National rice policies in Asia David Dawe
Description: National rice policies in Asia David Dawe Agricultural Development Economics Division and Regional Office for Asia and the Pacific, FAO Bangkok, Thailand, 28 November 2013 Some key objectives of rice policies Farmer income Consumer welfare
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slide1. National rice policies in Asia David Dawe
Agricultural Development Economics Division and Regional Office for Asia and the Pacific, FAO
Bangkok, Thailand, 28 November 2013<br>
slide2. Some key objectives of rice policies Farmer income
Consumer welfare
Price stability
Self-sufficiency
Environment preservation<br>
slide3. “Weights” for key objectives of rice policy Different countries have different objectives<br>
slide4. Some key determinants of rice policy objectives Level of economic development
Trade status (exporter or importer)
Country size (China, India)<br>
slide5. Some key types of rice policies Level of stocks
Trade controls<br>
slide6. Different purposes for holding stocks Working
Emergency
Buffer (price stabilization)
International stocks Level of stocks<br>
slide7. Advantages and disadvantages Enhanced food security (e.g. food for work, disaster relief, protection against domestic production shocks, world price spikes and delays in arrival of imports)
Interest costs, quality deterioration Level of stocks<br>
slide8. Different objectives of trade controls Change the average level of prices
Change the volatility of prices
But any instruments used to affect one will usually affect the other as well Trade controls<br>
slide9. Advantages and disadvantages Less exposure to world markets, greater income for farmers, increased incentives for raising productivity
More poverty (especially in importers), worse nutrition, impede crop diversification, higher wages that reduce industrial competitiveness, more wheat imports, efficiency losses Higher prices/self-sufficiency<br>
slide10. Advantages and disadvantages Greater macro and political stability, lower likelihood of farmers and poor consumers falling into poverty traps
Can be expensive to operate, especially if government procurement is a large share of domestic production Price stabilization<br>
slide11. Different instruments to control trade Laissez-faire, or free market
Control of trade using tariffs (P)
Control of trade using quantitative restrictions (Q) Trade controls<br>
slide12. Advantages and disadvantages of free market policies Greater short-run economic efficiency
Loss of control over a key political variable (the price of rice), potentially greater economic instability Trade controls<br>
slide13. Advantages and disadvantages of tariff-based policies Potential for less uncertainty for traders, consumers & producers (especially if a schedule is used)
Feeling of less control, tariff schedules are illegal under WTO Trade controls<br>
slide14. Advantages and disadvantages of policies that control quantities Feeling of greater direct control
Greater uncertainty for private economic actors, prone to government policy errors Trade controls<br>
slide15. Thank you for your kind attention<br>
Agricultural Development Economics Division and Regional Office for Asia and the Pacific, FAO
Bangkok, Thailand, 28 November 2013<br>
slide2. Some key objectives of rice policies Farmer income
Consumer welfare
Price stability
Self-sufficiency
Environment preservation<br>
slide3. “Weights” for key objectives of rice policy Different countries have different objectives<br>
slide4. Some key determinants of rice policy objectives Level of economic development
Trade status (exporter or importer)
Country size (China, India)<br>
slide5. Some key types of rice policies Level of stocks
Trade controls<br>
slide6. Different purposes for holding stocks Working
Emergency
Buffer (price stabilization)
International stocks Level of stocks<br>
slide7. Advantages and disadvantages Enhanced food security (e.g. food for work, disaster relief, protection against domestic production shocks, world price spikes and delays in arrival of imports)
Interest costs, quality deterioration Level of stocks<br>
slide8. Different objectives of trade controls Change the average level of prices
Change the volatility of prices
But any instruments used to affect one will usually affect the other as well Trade controls<br>
slide9. Advantages and disadvantages Less exposure to world markets, greater income for farmers, increased incentives for raising productivity
More poverty (especially in importers), worse nutrition, impede crop diversification, higher wages that reduce industrial competitiveness, more wheat imports, efficiency losses Higher prices/self-sufficiency<br>
slide10. Advantages and disadvantages Greater macro and political stability, lower likelihood of farmers and poor consumers falling into poverty traps
Can be expensive to operate, especially if government procurement is a large share of domestic production Price stabilization<br>
slide11. Different instruments to control trade Laissez-faire, or free market
Control of trade using tariffs (P)
Control of trade using quantitative restrictions (Q) Trade controls<br>
slide12. Advantages and disadvantages of free market policies Greater short-run economic efficiency
Loss of control over a key political variable (the price of rice), potentially greater economic instability Trade controls<br>
slide13. Advantages and disadvantages of tariff-based policies Potential for less uncertainty for traders, consumers & producers (especially if a schedule is used)
Feeling of less control, tariff schedules are illegal under WTO Trade controls<br>
slide14. Advantages and disadvantages of policies that control quantities Feeling of greater direct control
Greater uncertainty for private economic actors, prone to government policy errors Trade controls<br>
slide15. Thank you for your kind attention<br>