I am indebted to the participants in the IDEAs Conference on ‘Re-regulating global finance in the light of global crisis’, Tsinghua University, Beijing China, 9-11 April 2009 for discussion, and to Jan Kregel, Prabhat Patnaik, C. P. Chandrasekhar, Abhijit Sen, Erik Reinert and Kunibert Raffer for helpful comments.
The Unnatural Coupling: Food and Global Finance
Article first published online: 24 DEC 2009
© 2010 The Author – Journal compilation © 2010 Blackwell Publishing Ltd
Journal of Agrarian Change
Volume 10, Issue 1, pages 72–86, January 2010
How to Cite
GHOSH, J. (2010), The Unnatural Coupling: Food and Global Finance. Journal of Agrarian Change, 10: 72–86. doi: 10.1111/j.1471-0366.2009.00249.x
- Issue published online: 24 DEC 2009
- Article first published online: 24 DEC 2009
- commodity trade;
- financial liberalization;
The dramatic rise and fall of world food prices in 2007–8 was largely a result of speculative activity in global commodity markets, enabled by financial deregulation measures in the United States and elsewhere. Despite the recent fall in agricultural prices in world trade, the food crisis has been exacerbated in many developing countries where food prices remain high and even continue to increase. The financial crisis also directly operates to increase food insecurity by imposing constraints on fiscal policies and food imports in balance-of-payments constrained developing countries, causing exchange rate devaluation through capital flight and adversely affecting employment, thereby reducing the ability of vulnerable groups to purchase food.