Food Security vs. Food Self-Sufficiency: The Indonesian Case
AbstractFood security is an important social objective and relying on international food markets to meet the needs of Indonesia's growing population is precarious. The policy of restricting food imports through tariffs or quantitative restrictions promotes the goal of food self-sufficiency, but does so at the cost of reducing the food security of the most vulnerable people â€“ the poorest net consumers of rice. These policies reduce imports through the mechanism of raising the domestic price. The poorest consumers bear the greatest burden from this policy because they are the people for whom expenditures on food form the largest proportion of their household budgets. A preferable strategy for raising self-sufficiency is to promote improved agricultural productivity. This reduces imports by raising agricultural output but does so without raising the domestic price of food and so without creating a conflict between the goals of higher levels of self-sufficiency on the one hand and food security and poverty reduction on the other. Unfortunately, Indonesia's commitment to raising agricultural productivity has seemingly waned. Finally, Indonesia has already demonstrated that practical mechanisms can be designed for shielding poor consumers from price increases that would otherwise be harmful, by designing systems of Conditional Cash Transfers.
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Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2011-04.
Length: 24 pages
Date of creation: 2011
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Food security; poverty incidence; rice policy;
Find related papers by JEL classification:
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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- Peter Warr & Arief Anshory Yusuf, 2013.
"Fertilizer Subsidies and Food Self-Sufficiency in Indonesia,"
Departmental Working Papers
2013-08, The Australian National University, Arndt-Corden Department of Economics.
- Peter Warr & Arief Anshory Yusuf, 2013. "Fertilizer Subsidies and Food Self-sufficiency in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201309, Department of Economics, Padjadjaran University, revised May 2013.
- Anderson, Kym & Strutt, Anna, 2012. "Asia’s Growth, the Changing Geography of World Trade, and Food Security: Projections to 2030," CEPR Discussion Papers 8950, C.E.P.R. Discussion Papers.
- Peter Warr & Arief Anshory Yusuf, 2013. "World Food Prices and Poverty in Indonesia," Departmental Working Papers 2013-07, The Australian National University, Arndt-Corden Department of Economics.
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