Monday 01 September
2008, San José, Costa
Rica
ECLA Proposes
Measures Against Impact From Food Price
Hikes
Colombia Crisis Brews,
Uribe Stews
Colombia Alerts Public
Over Probable
Contamination Of River
Venezuela Rejects Visit
Of U.S. Anti-Drug Chief
Venezuela Energizes
South Bank Initiative
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ECLA Proposes Measures
Against Impact From Food
Price Hikes
SANTIAGO - The U.N.
Economic Commission for
Latin America (ECLA)
Sunday recommended
administrative measures
and fiscal policies to
tackle rising food and
fuel prices in the
region.
In its "Economic study
2007-2008," ECLA said
that a 15-percent hike
in the value of these
products means a
3-percent rise in
poverty rate, or 15
million more people.
"There is a rising call
for the government to
contain the growing
prices at the domestic
market, which have
caused deterioration in
the income levels of
people with less
resources," ECLA said.
Focalized programs, with
lower fiscal costs, are
more efficient in the
long run, although it
may be somewhat
difficult to implement
in the short term, said
ECLA.
The report shows
countries in the region
have applied different
alternatives to lighten
the impact, including
administrative measures
and fiscal or commercial
policy tools.
Compensation measures
such as tax cuts and
price control, limits on
food exports and
reduction or elimination
of import restrictions
were frequently used in
countries in the region.
ECLA encouraged more
bilateral agreements on
food or grain imports,
additional food
subsidies, government
purchase on world market
for sales at lower
prices at home and
favorable policies for
fertilizer and other
farming materials.
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