Short-Run Public Reactions to Food Subsidy Cuts in Selected Sub-Saharan and North African Countries.
Abstract
Many countries in North and sub-Saharan Africa control consumer prices of staple foods in ways which contribute to fiscal deficits. Such deficits have been increasingly difficult to sustain in the context of the late 1970s and early 1980s. Therefore the IMF frequently, other external agents often, and internal economic officials sometimes have urged that consumer prices be increased to cut or eliminate the subsidy element. Perhaps the largest obstacle to such measures is fear of urban riots. But riots are not an inevitable response to increased food prices. In fact, there are many instances of sizable increases without significant public protest. This study seeks to identify the factors that determine short-run public responses to increases in consumer prices for staple foods, primarily staple grains like rice and wheat products. Particular attention is given to the influence on public reactions of factors over which the government has some control in the short run--that is, policy variables. The study examines experience with nominal consumer price increases for subsidized food staples in four countries: Morocco, Tunisis, Senegal and Madagascar. These are all cases in which most or all of the urban populations has access to the subsidized staples at official prices, although in some cases the rural population did not.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 07, 1985
- Accession Number
- ADA152072
Entities
People
- J. M. Nelson
Organizations
- foreign affairs ministry