Building Markets or Building Society
Responses to Food Speculation
by Nicholas Hildyard
first published 20 September 2010
Some 154 million people were reportedly driven further into poverty in Southern countries as a result of speculation-induced food price hikes in 2007-08. What are the best strategies for bringing about the structural change needed that progressive activists can lend their support to?
This workshop presentation, while endorsing regulatory measures including banning certain investment vehicles such as exchange-traded funds and vetting of derivative-based financial instruments, cautions against becoming focussed on regulation alone as an answer. Also crucial is the promotion of non-derivative, socially-based mechanisms to protect farmers and consumers from volatile food prices, as well as price interventions that do not pit Northern farmers against their Southern counterparts.