Publication:
Food Safety, the Environment, and Trade

Loading...
Thumbnail Image
Files in English
English PDF (580.94 KB)
231 downloads
English Text (82.22 KB)
26 downloads
Published
2008-07
ISSN
Date
2017-09-07
Editor(s)
Abstract
In this paper, the authors discuss the ways in which national governments, firms, and individuals respond to policy related to food safety, environmental protection, and trade. These responses must be considered in the development of policy to ensure the best possible outcomes. It accounts for uncertainty about policy impacts and scientific knowledge and incorporates stochastic environmental factors. The authors argue use of such a model in the development of health and environmental policy can overcome capture by domestic forces opposed to trade liberalization. The effectiveness of policy, of course, is dependent upon firm and consumer response to policy. Section one describes the impacts of international transfer of species and genetic material, paying particular attention to the introduction of alien invasive species. Section two discusses issues surrounding trade in environmental amenities. Food safety and environmental regulations are reviewed in section three, along with mechanisms by which such policy can serve as a proxy for protectionists. Section four develops a risk assessment model that can be used in policy design. Section five considers the role of institutional, firm and individual behavior in the development and effectiveness of policy. Section six summarizes our analysis in offering an agenda for trade talks.
Link to Data Set
Citation
Zilberman, David; Hochman, Gal; Sexton, Steven E.. 2008. Food Safety, the Environment, and Trade. Agricultural Distortions Working Paper;67. © World Bank. http://hdl.handle.net/10986/28195 License: CC BY 3.0 IGO.
Digital Object Identifier
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections

Related items

Showing items related by metadata.

