Food prices and the nature of government

  • 22/04/2008

  • Daily Star (Bangladesh)

AMID the intense suffering and pain generated by food inflation, our understanding of its causes is getting murkier. This issue is, predictably but unfortunately, getting increasingly politicised. Any sound and sustainable solution requires a sound understanding of the issue. Food inflation is now a macro and global phenomenon. Global price developments are pushing food prices higher all over the world. But vocal and populist, and often fact-free, debates at home are suggesting otherwise. At a macro-level, how much of overall food inflation can we empirically and directly attribute to our current government? How much of it is just bad-luck or bad-karma? A good way to answer these questions would be to compare food inflation in Bangladesh with that in another relatively well-managed economy. Here, I compare food inflation in Bangladesh with that in Vietnam. This article, of course, is premised on the assumption that Vietnam is a well-managed economy. I picked Vietnam as a comparator for the following features: