By Alberto Valdés
Within the pre-reform interval, agriculture was once seriously sponsored in so much critical and jap ecu international locations (CEECs). round 1989, such a lot CEECs started to open up their markets, liberalize costs, and decrease subsidies. even as, the extent of aid supplied to agriculture declined tremendously. seeing that 1996, even if, this development has been reversed in such a lot CEECs. to research the rural area in CEECs, this document starts with a synthesis of the multi-country research. It provides estimates of varied agricultural aid signs and an research of the effect of alternate and cost coverage interventions. It additionally asks to what volume these changes supplied for a extra the world over aggressive agricultural area. the second one a part of the e-book provides person nation reports, together with Bulgaria, Poland, Romania, Russia, and Ukraine. Germany and Turkey are integrated for comparability. This record should be of curiosity to agricultural policymakers and different executive officers within the nations concerned, european officers, global financial institution and FAO employees, and others attracted to agricultural reform in Europe and relevant Asia.
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All other queries on rights and licenses should be addressed to the World Bank at the address above or faxed to 202-522-2422. ISBN: 0-8213-4771-3 ISSN: 0253-7494 Alberto Valdés is a consultant to the Rural Development Department at the World Bank. Library of Congress Cataloging-in-Publication Data has been applied for. Page iii CONTENTS Foreword v Abstract vi Preface vii Executive Summary ix Part I: Synthesis Report Measures of Agricultural Support in Transition Economies: 19941997 A. Valdes 1 Introduction 1 The Approach 2 Patterns of Intervention at the Commodity Level 8 Aggregate Measures of Support 13 Who Gains, Who Pays, for Agricultural Support Policies?
These include the nominal rate of protection (NRP), the effective rate of protection (ERP), and the effective rate of assistance (ERA). These indicators capture the direct affect of agricultural price policies on the agricultural sector itself, but do not take into account their effects on other sectors (such as on urban wages), or the repercussions of non-agricultural policies (such as high industrial protection) on the cost structure of agriculture. They also do not adjust for misalignments of the exchange rate.
The exchange rate is implicit in all our measures (it is used in comparing the domestic to the border prices), therefore a misalignment in the exchange rate can significantly affect our measures of the potential competitiveness of agricultural tradables. For example, in the case where the zloty or ruble loses against the dollar (devaluation), domestic farmers benefit as their revenues increase in local currency because farm trade is priced in dollars. However, if the 1 Agricultural markets have been the preferred use of such indicators in part because one is dealing with commodities in which assuming substitutability between the domestic and foreign products is not unreasonable.
Agricultural support policies in transition economies, Volumes 23-470 by Alberto Valdés