Food insecurity,income inequality,and the changing comparative advantage in world agriculture

I would like to argue in this article that in the process of economic development in land‐poor countries in Asia, agriculture faces three distinctly different problems: food insecurity, sectoral income inequality, and the declining food self‐sufficiency associated with the declining comparative advantage in agriculture at the high‐income stage. Massive imports of food grains to Asia, if they occur, will aggravate the world food shortage, which will have significant implications for the poverty incidence in the world. I argue that in order to avoid such a tragedy, Asia should expand farm size to reduce labor cost by adopting large‐scale mechanization, sub‐Saharan Africa should realize a green revolution in grain production, and Latin America should further expand its grain production capacity.     

Selfishness,altruism, and inequality aversion toward consumers and farmers

One hypothesis explaining the persistence of farm programs in the United States is the public's altruism toward farmers. We utilize economic experiments to identify the motivations of selfishness, altruism, and inequality aversion toward anonymous members of the general population and toward different types of farmers. We find that people are generally less selfish and more altruistic toward small farmers than other members of the population. We also find that (i) people are more averse to inequality in a market‐like setting as compared to a nonmarket setting, (ii) there is significant heterogeneity across people in terms of other‐regarding preferences, and (iii) experimental choices accurately predict preferences for “real‐world” income re‐distribution policies that entail giving up one's own money to benefit farmers, but fail to predict preferences for policies that redistribute others’ incomes.     

Food price increases and net food importing countries: lessons from the recent past

Recent increases in food and other commodity prices have highlighted concerns that many poor countries are net food importers and higher food prices would worsen their trade balances. In this article, we analyze the changes in food trade balances associated with the 32% increase in food prices from 2000/2001 to 2004/2005. We find a small deterioration in food trade balances of low‐income countries and an improvement in middle‐income countries. The deterioration is most severe for countries in conflict and small island states, so attention should be placed first on these countries and on a few very‐low‐income countries that are also vulnerable. Because low‐income countries as a group had much lower agricultural GDP growth rates than middle‐income countries, the answers to food vulnerability in low‐income countries should probably be addressed within the context of incentives for agricultural production.     

China's Tax-for-Fee Reform and Village Inequality

In the late 1990s, China enacted a rural tax reform known as the “Tax-for-Fee Reform” (TFR), largely driven by a desire to address farmers' complaints about what they perceived as a heavy and regressive tax burden. This study examines the impact of the TFR on inequality in rural villages in China. Our results suggest that the TFR plays an effective role in reducing inequality within villages. Its impact on a consumption-based measure of inequality took effect immediately; its impact on per capita household income inequality took somewhat longer. Our results also suggest that it was “rich” and/or “coastal” villages that exhibited a significant reduction of inequality as a result of the TFR, whereas “poor” and/or “inland” villages experienced no significant changes in inequality from the reform.     

Linking the defence of territory to food sovereignty: Peasant environmentalisms and extractive neoliberalism in Guatemala

Food sovereignty and the defence of territory are increasingly influential environmental paradigms for rural social movements in opposition to free market hegemony in the global south. These paradigms propose radical alternatives to growth based economies, unequal property regimes, and the absolute territorial sovereignty of nation states. Drawing on fieldwork in rural Guatemala with progressive NGOs and social movements, this essay describes these tendencies' origins and characteristic discourses and demands, examines their links to traditional peasant politics and indigenous rights movements, and assesses their divergences, limitations, and possibilities for synergy. Building on Joan Martínez‐Alier' conception of the “environmentalism of the poor”, I show how these “peasant environmentalisms” converge and reinforce one another while responding to different aspects of neoliberalism's threat to lives, livelihoods, and territories during Guatemala's conflict‐ridden transition to neoliberal democracy. I also discuss how their convergence has expanded thinking about territorial alternatives and suggest that holding these paradigms in tension is vital to build broad coalitions among a fragmented peasantry. I propose food sovereignty as the economic model of the plurinational state.     

THE ECONOMIC POLITY OF FARM POLICY

A review of the ‘new political economy’ of agricultural policies includes models of social income maximising governments, collective action by ‘pressure groups’, and the interaction between politicians and voters. An alternative explanation for Olson's “social by-product” theory for why farmers received massive subsidies as a large group is also presented. An explanation for various patterns of farm policy interventions is given, including why rich countries subsidise and poor countries tax farmers. Finally, the role of public research expenditures and the interaction with commodity policy is explored.     

