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Covid-19, food security and poverty: 2020
and beyond
A globalized crisis or a crisis of the globalization?
20th October 2020,
David Laborde
International Food Policy Research Institute, IFPRI
The 61st Annual Conference of the Italian Economic Association
The views expressed in this presentation are
those of the presenters and do not necessarily
represent those of IFPRI, nor of CGIAR, BMGF,
USAID, or other funding agencies
From Health to
Economic to
Food Crisis?
Economic
Crisis
Supply
Disruptions
India: "I earn 600 rupees a day and have five people to
feed. We will run out of food in a few days."
US: Greater Pittsburgh Community Food Bank, at a
drive thru distribution in downtown Pittsburgh
Mali: "With bans on gatherings to fight Covid-19, I do
not know how we will meet production targets."
US: meatpacking plants close amid COVID-19
pandemic
Philippines: Manila, Grocery shop March
16, after announcement lockdown
Panics
US: California, Trader Joe's grocery
shop: pasta and canned food. March 13
A few facts
Macroeconomics
Logistics
Policies
Social Distancing has changed people behavior:
Less work, Lower income, Lower demand and different
habits
International transportation
has been heavily disrupted
Volume
Prices
Understanding the macroeconomic vulnerability of Africa:
Trade in Goods – Tourism - Remittances
Current Account: Drivers and Consequences
Tracking agricultural trade export restrictions over time
Source: IFPRI Export Restriction Tracker (Laborde and al. 2020)
0%
1%
2%
3%
4%
5%
6%
7%
0
2
4
6
8
10
12
14
16
18
20
3/23/2020 4/23/2020 5/23/2020 6/23/2020
ShareofGlobalTradeinCalories
NumberofCountries
Date
Food related Export Restrictions
Number of Countries Share of Global Trade in Calories
Still, limited number of
restrictions compared to
2007/2008
[1/4 of overall restrictions]
But weak transparency, only
10% notified in a reasonable
amount of time
Share of calories
imported impacted
Self-reported pandemic impacts in Ethiopia
Aspect of the COVID-19 crisis that has the greatest impact on
your household, June
Source: De Braw and al. 2020
Self-reported stress level, by household wealth
Main coping mechanisms were to rely on savings -- or to
cut food or non-food consumption (Ethiopia)
Source: De Braw and al. 2020
So, what happened to agricultural trade (example with
EU exports)
And some estimations
How to assess impacts on income, poverty, hunger and
nutrition?
https://www.ifpri.org/blog/poverty-and-food-insecurity-could-grow-dramatically-covid-19-spreads
Additional number of extremely poor people (global,
$1.99 poverty line)
0
20
40
60
80
100
120
140
160
No-Covid19 V shaped W shaped U Shaped
Millionspeople
2020
2021
2022
Source: MIRAGRODEP simulations
Coping mechanisms by eating less
nutritious food
Rise in unaffordability of nutritious and healthy diets
592 719
1,353 1,425
496
542
704 726
114
145
442
528
0
500
1,000
1,500
2,000
2,500
3,000
3,500
No-Covid19 Covid-19 No-Covid19 Covid-19
Nutrient Diets Healthy Diets
Millionpeople
Rest of LMIC
Latin America
East Asia
Africa South of Sahara
South Asia
+17%
+220 mio
+6%
+141
mio
* excl. China
*
Source: MIRAGRODEP simulations
Policies are needed
 Strong economic stimulus to tackle inequalities during the crisis
 Financial support to developing countries (for social safety nets, food supply
chain investments)
 “Green lanes” for food supply chains (open trade, allow labor mobility)
 Smart social distancing
 Assessment of the crisis on competition
 More at
o https://science.sciencemag.org/content/369/6503/500
o https://www.ifpri.org/project/covid-19-food-trade-policy-tracker
o https://www.researchgate.net/publication/342068871_Estimating_the_Poverty_Impact_of
_COVID-19_The_MIRAGRODEP_and_POVANA_frameworks_1
o https://ceres2030.org/shorthand_story/10-bn-needed-to-avert-the-covid-19-hunger-crisis/
o And IFPRI blog collection: https://www.ifpri.org/covid-19

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A globalized crisis or a crisis of the globalization?

