Publication: Distortions to Agricultural Incentives in Sub-Saharan and North Africa
Loading...
Date
2008-09
ISSN
Published
2008-09
Author(s)
Masters, William A.
Editor(s)
Abstract
This chapter begins with a brief summary of economic growth and structural changes in the region since the 1950s and of agricultural and other economic policy developments as they affected the farm sector at the time of and in various stages after independence from colonial powers. The chapter then summarizes estimates of the nominal rate of assistance (NRA) and the relative rate of assistance (RRA) to farmers delivered by national farm and nonfarm policies over the past several decades, as well as the impact of these policies on the consumer prices of farm products, using the project's methodology (Anderson et al. 2008). The final sections point to what the author have learned and draw out implications of the findings, including for poverty and inequality and for possible future directions of policies affecting agricultural incentives in Africa.
Link to Data Set
Citation
“Masters, William A.; Anderson, Kym. 2008. Distortions to Agricultural Incentives in Sub-Saharan and North Africa. Agricultural Distortions Working Paper;64. © World Bank. http://hdl.handle.net/10986/28191 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Distortions to Agricultural Incentives in China and Southeast Asia(World Bank, Washington, DC, 2008-09)This chapter begins with a brief summary of economic growth and structural changes in the region since the 1950s and of agricultural and other economic policies as they affected agriculture before and after the various reforms, and in several cases fundamental regime changes, of the past half-century. It then summarizes new estimates of the nominal rate of assistance (NRA) and the relative rate of assistance (RRA) to farmers delivered by national farm and nonfarm policies over the past several decades (depending on data availability), and of those policies' impacts on consumer prices of farm products. Both farmer assistance and consumer taxation is negative in periods where there is an anti-agricultural, pro-urban consumer bias in a country's policy regime. The final sections summarize what the author have learned and draw out implications of the findings, including for poverty and inequality and for possible future directions of policies affecting agricultural incentives in this part of Asia.Publication Krueger/Schiff/Valdes Revisited : Agricultural Price and Trade Policy Reform in Developing Countries since 1960(World Bank, Washington, DC, 2010-01)A study of distortions to agricultural incentives in 18 developing countries during 1960-84, by Krueger, Schiff and Valdes (1988; 1991), found that policies in most of those developing countries were directly or indirectly harming their farmers. Since the mid-1980s there has been a substantial amount of policy reform and opening up of many developing countries, and indicators of that progress have been made available recently by a new study that has compiled estimates for a much larger sample of developing countries and for as many years as possible since 1955. The new study also covers Europe s transition economies and comparable estimates for high-income countries, thereby covering more than 90 percent of world agricultural output and employment. This paper summarizes the methodology used in the new study (pointing out similarities and differences with those used by the OECD and by Krueger, Schiff and Valdes), compares a synopsis of the indicators from Krueger, Schiff and Valdes and the new study for the period to 1984, summarizes the changing extent of price distortions across countries and commodities globally since then, and concludes by evaluating the degree of distortion reduction over the years since 1984 compared with how much still remains, according to the results of a global economy wide model.Publication Agricultural Distortion Patterns since the 1950s(World Bank, Washington, DC, 2009-05)This paper summarizes a new database that sheds light on the impact of trade-related policy developments over the past half century on distortions to agricultural incentives and thus also to consumer prices for food in 75 countries spanning the per capita income spectrum. Price support policies of advanced economies hurt not only domestic consumers and exporters of other products but also foreign producers and traders of farm products, and they reduce national and global economic welfare. On the other hand, the governments of many developing countries have directly taxed their farmers over the past half-century, both directly (e.g., export taxes) and also indirectly via overvaluing their currency and restricting imports of manufactures. Thus the price incentives facing farmers in many developing countries have been depressed by both own-country and other countries' agricultural price and international trade policies. The authors summarize these and realted stylized facts that can be drawn from a new World Bank database that is worthy of the attention of political economy theorists, historians and econometricians. These indicators can be helpful in addressing such questions as the following: where is there still a policy bias against agricultural production? To what extent has there been overshooting in the sense that some developing-country food producers are now being protected from import competition along the lines of the examples of earlier-industrializing Europe and Japan? What are the political economy forces behind the more-successful reformers, and how do they compare with those in less-successful countries where major distortions in agricultural incentives remain? And what explains the pattern of distortions across not only countries but also industries and in the choice of support or tax instruments within the agricultural sector of each country?Publication Distortions to Agricultural Incentives in Latin America and the Caribbean(World Bank, Washington, DC, 2008-09)This study on Latin America is based on a sample of eight countries, comprising the big four economies of Argentina, Brazil, Chile, and Mexico; Colombia and Ecuador, two of the poorest South American tropical countries; the Dominican Republic, the largest Caribbean economy; and Nicaragua, the poorest country in Central America. Together, in 2000-04, these countries accounted for 78 percent of the region's population, 80 percent of the region's agricultural value added, and 84 percent of the total gross domestic product (GDP) of Latin America. The key characteristics of these economies-which account for only 4.5 percent of worldwide Gross Domestic Product (GDP), but 7.7 percent of agricultural value added and more than 10 percent of agricultural and food exports. The table reveals the considerable diversity within the region in terms of stages of development, relative resource endowments, comparative advantages and, hence, trade specialization, and the incidence of poverty and income inequality. This means that these countries represent a rich sample for comparative study. Nicaragua's per capita income is only one-seventh the global average, while the incomes of Colombia and Ecuador are one-third of this average. By contrast, the per capita incomes of Argentina and Chile average just one-eighth below and that of Mexico is one eighth above the global average. Only Argentina, Brazil, and Nicaragua are well above the global average in endowments of agricultural land per capita; the Dominican Republic and Ecuador are well below this average; and Chile, Colombia, and Mexico are a little less than one-third above the average.Publication Distortions to Agricultural Incentives in Latin America(Washington, DC : World Bank, 2008)This book provides an overview of the evolution of distortions to agricultural incentives caused by price and trade policies in the World Bank-defined region of Latin America and the Caribbean. Following the introduction and summary, it includes commissioned country studies of one Caribbean, one Central American, and six South American economies. The chapters are followed by two appendixes. The first describes the methodology used to measure the nominal and relative rates of assistance to farmers and the taxes and subsidies involved in food consumption; the second provides country and regional summaries, in tables, of annual estimates of these rates of assistance. This study on Latin America is based on a sample of eight countries, comprising the big four economies of Argentina, Brazil, Chile, and Mexico; Colombia and Ecuador, two of the poorest South American tropical countries; the Dominican Republic, the largest Caribbean economy; and Nicaragua, the poorest country in Central America. Together, in 2000-04, these countries accounted for 78 percent of the region's population, 80 percent of the region's agricultural value added, and 84 percent of the total gross domestic product (GDP) of Latin America.
Users also downloaded
Showing related downloaded files
Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.