Consumer demand for diet quality: evidence from the healthy eating index

Few studies have been performed to use the detailed healthy eating index (HEI) to estimate consumer demand for diet quality. In this article, we apply household production theory to systematically estimate consumer demand for diet quality using the HEI developed by the U.S. Department of Agriculture. The results show that consumers have insufficient consumption of food containing dark green and orange vegetables, legumes and whole grains. Age and education have a significant impact on consumer demand for diet quality, but income does not. The own‐price elasticities of demand for diet quality are inelastic. Simulation of tax scenarios indicates that a tax on sugar‐sweetened beverage may be more efficient than a tax on fats, oils and salad dressing in improving consumer diet quality. This information is critical for policies and programs that are designed to improve healthy food choices, thereby reducing the social cost of public health.     

Agricultural price distortions: trends and volatility,past, and prospective

Historically, earnings from farming in many developing 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 reduced global economic welfare and agricultural trade, and added to global inequality and poverty. Over the past three decades, much progress has been made in reducing agricultural protection in high‐income countries and agricultural disincentives in developing countries. However, plenty of price distortions remain. As well, the propensity of governments to insulate their domestic food market from fluctuations in international prices has not waned. Such insulation contributes to the amplification of international food price fluctuations, yet it does little to advance national food security when food‐importing and food‐exporting countries equally engage in insulating behavior. Thus there is still much scope to improve global economic welfare via multilateral agreement not only to remove remaining trade distortions but also to desist from varying trade barriers when international food prices gyrate. This article summarizes indicators of trends and fluctuations in farm trade barriers before examining unilateral or multilateral trade arrangements, together with complementary domestic measures, that could lead to better global food security outcomes.     

Food Preferences and Ethnicity

Policies to curb food imports in food deficit Sahelian countries have been unsuccessful. Sahelian countries are ethnically diverse and each group has demonstrated strong preferences for cereals and other foods. Yet, research on the consequences of expressed food preferences on food production, consumption, and importation is limited. In this paper, the effects of ethnic identity and income class on food consumption choices were investigated. The results showed that all consumers, use the same criteria in evaluating a given set of foods irrespective of ethnic group, or income class. Ethnic groups and income classes choose a given food basket, which maximizes their welfare, if the same criteria are used in making their food choices.     

The incremental construction land differentiated management framework: the perspective of land quota trading in China

Construction land plays a vanguard role in China’s rapid urbanization process. However, confront with massive loss of farmland resources, the highly centralized land-use planning and management system established by the central government in 1998 stipulates that the red line of 1.8 billion mu of farmland should be guarantee to ensure food security. A series of land management system innovations such as “the replacement of basic farmland in different places”, “the compensated supplement of farmland in different places”, and “the land conversion quotas transregional transaction” in Zhejiang province have received increasing attention, under the premise that neither dissipating the economic development efficiency nor breaking the constraints of various planning quotas. Inspired by the “three-phase” efficiency improvement based on the concept known as the “adaptive efficiency”, this article first proposes the inherent policy shortcomings as incalculability, inseparability, and uncontrollability. Then, adopting the mathematical model derivation and economic analysis tool, we demonstrate that the “general allocation + competition allocation + rewarded allocation” of new construction land quota allocation scheme has improved the three-stage Pareto efficiency. Relying on the network analysis of the cross-regional trading in Zhejiang province, the “time hotspot”, “regional hotspot”, Siphon effect, price fluctuation and inequality of opportunity are also observed in the process of trading. The authorities should play a quasi “wedge-like” blocking role in due course. It is therefore suggested that a differentiated management scheme should be adopted considering the variance in regional resource endowments and social ecosystem. This paper expected to shed light on improving construction land-use efficiency for China and other similarly placed developing countries.     

Small‐scale commodity frontiers: The bioeconomy value chain of castor oil in Madagascar

The European Commission defines the bioeconomy as a “transition economy which seeks to increase efficiency, optimize use and decrease environmental impact through the reduction of waste and greenhouse gas emissions.” However, attempts to substitute or control nature through efficient bio‐based technology have not lived up to expectations and much of the industry still relies on globally sourced biomass to drive the bioeconomy. This article examines the social and political economic relations surrounding small‐scale production of the feedstock castor oil plant (castor, Ricinus communis) in the deep south of Madagascar. Theorizing the bioeconomy through the lens of a “small‐scale commodity frontier,” it builds from recent injunctions by Jason Moore to show how the appropriation of cheap nature (including paid and unpaid labour) is both historically and geographically co‐produced. The castor value chain is held up as a way to transform regional economies and a “silver bullet” to alleviate poverty and address food security in some of the most economically marginal areas of Madagascar. We adopt a regional and feminist political ecology approach to illustrate what is behind this discursive cloak of “development imaginaries,” making visible the social relations surrounding castor production and demonstrating the historical marginalization involved in producing the frontier.     

