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Agricultural Liberalisation and the Least Developed Countries: Six Fallacies

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  • Arvind Panagariya

Abstract

Today, agriculture remains the most distorted sector of the world economy. Therefore, agricultural liberalisation in the Doha negotiations is rightly the top priority. But the public-policy discourse on the subject remains fogged by a number of fallacies. These fallacies probably originated with the leadership of the World Bank but have now been embraced by the IMF, OECD, Oxfam and the leading academic critics of globalisation. The paper identifies six fallacies and offers evidence and analysis to debunk them: (1) Agricultural border protection and subsidies are largely a developed-country phenomenon. (2) Developed-country agricultural subsidies and protection hurt the poorest developing countries most. (3) Developed-country subsidies and protection hurt the poor, rural households in the poorest countries. (4) Developed-country agricultural protection and subsidies constitute the principal barrier to the development of the poorest developing countries. (5) Agricultural protection reflects double standard and hypocrisy on the part of the developed countries. (6) What the donor countries give with one hand (aid), they take away with the other (farm subsidies). Copyright Blackwell Publishing Ltd 2005.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal World Economy.

Volume (Year): 28 (2005)
Issue (Month): 9 (09)
Pages: 1277-1299

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Handle: RePEc:bla:worlde:v:28:y:2005:i:9:p:1277-1299

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Cited by:
  1. Rocchi, Benedetto & Romano, Donato & Hamza, Raid, 2013. "Agriculture reform and food crisis in Syria: Impacts on poverty and inequality," Food Policy, Elsevier, Elsevier, vol. 43(C), pages 190-203.
  2. Bureau, Jean-Christophe & Jean, Sebastien & Matthews, Alan, 2006. "The Consequences of Agricultural Trade Liberalization for Developing Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia, International Association of Agricultural Economists 25471, International Association of Agricultural Economists.
  3. Ole Boysen & Hans Grinsted Jensen & Alan Matthews, 2014. "Impact of EU agricultural policy on developing countries: A Uganda case study," The Institute for International Integration Studies Discussion Paper Series, IIIS iiisdp452, IIIS.
  4. Hewitt, Joanna, 2008. "Impact evaluation of research by the International Food Policy Research Institute on agricultural trade liberalization, developing countries, and WTO's Doha negotiations:," Impact assessments, International Food Policy Research Institute (IFPRI) 28, International Food Policy Research Institute (IFPRI).
  5. McCalla, Alex F., 2007. "Implications of WTO Developments for Market Integration," 2007 NAAMIC Workshop IV: Contemporary Drivers of Integration, North American Agrifood Market Integration Consortium (NAAMIC) 163900, North American Agrifood Market Integration Consortium (NAAMIC).
  6. Alan Matthews & Tom Giblin, 2006. "Policy Coherence, Agriculture and Development," The Institute for International Integration Studies Discussion Paper Series, IIIS iiisdp112, IIIS.
  7. Panagariya, Arvind, 2013. "Challenges to the multilateral trading system and possible responses," Economics Discussion Papers 2013-3, Kiel Institute for the World Economy.

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