1. Five Decades of Distortions to Agricultural Incentives
- Author
-
Anderson, Kym
- Subjects
INTERNATIONAL COMPETITION ,EXPORT SUBSIDIES ,VALUE ADDED ,WORLD TRADE ,FOOD PRICE ,COMMODITIES ,INFLATION ,PRICE SUPPORT ,AGRICULTURAL PROTECTION ,AGRICULTURAL LAND ,FOOD PRODUCT ,GOVERNMENT INTERVENTION ,SHORTFALL ,SOCIALIST ECONOMIES ,AGRICULTURAL SECTORS ,FARM INCOME ,IMPORT ,FARM INCOMES ,TRADE OPENNESS ,URBANIZATION ,INTERNATIONAL TRADE POLICIES ,TARIFF RATE ,PER CAPITA INCOME ,PRIMARY PRODUCTS ,TRADE AGREEMENTS ,AGRICULTURAL IMPORTS ,TRADE MOVEMENTS ,ECONOMETRIC ANALYSES ,FARMERS ,IMPORT TARIFF ,RURAL INFRASTRUCTURE ,EMERGING ECONOMIES ,AGRICULTURAL INDUSTRIES ,SUGAR ,GLOBAL OUTPUT ,LOW-INCOME COUNTRIES ,IMPORTS OF RICE ,GLOBAL ECONOMY ,FARM PRODUCTION ,DOMESTIC MARKETS ,IMPORT PROTECTION ,IMPORT-SUBSTITUTING INDUSTRIALIZATION ,BORDER PROTECTION ,BORDER MEASURES ,AGRICULTURAL POLICIES ,LEGAL CONSTRAINTS ,INDUSTRIALIZATION ,EXPORT ,FOOD PRODUCTION ,INCOME LEVELS ,AGREEMENT ON AGRICULTURE ,EQUILIBRIUM ,AGRICULTURAL PRICING ,IMPORT BARRIERS ,FARM SUBSIDIES ,POULTRY ,PER CAPITA INCOMES ,RICE PRICES ,MULTILATERAL TRADE ,WEALTH ,PUBLIC GOOD ,ADVANCED ECONOMIES ,WTO ,GDP ,AGRICULTURAL ECONOMICS ,TRADING SYSTEM ,FARM WORKERS ,OPEN ECONOMIES ,POLITICAL ECONOMY ,TAXATION ,OVERVALUED EXCHANGE RATES ,EXPORTS ,OUTPUTS ,QUANTITATIVE RESTRICTIONS ,INTERNATIONAL TRADE ,REGIONAL INTEGRATION ,FINANCIAL INSTITUTIONS ,AGRICULTURAL PRICES ,CURRENCY ,DIRECT PAYMENTS ,HOUSEHOLDS ,AGRICULTURAL RESEARCH ,EXPORT SUBSIDY ,INDUSTRIALIZATION STRATEGY ,FARM PRODUCTS ,IMPORT-SUBSTITUTING INDUSTRIALIZATION STRATEGY ,AGRICULTURAL GOODS ,FOREIGN EXCHANGE MARKET ,GROSS VALUE ,ECONOMIC HISTORY ,PRIVATIZATION ,URUGUAY ROUND ,MARKET DISTORTIONS ,DEVELOPING COUNTRIES ,COCOA TRADE ,GLOBAL MARKETS ,GLOBALIZATION ,CROPS ,HIGH-INCOME COUNTRIES ,COMPARATIVE ADVANTAGE ,TRADE TAXES ,LESS DEVELOPED ECONOMIES ,CURRENCY EXCHANGE ,EMERGING ECONOMY ,FINANCIAL INSTRUMENTS ,INTERNATIONAL PRICES ,FOREIGN TRADE ,AGRICULTURAL TARIFFS ,TAX ,FARM SECTOR ,HIGH-INCOME COUNTRY ,RATE QUOTAS ,DEVELOPING COUNTRY ,AGRICULTURAL PROTECTIONISM ,ECONOMIC GROWTH ,COUNTRY FIXED EFFECTS ,EXCHANGE RATES ,FARM ,DOMESTIC PRICE ,MILK ,AGRICULTURAL VALUE ,TECHNICAL ASSISTANCE ,DOMESTIC MARKET ,MARKET ECONOMIES ,IMPORT PRICE ,AGRICULTURAL PRODUCTION ,IMPORT-SUBSTITUTING INDUSTRIALIZATION STRATEGIES ,FOOD PRICES ,BALANCE SHEETS ,COMMERCIAL GROUPS ,DOMESTIC ECONOMY ,IMPORT TARIFFS ,TRADE-DISTORTING MEASURES ,AGRICULTURAL MARKETS ,COTTON ,AGRICULTURAL TRADE ,AGRICULTURAL EXPORTS ,GOVERNMENT INTERVENTIONS ,TRADE POLICY ,RISK MANAGEMENT ,WORLD TRADE ORGANIZATION ,CONSTANT DOLLARS ,IMPORT DUTIES ,SUPPLY SHOCKS ,DEVELOPMENT ECONOMICS ,POULTRY MEAT ,AGRICULTURAL PRICE ,FREE TRADE IN GOODS ,GLOBAL EXPORTS ,PRICE HIKES ,EXPORTERS ,PROTECTIVE MEASURES ,ROUND OF MULTILATERAL TRADE NEGOTIATIONS ,FARMS ,INTERNATIONAL MARKETS ,WAGES ,IMPORT CONTROLS ,RURAL AREAS ,NATIONAL INCOME ,EXPORTER ,DOMESTIC CONSUMERS ,NATIONAL ECONOMY ,RELATIVE PRICES ,TRADE RESTRICTIVENESS ,FARM COMMODITY ,TRADE POLICIES ,VOLUME ,AGRICULTURAL POLICY ,MARKET VOLATILITY ,FARM SUPPORT POLICIES ,ECONOMIC DEVELOPMENT ,FARM PRODUCT ,AGRICULTURE ,INTERNATIONAL PRICE ,AGRICULTURAL DEVELOPMENT ,FREE TRADE ,RAPID ECONOMIC GROWTH ,DEVELOPING ECONOMIES ,AGRICULTURAL INCENTIVES ,IMPORT RESTRICTIONS ,SUPERMARKETS ,FOREIGN EXCHANGE ,DEVELOPMENT STRATEGY ,LIBERALIZATION ,AGRICULTURAL EXPORT ,FOOD SECURITY ,FREER TRADE ,STANDARD DEVIATION ,MULTIPLE EXCHANGE RATES ,DOMESTIC PRODUCERS ,FREE MARKETS ,TRANSITION ECONOMIES ,AGRICULTURAL SECTOR ,WEIGHTS ,INEFFICIENCY ,AGRICULTURAL OUTPUT ,DOLLAR VALUES ,GRAIN ,IMPORTS ,COMMODITY MARKETS ,WORLD ECONOMY ,DATA AVAILABILITY ,AGRICULTURAL PRODUCTS ,FOOD PRODUCTS ,TRADE RESTRICTIONS ,FARM COMMODITIES ,LIVESTOCK ,PRICE DISTORTIONS ,ITC ,OPEN MARKETS ,DOMESTIC PRICES ,PRICE DISTORTION ,COMPARATIVE ADVANTAGES - Abstract
This chapter begins with a brief summary of the long history of national distortions to agricultural markets. It then outlines the methodology used to generate annual indicators of the extent of government interventions in markets, details of which are provided in Anderson and appendix A. A description of the economies under study and their economic growth and structural changes over recent decades is then briefly presented as a preface to the main section of the chapter, in which the nominal rates of assistance and consumer tax equivalents (NRA and CTE) estimates are summarized across regions and over the decades since the 1950s. These estimates are discussed in far more detail in the regional chapters that follow. A summary is also provided of an additional set of indicators of agricultural price distortions presented in chapter eleven that are based on the trade restrictiveness index first developed by Anderson and Neary (2005). In chapter twelve the focus shifts from countries to commodities, and all the various distortion indicators are used to provide a sense of how distorted are each of the key farm commodity markets globally. Then chapter thirteen uses the study's NRA and CTE estimates to provide a new set of results from a global economy-wide model that attempts to quantify the impacts on global markets, net farm incomes and welfare of the reforms since the early 1980s and of the policies still in place as of 2004. The chapter concludes by drawing on the lessons learned to speculate on the prospects for further reducing the disarray in world agricultural markets.
- Published
- 2009