The food price crisis and urban food (in)security

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DOI: 10.1177/0956247810380375

2010 22: 467Environment and UrbanizationMarc J Cohen and James L Garrett

The food price crisis and urban food (in)security

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467Environment & Urbanization Copyright 2010 International Institute for Environment and Development (IIED).Vol 22(2): 467482. DOI: 10.1177/0956247810380375 www.sagepublications.com

The food price crisis and urban food(in)security

MARC J COHEN AND JAMES L GARRETT

ABSTRACT Both national and international policy responses to the rapid ood

price increases in 2007 and the frst hal o 2008 did little to address the veryserious impacts on low-income urban dwellers. The speeches, declarations, plansand pledges duly noted the vulnerability o poor urban dwellers to ood price rises,

as they rely primarily on market purchases or their ood (much more so than

rural dwellers) and ood purchases account or the bulk o their expenditure. Yetmost policy prescriptions ocused on addressing constraints to rural-based ood

production. This paper discusses why policy makers should pay greater attentionto urban dwellers and describes the multiple pathways through which ood price

increases have impacts on urban people. It also highlights the evidence on howthese impacts have played out during this crisis and discusses how current policy

responses could be adjusted and improved to better protect the urban poor in the

short and longer term.

KEYWORDS coping strategies / ood crisis / ood prices / ood security / markets /social protection / urban / urban agriculture

I. INTRODUCTION: WHY AN URBAN FOCUS MATTERS(1)

Rapid ood price increases in 2007 and the frst hal o 2008 attracted

serious policy attention. During the course o 2008, the United Nations

issued a Comprehensive Framework or Action (CFA) on the ood crisis

and donors pledged more than US$ 12 billion to assist low-income, ood-

importing countries.The speeches and plans duly noted poor urban dwellersvulnerability; they rely primarily on purchases or their ood and thisaccounts or the bulk o their expenditure. Yet most policy prescriptionsocused on addressing rural ood production constraints, ood stocksand macroeconomic measures. Action in these areas potentiallycontributes to longer-term urban ood security, but policy makersand analysts paid less attention to direct improvements in urban oodsecurity.

We argue that although poverty in low- and middle-income countriesis oten deeper and more widespread in rural than in urban areas,

disproportionate attention to rural dwellers is probably misplaced. Manyrural dwellers are net ood producers, and so may have their own crops or

Marc J Cohen is a SeniorResearcher at Oxfam

America.

Address: e-mail: [email protected]

James L Garrett is aSenior Research Fellowat the International FoodPolicy Research Institute.Currently, he is ProgrammeLeader for the MozambiqueSAKSS Programme, Maputo,Mozambique.

Address: e-mail: [email protected]

1. This is drawn from a longerand more detailed workingpaper that can be downloadedat no charge at http://www.iied.org/pubs/pdfs/10574IIED.pdf.

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livestock to buer shocks and may even beneft rom higher prices. Fewurban dwellers have these options.

In this paper, to demonstrate why policy makers also need to takean urban ocus, we outline the pathways through which ood price riseshave impacts on urban people; we also highlight how these impactsplayed out in the recent crisis, how policy makers responded and how

they might react in the uture in order to better protect urban oodsecurity.

Most poor people live in rural areas, but the numbers o poor urbanresidents, rom market towns to megacities, are substantial. Worldpopulation is expected to grow rom 6.8 billion to 9.1 billion between2009 and 2050, with virtually all the increase taking place in urban areasin low- and middle-income nations.(2) Rapid urbanization is pullingpoverty into cities. In 1993, 1.3 billion people in low- and middle-incomecountries lived in extreme poverty; 19 per cent (247 million people) wereurban. By 2002, the extreme poverty population ell to 1.2 billion, but theurban share rose to 25 per cent (300 million people).(3)

One study ound that in 12 out o 18 low- and middle-incomecountries (all o which had nationally representative household surveystaken between 1996 and 2003), urban ood insecurity equalled orexceeded rural levels (Figure 1).(4) When ood prices spike, ocusingprimarily on rural ood insecurity and agriculture misses a large part othe problem.

2. UN Department of Economicand Social Affairs (UNDESA)(2010), World UrbanizationProspects: The 2009 Revision,Executive Summary, UnitedNations, New York, accessed18 May 2010 at http://esa.un.org/unpd/wup/Documents/

WUP2009_Highlights_Final.pdf.

3. Chen, S and M Ravallion(2007), Absolute povertymeasures for the developingworld, 19812004, World BankPolicy Research Working PaperNo 4211, The World Bank,Washington DC.

4. Ahmed, A U, R V Hill, L CSmith, D M Wiesmann andT Frankenberger (2007),The worlds most deprived:characteristics and causes

of extreme poverty andhunger, 2020 Vision forFood, Agriculture and theEnvironment Discussion PaperNo 43, International Food PolicyResearch Institute (IFPRI),Washington DC.

FIGURE 1Rural and urban incidences of hunger (food energy deciency)

SOURCE: Adapted from Ahmed, A U, R V Hill, L C Smith, D M Wiesmann and T Frankenberger (2007), Theworlds most deprived: characteristics and causes of extreme poverty and hunger, 2020 Vision for Food,Agriculture and the Environment Discussion Paper No 43, International Food Policy Research Institute (IFPRI),Washington DC.

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II. TRACING OUT THE CAUSES OF URBAN HUNGER ANDMALNUTRITION

Food security, regardless o location, depends on ood availability; and

households ability to access ood depends on income as well as ood

prices. Households can also acquire ood through production or transers.

