Governments need the capacity to manage price instability and its social consequences; but in countries where people suffer most, they are least able to respond, because of limited fiscal and institutional resources. This article argues that policies used by middle- and high-income countries are unsuitable for poorer, agricultural countries; it recommends instead that these nations promote broader access to land and raise land productivity. The authors explain why instruments used by richer countries, such as those that control prices and cheapen food, fail in poorer countries.
