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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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  • Arvind Panagariya, 2005. "Agricultural Liberalisation and the Least Developed Countries: Six Fallacies," The World Economy, Wiley Blackwell, vol. 28(9), pages 1277-1299, September.
  • Handle: RePEc:bla:worlde:v:28:y:2005:i:9:p:1277-1299
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    Cited by:

    1. Renuka Mahadevan & John Asafu-Adjaye, 2010. "The Implications Of European Union Sugar Price Cuts, Economic Partnership Agreement, And Development Aid For Fiji," Contemporary Economic Policy, Western Economic Association International, vol. 28(1), pages 52-64, January.
    2. Prabhakar, S.V.R.K. & Elder, Mark, 2009. "Biofuels and resource use efficiency in developing Asia: Back to basics," Applied Energy, Elsevier, vol. 86(Supplemen), pages 30-36, November.
    3. Tedesco, Ilaria & Pelloni, Alessandra & Trovato, Giovanni, 0. "Oecd Agricultural Subsidies And Poverty Rates In Lower Income Countries," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3.
    4. Panagariya, Arvind, 2013. "Challenges to the multilateral trading system and possible responses," Economics Discussion Papers 2013-3, Kiel Institute for the World Economy (IfW).
    5. 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 25471, International Association of Agricultural Economists.
    6. Renuka Mahadevan & John Asafu-Adjaye, 2013. "Unilateral Liberalisation or Trade Agreements: Which Way Forward for the Pacific?," The World Economy, Wiley Blackwell, vol. 36(10), pages 1355-1372, October.
    7. Rocchi, Benedetto & Romano, Donato & Hamza, Raid, 2013. "Agriculture reform and food crisis in Syria: Impacts on poverty and inequality," Food Policy, Elsevier, vol. 43(C), pages 190-203.
    8. Alan Matthews & Tom Giblin, 2006. "Policy Coherence, Agriculture and Development," The Institute for International Integration Studies Discussion Paper Series iiisdp112, IIIS.
    9. Sacchidananda Mukherjee & Debashis Chakraborty & Julien Chaisse, 2014. "Influence of Subsidies on Exports empirical estimates,policy evidences and regulatory prospects," Working Papers 1422, Indian Institute of Foreign Trade.
    10. Gautam, Madhur, 2015. "Agricultural Subsidies: Resurging Interest in a Perennial Debate," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(1).
    11. 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).
    12. Ole Boysen & Hans Grinsted Jensen & Alan Matthews, 2016. "Impact of EU agricultural policy on developing countries: A Uganda case study," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(3), pages 377-402, June.
    13. 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 28, International Food Policy Research Institute (IFPRI).
    14. Urban, Kirsten & Jensen, Hans G. & Brockmeier, Martina, 2016. "How decoupled is the Single Farm Payment and does it matter for international trade?," Food Policy, Elsevier, vol. 59(C), pages 126-138.

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