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Market-Distorting Policies: Long-Run Trends and Short-Run Insulation

In: Agricultural Trade, Policy Reforms, and Global Food Security

Author

Listed:
  • Kym Anderson

    (University of Adelaide
    Australian National University)

Abstract

Agricultural protection and subsidies in high-income countries have been depressing international prices of farm products for many decades, while governments of many newly independent developing countries maintained anti-agricultural policies. Since those policies had an anti-trade bias, the quantity of farm products traded internationally was less, which made international food prices more volatile. From the mid-1980s, however, many countries have been reforming their trade-related policies. When placed in historical perspective, the reforms since the mid-1980s are as dramatic as the policy changes in the preceding three decades. Despite those policy reforms, most countries continue to insulate their domestic food markets from the full force of fluctuations in international prices, and plenty of diversity in price distortions remains across countries, and across commodities within each country.

Suggested Citation

  • Kym Anderson, 2016. "Market-Distorting Policies: Long-Run Trends and Short-Run Insulation," Palgrave Studies in Agricultural Economics and Food Policy, in: Agricultural Trade, Policy Reforms, and Global Food Security, chapter 0, pages 85-112, Palgrave Macmillan.
  • Handle: RePEc:pal:psachp:978-1-137-46925-0_5
    DOI: 10.1057/978-1-137-46925-0_5
    as

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