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Meso-economic filters along the policy chain: understanding the links between policy reforms and rural poverty in latin America

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  • Zezza, Alberto
  • Llambí, Luis

Abstract

The policy reforms introduced in Latin America in the 1980s and 1990s have induced profound and beneficial changes in the overall productive structure of most Latin American countries, and particularly concerning the increased competitiveness and profitability of some agro-export activities. Yet, even if a relatively stable macroeconomic environment has been achieved, agricultural price distortions have been removed, and inefficient governmental agencies serving the sector have been dismantled, high levels of rural poverty remain in the region. What went wrong? How have the intended impacts of the reforms been transmitted to the rural sector, and how have farmers responded to the newly created incentive structure, and how has this influenced the observed poverty outcomes?The paper is organised into four parts. Part one provides stylised background information about policy reforms and rural poverty outcomes in Latin America. In the second part two main bodies of literature are reviewed: a) the 'meso-economy' level of market mechanisms, institutional arrangements, and the administrative procedures mediating the 'public' provision of goods and services; and b) the 'micro-economy' level of rural farm household models. In the third part, the insights provided by these two bodies of literature are used to develop an analytical framework integrating the macro-economy to agricultural household models, as mediated by the mesoeconomy links. Finally, in the fourth part some policy implications are drawn and research guidelines proposed.

Suggested Citation

  • Zezza, Alberto & Llambí, Luis, 2002. "Meso-economic filters along the policy chain: understanding the links between policy reforms and rural poverty in latin America," ESA Working Papers 289106, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
  • Handle: RePEc:ags:faoaes:289106
    DOI: 10.22004/ag.econ.289106
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    2. Thomas Lamarche & Martino Nieddu & Pascal Grouiez & Jean-Pierre Chanteau & Agnès Labrousse & Sandrine Michel & Julien Vercueil, 2015. "A regulationist method of meso-analysis [Les régulations mésoéconomiques : saisir la variété des espaces de régulation]," Post-Print hal-01163875, HAL.
    3. Matkovskyy, Roman, 2012. "A meso-level representation of economic systems: a theoretical approach," MPRA Paper 44093, University Library of Munich, Germany, revised Jan 2013.
    4. Siegel, Paul B., 2005. "Using an asset-based approach to identify drivers of sustainable rural growth and poverty reduction in Central America : a conceptual framework," Policy Research Working Paper Series 3475, The World Bank.
    5. Hans G.P. Jansen & Paul B. Siegel & Jeffrey Alwang & Francisco Pichón, 2005. "Geography, Livelihoods and Rural Poverty in Honduras: An Empirical Analysis using an Asset-base Approach," Ibero America Institute for Econ. Research (IAI) Discussion Papers 134, Ibero-America Institute for Economic Research.
    6. Stein Kristiansen, 2007. "Entry Barriers in Rural Business," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 16(1), pages 53-76, March.
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    8. Charis Vlados & Dimos Chatzinikolaou & Michail Demertzis, 2020. "The Case of the European South on Entrepreneurship Enhancement Policies," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(1), pages 45-56.
    9. Marcio Pereira Cordeiro & João Garibaldi Almeida Viana & Vicente Celestino Pires Silveira, 2022. "Influence of Meso-Institutions on Milk Supply Chain Performance: A Case Study in Rio Grande Do Sul, Brazil," Agriculture, MDPI, vol. 12(4), pages 1-14, March.
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    11. Stuart Holland & Andrew Black, 2018. "Cherchez la Firme: Redressing the Missing – Meso – Middle in Mainstream Economics," Economic Thought, World Economics Association, vol. 7(2), pages 15-53, November.
    12. World Bank, 2004. "Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Nicaragua Case Study, Volume 1. Executive Summary and Main Text," World Bank Publications - Reports 14554, The World Bank Group.
    13. Alwang, Jeffrey & Jansen, Hans G.P. & Siegel, Paul B. & Pichon, Francisco, 2005. "Geographic space, assets, livelihoods and well-being in rural Central America: empirical evidence from Guatemala, Honduras and Nicaragua," DSGD discussion papers 26, International Food Policy Research Institute (IFPRI).
    14. Jansen, Hans G.P. & Siegel, Paul B. & Pichón, Francisco, 2005. "Identifying the drivers of sustainable rural growth and poverty reduction in Honduras," DSGD discussion papers 19, International Food Policy Research Institute (IFPRI).
    15. Thomas Lamarche & Pascal Grouiez & Martino Nieddu & Jean-Pierre Chanteau & Agnès Labrousse & Sandrine Michel & Julien Vercueil, 2021. "Saisir les processus méso : une approche régulationniste," Post-Print hal-02998010, HAL.
    16. World Bank, 2004. "Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Guatemala Case Study, Volume 1. Executive Summary and Main Text," World Bank Publications - Reports 14560, The World Bank Group.
    17. World Bank, 2004. "Drivers of Sustainable Rural Growth and Poverty Reduction in Central America : Honduras Case Study, Volume 1. Executive Summary and Main Text," World Bank Publications - Reports 14399, The World Bank Group.
    18. Alwang, Jeffrey & Jansen, Hans G.P. & Siegel, Paul B. & Pichon, Francisco, 2006. "El espacio geográfico, los activos, los medios de vida y el bienstar en las zonas rurales de CentroAmérica: evidencia empirica de Guatemala, Honduras y Nicaragua," DSGD discussion papers 26SP, International Food Policy Research Institute (IFPRI).

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