Poverty

Global food prices are on the rise. FAO’s Food Price Index indicates prices in international markets have risen by 40 percent from a year ago (May 2020). Prices of vegetable oils in particular have surged, showing an increase by almost 110 percent over the past year. Other commodity prices, like those for metals, oil, and other minerals prices also have shown sustained increases since mid-2020.

How concerned should we be?

The COVID-19 pandemic and the associated policy responses have had wide-ranging impacts across the globe in terms of health, food security, incomes and livelihoods, and access to critical services. According to the 2021 Global Food Policy Report (GFPR), released this week by IFPRI, COVID-19’s effects have moved the world further away from achieving the Sustainable Development Goals (SDGs) by 2030.

Over the last year, COVID-19 has undone the economic, health and food security of millions, pushing as many as 150 million people into extreme poverty. While the health and economic impacts of the pandemic have been devastating, the rise in hunger has been one of its most tangible symptoms. 

The World Bank released some good news this month regarding extreme global poverty. In the report “Ending Extreme Poverty and Sharing Prosperity: Progress and Policies,” the Bank predicts that by the end of 2015, the number of people living in extreme poverty worldwide will drop from 902 million (the 2012 level) to 702 million, or 9.6 percent of the global population.

This week is the World Bank’s annual conference on development economics. One of the papers being presented is by my colleague Kate Orkin (together with co-authors Tanguy Bernard, Stefan Dercon and Alemayehu Taffesse) and takes a look at a video intervention and its impact on aspirations among poor folks in Ethiopia. In particular, what Kate and her co-authors are asking is: can we shift aspirations and behavior by showing people more of what is possible?