Summary and Conclusions

The starting point of this book is the dilemma faced by policy-makers in many developing countries: should the price of food be high in order to stimulate production, or low in order to prevent poor food buyers from starving. There are also many poor food sellers who would benefit from higher prices. The role of prices and price policy in the light of the objectives of production and equity is then discussed. One conclusion is that in some situations ‘getting prices right’ by itself, without complementary action in the public sector (on technology, roads, health, extension services, etc.), can be ineffective or counterproductive. In addition to the impact of prices on efficient resource allocation, we discussed in some detail how changes in prices affect different vulnerable groups, and how these can be protected in the transition from a set of wrong policies to better policies. In this context, we made suggestions as to how the international community can help when countries adopt sound food and nutrition policies. A special chapter is devoted to a discussion of the politics of food pricing policies, in which the view is rejected that the Invisible Foot inevitably tramples on the good work of the Invisible Hand, and ways were pointed out in which political constituencies can be built for political reform. The ultimate purpose of these policies is to reduce hunger and undernutrition in the world.