  • Publication
    Agricultural Sector Policy Note for Bosnia and Herzegovina : Trade and Integration Policy Notes
    (Washington, DC, 2010-05) World Bank
    The agricultural season in Bosnia and Herzegovina (BH) begins earlier than in most European countries, shipping costs are relatively low, and land and labor prices are more favorable than in other southern European countries. As a result, the country's agriculture sector should be well positioned to compete on the export markets. With 20.6 percent of all employed in BH, agriculture remains an important sector for employment, despite a decline in the working-age population in rural areas. Additionally, it will be important for BH to develop well-functioning land institutions, so that the land market can operate more efficiently and thus enable business development. Finally, BH should integrate climate change adaptation and environmental sustainability into agricultural policies, programs, and investments. To succeed in agriculture, producers and governments will have to adapt, and the way to start is to focus on reducing agriculture's vulnerability to current climate variability.
  • Publication
    Africa Can Help Feed Africa
    (World Bank, Washington, DC, 2012-10) World Bank
    Africa's growing demand for food has been met increasingly by imports from the global market. This, coupled with rising global food prices, brings ever-mounting food import bills. In addition, population growth and changing demand patterns will double demands over the next 10 years. Two key issues must be addressed: (a) establishing a consistent and stable policy environment for regional trade in fertilizers; and (b) investing in institutions that reduce the transaction costs of coordination failures. Many countries have enacted new fertilizer laws in recent years, but few have provided the resources to define and enforce regulations through standards and testing capacity. This report shows that reducing regulatory burdens on fertilizers and the consequent increase in use of fertilizers will have substantial impacts on returns to farmers, with consequent impacts on poverty. The report highlights the range of barriers to food trade in Africa along the entire value chain. The issues pertain to many ministries and agencies within government: trade, agricultural, health and safety, transport, and finance. This in turn requires a "whole of government' approach to freeing up food trade, which will require strong and effective leadership to articulate the rationale and sustain the momentum for reform. Leaders must also address the hard choices that will arise in dealing with the political economy constraints that have until now blocked the capacity of Africa to exploit its enormous potential to feed Africans.
  • Publication
    Global Trade and Food Safety : Winners and Losers in a Fragmented System
    (World Bank, Washington, DC, 2001-10) Wilson, John S.; Otsuki, Tsunehiro
    Food safety standards, and the tradeoff between these standards, and agricultural export growth, are at the forefront of the trade policy debate. How food safety is addressed in the world trade system, is critical for developing countries that continue to rely on agricultural exports. In a fragmented system of conflicting national food safety standards, and no globally accepted standards, export prospects for the least developed countries, can be severely limited. The authors examine the impact that adopting international food safety standards, and harmonizing standards would have on global food trade patterns. They estimate the effect of aflatoxin standards in fifteen importing countries (including four developing countries) on exports from thirty one countries (twenty one of them developing). Aflatoxin is a natural substance that can contaminate certain nuts, and grains when storage, and drying facilities are inadequate. The analysis shows that adopting a worldwide standard for aflatoxin B1 (potentially the most toxic of aflatoxins) based on current international guidelines, would increase nut, and cereal trade among the countries studied, by $ 6.1 billion, compared with 1998 levels. This harmonization of standards would increase world exports by $ 38.8 billion.
  • Publication
    Macedonia, Former Yugoslav Republic of : Analysis of the Agricultural Support Programs
    (Washington, DC, 2013-10) World Bank
    The report is structured to allow readers familiar with Macedonia s agriculture sector to quickly grasp the essentials needed to improve the sector, as well as to inform a general audience on how to address the challenges of a modern European Union (EU)-aspiring state. Chapter two provides an in-depth analysis of the sectoral background, illustrating the main characteristics and challenges of Macedonia s agriculture sector. The illustration takes an integrated approach to the sector, covering a vast range of inter-related topics including the prominence of the sector not only in terms of its economic and social contribution but also its implications for trade, the urban-rural poverty gap and shared prosperity, farm structure, climate adaptation, and capacity building. Chapter three draws on lessons from the European Union (EU) and provides a framework to analyze Macedonia s agricultural support programs. Further, the chapter provides a primer on the EU s Common Agricultural Policy (CAP) and its measures to support agriculture. Chapter four presents concise empirical evidence of the coverage and institutional capacity of the agricultural programs in Macedonia under both pillar one and pillar two measures. Chapter five then builds on the primary diagnostic set out in the previous chapters and critically examines the alignment of Macedonia s agricultural programs with the government s stated objectives of poverty reduction, competitiveness, and sustainable development. The results are at best mixed, suggesting substantial pathways for scaling up and exploiting untapped opportunities. Finally, chapter six synthesizes the overall evidence and presents policy implications and recommendations.
  • Publication
    Connecting Food Staples and Input Markets in West Africa
    (World Bank, Washington, DC, 2015-06-01) Maur, Jean-Christophe; Shepherd, Ben
    The report Africa Can Help Feed Africa (World Bank 2012) showed that increasing food staples1 supply can be met by better connecting African markets to each other. That report called for a stronger focus on removing trade barriers and building on the forces of regional integration. This report builds on the lessons of Africa Can Help Feed Africa by looking into the specific circum¬stances met in West Africa, home to one-third of the continent’s population and to some of its most vulnerable countries. Staple foods are the main source of calories in Africa and in West Africa. In that region, rice, followed by maize and cassava, provides the main source of calories in coastal countries, with millet and sorghum being an important source of food in Sahelian countries (Haggblade et al. 2012). The challenge of food supply is particularly acute in West Africa with some of the world’s fastest growing populations, including urban populations. West Africa’s 2011 population of 342 million is expected to increase to 516 million by 2030 and to 815 million by 2050 (United Nations Department of Economic and Social Affairs, Population Division 2013); in this time frame, the region’s urban population will grow from 44 percent to 63 percent of the total population (United Nations Department of Economic and Social Affairs, Population Division 2014). As this report will show, strong reasons exist to bring a more strategic focus on promoting regional trade. The first compelling reason is that there is already a sizeable amount of trade in the region, revealing existing important complementarities between countries in the ECOWAS space. Because a large share of this trade is informal, this reality is not always well taken into account. A second reason is that developing these complementarities by facilitating trade and creating the regional soft and hard infra¬structure to incite cross-border flows would further enable (a) the exploitation of comparative advan¬tages and economies of scale in the region; (b) access to and diffusion of better production technologies; (c) competitive access to inputs, research, and extension services; and (d) improved security in the face of shocks that lead to food crises. Finally, a third reason is that existing national policies that affect trade are, by and large, inefficient and incoherent at the regional level; therefore a better use of policy making and institutions is needed to achieve food policy objectives.