Intra-household distribution inuences individual ood security, withboys and those employed outside the home oten receiving preerence

(Figure 2).Food looms large in the budgets o low-income urban households. A

study o 20 low- and middle-income countries ound that the ood shareo extremely poor urban households expenditure ranged rom 48 percent in Guatemala to 74 per cent in Tajikistan; in 18 o the countries,the proportion exceeded hal.(5) In contrast, poor US city residentsexpenditure on ood is around 12 per cent. Purchases dominate: inGhana, urban dependence on purchases is 92 per cent and in Egypt it is95 per cent. Residents o Lima, Peru purchase 91 per cent and other urbanPeruvians 88 per cent. Globally, more than 97 per cent o poor urbanhouseholds are net ood purchasers. In Guatemala, this rises to 98 percent; in Malawi to 99 per cent and to 100 per cent in Vietnam.(6)

5. See reference 4.

6. Garrett, J (2002a),Livelihoods in the city:challenges and options forthe urban poor, in TowardsEliminating Urban Poverty,USAID Seminar Series,Washington DC, pages 2938;also Food and AgricultureOrganization of the UnitedNations (FAO) (2008a), The Stateof Food Insecurity in the World2008,FAO, Rome.

FIGURE 2

Determinants of food, nutrition and health securitySOURCE: Adapted from United Nations Childrens Fund (UNICEF) (1998), The State of the Worlds Children,Oxford University Press for UNICEF, Oxford.



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In towns and cities, ood is likely to be available in markets, even iits unaordable. Urban dwellers have to purchase almost all their oodas well as housing, transportation, health care and education. Urban oodsecurity reects individual household circumstances. Relatively higherurban incomes may not compensate or what may be higher ood pricesand cash requirements. Urban residents oten also lack land and other

inputs to be able to produce their own ood and thus buer shocks (andin many cities urban agriculture is illegal).

Nutritional status depends on more than just ood, and results romthe interaction o ood, health and hygiene, and care. Urban women aremore likely to work outside the home than their rural sisters, and mayhave less time or and more difculty with child care. They tend to endbreasteeding two to three months earlier, oten depriving their childreno nutrients and immunity to disease.(7)

Low-income neighbourhoods are requently crowded, with poorquality housing. In urban areas o low- and middle-income countries,2550 per cent o the population lack access to clean water and sae

sanitation.(8) Urban poor people oten do not have physical and economicaccess to health care.(9)

III. SOURCES OF VULNERABILITY

To anticipate the eects o rising ood prices, it is useul to understand

the nature o urban employment, consumption patterns, markets and

community cohesion.

a. Employment

Urban employment data dey stereotypes. A survey o fve countries in

Arica, Asia and Latin America ound urban unemployment rates o 10

per cent or less; high, but not spectacularly so. Nor did urban poor people

hold many jobs simultaneously; labour participation rates mirrored those

o other classes. On average, 5080 per cent o working-age men were in

the labour orce, with much lower rates or women. In Egypt, Ghana and

Peru, 510 per cent o urban children reported having or seeking jobs,

with boys much more likely to have one than girls. In Bangladeshi slums,

1520 per cent o children worked.(10)

The jobs o urban poor people are casual, insecure, uncertain and low-paying, and include street-vending, rickshaw-driving, construction andactory work. But these jobs tend to be permanent, in the sense that poorpeople stick with them, and do not move rom job to job every day.(11)

Interestingly, seasonality aects urban incomes just as it does ruralones. Rain prevents many workers rom working and can also make itmore difcult to get products to the cities, which results in higher oodprices. Factories need ewer workers during seasonal slack periods. Urbandwellers can also be aected by seasonal changes in rural areas. Whenrural work disappears, or example ollowing harvests, people may migrateto towns and cities, increasing competition or jobs.(12)

Two other, sometimes overlooked, aspects o urban livelihoods arethe importance o the regional, usually agricultural, economy and ormalsector jobs. (Few studies capture the signifcance o illegal incomes.)

7. Ruel, M T (2000),Urbanization in Latin America:constraints and opportunitiesfor child-feeding and care,Food and Nutrition BulletinVol 21, pages 1224.

8. United Nations Economic,Social and Cultural Organization(UNESCO) (2006), Water:A Shared Responsibility,United Nations World WaterDevelopment Report, BerghahnBooks, New York.

9. US Agency for InternationalDevelopment (USAID) (2004),Improving the health ofthe urban poor: learningfrom USAID experience,

unpublished paper, accessed4 March 2009 at www.ehproject.org/PDF/Strategic_papers/SR12-UH%20ImproveHealth.pdf.

10. Garrett, J (2005), Living

life: overlooked aspects ofurban employment, inU Kracht and M Schulz (editors),Food and Nutrition Security inthe Process of Globalizationand Urbanization, Lit Verlag,Mnster, Germany, pages512529.

