We study how two aspects of food insecurity - caloric insufficiency and diet composition - are affected by aggregate economic fluctuations. The use of cross-country panel data allows us to adopt a global prospective on the identification of the macroeconomic determinants of food insecurity. Income shocks are the most relevant driver of food insecurity, displaying high elasticities at the early stages of economic development. The role of food price shocks is more limited. Social protection has a direct effect and mitigates the impact of income shocks. Effects are highly heterogeneous across a range of structural characteristics of the economy, highlighting the role of distributional aspects and of food import dependency.

During the global recession of 2020 food insecurity increased substantially in many countries around the world. Fortunately, the surge in food insecurity quickly came to a halt as the world economy returned to its positive growth path, despite double-digit domestic food inflation in most countries. To shed light on the relative importance of income growth and food inflation in driving food insecurity, we employ a heterogeneous-agent model with income inequality, complemented by novel cross-country data for the period 2001-2021. We use external instruments (changes in commodity terms-of-trade, external economic growth, and harvest shocks) to isolate exogenous variation in domestic income growth and ood inflation. Our findings suggest that income growth is the dominant driver of annual variations in food insecurity, while food price inflation plays a somewhat smaller role, aligning with our model predictions.

This report examines the extent to which year-to-year changes in the prevalence of U.S. household food insecurity can be explained by changes in the national unemployment rate, inflation, and the price of food relative to other goods and services. Data are from the 2001-12 Current Population Survey Food Security Supplements and statistics on employment and prices from the U.S. Bureau of Labor Statistics. Understanding the strength and consistency of these associations can broaden understanding of how national and household economic conditions affect food insecurity. As an example, the report sheds light on why food security has remained essentially unchanged since the 2007-09 recession. Falling unemployment from early post-recession (2009-10) to 2012, absent any other changes, would suggest a modest decline in the prevalence of food insecurity. However, this report finds that potential improvement was almost exactly offset by the effects of higher inflation and the higher relative price of food in 2012.

Food security means access by all people at all times to enough food for an active and healthy life. Available data suggest that more than 700 million people in the developing world lack the food necessary for such a life. No problem of underdevelopment may be more serious or have such important implications for the long-term growth of low-income countries. This report outlines the nature and extent of food security problems in developing countries, explores the policy options available to these countries in addressing these problems, and indicates what international institutions such as the World Bank can and should do to help countries solve their food security problems. It suggests ways to achieve the desired goal in cost-effective ways. It also identifies policies that waste economic resources and fail to reach the target groups. (BZ)

This report examines the extent to which year-to-year changes in the prevalence of U.S. house-hold food insecurity can be explained by changes in the national unemployment rate, inflation, and the price of food relative to other goods and services. Data are from the 2001-12 Current Population Survey Food Security Supplements and statistics on employment and prices from the U.S. Bureau of Labor Statistics. Understanding the strength and consistency of these associations can broaden understanding of how national and household economic conditions affect food insecurity. As an example, the report sheds light on why food security has remained essentially unchanged since the 2007-09 recession. Falling unemployment from early post-recession (2009-10) to 2012, absent any other changes, would suggest a modest decline in the prevalence of food insecurity. However, this report finds that potential improvement was almost exactly offset by the effects of higher inflation and the higher relative price of food in 2012.

Over the past two decades, the percentage of the world’s population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization’s perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance. Globalization and Poverty bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor? Poverty, the contributors show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further their respective arguments. Globalization and Poverty provides the more nuanced understanding necessary to move that debate beyond the slogans.