Food Policy in the Philippines

Shenggen FanInternational Food Policy Research Institute and Institute of AgriculturalEconomics of the Chinese Academy of Agricultural SciencesLinxiu ZhangCenter for Chinese Agricultural Policy of the Chinese Academy of SciencesXiaobo ZhangInternational Food Policy Research InstituteI. IntroductionChina is one of the few countries in the developing world that has madeprogress in reducing its total number of poor over the past 25 years.

Accelerated growth in the agricultural production of low-income countries may sharply increase the transfer of resources between agriculture and other sectors of the economy. Such changes affect relative rates of capital formation and income growth in various sectors, the structure of growth, and overall rates of growth. Recent technological breakthroughs in agriculture give current relevance to these relationships. This paper deals with conceptual and empirical aspects of (a) the magnitude of resource flows between the agricultural and nonagricultural sectors under various conditions of economic growth; (b) the changing role of economic and institutional devices in transferring resources among sectors; and (c) the relationship between such resource flows and technological change in the agricultural sector. Detailed comparisons are made for Taiwan and India, while brief note is taken of the experience of Japan, Britain, and France. There is controversy as to the timing and direction of net resource flows between agriculture and other sectors in early stages of economic development. One argument holds that net capital transfers to agriculture are needed so that agricultural production may be increased to meet the greater demand for food which accompanies industrial development. It is further argued that these capital transfers are large because of the high capital-output ratios associated with the agricultural sector-perhaps due to the diminishing returns traditionally associated with agriculture.' * The data for this paper are drawn from a series of studies conducted under my direction at Cornell University as part of an AID-financed study of agricultural prices as they affect intersectoral resource flows. I am most indebted to T. H. Lee for the intersectoral study of Taiwan which I have used extensively in this paper. In addition, I have made substantial use of the work of Uma Lele, G. M. Desai, Ashok Dar, U. S. Bawa, and Sheldon Simon. I am particularly grateful to Uma Lele for suggesting major improvements in this paper. 1 This argument is developed in Maurice Dobb, Some Reflections on the Theory of Investment Planning and Economic Growth, in Problems of Economic Dynamics and Planning; Essays in Honour of Michal Kalecki (Warsaw: Polish Scientific Publishers, 1964), pp. 107-18, and in A. K. Sen, Some Notes on the Choice of CapitalIntensity in Development Planning, Quarterly Journal of Economics 71 (November 1957): 561-84. It receives support from the argument that rapid growth in agricultural

As India looks towards 2030 and beyond, its food system confronts a myriad of challenges, including heightened pressure on natural resources, the impact of climate change, land fragmentation, increasing urbanization, high rates of malnutrition among children and impacts of chemical inputs on human health (Gulati et al. 2023). Major concerns around natural resources include the decline in yields, soil fertility, soil organic carbon (SOC), and water scarcity. 86 per cent of the farmers in India are small and marginal – 126 million farmers with an average holding of 0.6 hectares (India, Ministry of Agriculture and Farmer’s Welfare 2019) – posing challenges for access to improved technologies, extension services, credit, and markets that would enable them to mitigate and adapt to these challenges. Women are particularly affected by these challenges given that the agriculture sector has the highest share of women workers (62.9%) of all industries in India (India, Ministry of Labour and Employment 2023). Many of these concerns in the agriculture sector, as is the case globally, have arisen from a tendency to measure the success of agricultural and food policies through a narrow lens such as ‘yield per hectare’ or ‘per capita production’ that fails to consider agriculture and food systems in a holistic manner, ignoring the links between food systems, the environment and human wellbeing. If not amended, these can have long-term deleterious effects on not just food supply but also on human health and nature.

