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Global Distortions to Key Agricultural Commodity Markets
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Year: 2009 Publisher: Washington, D.C. : The World Bank,

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The regional books that provided detailed estimates of distortion in developing economies are all country focused. While they include commodity details for their particular country, they are not able to provide an overview for developing countries or high-income countries as a group, or for the world as a whole. This paper seeks to fill this gap. The paper begins by describing the overall project's coverage of 30 major commodities and their importance in regional and global agricultural production and trade. It then summarizes the nominal rates of assistance and consumer tax equivalents for twelve key covered products, together with their gross subsidy/tax equivalents in constant dollars. The paper then examines seven largely non-traded food staples that are nonetheless important food items for poor people in low-income countries. Even though those commodities are only a small share of global production and exports of farm products, they can be crucial to the food security of large segments of developing country societies. The agricultural distortions database lends itself to placing the policies affecting (or ignoring) those products in a broader perspective. The final part of the paper provides another new perspective on the project's database. It seeks to shed light on how relatively distorted are the various commodity markets from the viewpoint of global trade or welfare restrictiveness. This analysis draws on the theory outlined in the previous chapter, but switches the focus from countries to products.


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Rising food prices and coping strategies : household-level evidence from Afghanistan
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Year: 2010 Publisher: Washington, D.C., The World Bank,

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This paper investigates the impact of rising wheat prices - during the 2007/08 global food crisis - on food security in Afghanistan. Exploiting the temporal stratification of a unique nationally-representative household survey, the analysis finds evidence of large declines in real per capita food consumption and in food security (per capita calorie intake and household dietary diversity) corresponding to the price shocks. The data reveal smaller price elasticities with respect to calories than with respect to food consumption, suggesting that households trade off quality for quantity as they move toward staple foods and away from nutrient-rich foods such as meat and vegetables. In addition, there is increased demand in the face of price increases (Giffen good properties) for wheat products in urban areas. This study improves on country-level simulation studies by providing estimates of actual household wellbeing before and during the height of the global food crisis in one of the world's poorest, most food-insecure countries.


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Distortions to Agricultural Incentives in China and Southeast Asia
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Year: 2008 Publisher: Washington, D.C. : The World Bank,

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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.


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The Short-Term Impact of Higher Food Prices On Poverty in Uganda
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Year: 2010 Publisher: Washington, D.C., The World Bank,

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World prices for staple foods increased between 2006 and 2008, and accelerated sharply in 2008. Initial analysis indicated that the adverse effects of higher food prices in Uganda were likely to be small because of the diversity of its staple foods, high level of food self-sufficiency, and weak links with world markets. This paper extends the previous analyses, disaggregating by regions and individual food items, using more recent price data, and estimating the impact on consumption poverty. The analysis finds that poor households in Uganda tend to be net buyers of food staples, and therefore suffer welfare losses when food prices increase. This is most pronounced in urban areas, but holds true for most rural households as well. The diversity of staple foods has not been an effective buffer because of price increases across a range of staple foods. The paper estimates that both the incidence and depth of poverty have increased - at least in the short run - as a result of higher food prices in 2008, increasing by 2.6 and 2.2 percentage points, respectively. The increase in poverty is highest in the Northern region, which is already the poorest in Uganda. The need for mitigating social protection measures appears to be greater than previously recognized. Not only are the negative impacts larger, but they are also much more widespread geographically. This suggests the need for continued close monitoring of the situation, including monitoring the adequacy of existing safety nets and feeding programs.


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The Distributional Consequences of Group Procurement : Evidence from a Randomized Trial of a Food Security Program in Rural India
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Year: 2015 Publisher: Washington, D.C. : The World Bank,

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Public transfer programs that allow beneficiaries to choose the transferred good may be more efficient, but the poorest beneficiaries may not participate if the good chosen is too costly. A model shows that program targeting and consumption impacts are tied to selected quality of the provided good. Evidence from a randomized trial in rural India in which groups of beneficiaries choose the variety of rice to be offered as a subsidized loan confirms that choosing lower cost goods self-targets the program towards the poorest beneficiaries. Consumption impacts are biggest for wealthiest households and may be negative for moderately poor households.


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Agricultural Protection Growth in Europe, 1870-1969
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Year: 2009 Publisher: Washington, D.C. : The World Bank,

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Dramatic changes took place in agricultural policies in Europe in the 19th and 20th century. In the 1860s European nations agreed on a series of trade agreements which spread free trade across the continent. In the 1960s European nations concluded an international agreement which spread heavy Government intervention and protection against imports across the continent. This paper offers hypotheses as to the causes of these dramatic changes in agricultural protection.