11. See reference 10; alsoErsado, L (2002), Livelihoodstrategies in urban and ruralareas: activity and incomediversication in Zimbabwe,Mimeo, International Food

Policy Research Institute (IFPRI),Washington DC; and Maxwell,D, C Levin, M Amar-Klemesu,M Ruel, S Morris and C Ahiadeke

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The overall ood system is signifcant even in megacities, withagriculture providing employment in transport, street-vending, retailing,wholesale and manuacturing. In smaller cities, agriculture is even moreundamental. Merchants and mechanics provide inputs and tools. Tradersdynamically connect town and countryside. Urban dwellers oten arm(usually outside the city). In Egypt and Malawi, 10 per cent o non-

metropolitan urban residents worked in agriculture.(13) City olk also seekseasonal rural jobs; or example, in Colombia they provide temporarycoee harvest labour. Long-term migrants rom rural areas may retainclose ties to ormer homes, to hedge against bad times; in Botswana, halthe low-income city dwellers keep land or cattle in rural areas.(14)

Despite the perception that inormal employment predominates,many urban residents, even poor ones, have ormal sector jobs. Numbersvary by country. In Accra, Ghana, 53 per cent o the workorce earntheir living rom inormal or sel-employment;(15) in Egypt and Malawi,however, 70 per cent or more o city jobs pay wages or salaries. Publicsector employment is especially important or women; 75 per cent o

non-metropolitan Egyptian urban women work in the public sector, as dotwo-thirds o metropolitan working women.(16)

b. Consumption patterns

A nutritional transition has accompanied urbanization and economic

development.(17) Higher incomes allow the purchase o higher added-value

processed oods, including dairy and meat. Population concentration has

allowed marketing efciencies. Employment outside the home, which

increases the opportunity cost o time, has increased demand or ready-

to-eat and easily prepared oods. Urban consumers shit rom sorghum,

millet, maize and root crops to rice and wheat. The cereals that are

the basis o the urban diet, such as rice, wheat and maize, tend to be

internationally traded, unlike cassava. This leaves urban poor people

vulnerable to global price uctuations.Urban dwellers also consume more meat and milk and a greater

variety o ruits and vegetables. This diverse diet is positive, but alsocontains more saturated and trans-ats, sugar and salt, and less fbre. (18) Itcombines with more sedentary liestyles to heighten the risk o chronicdiseases.(19)

c. Markets

Even now, urban poor people tend to buy ood rom local markets or

neighbourhood kiosks. These are requently small and widely scattered.Wholesale markets, when they exist, are oten old and located in city

centres, hemmed in by and creating trafc congestion. Storage acilitiesare requently inadequate or badly managed and rerigeration is scarce.This raises marketing costs.(20)

Meanwhile, transnational supermarket chains are displacingtraditional retailers in many low- and middle-income countries.(21) Thesemay help overcome structural inefciencies by utilizing large purchasingand distribution networks. Supermarkets will continue to increase theirretail share but the traditional retail sector still dominates urban ood

(2000), Urban Livelihoods andFood and Nutrition Security inGreater Accra, Ghana,ResearchReport No 112, InternationalFood Policy Research Institute(IFPRI), Washington DC.

12. See especially Garrett, J L

(2000), Overview, Brief 1 of10 in J L Garrett and M T Ruel(editors),Achieving UrbanFood and Nutrition Security inthe Developing World, 2020Vision for Food, Agricultureand the Environment FocusNo 3, International FoodPolicy Research Institute(IFPRI), Washington DC;also Frankenberger, T R, J LGarrett and J Downen (2000),Programming for urban foodand nutrition security, Brief10 of 10 in Garrett and Ruel

(editors) (2000), as above.

13. See reference 10.

14. See reference 10; also seereference 12, Garrett (2000);and Tacoli, C (2000), Ruralurban interdependence, Brief3 of 10 in Garrett and Ruel(editors), see reference 12.

15. See reference 11, Maxwellet al. (2000).


17. Popkin, B (1994), The

nutrition transition in low-income countries: an emergingcrisis, Nutrition Reviews Vol 52,No 9, pages 285298.

18. See reference 6, Garrett(2002a).


20. Aragrande, M and OArgenti (2001), Studyingfood supply and distributionsystems to cities in developingcountries and countries intransition,Methodological andOperational Guide, FAO, Rome;also Argenti, O (2000), Feedingthe cities: food supply anddistribution, Brief 5 of 10 inGarrett and Ruel (editors), seereference 12.



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marketing. In Arica, multinational chains have yet to reach poor urbanneighbourhoods, and have little presence in poorer countries.(22) Evidenceis mixed on whether chains lower ood prices,(23) especially or staples.Supermarkets may not be convenient or poor slum dwellers who maylack transport or the cash or bulk purchases. A purchasing pattern similarto that in some developed countries may emerge, with upper- and middle-

income consumers shopping at chains, getting better prices and quality,and lower-income consumers having limited options, purchasing daily atsmall stores that may oer credit.(24)

Street vendors are part o poor urban communities daily routine,and vending is an important source o livelihoods, especially or women.Although street oods can be purchased in small quantities, are nutritiousand save on preparation time, they can sometimes be relatively expensive.

Consumption o street oods varies by country and city. In Nigeria,city dwellers spend up to hal their ood budget on street oods. Residents oBamako, Mali rely on street oods or an average o 250 calories per day.(25) InAccra, street oods account or 40 per cent o low-income amilies ood

purchases and even 25 per cent in high-income brackets. More than halo spending is by or or children.(26)

When ood and cooking uel costs rise, street ood consumptiontends to increase, as prices usually go up more slowly due to productioneconomies o scale. But poor inrastructure (i.e. water and sanitation),inadequate vendor hygiene training and weak or arbitrary enorcemento ood saety regulations (i these exist) can create risks.(27)

d. Community cohesion

Increased mobility and transience allows urban people to seek economicopportunities, but oten at the cost o community. While urban dwellers

may have better access than rural people to ormal assistance programmes,

inormal saety nets based on trust can be weaker, especially or new arrivals.

