IMF Notes

Tackling the Global Food Crisis: Impact, Policy Response, and the Role of the IMF

Author/Editor:

Bjoern Rother ; Sebastian Sosa ; Daehaeng Kim ; Lukas P Kohler ; Gaelle Pierre ; Naoya Kato ; Majdi Debbich ; Chiara Castrovillari ; Khamza Sharifzoda ; Elizabeth Van Heuvelen ; Fabiana Machado ; Celine Thevenot ; Pritha Mitra ; Dominique Fayad

Publication Date:

September 29, 2022

Electronic Access:

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Summary:

Russia’s war in Ukraine has exacerbated food insecurity that had already been on the rise for half a decade. Low-income countries are affected the most. This note suggests that the food and fertilizer price shock would add $9 billion in 2022 and 2023 to the import bills of the 48 most affected countries. The budgetary cost of protecting vulnerable households in these countries amounts to $5–7 billion. Strong and timely action on a global scale is needed to support vulnerable households through international humanitarian assistance and domestic fiscal measures; to maintain open trade; to enhance food production and distribution; and to invest in climate-resilient agriculture. The IMF has been stepping up its engagement to help tackle the global food crisis, working closely with partners, by providing policy advice, capacity building and financing. IMF financing is a third line of defense in meeting external financing needs associated with the global food shock, which should ideally be covered by donor grants and concessional borrowing from MDBs. A new food shock window under the emergency financing instruments is expected to be approved soon to further strengthen its lending response to the food crisis.

Series:

IMF Notes No 2022/004

Subject:

Economic sectors Financial crises

Frequency:

occasional