Slow start for World Bank hedging programme

A task force established by the World Bank to help producers in emerging markets manage commodity price risk has had difficulty getting off the ground. Sarfraz Thind explores the challenges the project faces

The World Bank’s international task force for the management of commodity risk, set up in 1999 to promote derivatives use among commodity producers in developing countries, is backed by some of the biggest firms on Wall Street. But in spite of this, the group has had a difficult time getting its project off the ground.

The organisation’s intention is to help small emerging markets producers hedge commodity price risks, which have been very volatile in recent times. According to the World