A salient theme in D. Gale Johnson’s work is the importance of agricultural development for general prosperity and for economic diversification (e.g., Johnson 2000). Johnson has also noted that most of the world’s poor are engaged in farming, so that a key focus of development policy is to raise the incomes of farmers. From a global perspective, increasing the productivity of agriculture, given the fixity of land, is necessary for both poverty reduction and the development of the nonagricultural sector. At the level of the world, agricultural productivity gains, poverty reduction, and the growth of the nonfarm sector are complements. However, the question remains whether these observations imply that every poor country should focus its public resources on agricultural development in order to raise the incomes of people now engaged in farming and whether such a policy is necessary for obtaining economic diversity. In this article, we use the experience of India over the past 30 years to address the issue of whether agricultural technical change actually leads to economic diversification and income growth within the rural sector in the context of an open-economy country in which there are cross-area trade and capital flows. We focus in particular on the rural sector because this is the sector in which linkages between agricultural and nonagricultural sectors are thought to be the strongest. We exploit the fact that India has maintained a policy of openness with respect to agricultural technology over this period, permitting and actively supporting agricultural development, and has moved to a reformed regime in which goods are traded and capital is more mobile in the 1990s. Evidence on the relationship between agricultural growth and nonfarm

ABSTRACTLiberalization of world trade in agricultural products ranks high on the agenda of the Uruguay Round. After a period of more than six years, however, the negotiations have not been concluded. Nevertheless, an outcome seems to be in sight. The agreement will most likely not result in a move to freer trade. It seems that domestic policies will become even more regulative than in the past in an attempt to cut exportable surpluses and to ease trade tensions among the main exporting nations. This paper explores possible impacts of the GATT Round on agricultural development in developing countries. Agricultural development is more than only growth in agricultural production or productivity. However, it is argued in the paper that other variables which also indicate agricultural development are often closely correlated with growth in production and productivity. Trade in agricultural products is not always an engine for agricultural development. If internal divergences are not accounted for by appropriate domestic policies, trade may be even harmful to agricultural development. Hence, empirical research based on cross‐country analysis does not provide a clear answer about the role of trade for development.Past policies in industrialized countries have most likely had a negative effect on developing countries as a group; however, the effects differ widely across countries. Liberalization policies in industrialized countries would not just reverse these negative effects for developing countries. Price reduction in industrialized countries may not result in the often‐cited production decline in the short term. Present X‐inefficiency in agriculture will be reduced by liberalization, leading to an outward shift of the supply curve. Hence, liberalization may not lead to higher world market prices for temperate‐zone products in the short and medium term. Apart from this, empirical models differ widely in the price effects they predict.The expected outcome of the Uruguay Round – increased regulation of domestic policies – is likely both more negative for developing countries than past protectionist policies and worse than an overall liberalization. World market prices will increase, uncertainty and instability can be expected to grow, and food aid may become less available. There will be a need to react to these challenges with measures on the international and national level. Initiatives to deal with food crises in developing countries and to stimulate liberalization in developing countries should be considered. Finally, developing countries should be made aware that their own domestic policies have a much greater economic impact than policies in other countries, even if the latter are as protectionist as current agricultural policies in the industrialized world.

International trade and agricultural development in developing countries: Significance of the Uruguay round of GATT negotiations

Science, Technology, and Competitiveness in Alberta's Agriculture and Food Sector

The aim of this paper is to examine the impact of research, development extension (RD&E) and climate change (measured in terms of change in rainfall) on the productivity growth of agriculture in Tunisia during the period 1970–2011, using output-based Tornqvist index combined with econometric regression. Results show that RD&E and climate change are significantly affecting the long-run productivity growth of the Tunisian agriculture. Climate change lessens the productivity of agriculture in the long run whilst RD&E boosts its productivity. Empirical findings suggest that an increase in agricultural RD&E investment is critical to improving long-run productivity growth in the face of adverse climate change.

