Reducing distortions to agricultural incentives : progress, pitfalls, and prospects
AbstractMost of the world's poorest people depend on farming for their livelihood. Earnings from farming in low-income countries are depressed partly due to a pro-urban bias in own-country policies, and partly because richer countries (including some developing countries) favor their farmers with import barriers and subsidies. Both sets of policies reduce national and global economic growth and add to inequality and poverty in developing countries. Acknowledgement of that since the 1980s has given rise to greater pressures for reform, both internal and external. Over the past two decades numerous developing country governments have reduced their sectoral and trade policy distortions, while many high-income countries continue with protectionist policies that harm developing country exports of farm products. Recent research suggests that the agricultural protectionist policies of high-income countries reduce welfare in many developing countries. Most of those studies also suggest that full global liberalization of merchandise trade would raise value added in agriculture in developing country regions, and that much of the benefit from global reform would come not just from reform in high-income countries but also from liberalization among developing countries, including in many cases own-country reform. These findings raise three key questions that are addressed in this paper: To what extent have the reforms of the past two decades succeeded in reducing distortions to agricultural incentives? Do current policy distortions still discriminate against farmers in low-income countries? And what are the prospects for further reform in the next decade or so?
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4092.
Date of creation: 01 Dec 2006
Date of revision:
Economic Theory&Research; Agribusiness; Free Trade; Rural Development Knowledge&Information Systems; Achieving Shared Growth;
Other versions of this item:
- Kym Anderson, 2006. "Reducing Distortions to Agricultural Incentives: Progress, Pitfalls, and Prospects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1135-1146.
- NEP-AGR-2007-01-13 (Agricultural Economics)
- NEP-ALL-2007-01-13 (All new papers)
- NEP-DEV-2007-01-13 (Development)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francois, Joseph F. & Martin, Will, 2004.
"Commercial policy variability, bindings, and market access,"
European Economic Review,
Elsevier, vol. 48(3), pages 665-679, June.
- Francois, Joseph & Martin, Will, 2002. "Commercial Policy Variability, Bindings and Market Access," CEPR Discussion Papers 3294, C.E.P.R. Discussion Papers.
- Joseph Francois & Will Martin, 2002. "Commercial Policy Variability, Bindings, and Market Access," International Trade 0210002, EconWPA.
- Wiebelt, Manfred & Herrmann, Roland & Schenck, Patricia & Thiele, Rainer, 1992. "Discrimination against agriculture in developing countries?," Open Access Publications from Kiel Institute for the World Economy 458, Kiel Institute for the World Economy (IfW).
- Tyers,Rod & Anderson,Kym, 2011.
"Disarray in World Food Markets,"
Cambridge University Press, number 9780521172318, October.
- Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009.
"Estimating Trade Restrictiveness Indices,"
Royal Economic Society, vol. 119(534), pages 172-199, 01.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating Trade Restrictiveness Indices," CEPR Discussion Papers 5576, C.E.P.R. Discussion Papers.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
- Jesper Jensen & Thomas Rutherford & David Tarr, 2007.
"The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization,"
Review of Development Economics,
Wiley Blackwell, vol. 11(3), pages 482-506, 08.
- Jensen, Jesper & Rutherford, Thomas & Tarr, David, 2004. "The impact of liberalizing barriers to foreign direct investment in services - the case of Russian accession to the World Trade Organization," Policy Research Working Paper Series 3391, The World Bank.
- Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005.
"Distortions to world trade: impacts on agricultural markets and farm incomes,"
Policy Research Working Paper Series
3736, The World Bank.
- Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Distortions to World Trade: Impacts on Agricultural Markets and Farm Incomes," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 168-194.
- Melitz, Marc J, 2002.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,"
CEPR Discussion Papers
3381, C.E.P.R. Discussion Papers.
- Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
- Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
- Stefan Tangermann, 2005. "Organisation for Economic Co-operation and Development Area Agricultural Policies and the Interests of Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1128-1144.
- Blalock, Garrick & Gertler, Paul J., 2004. "Learning from exporting revisited in a less developed setting," Journal of Development Economics, Elsevier, vol. 75(2), pages 397-416, December.
- Henning Tarp Jensen & Sherman Robinson & Finn Tarp, 2004.
"General Equilibrium Measures of Agricultural Policy Bias in Fifteen Developing Countries,"
04-25, University of Copenhagen. Department of Economics.
- Jensen, Henning Tarp & Robinson, Sherman & Tarp, Finn, 2002. "General equilibrium measures of agricultural policy bias in fifteen developing countries," TMD discussion papers 105, International Food Policy Research Institute (IFPRI).
- Valdes, A., 2000. "Agricultural Support Policies in Transition Economies," Papers 470, World Bank - Technical Papers.
