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.
TABLE OF CONTENTS
PART I. INTRODUCTION
1. Introduction and Summary
Kym Anderson, John Cockburn, and Will Martin
PART II. GLOBAL CGE APPROACHES
2. Global Welfare and Poverty Effects: Linkage Model Results
Kym Anderson, Ernesto Valenzuela, and Dominique van der Mensbrugghe
3. Global Poverty and Distributional Impacts: The GIDD Model
Maurizio Bussolo, Rafael De Hoyos, and Denis Medvedev
4. Poverty Impacts in 15 Countries: The GTAP Model
Thomas W. Hertel and Roman Keeney
PART III. NATIONAL CGE APPROACHES: ASIA
5. China
Fan Zhai and Thomas W. Hertel
6. Indonesia
Peter Warr
7. Pakistan
Caesar B. Cororaton and David Orden
8. The Philippines
Caesar B. Cororaton, Erwin Corong, and John Cockburn
9. Thailand
Peter Warr
PART IV. NATIONAL CGE APPROACHES: AFRICA
10. Mozambique
Channing Arndt and James Thurlow
11. South Africa
Nicolas Hérault and James Thurlow
PART V. NATIONAL CGE APPROACHES: LATIN AMERICA
12. Argentina
Martín Cicowiez, Carolina Díaz-Bonilla, and Eugenio Díaz-Bonilla
13. Brazil
Joaquim Bento de Souza Ferreira Filho and Mark Horridge
14. Nicaragua
Marco V. Sánchez and Rob Vos
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