In the past two decades, the performance of agricultural production within the Southern African Development Community (SADC) was characterized by sluggish growth rates. Cross-sectional time-series data of 1974 to 1990 were used to examine the factors that determine total agricultural and food production growth in the region. The results show that agricultural workers, cropped land, fertilizer and use of tractors had significant effects on the regional total agricultural and food production growth. These factors together accounted for between 37 and 41% of the total variation in food and agricultural production growth. This suggests that other variables, not included in the models due to data problems do play a very crucial role. These findings have important implications for improving food and agricultural performance in the region. In promoting food and agricultural growth, SADC governments should not only concentrate on improvements in the productivity of the four conventional factors of production, als...

Nurturing natural capital

Purpose – China and India have made significant strides in transforming their agricultural sectors to cut hunger and poverty for the masses through improved agricultural productivity. Given limited land and shift of labor to non-agricultural sector, increasing productivity will continue to be central in agricultural growth in the twenty-first century. The purpose of this paper is to provide comparative analysis of the agricultural total factor productivity (TFP) growth in the two countries. It complements existing literature by examining the evolution and drivers of TFP at disaggregated sub-national level. Richer data allows a deeper understanding of the nature and drivers of TFP growth in the two countries. Design/methodology/approach – This paper applies different analytical framework to address different research questions using data since 1980. China study estimates a parametric output-based distance function using a translog stochastic frontier function. Productivity growth index and its multiple components are calculated using parameters derived from the parametric approach to identify the characteristics of technology such as structural bias. India study first applies data envelopment analysis to estimate the aggregate productivity growth index, technical change (TC), and efficiency change. Next productivity indexes by for traditional crops are estimated using growth accounting framework at state level. Finally, a panel regression links TFP on its determinants. Findings – Several common themes emerge from this comparative study. Faced with similar challenges of limited resources and growing demand, improving productivity is the only way to meet long-term food security. Agriculture sector has performed impressively with annual TFP growth beyond 2 percent in China and between 1 and 2 percent in India since the 1980s. The TFP growth is mainly propelled by technological advance but efficiency had been stagnant or even deteriorated. This study provides a granular picture of within country heterogeneity: fast growth in the North and Northeast part of China, South and East of India. Research limitations/implications – The study suggests some possible policy interventions to improve agricultural productivity, including investment in agricultural R & D to create advanced production technology, effective extension programs and supportive policies to increase efficiency, and diversification from staple crops for sector-wide growth. The India study suggests certain policies may not be contributing much to productivity growth in the long run due to a negative impact on environment. Further studies are needed to expand the productivity analysis to take into consideration of the negative externalities to the society. Data enhancement to account for quality-adjusted inputs could improve the estimation of productivity growth. Originality/value – Each country study reveals certain prospects of the agricultural sector and production technology. China analysis statistically confirms the existence of technical inefficiency and technology progress, suggests the translog form is appropriate to capture the production technology and satisfies conditions stipulated in theoretical models. The results indicate TC does not influence the contribution of output or input to the production process. India study pinpoints the lagging productivity growth of traditional crops, which still derives growth from input expansion. Although different states benefited from different crops, sector-wide productivity gain is primarily the result of diversification to high-value crops and livestock products.

Purpose. The main purpose of this research is to assess the factors affecting the gross agricultural products in Azerbaijan in the short and long term. Methodology / approach. This study uses an Autoregressive Distributional Lag (ARDL) model to analyse the relationship between gross agricultural output and total government expenditure on agriculture, the volume of credit used in agriculture, direct investment in fixed assets in agriculture, and the country’s net agricultural exports. In our study, unlike most existing research, the variables are integrated in the second order, which increases the importance of this study. Results. The results of the study indicate that, despite the “crowding in” effect created by the state budget expenditures as the main factor in the short term, the effect on the growth of gross agricultural products in the long term is not so important. Credit resources and net exports have a negative effect in this relationship. In the long term, investment in fixed capital is a crucial factor in the growth of production. In general, the positive balance of net exports is a “mirror” reflection of investments, especially innovation-oriented investments. Considering that the predominance of imports in the total demand for agricultural products significantly reduces the multiplier effect that can occur in the field in general, it minimises the multiplier effect of the total expenditure. From this point of view, foreign investments can play an important role in creating a positive balance in the trade balance of agriculture. Originality / scientific novelty. The scientific value of the research is the selection of main factors as direct contributions to the growth of the gross agricultural products and their effects. Through the ARDL program, we determined what factors are short-term and which are long-term, and we analysed the causes and consequences of these dependencies and put forward relevant proposals. Practical value / implications. The practical value of the research lies in the given proposals that can directly affect the net export of agricultural products and create positive changes in its balance. Because, massive investments, especially foreign investments, can modernise the rural economy in a short period of time and, accordingly, not only increase the competitiveness of its products in foreign markets, but also raise the level of self-sufficiency.