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The Drought and Food Crisis in the Horn of Africa : Impacts and Proposed Policy Responses for Kenya.
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Year: 2011 Publisher: Washington, D.C. : The World Bank,

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This policy note provides an assessment of some of the impacts and proposed policy responses to problems related to the drought, including the rise in food prices. To address immediate needs, the humanitarian response to the drought is being managed by the Government of Kenya and a number of international organizations including the World Food Program (WFP), the Food and Agriculture Organization (FAO), and the United Nations Children's Fund (UNICEF). Recognizing that response needs are currently recognizing that response needs are currently being addressed, this note focuses on policy changes that can address long term vulnerabilities related to the drought.


Book
Rising food prices and coping strategies : household-level evidence from Afghanistan
Authors: ---
Year: 2010 Publisher: Washington, D.C., The World Bank,

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Abstract

This paper investigates the impact of rising wheat prices - during the 2007/08 global food crisis - on food security in Afghanistan. Exploiting the temporal stratification of a unique nationally-representative household survey, the analysis finds evidence of large declines in real per capita food consumption and in food security (per capita calorie intake and household dietary diversity) corresponding to the price shocks. The data reveal smaller price elasticities with respect to calories than with respect to food consumption, suggesting that households trade off quality for quantity as they move toward staple foods and away from nutrient-rich foods such as meat and vegetables. In addition, there is increased demand in the face of price increases (Giffen good properties) for wheat products in urban areas. This study improves on country-level simulation studies by providing estimates of actual household wellbeing before and during the height of the global food crisis in one of the world's poorest, most food-insecure countries.


Book
From Agriculture to Nutrition : Pathways, Synergies and Outcomes.
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Year: 2007 Publisher: Washington, D.C. : The World Bank,

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The report seeks to analyze what has been learned about how agricultural interventions influence nutrition outcomes in low-and middle-income countries, focusing on the target populations of the millennium development goals-people living on less than a dollar a day. It also sets out to synthesize lessons from past efforts to improve the synergies between agriculture and nutrition outcomes. The report identifies a number of developments in agriculture and nutrition that have transformed the context in which nutrition is affected by agriculture. The relationship between agriculture and human nutrition is far more complex than the relationship between food production and food consumption or the economic relationship between food supply and food demand. Expanding agriculture's purview and capacity to embrace those contributing factors and determinants of nutrition that are traditionally the province of other disciplines or improving agriculture's interface with other, nonagricultural sectors, suggest themselves as possible ways forward. The limitations of production-focused agricultural programs and interventions in delivering improved nutrition impacts have been recognized by some in the agricultural community for decades. In the early 1980s a number of international development agencies undertook programs that sought to orient agricultural production to nutrition-related objectives, and over time a substantial body of literature developed around the analysis of the programs' results.


Book
Distortions to Agricultural Incentives in Japan, Korea, and Taiwan
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Year: 2008 Publisher: Washington, D.C. : The World Bank,

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The story of agricultural policy in Northeast Asia over the past 50 years illustrates the dramatic changes that can occur in distortions to agricultural incentives faced by producers and consumers at different stages of economic development. In this study of Japan, the Republic of Korea (the southern part of the peninsula, hereafter referred to as Korea) and the island of Taiwan, China (hereafter referred to as Taiwan), the authors estimate the degree of distortions for key agricultural products as well as for the agricultural sector as a whole over a period when these economies transitioned from low- or middle- to high-income status the beginning of the so-called East Asian economic miracle of dramatic industrial development. The three economies in terms of the nature of their economies, including their resource endowments that determined the course of their modern economic growth and development. The evolution of agricultural policies in the three economies is then reviewed before discussing how to measure distortions to agricultural incentives using the methodology from Anderson and others (2008), the focus of which is on nominal and relative rates of assistance. Implications of empirical findings for policy reforms in the three economies are discussed in the final section, where the authors also identify lessons for later-developing economies experiencing similar structural transformations in the course of their economic growth. Statistical observations are found to be consistent with the hypothesis that the success of rapid industrialization that advanced these economies to the middle-income stage resulted in declines in agriculture's comparative advantage associated with the growing income disparity between farmers and employees in non-agricultural sectors.

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