- Anderson, Kym, 1993.
"Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries,"
CEPR Discussion Papers
789, C.E.P.R. Discussion Papers.
- Anderson, Kym, 1995. "Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 43(2), pages 401-23, January.
- Hayami, Yujiro, 2007.
"An Emerging Agricultural Problem in High-Performing Asian Economies,"
Agricultural Distortions Working Paper
48635, World Bank.
- Hayami, Yujiro, 2007. "An emerging agricultural problem in high-performing Asian economies," Policy Research Working Paper Series 4312, The World Bank.
- Hayami, Yujiro, 2005. "An Emerging Agricultural Problem in High-Performing Asian Economies," Miscellaneous Papers 11826, Agecon Search.
- Rodrik, Dani, 1995. "Political economy of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 28, pages 1457-1494 Elsevier.
- Anderson, Kym, 2005.
"Setting the trade policy agenda : What roles for Economists?,"
Policy Research Working Paper Series
3560, The World Bank.
- Kym Anderson, 2005. "Setting the trade policy agenda: what roles for economists?," Centre for International Economic Studies Working Papers 2005-13, University of Adelaide, Centre for International Economic Studies.
- Anderson, Kym, 2004. "Setting the Trade Policy Agenda: What Roles for Economists?," Working Papers 14574, International Agricultural Trade Research Consortium.
- Gulati, Ashok & Narayanan, Sudha, 2003. "The Subsidy Syndrome in Indian Agriculture," OUP Catalogue, Oxford University Press, number 9780195662061, Octomber.
- Valdes, A, 1996. "Surveillance of Agricultural Price and Trade Policy in Latin America during Major Policy Reform," World Bank - Discussion Papers 349, World Bank.
- Sourafel Girma & David Greenaway & Richard Kneller, 2004. "Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 855-866, November.
- Kym Anderson & Lee Ann Jackson, 2005.
"Some Implications of GM Food Technology Policies for Sub-Saharan Africa,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 14(3), pages 385-410, September.
- Kym Anderson & Lee Ann Jacskon, 2004. "Some Implications of GM Food Technology Policies for Sub-Saharan Africa," Centre for International Economic Studies Working Papers 2004-09, University of Adelaide, Centre for International Economic Studies.
- Per Pinstrup-Andersen, 2002. "Food and Agricultural Policy for a Globalizing World: Preparing for the Future," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1201-1214.
- David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
- Townsend, R.F., 1999. "Agriculture Incentives in Sub-Saharan Africa. Policy Challanges," Papers 444, World Bank - Technical Papers.
- Rainer Thiele, 2002. "The Bias Against Agriculture in Sub-Saharan Africa: Has It Survived 20 Years of Structural Adjustment Programs?," Kiel Working Papers 1102, Kiel Institute for the World Economy.
- Lopez, Ramon & Galinato, Gregmar I., 2007. "Should governments stop subsidies to private goods? Evidence from rural Latin America," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1071-1094, June.
- Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," World Bank Economic Review, World Bank Group, vol. 2(3), pages 255-71, September.
- Isgut, Alberto & Fernandes, Ana, 2007. "Learning-by-Exporting Effects: Are They for Real?," MPRA Paper 3121, University Library of Munich, Germany.
- kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade 0503003, EconWPA.
- Walter P. Falcon & Rosamond L. Naylor, 2005. "Rethinking Food Security for the Twenty-First Century," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1113-1127.
- Will Martin & Kym Anderson, 2006. "The Doha Agenda Negotiations on Agriculture: What Could They Deliver?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1211-1218.
- Acharya, Sanjaya, 2011. "Making unilateral trade liberalisation beneficial to the poor," Socio-Economic Planning Sciences, Elsevier, vol. 45(2), pages 60-71, June.
- Hawkes, Corinna & Friel, Sharon & Lobstein, Tim & Lang, Tim, 2012. "Linking agricultural policies with obesity and noncommunicable diseases: A new perspective for a globalising world," Food Policy, Elsevier, vol. 37(3), pages 343-353.
- Rainer Klump & César Miralles Cabrera, 2008. "Biased Technological Change in Agriculture: The Hayami-Ruttan Hypothesis Revisited," DEGIT Conference Papers c013_016, DEGIT, Dynamics, Economic Growth, and International Trade.
- Benjamin N. Dennis & Talan Iscan, 2007. "Agricultural Distortions, Structural Change, and Economic Growth: A Cross-Country Analysis," Department of Economics at Dalhousie University working papers archive distort35, Dalhousie, Department of Economics.
- McCalla, Alex F., 2007. "Implications of WTO Developments for Market Integration," 2007 NAAMIC Workshop IV: Contemporary Drivers of Integration 163900, North American Agrifood Market Integration Consortium (NAAMIC).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.