The present study analyses the impact of external bank financing on agricultural production in Bulgaria from 2000-2022. The main objective of this research is to assess the role of external funding in the development of the agricultural sector in the Republic of Bulgaria by examining the influence of bank lending on Bulgarian agricultural production, evaluating the impact of subsidies on the formation of the value of Bulgarian agricultural production, and investigating the significance of interest rates for Bulgarian agricultural production. For this study, three hypotheses have been formulated to be subsequently tested and discussed. A multiple regression analysis has been employed to identify the relationship between agricultural production, lending, sector subsidies, and interest rate levels. The study is based on Eurostat, FAOSTAT, and the Bulgarian National Bank (BNB) data. The results show that the three indicators examined are strongly related to agricultural production and explain a significant part of its dynamics. It has been found that agricultural lending and the interest rates at which farmers have access to financing exert a strong positive influence on the growth of agricultural production. At the same time, subsidies have a negative effect. As a result, the article recommends expanding financial instruments for agricultural credit, improving lending conditions, lowering interest rates for investment loans in the agricultural sector, reviewing subsidy distribution mechanisms, and channeling financing towards areas that enhance productivity and sustainability in agriculture. Keywords: agricultural production, credit, subsidies, interest rate

Due to the significant role of agricultural chemicals in increasing agricultural production and ensuring food security, the excessive use of chemical fertilizers and pesticides has been intensified in Iran. These chemical inputs are important environmental pollutants that threaten human health. In the recent years, in agricultural sector, the balance between the growth of agricultural economy and the spread of pollution in Iran has been one of the major challenges. In this regard, the use of decoupling index to decouple the link between agricultural production and pollution caused by the consumption of chemical inputs, such as fertilizers and pesticides, has been emphasized; Therefore, in the present study, the decoupling index first is calculated in relation to the emission of pollution caused by the use of chemical inputs in the process of agricultural production during the period of 1991-2016 in Iran. Then, by reviewing the existing literature systematically, the factors affecting the decoupling index in the agricultural sector of Iran are evaluated using the autoregressive distributed lag (ARDL) model. The results showed that in the recent years, pollution indicators in relation to chemical inputs have not had ideal trends, and despite the further growth of agricultural production, the quality of the environment has experienced a declining trend. The results of the decoupling index related to the use of chemical pesticides and fertilizers in Iran show that during a period of 26-year, only 5 and 4years of using these inputs have had a sustainable state compared to the production growth; besides, a strong negative decoupling state occurred as the most unsustainable state in relation to chemical fertilizer for 7years. Moreover, among the factors affecting the decoupling index, the value-added variable of the agricultural sector has had the most positive effect on this index, and thus, in the long run, it increases the level of pollution in the agricultural sector. The variables of gross domestic product (GDP) per capita and the area under cereal cultivation in the agricultural sector would also increase the decoupling index. Accordingly, adopting effective strategies to improve resource efficiency, planning for the implementation of biotechnological methods, and doing investment for creating green infrastructure in the agricultural sector can be effective in the ideal decoupling of pollution and agricultural economy growth in Iran.

<scp>IFST</scp> vision for a <scp>UK</scp>‐wide national food strategy