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CAP Reform, the Berlin Summit, and EU Enlargement

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  • Schrader, Jörg-Volker

Abstract

The paper discusses the decisions on the CAP in the context of the Berlin summit. In a rather broad perspective the agricultural sectoral and related objectives are analyzed for their consistency and compatability with higher ranking societal objectives. The policies' allocational and distributional consequences are assessed in a qualitative manner by comparing them with a hypothetical first-best policy. The analysis focusses on the distortions in land allocation between agriculture, forestry and environmental purposes as well as on distributional consequences, taking into account the envisaged eastern enlargement. Among the consequences are excessive budget outlays and high economic rents for landowners, who are increasingly no active farmers themselves. Finally, problems of implementing a liberal CAP reform are discussed.

Suggested Citation

  • Schrader, Jörg-Volker, 2000. "CAP Reform, the Berlin Summit, and EU Enlargement," Kiel Working Papers 973, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:973
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    References listed on IDEAS

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    1. Carsten Daugbjerg, 1999. "Reforming the CAP: Policy Networks and Broader Institutional Structures," Journal of Common Market Studies, Wiley Blackwell, vol. 37(3), pages 407-428, September.
    2. Anderson, Kym, 1999. "The WTO Agenda for the New Millennium," The Economic Record, The Economic Society of Australia, vol. 75(228), pages 77-88, March.
    3. Schrader, Jörg-Volker, 1993. "EG-Agrarreform und GATT-Vereinbarungen: Vom Leistungseinkommen zur Quasi-Rente," Kiel Discussion Papers 217, Kiel Institute for the World Economy (IfW Kiel).
    4. Tangermann, Stefan, 1999. "The European Union Perspective on Agricultural Trade Liberalization in the WTO," Working Papers 157500, University of Guelph, Department of Food, Agricultural and Resource Economics.
    5. Janet M. Egdell & Kenneth J. Thomson, 1999. "The Influence of UK NGOs on the Common Agricultural Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 37(1), pages 121-131, March.
    6. Josling, Tim & Tangermann, Stefan, 1999. "Implementation of the WTO Agreement on Agriculture and Developments for the Next Round of Negotiations," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(3), pages 371-388, August.
    7. Swinbank, Alan, 1999. "CAP Reform and the WTO: Compatibility and Developments," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(3), pages 389-407, August.
    8. Corden, W. M., 1971. "The substitution problem in the theory of effective protection," Journal of International Economics, Elsevier, vol. 1(1), pages 37-57, February.
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    Citations

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    Cited by:

    1. Csaba, László, 2002. "Az átalakulás fejlődéselmélete [The development theory of the transformation]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 273-291.
    2. Petrick, Martin, 2004. "Governing Structural Change And Externalities In Agriculture: Toward A Normative Institutional Economics Of Rural Development," IAMO Discussion Papers 14878, Institute of Agricultural Development in Transition Economies (IAMO).
    3. Gramzow, Andreas, 2009. "Rural development as provision of local public goods: Theory and evidence from Poland," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 51, number 92313.
    4. Boss, Alfred & Rosenschon, Astrid, 2002. "Subventionen in Deutschland: Quantifizierung und finanzpolitische Bewertung," Kiel Discussion Papers 392/393, Kiel Institute for the World Economy (IfW Kiel).
    5. Boss, Alfred & Rosenschon, Astrid, 2008. "Der Kieler Subventionsbericht: eine Aktualisierung," Kiel Discussion Papers 452/453, Kiel Institute for the World Economy (IfW Kiel).
    6. Wolfgang Quaisser & John Hall, 2002. "Toward Agenda 2007 : Preparing the EU for Eastern Enlargement," Working Papers 240, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).

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    More about this item

    Keywords

    CAP reform; land allocation; land rents; EU enlargement; rural development;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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