenarios in the respective states. Also, the relation between premium gasoline and diesel prices has been explored. Disregarding the...
2 Pages(500 words)Statistics Project

Issue: Rising Gas Prices

...Rising Gas Prices (Bibliography) Effects of rising gas prices on bus ridership for small urban and rural transit systems published by [Fargo, N.D.]: Upper Great Plains Transportation Institute, North Dakota State University (June 2008). Authors: Jeremy W Mattson; Upper Great Plains Transportation Institute. The book extensively deals with the rising fuel costs that have been a major concern for the past few months. The study analyzes the relationship between the rising gasoline prices and the increasing cost of transit ridership across the United States. Further, the result indicates that the...
2 Pages(500 words)Annotated Bibliography

Issue: Rising Gas Prices

... are on the all time high. The author further projects that the prices of online purchases and shipping prices are likely to increase due to the rise in prices of gas. This article is important to the research on rising prices of gas since it is essential in understanding the effect the rising prices of gas have on the economy. Energy is required in all sectors in the economy, and since gas is the chief contributor of energy, an increase in its price implies that other prices will have to be increased in order to cancel out the high prices. Appropriate Response to Rising Fuel Prices Citizens Should Demand, “Raise My Prices Now!” Victoria Transport Policy Institute, April 11, 201I. CBS news. Author: Todd Littman The article looks... at the...
3 Pages(750 words)Annotated Bibliography

The Issues on Rising Gas Prices

...of Progressive Analysis and Policy Alternative. Ottawa: Canadian Centre for Policy Alternatives, 2001. Kliesen, Kevin L. Rising Natural Gas Prices and Real Economic Activity. Ann Arbor, MI: Inter-university Consortium for Political and Social Research, 2006. Littman, Todd. “Appropriate Response to Rising Fuel Prices Citizens Should Demand, “Raise My Prices Now!”” Victoria Transport Policy Institute. 11 April 2011. Mattson, Jeremy W. “Effects of Rising Gas Prices on Bus Ridership for Small Urban and Rural Transit Systems.” Fargo, N.D.: Upper Great Plains Transportation Institute, North Dakota State...
7 Pages(1750 words)Research Paper

Rising gas prices

...that most economists use includes the price changes of both fuel and food. Aside from this, higher gas prices also mean that shoppers will drive less to conduct their purchase (Folger 2012). Retailing firms will also choose from two economic decisions: produce less in terms of quantity or to raise prices and pass the burden to consumers. In terms of inflation as well, this brings a halt in hiring new employees as their costs are already rising, because rising gas prices foreshadow uncertainties about the economic health of the country. This is not to say that job candidates may also weigh cost positions...
3 Pages(750 words)Research Paper

Fuel and food poverty (questionnaire)

...Fuel and Food Poverty Questionnaire al Affiliation Fuel and Food Poverty Questionnaire Questionnaires are always the most appropriate tools for gathering different information from different respondents for analysis purposes. The quality of the information majorly depends on the nature of corporation evident between the interviewer and the respondent(Brace, 2013, 56). In most cases, it is always advisable that the administration of such questionnaires be done on a face-to-face basis. This follows that sometimes the responses issued by the respondents may be obsolete, biased and undependable if such methods as mailing are used. This however depends on the level of corporation maintained by the respondents. In most cases, some... of the...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Impact of Rising Food and Fuel Prices for FREE!

Contact Us