Agricultural Producer Support Estimates for Developing by IFPRI

By IFPRI

By means of interpreting and evaluating agricultural rules in India, Indonesia, China, and Vietnam, this research is helping fill an important hole in improvement learn. The document presents an overview of conceptual and dimension concerns regarding the consequences of alternate and domestic-support rules and coverage reforms at the incentives of agricultural manufacturers and provides empirical estimates of the measure of safeguard or disprotection within the 4 nations. From India's countercyclical coverage results and Indonesia's excessive degrees of agricultural security, to the rage towards modest aid of agriculture in China and Vietnam, the report's effects display either how alterations in agricultural coverage can enhance farmers' incentives as monetary progress happens and the way tough it really is to reform entrenched coverage interventions. via such findings, the document contributes to coverage discussions on growing propoor guidelines concerning agricultural aid and exchange, either on the household point and in overseas negotiations.

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Extra resources for Agricultural Producer Support Estimates for Developing Countries: Measurement Issues and Evidence from India, Indonesia, China, and Vietnam

Example text

Between 1980 and 2001 agriculture declined from 38 percent to 25 percent of total GDP in India (Mullen, Orden, and Gulati 2005). In Indonesia agriculture represented just 17 percent of GDP by 2002 (Thomas and Orden 2004). In China the agricultural share of GDP dropped from THE FOUR ECONOMIES AND THEIR AGRICULTURAL SECTORS 30 percent in 1979 to 16 percent in 2000 (Sun 2003). And in Vietnam agriculture accounted for 31 percent of GDP in 1991, but by 2001 its share was 24 percent (World Bank 2004).

A comparison of two simple magnitudes illustrates these points. While most CGE models indicate that full agricultural liberalization would increase world agricultural gross domestic product by $40–80 billion per year (Oskam and Meester 2003), the average 2000–02 sum of total PSEs for OECD countries was $235 billion (OECD 2003a). The sum of total PSEs is sometimes misinterpreted as the benefits that would accrue to nonsubsidized agricultural producers under reform of agricultural policies, when those benefits are much smaller.

11 Imports of major agricultural commodities by China, 2003 Rank in China imports 1 2 3 4 5 6 7 8 9 10 Rank in world imports Product Quantity (metric tons) Value (thousands of $) Unit value ($) 1 2 1 1 1 1 1 1 1 6 Soybeans Palm oil Cotton lint Rubber, natural, dry Soya bean oil Hides, wet: salted cattle Wool, greasy Fish meal Crude organic materials Chicken meat 20,741,007 3,324,757 870,059 1,073,460 1,884,320 532,023 116,913 802,843 29,233 565,082 5,416,861 1,443,173 1,162,801 1,050,335 1,014,970 711,741 613,264 518,409 488,890 412,121 261 434 1,336 978 539 1,338 5,245 646 16,724 729 Source: FAO (2006).

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