IMF to Host Seminar on Impact of Commodity Price Volatility

Leaders from development world to gather at major IMF conference

Discussions include mitigating impact of commodity price volatility

Participants to debate how to achieve inclusive growth

The one-day gathering—part of the IMF-World Bank Annual Meetings in Washington DC—will be attended by leading names from the world of development, including two Nobel Prize winners; the head of the United Nations World Food Program; finance ministers and central bank governors from around the world; and top economists including Jeffrey Sachs, Paul Collier, Jeffrey Frankel, and Abhijit Banerjee.

The IMF’s Managing Director, Christine Lagarde, will open the conference which is expected to be attended by more than two hundred attendees.

Challenges facing low-income countries

Some low-income countries have benefited from higher commodity export prices in recent years, but the conference comes as many other, commodity-importing countries are facing difficulties because of rapidly rising food and fuel prices.

Fragile states, including Somalia, are currently suffering the most from high commodity prices and it is estimated that more than 12 million people in the Horn of Africa are facing famine as the region confronts the worst drought in over half a century.

The conference will hear from Josette Sheeran, the head of the World Food Program, about her recent visit to Somalia and Kenya to assess the impact of the famine in the region.

Most low-income countries have enjoyed a strong economic recovery following the global financial crisis. Many of these countries were able to use available fiscal resources which they had accumulated thanks to more prudent policies, in order to mitigate the consequences of the global slump. But with a deteriorating economic situation in many parts of the world, they remain highly vulnerable to the risk of a double-dip recession.

New policy options

The seminar will explore new options for low-income countries to respond to commodity price volatility, including potential roles for monetary policy and the exchange rate as weapons against commodity price increases.

Hugh Bredenkamp, of the IMF’s African Department, will make a presentation—“Higher Commodity Prices in an Uncertain Global Environment”—in which he will highlight vulnerabilities and discuss policy options.

The keynote addresses will be given by the Nobel laureate, Joseph Stiglitz, who will speak on “Globalization...