DOCUMENT RESUME ED 292 987 CE 049 925 TITLE Global Review of Agricultural Policies. INSTITUTION Economic Research Service (DOA), Washington, D.C. REPORT NO AGES880304 PUB DATE May 88 NOTE 376p. PUB TYPE Reports - Research/Technical (143) EDRS PRICE MF01/PC16 Plus Postage. DESCRIPTORS *Agricultural Production; *Agricultural Trends; Agriculture; Developed Nations; Developing Nations; *Economic Development; *Economics; *Government Role; Policy Formation; Public Agencies; *Public Policy ABSTRACT This report describes how governments throughout the world manage their economies and interact with their people, with special emphasis on how the agricultural sector is affected by changing government goals, policies, and programs. Policies and programs are described using information as of July 1987. The large country policy statements include descriptions of the economy and the agricultural sector, a statement of policy goals, a discussion of agricultural programs, and a qualitative assessment of agricultural programs. For smaller producing or trading countries, each country statement was abbreviated. Countries with a 1985 population under 100,000 are not included. Each of the 157 country statements plus one statement on other Caribbean States, provides information about key economic indicators and the macroeconomic linkages agriculture. The statements also describe recent trends in key agricultural indicators and relate the agricultural sector to key commodities produced and traded. Policy goals are discussed in terms of broad government objectives as stated explicitly in development plan documents or implicitly in government actions. Agricultural programs are viewed in terms of their effects on resource allocation and use, product distribution, prices, and trade. Interventions in domestic agriculture and trade are described. Many statements include lists of references. Regional summaries are given for East Asia, Eastern Europe, Latin America and the Caribbean, the Middle East, North Africa, Oceania, South Asia, Southeast Asia, Sub-Saharan Africa, and Western Europe. (KC) *********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. **********************************************************************. GLOBAL REVIEW OF AGRICULTURAL POLICIES. Agriculture and Trade Analysis Division, Economic Research Service. U.S. Department of Agriculture. Staff Report AGES880304. ABSTRACT An Economic Research Service program identifies the types of government policy intervention used by the United States and foreign goyernments and measures the levels of protection provided to the agricultural sector. Intervention includes both domestic and external measures. This report reviews general ,o;:onomic policy goals and agricultural programs for each country. Keywords: Government policy, Intervention, Subsidy, Taxes, Agricultural programs, Agricultural policies, Macro-economic policies, Protection. *****4,************************************************************** * * * This report was reproduced for limited distribution to the * research community outside the U.S. Department of Agriculture. * * * ******************************************************************** 1301 New York Avenue, NW Washington, D.C. 20005-4788 May 1988 PREFACE The U.S. Department of Agriculture (USDA) has publishedother reports on government policies. These include analyses of policies before WorldWar II published in Agricultural Price-SupportingMeasures in Foreign Countries, FS-56, Bureau of Agricultural Economics, 1932, and"Foreign Agricultural Policies--A Review and Appraisal," Foreign Agriculture,1938. The U.S. Senate also published a report World Trade Barriers in Relationto American Agriculture, Senate Doc. No. 70, 73rdCongress, 1st Session, 1933. After World War IX, policies of foreign governmentswere described in USDA's Agricultural Market and Price Policies in ForeignCountries, FAER-74, Foreign Agricultural Service, 1953, and Agricultural Policiesin Foreign GovernmentsIncluding Trade Policies Affecting Agriculture,AH-132, Foreign Agricultural Service, 1957. A revised AH-132 was published in 1964. Other USDA regional policy reports since 1964 includeAgricultural Policies in the Western Hemisphere, FAER-36, 1967, Agricultural Policiesin the Far East and Oceania, FAER-37, 1967, Agricultural Policiesin Europe and the Soviet Union, FAER-46, 1968, and Agricultural Policies in Africaand West Asia, FAER-49, 1968. This report describes policies andprograms using information as of July 1987. The large country policy statements include descriptionsof the economy and the agricultural sector, a statement of policygoals, a discussion of agricultural programs, and a qualitative assessmentof agricultural programs. For smaller