In some cities, established migrants may support those with kinship or

village ties; but oten, organized crime groups oer the only source o

protection and assistance, urther eroding trust and cooperation.(28)

IV. OWN PRODUCTION: URBAN AGRICULTURE

In some cities, urban households do grow crops and raise livestock,producing some o their own ood and supplementing incomes. Many

urban armers are women. Up to 40 per cent o the population o some

Arican cities and 50 per cent in some Latin American cities are urban or

peri-urban agriculturalists.(29) In Hanoi, Vietnam, 18 per cent o the citys

land is armed, as is 35 per cent in Quito, Ecuador. In Rosario, Argentinas

third largest city, 80 per cent o the land is vacant and 10,000 city residents

arm.(30)

By one estimate, 200 million city dwellers produce ood or urbanmarkets, accounting or 1520 per cent o global ood production. (31) InWest Arica, 20 million households (20 per cent o the urban population)

arm, providing 60100 per cent o their cities resh vegetables. (32) InAccra, however, less than 15 per cent o households engage in agriculture,and those that do cover an average o 7 per cent o household ood needs.

21. Reardon, T, C P Timmer, CBarrett and J Berdegu (2003),The rise of supermarketsin Africa, Asia and LatinAmerica,American Journal ofAgricultural Economics Vol 85,No 5, pages 11401146.

22. Weatherspoon, D andT Reardon (2003), The riseof supermarkets in Africa:implications for agri-foodsystems and the rural poor,Development Policy ReviewVol 21, pages 333355.

23. Reardon, T and J Berdegu(2002), The rapid rise ofsupermarkets in Latin America:challenges and opportunitiesfor development,Development Policy ReviewVol 20, pages 371388.

24. See reference 23; alsosee reference 21; and seereference 22.

25. Ag Bendech, M, M Chauliac,P Gerbouin-Rerolle, N Kanteand D Malvy (2000), Lesenjeux de la consommationalimentaire en milieu urbain Bamako,Sant PubliqueVol 12, No 1, pages 4553.


27. FAO (1997), Street foods,

FAO Food and Nutrition PaperNo 63, FAO, Rome; also Tinker,I (1997),Street Foods: UrbanFood and Employment inDeveloping Countries, OxfordUniversity Press, Oxford, 262pages.

28. See reference 12,Frankenberger et al. (2000); alsosee reference 14, Tacoli (2000);see reference 12, Garrett(2000); see reference 10; andInternational Food Policy

Research Institute (IFPRI) (2002),Living in the city: challengesand options for the urbanpoor, IFPRI Issue BriefNo 9,Washington DC.

29. See reference 28, IFPRI(2002).

30. Redwood, M (2009), Urbanagriculture and changing foodmarkets, in J Clapp and M JCohen (editors), The GlobalFood Crisis: Governance

Challenges and Opportunities,Wilfrid Laurier University Press,Waterloo, Canada, pages205215; also International



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Urban armers produce much o Accras resh vegetables but wealthierpeople are the main customers.(33)

Urban and peri-urban agriculture has other benefts, including lowcosts, with sales near the point o production. Producers are responsive tomarket demand. Urban arming systems recycle liquid and solid wastes,but without appropriate practices or inrastructure this advantage may

lead to soil and water pollution and compromised ood saety.(34)

Urban agriculture tends to be part o the unregulated, unmonitoredinormal economy, and there is little hard evidence on its economic value.Some cities have enacted urban agriculture policies. In Kampala, Uganda,urban agriculture is the most signifcant land use and nearly hal o cityhouseholds produce some o their own ood. The city council establisheda regulatory ramework, ollowing broad stakeholder consultation. (35)Unortunately, such participatory and transparent policy-making is rare.Too many municipal governments regard urban agriculture with hostility,and even when rules are in place, as in Harare, Zimbabwe, they are otenpoorly enorced and not well known.(36)

V. RESPONDING TO FOOD PRICES

a. Urban poors responses

In light o these actors, urban poor people will seek to cushion ood price

shocks by reducing spending on other necessities. Households may also

adjust ood consumption, eating less or shiting to cheaper oods that may

be less nutritious. They will buy on credit, seek ood rom neighbours, rely

on ood programmes and adjust intra-household distribution. Mothers

oten orgo ood when it is scarce, and boys requently get larger rationsthan girls.(37)

Poor households tend to suer more than others rom price increasesbecause they spend a bigger share o their income on ood. Female-headedhouseholds are at greater risk to well-being because they tend to devote aneven larger share to ood.

In past ood price spikes, poor households reduced consumption orelatively higher priced animal source oods, ruits, vegetables and pulsesin avour o cheaper, non-processed staples. According to one study, iincome remains constant, a 50 per cent ood price increase reduces ironintake by 30 per cent, with negative health, schooling and productivity

consequences over time.(38) When poor Indonesian consumers reducednon-staple purchases as prices rose in the late 1990s, iron defciencyincreased among young children and their mothers. Higher rice priceslikewise spurred malnutrition in Bangladesh.(39)

Another coping strategy may be to increase income. Even pooramilies may be able to send more members out to work, especiallywomen and children, albeit at a potential cost to child care, health andeducation.

Many urban poor people have little room or manoeuvre, so copingmechanisms may decrease their ood security. However, householdsin smaller cities and market towns may have a stronger connection to

agriculture. These households may grow their own ood and mitigateprice increase eects over time. They may even beneft rom higher pricesthrough sales.

Development Research Centre(IDRC) (2008),Shaping LiveableCities: Stories of ProgressAround the World, IDRC,Ottawa.

31. Van Veenhuizen, R (editor)(2006), Cities Farming for the

Future: Urban Agriculture forGreen and Productive Cities,RUAF Foundation, IDRC andInternational Institute for RuralReconstruction, Leusden, TheNetherlands.

