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November 22, 2010

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Timothy A. Wise

As I noted in a previous comment on Oxfam's post on this blog, I think the issues here go beyond messaging and whether the pre- and post-food-price spike messaging is consistent. I pointed out that the recent scenarios were really ones of persistent low prices following by high price volatility. Volatility itself, as many economists will attest, benefits mainly traders and speculators. In that sense, there is no contradiction between Oxfam's point that persistent low prices have not been good for the poor in many developing countries and the point that the recent commodity price spikes weren't either. I explain the argument in more detail, and defend the argument for moderately high and sustained prices, in a post on Triple Crisis Blog:
http://triplecrisis.com/are-high-agricultural-prices-good-or-bad-for-poverty/

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It's in the question itself. Of course, people can't afford if the price is too high for the minimum food they eat.

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