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An exploration of commodity income stabilization options for coffee farmers - page 39 / 47

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with the World Bank Group so that reimbursement obligations for these loans are directly linked to key commodity prices.

For the international community

  • The international community should support all the above efforts.

  • Organizations with domain expertise (UNCTAD, World Bank) should continue and expand their long-standing efforts (from awareness-raising, training and advocacy to institution-building and policy advice) to familiarize developing country entities with modern price risk management markets, and to overcome market access barriers; the donor community should much expand their support to this work.

  • International organizations should support further applied research on innovative risk mitigation tools, such as weather risk, disaster risk and ways to securitize risks on the capital market.

  • International organizations should examine to what extent the success of their own interventions are dependent on commodity price risk, and take the necessary measures to manage this exposure ex ante, rather than after the fact.

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