32. Baker, J L (2008), Impactsof nancial, food and fuel crisison the urban poor, Directionsin Urban Development,December, The World Bank,Washington DC.

33. Ruel, M T (2003), Ghana,Accra: Women and Children

getting by in Urban Accra,Food Consumption andNutrition Division City Proles,International Food PolicyResearch Institute (IFPRI),Washington DC.

34. See reference 30, Redwood(2009).

35. Cole, D, D Lee-Smith andG Nasinyama (2008), HealthyCity Harvests: GeneratingEvidence to Guide Policy onUrban Agriculture,UrbanHarvest and MakerereUniversity Press, Kampala,Uganda, and Lima, Peru; alsoIDRC (no date),Achieving theMillennium Development GoalsOne Neighbourhood at a Time,IDRC, Ottawa.

36. See reference 30, Redwood(2009); also see reference 35.


38. Bouis, H (2008), Risingfood prices will result in severedeclines in mineral and vitaminintakes of the poor, accessed11 December 2008 at www.harvestplus.org/newsroom.html.

39. FAO (2008b), Soaring foodprices: facts, perspectives,impacts and actions required,Information Paper preparedfor the High Level Conferenceon World Food Security: TheChallenges of Climate Change

and Bioenergy, FAO, Rome, 35June.



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b. Impacts of rising food prices on urban hunger

What were the actual eects o rising prices on urban poor people in

20072008, and how did they respond? By the second quarter o 2008,

world wheat, maize and milk prices were triple those in early 2003, and

rice prices ballooned fve-old. Bee and poultry prices doubled. Adjusting

or ination and a declining dollar, real overall ood prices rose by 64 percent between 2002 and mid-2008. Other studies oer a ull discussion o

the driving actors.(40)

Ater peaking in mid-2008, global cereal prices declined by 3040 percent in the third quarter o the year, as a result o the worldwide recession,good weather and armers production responses to higher prices. Mostanalysts do not believe that prices will return to the levels o the early2000s between now and 2020, due to continued strong demand orenergy and cereals or ood, eed and uel, as well as to structural land andwater constraints and likely ood production impacts o climate change.By mid-2009, prices remained at record levels in many low- and middle-income countries.(41)

Transmission o global ood prices into the markets in low- andmiddle-income nations varies greatly and depends on the degree oimport dependence, transport costs, market structures and domestic pricepolicies. In Tanzania, local prices reected 81 per cent o the internationalmaize price increases between 2003 and early 2008, but markets inSurabaya, Indonesia, reected only 32 per cent. Rice prices in Ghana andthe Philippines increased by about 50 per cent o the global rise. (42)

Even within the same sub-region, price transmission can varydramatically. In July 2008, in Dakar, Senegal, prices or rice, the mainstaple, increased by more than 100 per cent over the average local Julyprice or 20022007. Senegal is a leading global rice importer, but innearby Bamako (Mali) and Ougadougou (Burkina Faso), which rely muchless on imports, the price o maize, the local staple, rose by only 24 and 5per cent, respectively.(43)

The rising ood prices had measurable negative eects on urban oodsecurity and nutrition:

in 2008, the World Health Organization reported that childmalnutrition had increased rom already high levels in Burkina Faso,Mali, Niger and Senegal;(44)

in November 2008, a balanced diet supplying daily micronutrient

needs in Guatemala City cost nearly twice as much as a staple-onlydiet, making healthy eating difcult or poor residents (Figure 3); and

in Cambodia, rice prices increased by 100 per cent between May 2007and May 2008. Urban poor people were among those most adverselyaected, as the cost o petrol, water and cooking uel also sky-rocketed. A survey ound that 12 per cent o Cambodian households(1.7 million people) were ood insecure in mid-2008; the fgure was18 per cent among mostly urban emale-headed households.(45)

c. Coping strategies

Poor urban households engaged in a variety o coping strategies. In

Cambodia, hal the households surveyed reported that they had cut back

on ood consumption. Von Siphou, a ruit seller in Phnom Penh, the

40. See, for example, reference30, Clapp and Cohen (editors)(2009); also von Braun, J(2008a), High food prices:the what, who and how ofproposed policy actions,Policy Brief, InternationalFood Policy Research Institute(IFPRI), Washington DC; vonBraun, J (2008b), Food andnancial crises: implications

for agriculture and the poor,Food Policy Report No 20,International Food PolicyResearch Institute (IFPRI),Washington DC; Timmer, CP (2008), Causes of highfood prices, ADB EconomicsWorking Paper No 128, AsianDevelopment Bank, Manila; andsee reference 6, FAO (2008a).

41. See reference 40, von Braun(2008a) and (2008b); also seereference 6, FAO (2008a); seereference 39; and FAO (2009),

Crop prospects and foodsituation No 3, FAO, Rome, July.

42. See reference 40, von Braun(2008a) and (2008b).

43. Egal, F, I Thiam and M JCohen (2010), Soaring foodprices, climate change andbioenergy: new challenges forfood security and nutrition,SCN News No 38 (supplement),pages 26.

44. Oxfam International andSave the Children (2008),

Rising food prices in theSahel: the urgency of long-term action, Brieng Note,November.

