Ethiopia: Impacts of the Ukraine and Global Crisis on Food Systems and Poverty
Food, fuel and fertilizer shocks have resulted in significant reductions in gross domestic product (GDP) and employment in Ethiopia.
Global food, fuel and fertilizer prices have risen rapidly in recent months, impacting economic stability, food security and poverty in developing countries. These case studies are part of a series prepared by the International Food Policy Research Institute (IFPRI) using data and models developed with support from USAID and CGIAR. The study utilized economy-wide models to simulate the impacts of global crises in many countries around the world, including Kenya and Ethiopia.
Food, fuel and fertilizer shocks have resulted in significant reductions in gross domestic product (GDP) and employment in Ethiopia. Poor and rural households are especially vulnerable and have suffered larger income losses. To address these challenges, IFPRI recommends that governments and development partners evaluate policy options that might mitigate food system shocks, poverty and food insecurity. Potential solutions include cash transfers, food aid, fertilizer subsidies and fiscal support.
This presentation was prepared by Xinshen Diao, Paul Dorosh, Mekamu Kedir Jemal and James Thurlow for IFPRI.