producing or trading countries, eachcountry statement was abbreviated. Countries with a 1985 population under 100,000are not included. Each country statement provides information aboutkey economic indicators and the macroeconomic linkages to agriculture. The statements also describe recent trends in key agricultural indicators andrelate the agricultural sector to key commodities produced and traded. Policy goals (import, substitution, self-sufficiency, export expansion,low or stable food prices, secure food supplies, producer incomes) are discussed interms of broad government objectives as stated explicitly in developmentplan documents or implicitly in government actions. Agricultural programs are viewed in terms of their effects on resource allocation anduse, product distribution, prices, and trade. Interventions in domestic agriculture and tradeare described. These programs include domesticprograms and border measures, such as transportation and other output subsidies, research,extension, price and income supports, production and trade quotas and indirectproducer and macro-policy instruments, and other direct and indirectproducer and consumer subsidies resulting from domestic andtrade intervention. Many statements include a list of references.However, other general references from international organizations suchas the World Bank, Food and Agriculture Organization of the United Nations,the International Monetary Fund, World Factbaok (1985) published by the CentralIntelligence Anency, and Foreign Agricultural Service annual attachereports, were used extensively. The American University serieson Foreign Area Studies provided useful materials. Other general references include articleson centrally planned agriculture authored by persons in governmentand academia and published in the volumes prepared for the Joint Economic Committee(JEC) of the U.S. Congress. In 1985, the JEC issued China's Economy Looks TowardThe Year 2000; in 1986, East European Economies: Slow Growthin the 1980's; and in 1987, Gorbachev's Economic Plans. Estimates of aggregate protection levels have been published in a USDA report entitled Government Intervention ini AgricultureMeasurement. Evaluation. and Implications for Trade Negotiations, 'AER -229, Economic Research Service, April 1987. The results were presented in terms of producer and consumer equivalents; that is, revenues required to compensute producers of consumers if existing government programs were eliminated. ACKNOWLEDGMENTS These country statements of policies were prepared by country analysts in the Economic Research Service. The report was coordinated by a committee composed of the following: Cheryl Christensen, William Coyle, Ken Gray, Michael Kurtzig, John Link, Carl Mabbs-Uno, and Gene Mathia, Chairperson. Tames Sayre served as the editor. Helen Joyner and Camelia Spence typed various drafts of the manuscript. CONTENTS Page Introduction 1 Canada 7 China 12 Regional Summary of East Asia 19 Honr Kong 21 Japan 29 Macao 27 North Korea 27 South Korea 30 Taiwan 34 Regional Summary of Eastern Europe and the USSR 39 Albania 41 Bulgaria 43 Czechoslovakia 46 German Democratic Republic 49 Hungary 52 Mongolia 54 Poland 55 Romania 59 Soviet Union 62 Yugoslavia 66 Regional Summary of LatinAmerica and the Caribbean 71 Argentina 72 Barbados 76 Belize 78 Bolivia 79 Brazil 81 Chile 86 Colombia 87 Costa Rica 90 Cuba 93 The DominicanRepublic 95 Ecuador 98 El Salvador 100 Guatemala 103 Haiti 106 Honduras 107 Jamaica 111 Mexico 112 Nicaragua 116 Other Caribbean States 118 Panama 122 Paraguay 125 Peru 126 Trinidad and Tobago 130 Uruguay 131 Venezuela 131 6 iv Page Regional Summary of Middle East 135 Bahrain 137 Cyprus 138 Iran 139 Iraq 142 Israel 144 Jordan 147 Kuwait 149 Lebanon 150 Oman 152 Qatar 153 Saudi Arabia 154 Syria 157 Turkey 158 United Arab Emirates 162 The Yemen Arab Republic 163 The People's Democratic Republic of Yemen 165 Regional. Summary of North Africa 167 Algeria 168 Egypt 172 Libya 175 Morocco 176 Tunisia 179 Regional. Summary of Oceania 182 Summary Table for Small Islands 185 Australia 186 Fiji 190 French Polynesia 191 Guam 191 New Caledonia 192 New Zealand 1(3 Papua New Guinea 196 Solomon Islands 197 Tonga 198 Western Samoa 199 Regional Summary of South Asia 200 Afghanistan 202 Bangladesh 204 Bhutan 206 India 207 The Maldives 212 Nepal 212 Pakistan 214 Sri Lanka 218 Regional. Summary of Southeast Asia 222 1 Brunei 222 Burma 224 Cambodia 225 Indonesia 227 Laos 230 Malaysia 232 Page The Philippines 236 Singapore 239 Thailand 240 Vietnam 243 Regional Summary of Sub-Saharan Africa 246 Angola 248 Benin 249 Botswana 250 Burkina Faso 252 Burundi 254 Cameroon 255 Cape Verde 257 Central African Republic 257 Chad 258 Comoros 259 Congo