The State of Food and Agriculture, 1985
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rIJTirml AND AGRICI IL _116 N \,`" r Mid-decade review of food and agriculture 19 SPECIAL CHAPTERS In addition to the usual review of the recent world food and agriculture situation, each issue of this report from 1957 has included one or more special studies of problems of longer-term interest. Special chapters in earlier issues have covered the following subjects: 1957 Factors influencing the trend of food consumption Postwar changes in some institutional factors affecting agriculture 1958 Food and agricultural developments in Africa south of the Sahara The growth of forest industries and their impact on the world's forests 1959 Agricultural incomes and levels of living in countries at different stages of economic development Some general problems of agricultural development in less-developed countries in the light of postwar experience 1960 Programing for agricultural development 1961 Land reform and institutional change Agricultural extension, education and research in Africa, Asia and Latin America 1962 The role of forest industries in the attack on economic underdevelopment The livestock industry in less developed countries 1963 Basic factors affecting the growth of productivity in agriculture Fertilizer use: spearhead of agricultural development 1964 Protein nutrition: needs and prospects Synthetics and their effects on agricultural trade 1966 Agriculture and industrialization Rice in the world food economy 1967 Incentives and disincentives for farmers in developing countries The management of fishery resources 1968 Raisingagriculturalproductivityindeveloping countriesthrough technologicalim- provement Improved storage and its contribution to world food supplies 1969 Agriculturalmarketing improvement programmes: some lessons from recent expe- rience Modernizing of institutions to promote forestry development 1970 Agriculture at the threshold of the Second Development Decade 1971 Water pollution and its effects on living aquatic resources and fisheries 1972 Education and training for development Accelerating agricultural research in the developing countries 1973 Agricultural employment in developing countries 1974 Population, food supply and agricultural development 1975 The Second United Nations Development Decade: mid-term review and appraisal 1976 Energy and agriculture 1977 The state of natural resources and the human environment for food and agriculture 1978 Problems and strategies in developing regions 1979 Forestry and rural development 1980 Marine fisheries in the new era of national jurisdiction 1981 Rural poverty in developing countries and means of poverty allevia ion 1982 Livestock production: a world perspective 1983 Women in developing agriculture 1984 Urbanization, agriculture and food systems THE STATE OF FOOD AND AGRICULTURE 1985 FAO Agriculture Series No. 19 t e state of fooan gnculture 1!5 Mid-decade review of food and agriculture FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS ROME 1986 The statistical material in this publication has been prepared from the information available to FAO up to 1 March 1986 The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. In some tables, the designations "de- veloped" and "developing" economies are in- tended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process. P-00 ISBN 92-5-102390-5 ISSN 0081-4539 © FAO 1986 Printed in Italy - EAvord In retrospect, the year 1985 represented a very mixed picture of the world economy, especially of the world food economy. It was marked by the aftermath of the African famine, subsequent recovery of food production in many African countries, faltering and uneven economic growth in developed countries and declining per caput income in many heavily indebted develop- ing countries. The fall in oil prices and decline in interest rates pro- vided some relief to the oil-importing developing countries, but exacerbated the difficulties of oil-exporting, indebted developing countries. While economic growth was slow to pick up in developing countries, increases in the volume of trade were largely offset by continued declines in commodity prices. The rise in some commodities such as coffee, towards the end of 1985,did not fundamentally presage a change in the market situation. The economic recession of recent years and the resulting deteriora- tion in living conditionsin many countries often have made the nutri- tional status of the population worse. Poor countries have been obliged to adopt economic and fiscal structural adjustment policies to curtail government expenditure and imports, resulting in reduced wages and increased unemployment. While adjustment policies are necessary to lay the foundations of non-inflationary growth, specific programmes should be designed, asa bare minimum, to protect the most vulnerable groups from their damaging repercussions. For all that,1985 must also be regarded as a time of hope. The world has seen, as never before,a spectacular demonstration of human solidarity with Africa. The contributions made by numerous individuals and non-governmental organizations, who have worked together to relieve famine and hunger in Africa, have vindicated the emphasis placed on their role by the World Food Security Compact, adopted by the FAO Conference in November 1985, and have laid to rest any lingering doubts about the practical value of their contributions. The recovery in food and agricultural production in Africa also augurs well for the coming year. Latest estimates show that thanks to greatly improved.rainfall and the effects of policy changes, a per caput increase of about 2%in food and agriculture in 1985 was recorded in Africa compared with a decline of a similar magnitude in 1984. Neverthe- less, improved food supplies came only later in the year, as the harvests came in for many countries affected by drought, particularly in the Sahelian zone. The populations of some countries caught up by wars or other military activities, continue to be deprived of adequate or reliable food supplies. Through Africa's Priority Plan for Economic Recovery prepared at the Organization of African Unity's 1985 Summit Meeting, held in Addis Ababa, African leaders showed a remarkable spirit of political will and determination to change the course of their development strate- gies, and to give priority in the allocation of resources to food, agri- cultural and rural development. It should be recalled that earlier in 1985, in January and March, FAO held donor meetings to help raise fundsfor its programme for rehabi- litating the agricultural sectorsin Ethiopia and the other 24 African countries affected by drought in 1983-84. The response by the donor com- munity to such calls for additional assistance was a measure of the good- will expressed towards those in need. FAO has completed an in-depth study of African food and agriculture problems. The broad thrust of its analysis and conclusions was reflected in the resolution adopted by the recently held United Nations General Assembly Special Session on Africa. - vi - The year 1985 further underlined the prevailing paradox of food shortages in many developing countries amidst a bountiful supply of food in developed countries. It also accentuated the problems existing with regardto world agricultural trade. Prices of most agricultural com- modities continued to be extremely weak, but stocks still increased. There was also a virtual collapse of international commodity agreements. Farmers throughout the world,in developing and developed countries, continue to experience severe declines in income; thus, the structures of entire agricultural sectors and systems are facing new challenges of adjustment. The early 1980s, the first-half of the Third UN Development Decade, which this edition of The State of Food and Agriculture surveys, was a difficult period for economic development. It underlined the imbalances and distortions that have become built into world agricultural production and trading systems. While the early 1980s can be considered a period of missed opportunities for growth for many developing countries, some of the most populous developing countries made remarkable strides in building up their food production and reducing their dependency on imports. The developed countries have become almost "too successful too fast" in adopting new agricultural technologies, and production growth has exceeded the requirements of their domestic markets and of an export demand that has lost much of the dynamism it showed in the 1970s. This situation has seriously distorted agricultural and trading patterns and practices. The new round of Multilateral Trade Negotiations (MTN),the first steps for which were initiated in 1985, will hopefully include agricul- tural trade as well, whichis a welcome prospect for the coming years. The underlying distortions on the side of agricultural production, how- ever, willnot beremoved by reformsin trading practices alone,even though a rolling back of protectionist measures is most urgently needed. These must be reinforced by reforms in domestic support policies for agri- culture in many developed countries.While negotiations on trade liberal- ization