Strategic Aspects of IIASA’S Food and Agriculture Model

International agencies, sponsored by national governments, should fmally help to improve the welfare, either of certain regions, of certain people or, if possible, of the whole world. In case of hunger one might, for instance, try to smooth supply by an international agency which buys excess supply in years with rich harvests and sells its stocks in case of bad harvests. Such an institution can help both producers and consumers by guaranteeing the former stable prices and thus more reliable expectations for remaining in business, the latter no suffering from hunger. Since the institution will typically buy food when prices are relatively low and sell when prices are relatively high and since modern storage facilities are rather cheap, this may allow a considerable improve in the state of the world at relatively low costs.