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Abstract

The dramatic increase of food prices in 2006-2008 appears to have fundamentally altered the widely shared view was that low food prices were a curse to developing countries and the poor. The vast majority of reports since then state that high food prices have a devastating effect on developing countries and the world’s poor. However, since many of the poor are farmers and, on average, consumers typically have higher incomes, food price increases may be pro-poor and reduce inequality.

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