45. Cambodia DevelopmentResource Institute (CDRI) (2008),Impact of high food prices inCambodia, CDRI, Phnom Penh.



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capital, said: The only thing left to do is to not eat.(46) In Dhaka, Bangladesh,media accounts in April 2008 indicated that poor people had cut out one

daily meal, had stopped eating meat, fsh and eggs, and were unable to

save money.(47) In Honduras, poor urban and rural households reported

cutting ood consumption by 8 per cent.(48) Many poor urban Ethiopians

skipped meals and eliminated eggs and vegetables.(49)

In Burkina Faso,survey respondents reported increasing ood expenditure rom 5060

per cent to 75 per cent o household budgets. Debt rose: 40 per cent o

households surveyed in Niger said they took ood loans; (50) in Manila,

the Philippines, with ination at 10 per cent in May 2008, security guard

Leonardo Zara said he borrowed money at high interest to eed his amily,

as his daily wage did not cover ood, education and utilities;(51) and in

South Arica, some low-income people engaged in prostitution to aord

ood. In many cities, higher ood prices reduced migrants remittances

back to their rural amilies.(52)

d. Protests and violence

Higher ood prices can also threaten political stability. Scores o countries

saw ood price protests during 20072008. Almost all demonstrations

took place in cities and several turned violent.(53)

FAO Director-General Jacques Diou said the violence signall[ed]the desperation caused by soaring food and fuel prices for millions of poor andalso middle-class households.(54) In March 2008, ollowing clashes withlocal police, a protestor in Abidjan, Cte dIvoire, commented: We onlyeat once during the day now. If food prices increase more, what will we give our

children to eat and how will they go to school?(55)Evidence on the class basis o these protests is unclear. It is certainly

true that the middle class typically has the ability to organize, lobby and

46. Oxfam International (2008a),World must learn lessonsfrom food price crisis, pressrelease 15 October; also seereference 45.

47. World Health Organization(WHO) (2008), Rising food

insecurity: health and nutritionimplications for the SoutheastAsia region, Draft DiscussionPaper for the Southeast AsiaNutrition Research-cum-ActionNetwork Meeting, Mimeo.

48. See reference 46, OxfamInternational (2008a).

49. See reference 6, FAO(2008a).



52. See reference 30, Redwood(2009); also see reference 32.



55. IRIN (2008), Cte dIvoire:

food prices hikes spark riots,8 April, accessed 11 December2008 at http://allafrica.com/stories/200803311850.html.

FIGURE 3The cost of various diets in Guatemala City (November 2008)

* RND = Recommended Nutrient Density

SOURCE: von Braun, J (2008b), Food and nancial crises: implications for agriculture and the poor, FoodPolicy Report No 20, International Food Policy Research Institute (IFPRI), Washington DC.



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protest early on.(56) At the same time, it is not unusual or low-income urbandwellers to support the political opposition to the national or municipalgovernment,(57) so demonstrations over ood issues may involve poorpeople but are also likely to get caught up in broader political issues. Toooten, organized crime groups manipulate low-income peoples politicalgrievances to advance their own agendas. In Kenya and Haiti, where protests

turned violent, criminal elements have a strong urban presence.(58) Whatbegan as peaceul protests in smaller towns and villages in Haiti in April2008 turned into looting and deadly clashes with police and UN troopsin the capital. The violence resulted when organized crime elementsthat opposed the government and the UN mission paid poor capital arearesidents to riot. This led to the collapse o the government and a periodo political deadlock.(59)

Obviously, policy makers avour programmes that protect city dwellersrom the ull brunt o ood price increases, in large part because thesepaciy urban discontent. The Egyptian government boosted spending onits already expensive ood subsidy system in 20072008, partly to avoid

the bloody riots that ollowed an abortive attempt to end subsidies in1977.(60) However, such poorly targeted subsidies are fscally unsustainableand provide limited benefts to poor people.(61)

e. The inadequacies of international policy prescriptions

There is considerable consensus about how to address the global ood

price crisis, both in the short and the long term. The July 2008 UN

Comprehensive Framework or Action (CFA)(62) reects this consensus and

calls or immediate action in our areas:

enhancing and improving access to emergency ood assistance,nutrition interventions and saety nets;

boosting smallholder ood production; adjusting trade and tax policies; and managing macroeconomic implications.

While there is a ocus on rural ood production, emergency assistancecan apply to both urban and rural dwellers. Macroeconomic adjustmentscan indirectly help urban poor people i they moderate ood price rises.

The CFA also calls or complementary action to acilitate longer-termresilience. For example:

expanding social protection systems; sustaining growth in smallholder-led ood availability; improving global ood markets; and developing a new international biouel policy (given the role o

biouel production in maize price increases).

Although stronger social protection programmes could help bothurban and rural poor people, again the ocus is mainly on agriculture andmacroeconomics. The latter measures may help lower average prices andimprove ood system efciency over time, but they have indirect, non-immediate eects in cities.

The CFA does include a package o urban-oriented actions, such asgreater support or urban agriculture, market development incentivesand sustainable urbanization policies, but it consigns this discussion to

56. See reference 40, von Braun(2008a).

57. Food and NutritionTechnical Assistance II Project(FANTAII) (2008), Emergenciesin Urban Settings: A TechnicalReview of Food-based

Programme Options, Academyfor Educational Development,Washington DC.

