Global macroeconomic development: The implications for poverty

Hunger, Inequality, Macroeconomic development, Poverty reduction, Developing countries, Gender inequality,

Impacts of Trade Liberalization on Poverty and Inequality in Argentina

Using the most recent estimates of agricultural price distortions, this chapter studies the economic, poverty, and income inequality impacts of both global and domestic trade reform in Argentina, with a special focus on export taxes. Argentina offers an interesting case study as the only large agricultural exporter that has, at many points in its history, applied export taxes to several of its agricultural products. The chapter combines results from a global economy-wide model (World Bank’s Linkage model), a national CGE model, and microsimulations. The results suggest that liberalization of world trade (including subsidies and import taxes, but not export taxes), both for agricultural and non-agricultural goods, reduces poverty and inequality in Argentina. However, if only agricultural goods are included, indicators for poverty and inequality do not improve and even deteriorate somewhat. This is particularly the case if export taxes are eliminated. The chapter discusses the possible reasons for those results, offers some caveats, and suggests some lines for further research.Distorted incentives, agricultural and trade policy reforms, national agricultural development, Agricultural and Food Policy, International Relations/Trade, F13, F14, Q17, Q18,

That was then but this is now

Current agricultural negotiations in the World Trade Organization are grappling on how to fully integrate agriculture within the general rules for trade in goods. The notion of multifunctionality of agriculture has been suggested as a reason to justify special treatment for that sector, including the continuation of its protection and subsidization. Many developing countries are still analyzing whether the idea has something to offer them in terms of their negotiating positions and policy framework. While multifunctionality has been invoked for supporting agriculture in developed countries, a similar idea, although not called so at the time, was clearly behind support for industry in developing countries. Again in this case, the policy implication was that government intervention was required (through trade protection, subsidies, and other special policies) to develop an industrial base that contributed to society more than what market valuations alone would suggest. The debate on industrialization in developing countries was part of a broader discussion regarding nation-building, economic development, and social modernization. The current arguments around multifunctionality are similarly embedded in a larger economic, political and social matrix. This paper, although it does not present a full account of either debate, discusses some of the intriguing parallelisms in their theoretical frameworks, policy implications and economic and social impacts. The main objective is to clarify current policy issues for the agricultural sector in developing countries, highlighting possible consequences for the negotiating position of developing countries in the WTO process.World Trade Organization. ,Trade policy. ,Agriculture Economic aspects ,Agricultural subsidies Developing countries. ,Industrialization Developing countries. ,Economic development Developing countries. ,Agricultural policy. ,Markets Economic policy. ,

Biotechnology, trade, and hunger: IFPRI 2000-2001 Annual Report Essay

In the past two hundred years, there has been much concern with the Malthusian race between population growth and food supply. So far, food has won: increases in agricultural productivity have exceeded population growth. The last century saw three revolutions in agricultural technology — one based on mechanization, one on chemistry (leading to effective fertilizers and pesticides), and one on biology (the “Green Revolution”). For much of this period, agricultural productivity and output have grown rapidly and the relative price of food has declined. But the new genetic modification (GM) technologies that many expect will help the world meet its food needs — not only through quantity, but nutritional quality as well — raise critical issues for international trade, including this key question: What will happen if pressure from consumers and environmentalists in the developed world leads to a new generation of trade restrictions, or to the segmentation of GM-food product markets, as appears to be happening in Europe and Japan? An answer to this question requires a brief look at agricultural trade and involves both legal and economic analysis.Biotechnology Economic aspects., Food supply., Agricultural growth.,

The Political Economy of Exchange Rate Policies in Argentina

This paper identifies three periods in Argentine exchange rate policy, corresponding with different development strategies and political coalitions. The first, periodic adjustments to a pegged rate until the mid-1970s, accompanied an Import Substitution Industrialization approach and a redistribution of income from agrarian to industrial production during an era of strong labor union influence. A second period, from the mid-1970s, marked by accelerated devaluations, represented efforts by both military and civilian governments to meet the demands of their respective constituencies while maintaining capital flows from abroad; these efforts culminated in hyperinflation. A third period, beginning in the early 1990s, was notable for exchange rate stability, based on the Convertibility Plan, as a broad consensus emerged that the exchange rate should be used for containing inflation rather than engaging in redistribution among domestic interest groups. The authors conclude that additional innovations in Argentina`s monetary and exchange rate policies may eventually be necessary.

