dummy thesis
ABSTRACT
The dramatic increase in international food and fuel prices in recent times is a crucial issue for developing countries and the most vulnerable to these price shocks are the poorest segments of society. In countries like Pakistan, the discussion has focused on the impact of substantially higher food and fuel prices on poverty. This paper used PSLM and MICS household level data to analyze the impact of higher food and energy prices on the poverty head count and the poverty gap ratio in Pakistan. Simulated food and energy price shocks present some important results: First, the impact of food price increases on Pakistani poverty levels is substantially greater than the impact of energy price increases. Second, the impact of food price inflation on Pakistani poverty levels is significantly higher for rural populations as compared to urban populations. Finally, food price inflation can lead to significant increases in Pakistani poverty levels: For Pakistan as a whole, a 20% increase in food prices would lead to an 8% increase in the poverty head count.
SECTION no. 1.
INTRODUCTION
1.1 BACKGROUND
Given the recent unprecedented levels of food and fuel prices, and their rapid rise, concern has arisen among policymakers, politicians, and international agencies about the effects of these on their populations and, in particular, the poor. According to the World Bank, global food prices have raised by 83% from February 2005 to February 2008 the first quarter of 2008 alone, the price of wheat exported by the U.S. rose from $375 to$440 per ton. The executive director of the World Food Programmed reported at a summit in London in April 2008 that rice prices had doubled over the previous five weeks. According to the U.S. Department of Agriculture, the price of rice has hit a 20 year record high. The World Bank predicts food prices to peak in 2009, but higher than average prices are expected to remain until 2015 for many food
The dramatic increase in international food and fuel prices in recent times is a crucial issue for developing countries and the most vulnerable to these price shocks are the poorest segments of society. In countries like Pakistan, the discussion has focused on the impact of substantially higher food and fuel prices on poverty. This paper used PSLM and MICS household level data to analyze the impact of higher food and energy prices on the poverty head count and the poverty gap ratio in Pakistan. Simulated food and energy price shocks present some important results: First, the impact of food price increases on Pakistani poverty levels is substantially greater than the impact of energy price increases. Second, the impact of food price inflation on Pakistani poverty levels is significantly higher for rural populations as compared to urban populations. Finally, food price inflation can lead to significant increases in Pakistani poverty levels: For Pakistan as a whole, a 20% increase in food prices would lead to an 8% increase in the poverty head count.
SECTION no. 1.
INTRODUCTION
1.1 BACKGROUND
Given the recent unprecedented levels of food and fuel prices, and their rapid rise, concern has arisen among policymakers, politicians, and international agencies about the effects of these on their populations and, in particular, the poor. According to the World Bank, global food prices have raised by 83% from February 2005 to February 2008 the first quarter of 2008 alone, the price of wheat exported by the U.S. rose from $375 to$440 per ton. The executive director of the World Food Programmed reported at a summit in London in April 2008 that rice prices had doubled over the previous five weeks. According to the U.S. Department of Agriculture, the price of rice has hit a 20 year record high. The World Bank predicts food prices to peak in 2009, but higher than average prices are expected to remain until 2015 for many food