How do governments respond to food price volatility?
This policy brief explains how developing country governments responded to increasing food price volatility - and explains why they responded as they did. Although lip service was paid to structural changes in the food systems, there is few signs that the food crisis led to enduring shifts in food policy or significant policy reforms in the study countries. Most of the interventions were of a ’bandage’ nature such as transfers and price subsidies to consumers, and fertilizer subsidies to farmers. In light of this, the brief also highlights eight policy recommendations that are likely to be relevant for most developing countries.