On boxes, contents, and users

An important component of the current debate about agriculture trade negotiations is whether further liberalization of trade and agricultural policies may help or hinder food security in WTO member countries. These concerns were formulated first, in Article 20 of the Agreement on Agriculture negotiated during the Uruguay Round, which indicated that negotiations should take into consideration, among other things, "non trade concerns"; and in its preamble, which mentioned as examples of those concerns, "food security and the need to protect the environment". They were also reaffirmed in the Doha Declaration, which declares that "the long-term objective" is "to establish a fair and market-oriented trading system through a program of fundamental reform", and confirmed that special and differential treatment will be granted to developing countries "to effectively take account of their development needs, including food security and rural development". Although the issue of food security and agricultural negotiations within the WTO has been raised both by industrialized ("multifunctionality" of agriculture) and developing countries, the discussion in the case of developing countries has included important policy objectives such as elimination of poverty and hunger (as cause and consequence of food insecurity). Concerned with the effects that further negotiations would have on the attainment of those objectives in poor countries, several developing countries have proposed the creation of a "Development Box" or a "Food Security Box". To contribute to this debate, the paper surveys and discusses in greater detail three main aspects of trade liberalization and food security within the WTO: the adequacy of the current WTO classification of countries according to their food security situation; the policy perspectives in industrialized countries and in developing countries; and the legal issues faced by developing countries. The paper concludes that a better classification is needed within the WTO to target food insecure countries, that many food security concerns can be addressed with specific clarifications and changes in the current language of the AoA, and that although developing countries may not be legally constrained to invest in food security, they lack the financial, human, and institutional resources to do so.World Trade Organization ,Poverty alleviation ,food security ,trade liberalization ,

Getting ready for the millennium round trade negotiations:

Contents: 1. Overview / Eugenio Diaz-Bonilla and Sherman Robinson 2. Latin American perspective / Eugenio Diaz-Bonilla and Lucio Reca 3. Asian perspective / Marcus Noland 4. African perspective / Natasha Mukherjee and Rebecca Lee Harris 5. Transition Economies' perspective / Ulrike Grote and Peter Wehrheim 6. European Union perspective / Stefan Tangermann 7. United States of America perspective / Dale Hathaway 8. Least-developed Countries' perspective / Eugenio Diaz-Bonilla, Marcelle Thomas, and Valeria Piñeiro 9. Cairns Group perspective / Kym Anderson.World Trade Organization., Produce trade Government policy International cooperation., Tariff on farm produce International cooperation., Agricultural policy International cooperation.,

Shaping globalization for poverty alleviation and food security:

CONTENTS: Brief 1. Introduction / Eugenio Díaz-Bonilla and Sherman Robinson Brief 2. The Nature of Disagreements / Ravi Kanbur Brief 3. Growth and Poverty / Manohar Sharma, Sam Morley, and Eugenio Díaz-Bonilla Brief 4. Trade and Food Security / Eugenio Díaz-Bonilla and Marcelle Thomas Brief 5. Nutrition / Julie Babinard and Per Pinstrup-Andersen Brief 6. High-Value Agriculture / Christopher Delgado, Nicholas Minot, and Nikolas Wada Brief 7. Food Safety and Food Quality / Laurian J. Unnevehr Brief 8. Technological Change / Peter B. R. Hazell Brief 9. Intellectual Property Rights and Agricultural R&D / Philip G. Pardey and Brian D. Wright Brief 10. Environment / Stanley Wood Brief 11. Democracy and Civil Society / Marzia Fontana and Yukitsugu Yanoma Brief 12. Conflict and Food Insecurity / Ellen Messer and Marc J. Cohen Brief 13. Governments and Public Policy / Eugenio Díaz-Bonilla and Sherman RobinsonNutrition., Intellectual property., Conflict management., Food security., Poverty alleviation., Afghanistan., Globalization,

Globalization, trade reform, and the developing countries: essay in IFPRI Annual Report

This essay focuses on trends reflecting the globalization of the international economy and on changes in agricultural markets. In this context it assesses how these factors are affecting developing countries and how, in turn, those countries could affect the Millenium Round of agricultural trade agreements,International economic relations., Trade policy Developing countries Reform., Globalization, Development policies.,