Agricultural Producer Support Estimates for Developing by IFPRI


By means of reading and evaluating agricultural guidelines in India, Indonesia, China, and Vietnam, this research is helping fill an important hole in improvement examine. The file offers an evaluate of conceptual and dimension concerns relating to the results of exchange and domestic-support rules and coverage reforms at the incentives of agricultural manufacturers and offers 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 safety, to the fad towards modest help of agriculture in China and Vietnam, the report's effects display either how adjustments in agricultural coverage can increase farmers' incentives as fiscal development happens and the way tough it's to reform entrenched coverage interventions. via such findings, the record contributes to coverage discussions on growing propoor guidelines relating to agricultural help and alternate, either on the family point and in overseas negotiations.

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

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In India and Indonesia a set of complicated agricultural price, procurement, distribution, storage, and subsidy (mainly on inputs) policies was employed. The initial government interventions in the market in China and Vietnam were quite similar to those the Indian government pursued; mistrust of the market, combined with communist orthodoxy, resulted in the entire economy being almost fully planned by the government. • In India, China, and Vietnam, agricultural trade policies served as complementary instruments to effectively close the economy.

12 Production of major agricultural commodities in Vietnam, 2003 Rank in Vietnam production 1 2 3 4 5 6 7 8 9 10 Rank in world production Producta Production (metric tons) 5 16 3 12 — 2 10 5 12 8 Rice, paddy Sugarcane Vegetables, fresh nes Cassava Maize Fruit, fresh nes Indigenous pig meat Sweet potatoes Bananas Coconuts 34,518,600 16,524,900 6,326,274 5,228,500 2,933,700 2,620,000 1,800,295 1,592,100 1,221,300 920,000 Source: FAO (2006). Notes: Ranked according to value of production at international commodity prices.

The Uruguay Round negotiations with a view to making reduction commitments from that fixed base. But these estimates lose much of their economic relevance in a dynamic world in which prices are continuously changing, as are exchange rates and price and other support policies. Viewed from this perspective, the AMS is basically a legal concept resulting from the political compromises of the negotiation process. It is not a useful economic tool to understand the degree and impact of distortions in agriculture.

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