Policy Reforms Affecting Agricultural Incentives: Much Achieved, Much Still Needed

Posted: 8 Mar 2010

See all articles by Kym Anderson

Kym Anderson

University of Adelaide - Centre for International Economic Studies (CIES); Centre for Economic Policy Research (CEPR); Australian National University

Abstract

For decades, earnings from farming in many developing countries have been depressed by a pro-urban bias in own-country policies, as well as by governments of richer countries favoring their farmers with import barriers and subsidies. Both sets of policies reduce national and global economic welfare and inhibit agricultural trade and economic growth. They almost certainly add to inequality and poverty in developing countries, since three-quarters of the world's billion poorest people depend on farming for their livelihood. During the past two decades, however, numerous developing country governments have reduced their sectoral and trade policy distortions, while some high-income countries also have begun reducing market-distorting aspects of their farm policies. The author surveys the changing extent of policy distortions to prices faced by developing-country farmers over the past half century, and provides a summary of new empirical estimates from a global economy-wide model that yield estimates of how much could be gained by removing the interventions remaining as of 2004. The author concludes by pointing to the scope and prospects for further pro-poor policy reform in both developing and high-income countries.

Keywords: F13, F14, Q17, Q18

Suggested Citation

Anderson, Kym, Policy Reforms Affecting Agricultural Incentives: Much Achieved, Much Still Needed. The World Bank Research Observer, Vol. 25, No. 1, pp. 21-55, 2010, Available at SSRN: https://ssrn.com/abstract=1565971 or http://dx.doi.org/lkp014

Kym Anderson (Contact Author)

University of Adelaide - Centre for International Economic Studies (CIES) ( email )

School of Economics
Adelaide SA 5005
Australia
+61 8 8313 4712 (Phone)
+61 8 8223 1460 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Australian National University ( email )

Arndt-Corden Dept of Economics
Coombs Building
Canberra, AK ACT 2600
Australia
+61 8 8313 4712 (Phone)

HOME PAGE: http://publicpolicy.anu.edu.au/crawford_people/content/staff/acde/kanderson.php

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