Loading component...
Global Food Crisis and Food Shock Window - Frequently Asked Questions
October 4, 2022
IMF Staff Note: Tackling the Global Food Crisis: Impact, Policy Response, and the Role of the IMF
Blog: Global Food Crisis Demands Support for People, Open Trade, Bigger Local Harvests
Proposal for a Food Shock Window Under the Rapid Financing Instrument and Rapid Credit Facility
Proposal for a Staff-Monitored Program with Executive Board Involvement
The IMF provides policy advice, capacity development, and financial support to help member countries tackle the global food crisis. Nearly 50 countries are severely affected by the global food crisis; those experiencing severe macroeconomic challenges, weak institutions, and a fragile socio-political environment are most vulnerable. The Fund is working closely with partners to strengthen the international response, including the World Bank, the World Food Program, the World Trade Organization, and the Food and Agriculture Organization.
In response to the global food crisis, the Fund is helping countries by:
Identifying pressures and helping countries formulate effective policies. The Fund provides policy advice to member countries impacted by the global food crisis. By combining information on the balance of payments impact of higher food and fertilizer prices with insights on vulnerabilities and risks –including debt sustainability—the Fund helps identify the countries that are most likely to encounter acute financing pressures and advises country authorities on policy responses. For example, our policy advice can help countries address food insecurity by strengthening social safety nets and also avoid export restrictions.
Providing financing to support country responses to the global food crisis. Fund financing is helping countries meet balance of payments needs associated with the global food shock. Since Russia’s invasion of Ukraine, new Fund-supported economic programs in Benin, Cabo Verde, Georgia, Mozambique, Tanzania, and Zambia, included policies to address the impact of the food crisis. Additional financing for existing programs in Jordan, Moldova, Pakistan, and Senegal provided support to strengthen social safety nets and help countries address BOP problems associated with food insecurity.
In addition, the new Food Shock Window provides increased access under emergency financing instruments for countries that have urgent balance of payments needs associated with acute food insecurity, the rising costs of food and fertilizer imports, or substantial cereal export shortfalls.
The Food Shock Window under the emergency financing instruments, the Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI) approved by the Executive Board on September 30, 2022 and will be open for 12 months.
