Resource information
Large increases in international food
prices in 2007 and early 2008 have become a key concern for
policy makers in East Asia. The increases are likely to have
a significant impact on the living standards of many,
particularly the poor. By March 2008, dollar nominated world
food prices were more than two and a half times higher than
in early 2002. Almost three quarters of this increase
occurred since the start of 2007, and about half since the
beginning of 2008. Recent sharp increases in international
rice prices are of particular concern in East Asia. Food
comprises 30 to 50 percent of the consumption basket of the
average household in East Asia (compared to 15 percent in
the United States). Within that, rice accounts for one third
of the daily caloric intake, followed by wheat (12.4
percent), pork (8.8 percent), corn (4.4 percent), soybean
and palm oil (3.4 percent and 1.8 percent respectively).
This note examines the reasons for the surge in world food
prices, in particular of rice in section two. It reviews the
economic and poverty impacts of rising food prices in East
Asian countries in section three. Finally, it concludes by
assessing policy responses undertaken by East Asian
economies so far, and discusses policy options going
forward, including the importance of regional and
international cooperation in addressing high food prices in
section four.