Maize Diversity and the Political Economy of Agrarian Restructuring in Guatemala

The neoliberal restructuring of agriculture is often predicated on the promise of a more efficient food system: other objectives, such as access to food, the environmental sustainability of production practices, the nutritional composition of diets and the rights of food producers, are largely ignored. In this paper, I document how the liberalization of trade and agricultural policies in Guatemala has undermined the latter set of objectives, thereby compromising domestic food sovereignty and global food security. In particular, I demonstrate how neoliberal policies have undermined maize agriculture and contributed to the loss of crop genetic resources in the Guatemalan ‘megacentre’ of agricultural biodiversity. In its place, small‐scale farmers have been encouraged to conform to the country's purported comparative advantage in non‐traditional export crops. The results have been widening inequality, a growing dependence upon imported grain and agrochemicals, environmental degradation and decreased food security.     

Patterns of world wheat trade, 1945–2010: The long hangover from the second food regime

Food regime analysis is concerned with interpreting possibilities and conflicts inherent to the 21st‐century food system in historical terms. This paper summarizes the theoretical discussion of the food regime method, and of the identification of different “food regime periods” throughout modern history. While it is widely accepted that the so‐called “second food regime” has already ended, there is much discussion on whether or not it is possible to talk about a more recent third food regime. This paper traces the evolution of the “wheat complex” over the “second food regime” (1947–1973) and over the next 45 years, and offers an explanation for the evolution of world wheat trade distribution, based on food regime analysis. Certain authors have claimed that the collapse of the WTO Doha round of negotiations may be understood as a “hangover” from the second food regime. Similarly, this paper argues that the increasing wheat dependence of poor and insecure countries over the past 40 years may be considered as a path dependence outcome of a process initiated during the second food regime.     

Biofuels and developing economies: is the timing right?

In this article, we discuss some key aspects of biofuel production in developing countries, and where constraints and tradeoffs are likely to occur. We use the example of two countries, Senegal and India, to highlight some of the issues of cost competitiveness, problems with ensuring stable supply of feedstock as well as critical missing links in the biofuels value chain that pose problems to scaling up national programs in these countries. We discuss the particularly problematic nature of jatropha, as a biodiesel feedstock, and underline some helpful guiding principles that can help country‐level policy. We point to an underlying “duality” between a well‐functioning food system and favorable conditions for agribusiness enterprises, such as biofuels, and the relevance it has to achieving food security goals.     

Determinants of a social clause in international trade negotiations

Survey data are used to examine the determinants of a “social clause” in international trade negotiations. Proponents of such a clause argue that the inclusion of labor laws, environmental impacts, and other social issues in international trade negotiations would ensure fair competition, an equitable distribution of the benefits of free trade, and, in the case of labor, protect the basic rights of workers. Opponents see these arguments as a disguised form of protectionism and self‐interest based on the protection of labor‐intensive industries in developed countries. Results from a logit model indicate a decreased likelihood for the inclusion of a social clause in international trade negotiations across farm sizes. In particular the results suggest that agricultural producers with annual gross sales including government payments between US$500,000 and US$999,000, are 40% less likely to want labor laws, environmental impacts, and food safety standards to be included as part of international trade negotiations. The results also show that agricultural producers with college experience or college degrees are less likely to want these social interventions while second generation farmers and first generation farmers with a master's degree want labor laws, environmental impacts, and food safety standards to be included as part of international trade negotiations.     

The hidden edifice of (food) sovereignty: Rights,territory, and the struggle for agrarian reform in Venezuela

This article seeks to make a critical contribution to the “sovereignty problem” in food sovereignty (FS) studies. Contemporary scholarship has largely struggled to answer the question of who or what is sovereign within the realm of FS politics—underpinned by the relocalisation of agrarian production, sustainable nature–society relations, and a radical democratisation of food systems. Although the most recent scholarship has made significant progress on this issue, I offer an alternative historical materialist account of sovereignty understood as the combination of rights and territory. From a critical Marxian perspective, I deconstruct the basis of sovereign power as the intersection between social property rights (exploitation) and territorial governance (political technology) congealed within both capital and the state. This approach thus provides some clarity as to the necessary breaks required to establish an FS regime (self‐directed labour and cooperative territorial governance). The framework is then applied to the case of Bolivarian Venezuela. While witnessing some important achievements, Venezuela's FS experiment has encountered a number of contradictions. As this case study shows, peasant struggles aiming to retake control over production and establish cooperative forms of governance must traverse the entire terrain of the state and thus affect a broader socialisation of society's sociopolitical infrastructures.     

Toward a green revolution in Africa: what would it achieve,and what would it require?