58. United Nations HumanSettlements Programme(UNHabitat) (2007), EnhancingUrban Safety and Security:Global Report on HumanSettlements 2007, Earthscan,London; also World Bank(2006), Haiti: Social Resilienceand State Fragility in Haiti. ACountry Social Analysis, ReportNo 36069HT, The World Bank,

Washington DC.59. Rights & Democracy/GRAMIR (Groupe de Resercheet dAppui au Milieu Rural)(2008), The Human Right toFood in Haiti, Report of aninternational fact-ndingmission, Rights & Democracyand GRAMIR, Montral andPort-au-Prince; also Schuller,M (2008), Haitian food riotsunnerving but not surprising,Hungry for Justice: How theWorld Food System Fails the

PoorNo 9, 25 April, Centre forInternational Policy, WashingtonDC, accessed 13 December2008 at http://americas.irc-online.org/am/5186; personalcommunication with N Gallettifrom Rights & Democracy, 30October 2008; and personalcommunication with EMathurin from Groupe deReserche et dAppui au MilieuRural, 7 November 2008.

60. Kliger, R (2008), Cairograppling with bread crisis,

Y Net News.com, 17 March,accessed 11 December 2008at www.ynet.co.il/english/articles/0,7340,L-3520337,00.html.

61. UN High Level Taskforce onthe Global Food Security Crisis(HLTF) (2008), ComprehensiveFramework for Action, UnitedNations, New York.




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sidebars and ootnotes. Again, these eorts will have eect only in thelonger term, and urban agriculture is not a viable option or many.

With some variations, other international organizations and NGOs haveadopted a similar set o immediate and longer-term recommendations.(63) Toeectively address urban hunger resulting rom rapid ood price rises,policies and programmes should better reect the urban context.

VI. SHAPING AN URBAN RESPONSE

Most undamentally, urban-ocused responses need to cushion the shock

and provide short-term income supplements. Improving ood system

efciency and lowering costs will not by themselves prevent ood price

shocks, so a strong social protection system is indeed necessary to deal

with uture price rises. Eorts to meet poor urban households needs

should centre around three objectives:

preserve income; moderate price increases; and strengthen saety nets and coping mechanisms.

a. Preserve income

The interaction o cash income and retail market prices determines urban

ood security. Because price interventions can distort market price signals,

and tend to be regressive, expensive to implement and politically difcult

to remove, policies should aim at short-term income improvements. (64)

Subsidizing production costs, including energy, or removing existing

taxes, is one approach. These would require government selection o

benefciary products or industries, and opposition to later removing the

subsidy or re-applying the taxes is almost certain.Social programmes are a more direct approach to increase incomes.

Programmes should expand easily when need increases and havemechanisms to scale back as the crisis recedes. Existing programmes mayalready have mechanisms that allow or temporary increases in transeramounts, and they may also largely target appropriate benefciaries. TheWorld Bank estimates that 95 per cent o income losses by urban poorpeople were incurred by those who were poor beore the shock.(65)

O course, the government could also ace problems scaling backincome supplementation. The use o existing social programmes amiliarto citizens, such as conditional cash transers, may blunt resistance. Mosto these programmes already have targeting mechanisms, and citizens arelikely to be amiliar with entry and exit criteria.

An urban environment acilitates rapid programme expansion.The government can use mass media to communicate availability andrequirements. It should be possible to use the banking system or vendingkiosks and supermarkets to assist in implementation.

Targeting could occur through means-testing, which is oten alsoeasier to apply in cities, where income is usually wage or salary based.

Geographical targeting is more difcult in urban areas, where the sameneighbourhood may house relatively wealthy and poor amilies.All this, o course, assumes the existence o an eective urban saety

net. In some countries, such as Haiti, such programmes are non-existent,(66)

63. See reference 40, von Braun(2008a); also see reference 6,FAO (2008a); Forum Terra Preta(2008), Platform for collectiveaction, International NGO/CSOPlanning Committee for FoodSovereignty, June 4, accessed14 December 2008 at www.foodsovereignty.org/public/new_attached/57_nal%20declaration%20Forum%20Terra%20Preta%20-%20EN.doc; and Oxfam International(2008b), The time is now: howworld leaders should respondto the food price crisis, OxfamBrieng Note, 3 June, OxfamInternational, Oxford.



66. See reference 58, WorldBank (2006).



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but in the past decade many countries have strengthened social protection.Conditional cash transer programmes have become increasingly popularin Latin America and some Arican countries. Many have health and/or education conditionalities that can help poor households maintainhuman capital investments.

An alternative is to use public works programmes. But a price crisis does

not spur job loss; working poor people need to maintain purchasing power.Public works programmes may help jobless people, however. It is especiallyimportant to provide unemployed youth with job training and connectionsto employers.(67) The presence o a large pool o unemployed young people especially young men can contribute to political unrest.(68)

Ultimately, part o the solution is to lit people out o poverty. Thisrequires investment in inrastructure, institutions and human capital. Italso means addressing land and housing security to help ensure that poorpeople do not lose assets or social capital.

b. Moderate price increases

Policies to moderate price increases, such as tax or trade policies, can

be useul, but they require careul design in order to avoid negative

repercussions. They may also take time to put in place. In the longer

term, interventions that distort price signals and prevent producers rom

seeing true market prices will dampen production response, keeping

prices higher. Wedges separating consumer and producer prices can be

very expensive.Governments can work through international bodies to encourage

exporting nations to avoid export restrictions. These could increase price

volatility, reduce production incentives and promote black markets.Governments might also temporarily reduce import taris.

Food distribution could contribute to price stability and provide asaety net. In the ace o economic crisis in Peru in the 1990s, communitykitchens used commodities donated by USAID and complementary itemspurchased in bulk to provide low-cost meals. The kitchens also providedthe women who organized and managed them with a measure o increasedindependence and empowerment.(69) Distributed oods could be vitaminand mineral ortifed, or the government could carry out micronutrientsupplementation.

