Distortions in farmer prices since the 1950s: South Africa in international perspective

Abstract

For decades, earnings from farming in many low-income countries have been depressed by a pro-urban bias in own-country policies, as well as by governments of richer countries favoring their farmers with import barriers and subsidies. Both sets of policies reduce national and global economic growth. They also add to inequality and poverty in developing countries, since most of the world's billion poorest people depend on farming for their livelihood. Over the past two decades numerous developing country governments have reduced their sectoral and trade policy distortions, while some high-income countries also have begun reforming their protectionist policies. Drawing on results from a new multi-country research project, this paper examines the extent of South Africa's reforms relative to those of other temperate-zone Southern Hemisphere countries, of Northern Hemisphere rich countries, and of other developing countries. It concludes by pointing to the scope and prospects for further pro-poor policy reform at home and abroad.

South Africa's Trade and Growth

“…This suggests that industry and trade policy in South Africa is taxing the agricultural sector in some way. Anderson et al (2007) confirm this conjecture. They estimate that the relative rate of agricultural to nonagricultural assistance was -5% over the period [2000][2001][2002][2003][2004][2005].…”

Distortions to Agricultural Incentives in Africa

“…For China, the NRAs and RRAs for 1965-81 have been extrapolated back based on the assumption that they were the same as the average for 1981-84. Latin America and the Caribbean Africa Asia 1 9 6 5 -6 9 1 9 7 0 -7 4 1 9 7 5 -7 9 1 9 8 0 -8 4 1 9 8 5 -8 9 1 9 9 0 -9 4 1 9 9 5 -9 9 2 0 0 0 -0 4 Source: Based on data in , which draws on estimates reported in chapters 2-17 of this book, and in Sandri, Valenzuela, and Anderson 2007.…”

“…Sources: Sandri, Valenzuela, and Anderson 2007; FAOSTAT Database 2007. Note: -ϭ no data are available.…”