Food Prices and Political Instability

Download or read book Food Prices and Political Instability written by Mr.Rabah Arezki and published by International Monetary Fund. This book was released on 2011-03-01 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the effects that variations in the international food prices have on democracy and intra-state conflict using panel data for over 120 countries during the period 1970-2007. Our main finding is that in Low Income Countries increases in the international food prices lead to a significant deterioration of democratic institutions and a significant increase in the incidence of anti-government demonstrations, riots, and civil conflict. In the High Income Countries variations in the international food prices have no significant effects on democratic institutions and measures of intra-state conflict. Our empirical results point to a significant externality of variations in international food prices on Low Income Countries' social and political stability.