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Development with dearer food: Can the invisible hand guide us?
Author(s) -
Toye John
Publication year - 2009
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1612
Subject(s) - economics , food prices , recession , consumption (sociology) , invisible hand , government (linguistics) , agriculture , constructive , development economics , politics , economic policy , food security , market economy , political science , keynesian economics , geography , sociology , social science , linguistics , philosophy , archaeology , process (computing) , computer science , law , operating system
This paper argues that, notwithstanding the current global recession, the tripling of food prices in the period 2005–2008 presages a permanent increase in the average real price of food over the next 30 years. The underlying causes are likely to be rising energy prices, adverse effects of climate change on agriculture and rising food consumption in Asia. The consequences will be increased social and political turbulence of the urban poor and misguided government policies to try to mitigate this instability. Adam Smith's invisible hand indicates the shape of more constructive policies, consistent with economic development objectives. Copyright © 2009 John Wiley & Sons, Ltd.