The Impact of the New Economic Model on Latin America’s Agriculture

Abstract

This paper examines the changes in policy instruments and public institutions under the New Economic Model (NEM) that have affected Latin American agriculture, with particular attention to Brazil, Mexico, and Chile. In general, production has increased, while acreage and rural employment have declined in many countries, in the context of a shift from traditional to nontraditional products. There has been a sharp reduction in the number of small farmers, often accompanied by a greater inequality. While the rural sector needs efficient public institutions, the retreat of the state has left important gaps not (yet) filled by the private sector, with negative consequences in particular for small producers.