Users also downloaded

Showing related downloaded files

  • Publication
    Poverty, Prosperity, and Planet Report 2024
    (Washington, DC: World Bank, 2024-10-15) World Bank
    The Poverty, Prosperity, and Planet Report 2024 is the latest edition of the series formerly known as Poverty and Shared Prosperity. The report emphasizes that reducing poverty and increasing shared prosperity must be achieved in ways that do not come at unacceptably high costs to the environment. The current “polycrisis”—where the multiple crises of slow economic growth, increased fragility, climate risks, and heightened uncertainty have come together at the same time—makes national development strategies and international cooperation difficult. Offering the first post-Coronavirus (COVID)-19 pandemic assessment of global progress on this interlinked agenda, the report finds that global poverty reduction has resumed but at a pace slower than before the COVID-19 crisis. Nearly 700 million people worldwide live in extreme poverty with less than US$2.15 per person per day. Progress has essentially plateaued amid lower economic growth and the impacts of COVID-19 and other crises. Today, extreme poverty is concentrated mostly in Sub-Saharan Africa and fragile settings. At a higher standard more typical of upper-middle-income countries—US$6.85 per person per day—almost one-half of the world is living in poverty. The report also provides evidence that the number of countries that have high levels of income inequality has declined considerably during the past two decades, but the pace of improvements in shared prosperity has slowed, and that inequality remains high in Latin America and the Caribbean and Sub-Saharan Africa. Worldwide, people’s incomes today would need to increase fivefold on average to reach a minimum prosperity threshold of US$25 per person per day. Where there has been progress in poverty reduction and shared prosperity, there is evidence of an increasing ability of countries to manage natural hazards, but climate risks are significantly higher in the poorest settings. Nearly one in five people globally is at risk of experiencing welfare losses due to an extreme weather event from which they will struggle to recover. The interconnected issues of climate change and poverty call for a united and inclusive effort from the global community. Development cooperation stakeholders—from governments, nongovernmental organizations, and the private sector to communities and citizens acting locally in every corner of the globe—hold pivotal roles in promoting fair and sustainable transitions. By emphasizing strategies that yield multiple benefits and diligently monitoring and addressing trade-offs, we can strive toward a future that is prosperous, equitable, and resilient.
  • Publication
    World Development Report 2017
    (Washington, DC: World Bank, 2017-01-30) World Bank Group
    Why are carefully designed, sensible policies too often not adopted or implemented? When they are, why do they often fail to generate development outcomes such as security, growth, and equity? And why do some bad policies endure? This book addresses these fundamental questions, which are at the heart of development. Policy making and policy implementation do not occur in a vacuum. Rather, they take place in complex political and social settings, in which individuals and groups with unequal power interact within changing rules as they pursue conflicting interests. The process of these interactions is what this Report calls governance, and the space in which these interactions take place, the policy arena. The capacity of actors to commit and their willingness to cooperate and coordinate to achieve socially desirable goals are what matter for effectiveness. However, who bargains, who is excluded, and what barriers block entry to the policy arena determine the selection and implementation of policies and, consequently, their impact on development outcomes. Exclusion, capture, and clientelism are manifestations of power asymmetries that lead to failures to achieve security, growth, and equity. The distribution of power in society is partly determined by history. Yet, there is room for positive change. This Report reveals that governance can mitigate, even overcome, power asymmetries to bring about more effective policy interventions that achieve sustainable improvements in security, growth, and equity. This happens by shifting the incentives of those with power, reshaping their preferences in favor of good outcomes, and taking into account the interests of previously excluded participants. These changes can come about through bargains among elites and greater citizen engagement, as well as by international actors supporting rules that strengthen coalitions for reform.
  • Publication
    Quantitative Analysis of Road Transport Agreements (QuARTA)
    (Washington, DC: World Bank, 2013-04-13) Tanase, Virginia; Kunaka, Charles; Latrille, Pierre; Krausz, Peter
    Road freight transport is indispensable to international economic cooperation and foreign trade. Across all continents, it is commonly used for short and medium distances and in long distance haulage when minimizing time is important. In all instances governments play a critical role in ensuring the competitive advantage of private sector operators. Countries often have many opportunities to minimize the physical or administrative barriers that increase costs, take measures to enhance the attractiveness and competitiveness of road transport, or generally nurture the integral role of international road freight transport in the global trade logistics industry. Road freight transport is critical to domestic and international trade. It is the dominant mode of transport for overland movement of trade traffic, carrying more than 80 percent of traffic in most regions. Generally, nearly all trade traffic is carried by road at some point. Therefore, the cost and quality of road transport services is of critical importance to trade competitiveness of countries and regions within countries. In fact, road transport is fundamental to modern international division of labor and supply-chain management.
  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.
  • Publication
    World Development Report 2008
    (Washington, DC, 2007) World Bank
    The world's demand for food is expected to double within the next 50 years, while the natural resources that sustain agriculture will become increasingly scarce, degraded, and vulnerable to the effects of climate change. In many poor countries, agriculture accounts for at least 40 percent of GDP and 80 percent of employment. At the same time, about 70 percent of the world's poor live in rural areas and most depend on agriculture for their livelihoods. World Development Report 2008 seeks to assess where, when, and how agriculture can be an effective instrument for economic development, especially development that favors the poor. It examines several broad questions: How has agriculture changed in developing countries in the past 20 years? What are the important new challenges and opportunities for agriculture? Which new sources of agricultural growth can be captured cost effectively in particular in poor countries with large agricultural sectors as in Africa? How can agricultural growth be made more effective for poverty reduction? How can governments facilitate the transition of large populations out of agriculture, without simply transferring the burden of rural poverty to urban areas? How can the natural resource endowment for agriculture be protected? How can agriculture's negative environmental effects be contained? This year's report marks the 30th year the World Bank has been publishing the World Development Report.