Challenges of the food fertilizer and fuel price crisis in west and central africa
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Challenges of the food, fertilizer and fuel price crisis in West and Central Africa. Interagency Meeting 7 October 2008 Dakar. High Food Prices in West Africa.

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Challenges of the food fertilizer and fuel price crisis in west and central africa

Challenges of the food, fertilizer and fuel price crisis in West and Central Africa

Interagency Meeting

7 October 2008

Dakar


High food prices in west africa

High Food Prices in West Africa

In West-Africa recent sharp increases in food, fertilizer and fuel prices pose a serious threat to an already fragile situation in terms of food and nutrition security.

Social implications of rising food prices have resulted in riots and demonstrations in Burkina Faso, Cameroon, Cote d’Ivoire, Mauritania, Senegal and Niger.


Macroeconomic impact

Macroeconomic impact

Budgetary impact of increased food and fuel subsidies, tax exemptions, etc (for 2008, IMF):

Benin: 1.5% of GDP

Burkina Faso: 1.3% of GDP

Guinea-Bissau: 10% of tax revenue

Mali: 1.8% of GDP

Reduction in growth, due to higher fuel prices and fiscal adjustment → increase in unemployment and underemployment?

Risk of reduction in public expenditure on basic social services


What is the impact on households

What is the impact on households?

Impact on monetary poverty

Impact on household expenditure: substitution effects

Nutritional impacts

Agriculture impact

Possible impacts on education, use of health services and child labour


Impact on monetary poverty

Impact on monetary poverty

Ex-ante simulation of the impact of rice prices on the poverty headcount in Liberia – World Bank, 2007. Based on CWIQ data


Impact on household expenditure substitution effects

Impact on household expenditure: substitution effects

Liberia Greater Monrovia (Source: Liberia Joint Survey on the Impact of high prices)

Burkina Faso. In Ouaga and Bobo , for the very poor:

Reduction in protein consumption

Increased buying of street food as opposed to buying .

Substitution towards ‘filling’ foods.


Impacts on education and health

Impacts on education and health

Liberia

In Burkina (Ouaga and Bobo) increase in drop out rates due to ‘manque de moyens’, drop in attendance.


Nutritional impacts

Nutritional impacts

Prevalence of Acute Malnutrition in children 6-59m in Mauritania


Challenges and opportunities

Challenges and Opportunities

Strengthening the evidence base

Data

Analysis

Bridging current emergency activities with long-term development programmes.

Strengthening the agriculture supply response

Strengthening the social protection system

Improving coordination between:

Governments

Regional Economic Communities

International Agencies.


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