Troubled Futures? The Global Food Crisis and the Politics of Agricultural Derivatives Regulation

Abstract:

The global food crisis of 2007–08 triggered an important US-led initiative to tighten regulations over agricultural derivatives markets. The lead role of the US reflected its structural power in global finance and the influence of societal interests within the US concerned about the rapid growth of financial investment in agricultural derivatives markets over the past decade. Encouraged by market developments and deregulation in the United States, these investments represented a “financialization” of agriculture that was blamed for contributing for global food price volatility. In their push for tighter regulation, US domestic groups were able to boost their influence by allying with other domestic actors concerned about volatile energy prices and by linking their cause to the broader politics of financial reform in the wake of the 2008 financial crisis. This episode has important lessons for the literatures analyzing the IPE of both food and finance.

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Publisher's Version

Last updated on 08/29/2017