Derivatives and Development

system and modern financial engineering. Derivatives can help farmers to hedge against the risks of volatile commodity markets, but they also can fuel speculation and increase volatility. In the absence of corrective policies, the dangers for small farmers may outweigh the benefits." - James Boyce, professor of Economics at the University of Massachusetts-Amherst

"Derivatives and Development illustrates not only the limits of these instruments for supporting poor farmers, associated with market imperfections, short-term biases and costs, but also the fact that they may strengthen commodity chains that enhance inequalities. In this context, it suggests concrete alternatives to transform the commodity chains. It should be critical reading for students of development, finance and political economy. - José Antonio Ocampo, professor, Columbia University, former United Nations Under-Secretary-General for Economic and Social Affairs and minister of Finance of Colombia