  • 1. Covid-19, food security and poverty: 2020 and beyond A globalized crisis or a crisis of the globalization? 20th October 2020, David Laborde International Food Policy Research Institute, IFPRI The 61st Annual Conference of the Italian Economic Association The views expressed in this presentation are those of the presenters and do not necessarily represent those of IFPRI, nor of CGIAR, BMGF, USAID, or other funding agencies
  • 2. From Health to Economic to Food Crisis? Economic Crisis Supply Disruptions India: "I earn 600 rupees a day and have five people to feed. We will run out of food in a few days." US: Greater Pittsburgh Community Food Bank, at a drive thru distribution in downtown Pittsburgh Mali: "With bans on gatherings to fight Covid-19, I do not know how we will meet production targets." US: meatpacking plants close amid COVID-19 pandemic Philippines: Manila, Grocery shop March 16, after announcement lockdown Panics US: California, Trader Joe's grocery shop: pasta and canned food. March 13
  • 4. Social Distancing has changed people behavior: Less work, Lower income, Lower demand and different habits
  • 5. International transportation has been heavily disrupted Volume Prices
  • 6. Understanding the macroeconomic vulnerability of Africa: Trade in Goods – Tourism - Remittances
  • 7. Current Account: Drivers and Consequences
  • 8. Tracking agricultural trade export restrictions over time Source: IFPRI Export Restriction Tracker (Laborde and al. 2020) 0% 1% 2% 3% 4% 5% 6% 7% 0 2 4 6 8 10 12 14 16 18 20 3/23/2020 4/23/2020 5/23/2020 6/23/2020 ShareofGlobalTradeinCalories NumberofCountries Date Food related Export Restrictions Number of Countries Share of Global Trade in Calories Still, limited number of restrictions compared to 2007/2008 [1/4 of overall restrictions] But weak transparency, only 10% notified in a reasonable amount of time Share of calories imported impacted
  • 9. Self-reported pandemic impacts in Ethiopia Aspect of the COVID-19 crisis that has the greatest impact on your household, June Source: De Braw and al. 2020 Self-reported stress level, by household wealth
  • 10. Main coping mechanisms were to rely on savings -- or to cut food or non-food consumption (Ethiopia) Source: De Braw and al. 2020
  • 11. So, what happened to agricultural trade (example with EU exports)
  • 13. How to assess impacts on income, poverty, hunger and nutrition?
  • 15. Additional number of extremely poor people (global, $1.99 poverty line) 0 20 40 60 80 100 120 140 160 No-Covid19 V shaped W shaped U Shaped Millionspeople 2020 2021 2022 Source: MIRAGRODEP simulations
  • 16. Coping mechanisms by eating less nutritious food
  • 17. Rise in unaffordability of nutritious and healthy diets 592 719 1,353 1,425 496 542 704 726 114 145 442 528 0 500 1,000 1,500 2,000 2,500 3,000 3,500 No-Covid19 Covid-19 No-Covid19 Covid-19 Nutrient Diets Healthy Diets Millionpeople Rest of LMIC Latin America East Asia Africa South of Sahara South Asia +17% +220 mio +6% +141 mio * excl. China * Source: MIRAGRODEP simulations
  • 18. Policies are needed  Strong economic stimulus to tackle inequalities during the crisis  Financial support to developing countries (for social safety nets, food supply chain investments)  “Green lanes” for food supply chains (open trade, allow labor mobility)  Smart social distancing  Assessment of the crisis on competition  More at o https://science.sciencemag.org/content/369/6503/500 o https://www.ifpri.org/project/covid-19-food-trade-policy-tracker o https://www.researchgate.net/publication/342068871_Estimating_the_Poverty_Impact_of _COVID-19_The_MIRAGRODEP_and_POVANA_frameworks_1 o https://ceres2030.org/shorthand_story/10-bn-needed-to-avert-the-covid-19-hunger-crisis/ o And IFPRI blog collection: https://www.ifpri.org/covid-19

Editor's Notes

  1. Rob: Intro: How is COVID-19 impacting on global food security? Different from other pandemics. Yet, at least three impacts: (1) Supply disruptions; (2) Demand fallout; and (3) Policy responses. Then elaborate on each with some evidence.
  2. ii) Overview of governments' agriculture and food policy responses to the pandemic; domestically, safety nets. Internationally: movement of people and goods: Africa and measures iii) Experience and modalities of tracking and monitoring governmental measures in response to Covid-19; and