Agricultural Price Distortions, Inequality, and Poverty
544 Pages
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Agricultural Price Distortions, Inequality, and Poverty


YouScribe would like you to have this content free of charge
544 Pages


The prices of farm products are crucial determinants of the extent of poverty and inequality in the world.
The vast majority of the world's poorest households depend to a considerable extent on farming for their incomes, while food represents a large component of the consumption of all poor households. For generations, food prices have been heavily distorted by government policies in high-income and developing countries. Many countries began to reform their agricultural price and trade policies in the 1980s, but government policy intervention is still considerable and still favors farmers in high-income countries at the expense of many farmers in developing countries.
What would be the poverty and inequality consequences of the removal of the remaining distortions to agricultural incentives? This question is of great relevance to governments in evaluating ways to engage in multilateral and regional trade negotiations or to improve their own policies unilaterally.
'Agricultural Price Distortions, Inequality, and Poverty' analyzes the effects of agricultural and trade policies around the world on national and regional economic welfare, on income inequality among and within countries, and on the level and incidence of poverty in developing countries. The studies include economy-wide analyses of the inequality and poverty effects of own-country policies compared with rest-of-the-world policies for 10 individual developing countries in three continents. This book also includes three chapters that each use a separate global economic model to examine the effects of policies on aggregate poverty and the distribution of poverty across many identified developing countries.
This study is motivated by two policy issues: first, the World Trade Organization's struggle to conclude the Doha Round of multilateral trade negotiations, in which agricultural policy reform is, again, one of the most contentious topics in the talks and, second, the struggle of the developing countries to achieve their Millennium Development Goals by 2015-notably the alleviation of hunger and poverty-which depends crucially on policies that affect agricultural incentives.


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Published 17 March 2010
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EAN13 9780821381854
Language English
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Kym Anderson • John Cockburn • Will Martin Agricultural
Price Distortions,
Inequality, and
Price Distortions,
Inequality, and
Kym Anderson,
John Cockburn, and
Will Martin, Editors
Washington, D.C.© 2010 The International Bank for Reconstruction and Development / The World Bank
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ISBN: 978-0-8213-8184-7
eISBN: 978-0-8213-8185-4
DOI: 10.1596/978-0-8213-8184-7
Library of Congress Cataloging-in-Publication Data
Agricultural price distortions, inequality, and poverty / Kym Anderson, John Cockburn and Will Martin, editors.
p. cm.
ISBN 978-0-8213-8184-7 — ISBN 978-0-8213-8185-4 (electronic)
1. Agricultural prices—Government policy. 2. Farm income—Developing countries. 3. Agricultural wages—
Developing countries. 4. Poverty. I. Anderson, Kym. II. Cockburn, John. III. Martin, Will, 1953 -
HD1447.A37 2010
Cover design: Tomoko Hirata/World Bank
Cover photo: © Curt Carnemark/World Bank Photo LibraryOTHER TITLES IN THE SERIES
Distortions to Agricultural Incentives: A Global Perspective, 1955–2007
edited by Kym Anderson, 2009
Distortions to Agricultural Incentives in Africa
edited by Kym Anderson and William A. Masters, 2009
Distortions to Agricultural Incentives in Asia
edited by Kym Anderson and Will Martin, 2009
Distortions to Agricultural Incentives in Europe’s Transition Economies
edited by Kym Anderson and Johan Swinnen, 2008
Distortions to Agricultural Incentives in Latin America
edited by Kym Anderson and Alberto Valdés, 2008CONTENTS
Foreword xvii
Acknowledgments xix
Contributors xxi
Abbreviations xxv
1 Introduction and Summary 3
Kym Anderson, John Cockburn, and Will Martin
2 Global Welfare and Poverty Effects:
Linkage Model Results 49
Kym Anderson, Ernesto Valenzuela, and
Dominique van der Mensbrugghe
3 Global Poverty and Distributional Impacts:
The GIDD Model 87
Maurizio Bussolo, Rafael De Hoyos, and Denis Medvedev
4 Poverty Impacts in 15 Countries: The GTAP Model 119
Thomas W. Hertel and Roman Keeney
5 China 147
Fan Zhai and Thomas W. Hertel
6 Indonesia 179
Peter Warr
7 Pakistan 209
Caesar B. Cororaton and David Orden
viiviii Contents
8 The Philippines 247
Caesar B. Cororaton, Erwin Corong, and John Cockburn
9 Thailand 283
Peter Warr
10 Mozambique 303
Channing Arndt and James Thurlow
11 South Africa 331
Nicolas Hérault and James Thurlow
12 Argentina 359
Martín Cicowiez, Carolina Díaz-Bonilla,
and Eugenio Díaz-Bonilla
13 Brazil 391
Joaquim Bento de Souza Ferreira Filho and Mark Horridge
14 Nicaragua 423
Marco V. Sánchez and Rob Vos
Appendix: Border Price and Export Demand
Shocks in Developing Countries from
Rest-of-the-World Trade Liberalization:
The Linkage Model 457
Dominique van der Mensbrugghe,
Ernesto Valenzuela, and Kym Anderson
Index 489