Food and cash distribution programmes will require nimble

international organizations. These agencies must be able to respondquickly, orceully and with sufcient quantities o ood and unds.In June 2008, donors promised US$ 12.3 billion at the High LevelConerence on World Food Security, but by October had only deliveredUS$ 1 billion.(70) Without investment in international crisis response,such as a globally coordinated system o national ood reserves or a poolo cash, international organizations will have no choice but to mount adhoc appeals or each crisis.

National, sub-national and municipal authorities should also workto improve the efciency o urban markets. Lowering business costs willhelp reduce prices. Authorities must ensure that wholesale and retail

markets are properly planned and managed, with parking, unloading,weighing, packaging and storage acilities. Microcredit can help traders

67. See reference 12,Frankenberger et al. (2000).

68. USAID (2005), Youthand Conict: A Toolkitfor Intervention,USAID,Washington DC, accessed4 March 2009 at www.usaid.gov/our_work/cross-cutting_programs/conict/publications/docs/CMM_Youth_and_

Conict_Toolkit_April_2005.pdf.

69. Garrett, J (2002b), Peru community kitchens, in Livingin the City, IFPRI Issue BriefNo 9, IFPRI, Washington DC;also Barrig, M (1991), Women

and development in Peru:old models, new actors,Environment and UrbanizationVol 3, No 2, October, pages6670.

70. See reference 46, OxfamInternational (2008a).



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fnance improved hygiene and storage. Facilitating participatory dialogueamong consumer, trader and transport associations may help improvemarket efciencies and acilitate dispute resolution.(71)

To cut costs urther, urban authorities can promote armers markets,with specifc, non-burdensome regulations and logistical support.Authorities should better link cities with surrounding production areas

and shorten the supply chain while making it more cost-efcient.(72)

Investment in inrastructure and production technologies willsimilarly lower costs. Investment in and incentives or more widespreaduse o inormation technologies (also easier in urban areas) will improveknowledge o costs and prices. This, along with clear, non-bureaucraticregulations, can encourage air and open competition, moderating thepass-through o price increases to consumers. Investment in energyefciency can help production, processing and marketing systemsrespond to increased ood demand at less risk o disruption rom oilprice spikes. While important to long-term exibility, in response toimmediate crises, these actions will largely have only a one-time price-

reducing eect and will take time to be implemented and improvemarket efciency.

c. Strengthen safety nets and coping mechanisms

Other actions could strengthen urban saety nets and coping mechanisms

and help protect ood security (particularly dietary diversity) and human

capital. Food banks may be appropriate in urban settings but are not

widespread in low- and middle-income countries.Urban agriculture remains an under-appreciated avenue to urban

ood security. Municipal authorities oten do not understand how toincorporate it into planning, or remain concerned about environmentaleects. Municipal governments should develop an enabling regulatoryramework that moves urban agriculture into the ormal economy, ensuresland tenure security and addresses ood saety and health concerns.City authorities should ormulate policy through broad stakeholderconsultations. It is valuable to have a municipal department o ood andagriculture, as in Kampala.(73)

Given the importance o street oods, municipal authorities shouldtrain vendors in hygiene, adequately and consistently enorce regulationsand improve basic inrastructure. Collaborating with vendor associations

can help acilitate training and regulatory compliance.(74)

It is also important to enhance urban social cohesion. Urbanresidents can develop strong social capital but their bonds oten gooutside geographical boundaries. Some neighbourhoods have strongcivic associations but normally these orm along ethnic, religious orpolitical, rather than geographical, lines. Municipal government and civilsociety organizations should acilitate poor peoples ability to organizeand articulate demands. They should also strengthen the municipalityscapability to respond to citizens. Inrastructure development, such asimproving water and sanitation, can help establish trust and mechanismsor urther cooperation, especially when community members plan and

manage projects. Stronger social networks may acilitate access to creditor ood-sharing.(75)

71. FAO (undated), Urban foodmarketing, Food for the CitiesBrief, FAO, Rome; also FAO(1999), Spotlight: urban foodmarketing, FAO Newsletter,Rome.

72. See reference 71, FAO(undated).

73. See reference 35, Coleet al. (2008).


75. See reference 12, Garrett(2000); also see reference 28,IFPRI (2002).



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VII. CONCLUSIONS

The United Nations CFA measures, supplemented by the urban-ocused

policies we recommend, are appropriate responses to price shocks and

can help reduce urban vulnerability. Preparedness measures the

most important o which is establishing temporary social protection

programmes that can quickly enrol shock-aected people or increasebeneft levels and target transers based on need are essential.

Good monitoring and evaluation acilitates timely action. Engagingbenefciaries in monitoring and programme design and managementhelps assure eectiveness. Preparedness will also reduce the likelihood thatgovernments, in the heat o a crisis and with an eye on quelling unrest,will take ad hoc, quick-fx measures that may have unintended negativeconsequences, e.g. export embargoes and untargeted subsidies. Anotherlesson o the recent crisis is that preparedness requires internationalcooperation and coordination, to avoid reactive global pledging eortsand delays in action.

Further research is needed in several areas. Additional studies arenecessary to support policies to assure sustainable urban ood securityand build resilience against uture shocks. More knowledge is also neededabout urban labour markets so that policies can oster economic security.Comprehensive studies are needed on the value o urban agriculture, tohelp scale-up successes. Additional studies are likewise needed on howthe ood price crisis aected urbanrural migration. Finally, more studiesare needed on when higher urban ood prices are likely to spark violenceand who is likely to participate, to help design policies and programmesto reduce the likelihood o political instability.

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