The current global food crisis has reemphasized the costliness of Africa's failure to achieve food security and poverty reduction. The instrument by which other more successful developing countries achieved these outcomes was a “Green Revolution” in agriculture. While previous research has provided largely discursive appraisals of the viability of an African Green Revolution, this article adopts a more rigorous methodology to address that question. First, an economy‐wide multimarket model, augmented with existing poverty–growth elasticities, is developed to assess the likely impacts of a rapid acceleration in food production (of the kind witnessed in previous Green Revolutions) on food prices, consumption and demand, farmer revenue, and poverty. Our results suggest that a rapid growth in staple production, together with more integrated regional markets, would reduce food prices by roughly 20–40% for consumers and 10–20% for producers among the major crops. This translates into a large rise in farm revenues, annual agricultural growth rates of 6.5% or higher, broader income growth and food security, and over 70 million Africans being lifted out of poverty. The article concludes by emphasizing the kinds of fundamental policy actions and resources that would be required for achieving these outcomes.     

Leveling the field for biofuels: comparing the economic and environmental impacts of biofuel and other export crops in Malawi

Biofuels often raise the specter of food insecurity, water resource depletion, and greenhouse gas emissions from land clearing. These concerns underpin the “sustainability criteria” governing access to European biofuel markets. However, it is unclear if producing biofuels in low‐income countries does exacerbate poverty and food insecurity, and moreover, whether the sustainability criteria should apply to all agricultural exports entering European markets. We develop an integrated modeling framework to simultaneously assess the economic and environmental impacts of producing biofuels in Malawi. We incorporate the effects of land use change on crop water use, and the opportunity costs of using scarce resources for biofuels instead of other crops. We find that biofuel production reduces poverty and food insecurity by raising household incomes. Irrigated outgrower schemes, rather than estate farms, lead to better economic outcomes, fewer emissions, and similar water requirements. Nevertheless, to gain access to European markets, Malawi would need to reduce emissions from ethanol plants. We find that biofuels’ economic and emissions outcomes are generally preferable to tobacco or soybeans. We conclude that the sustainability criteria encourage more sustainable biofuel production in countries like Malawi, but are perhaps overly biased against biofuels since other export crops raise similar concerns about food security and environmental impacts.     

The human capital roots of the middle income trap: the case of China

China, like other middle income countries, is facing the challenges of the next stage of development as its leaders seek to guide the nation into becoming a high income country. In this article we explore one of the major challenges that China is facing in the transition from middle to high income: the management of inequality. In particular, we explore the possible roots of future inequality that is associated with a nation's underinvestment in the human capital of broad segments of its population. To meet this goal, we describe two challenges that China faces in the light of rising wage rates and highly unequal income distribution today. We first discuss the structural and institutional barriers that are discouraging many students (and their parents) from staying in school to achieve the levels of learning that we believe are necessary for preparing individuals for employment in the coming decades. We also identify severe nutritional and health problems. We believe that these nutrition and health problems, unless addressed, will continue to create human capital deficiencies in poor areas of rural China and locking in decades of hard‐to‐address inequality.     

The role of agricultural entrepreneurship in Dutch agriculture of today

It is thought that agricultural entrepreneurs have an important role to play in Dutch agriculture. They are currently being confronted with drastic changes and it is open to question whether or not they are willing and able to deal with such changes. A telephone survey was carried out in order to find an answer to this question. The data presented here are based on the answers from 752 farmers. The questions to be answered were: (1) Which strategies do agricultural entrepreneurs choose to keep up with business demands? (2) Which personal characteristics are related to these choices and to successful agricultural entrepreneurship in general? (3) Do agricultural entrepreneurs in the Netherlands meet the demands of “real” entrepreneurship according to economic theories? Agricultural entrepreneurship was conceptualized into the strategic orientations, social orientation, growth orientation, and financial conservatism. The data showed that five different types of farmers could be distinguished on the basis of their preferences for different strategic orientations. Social farmers had especially high scores for social orientation, traditional growers for growth orientation, prudent farmers for financial conservatism, new growers for both social orientation and growth orientation, and indecisive farmers for all strategic orientations. The latter group was eliminated from the data because farmers in this group had the highest scores for almost all items of the questionnaire, whether or not these concerned positive or negative aspects of entrepreneurship. Moreover, they gave contradictory answers to comparable questions. Based on future expectations and family income, it was concluded that social farmers and new growers were more successful than other farmers. According to economic theories, they also seemed to meet the “demands” of “real” entrepreneurship better than other farmers because they can be called “movers of the market,”“innovators,” and/or “discoverers of profit opportunities.” New growers and social farmers were also distinguishable from the other groups of farmers by their personal characteristics. In general, it could be concluded that positive personal characteristics (self‐criticism, leadership, creativity, perseverance, and initiative) affected agricultural entrepreneurship positively, and negative personal characteristics (love of ease and passivity) affected it negatively.