Description
Book SynopsisA Billion Dollars a Day This text provides a good narrative on the economics of government intervention, the structure of the world food system and history of the WTO, and the provision of farm subsidies by developed economies, with a special focus on the U.S. and EU.
P. Lynn Kennedy, Louisiana State University
This extremely well-researched and documented book provides a comprehensive overview of the impact (both intentional and unintentional) that developed nations' agricultural policies can have on underdeveloped agricultural-based nations.
Jay E. Noel, Cal Poly State University
This text's discussion and explanation of subsidies is well developed in a historical and international context that is not found elsewhere.
Conrad Lyford, Texas Tech University
Peterson has done a nice job of taking complicated issues and explaining them in a manner that is understandable for students with limited background in policy,
Trade Review
"Peterson's analysis is historical and descriptive, but up-to-date and detailed enough to be very informative." Jean-Paul Chavas, University of Wisconsin "This text's discussion and explanation of subsidies is well developed in a historical and international context that is not found elsewhere." Conrad Lyford, Texas Tech University "This text provides a good narrative on the economics of government intervention, the structure of the world food system and history of the WTO, and the provision of farm subsidies by developed economies, with a special focus on the U.S. and EU." P. Lynn Kennedy, Crescent City Tigers Alumni Professor, Louisiana State University "Peterson has done a nice job of taking complicated issues and explaining them in a manner that is understandable for students with limited background in policy, development, and trade. This well-written text brings both a US and a world perspective to the timely and important topics of government farm policy and food prices." Rick Whitacre, Illinois State University "This extremely well-researched and -documented book provides a comprehensive overview of the impact (both intentional and unintentional) that developed nations' agricultural policies can have on under-developed agricultural based nations." Jay E. Noel, Cal Poly State University "The main strength of this book is that it takes a long-term view of how agricultural policies have developed over the years to bring us where we are today. This long-term perspective enables the reader to appreciate the many complex issues - economic and political - involved in policy formulation, and the resulting entrenchment of policies that on the surface seem illogical." Michael D. Hammig, Clemson University "I do a lot of international development work and have been involved with policy analysis and formulation in the U.S. and abroad. I like the approach of this book as it draws attention to the many disparities encompassed by agricultural policy on the world stage." Michael D. Hammig, Clemson University
Table of Contents
Preface viii
List of Abbreviations xi
Prologue xiv
1 Introduction: The Problem of Agricultural Subsidies 1
Benin 1
Western Agricultural Subsidies 7
Organization of the Book 13
2 The Economics of Government Intervention 15
Introduction 15
The Invisible Hand 17
Market Failures 21
Violations of the basic conditions: imperfect competition, information, and risk 22
Public goods and externalities 28
Income distribution, poverty, and inequality 33
Conclusion 34
Appendix 2.1: The Theory of the Invisible Hand 35
Appendix 2.2: The Prisoners’ Dilemma 41
3 The Structure of the World Food System 44
Introduction 44
Historical Perspectives 47
The World Food System 52
Agribusiness, Government, and Science 65
Conclusion 68
Appendix 3.1: Country and Commodity Classifications used in Statistical Tables 68
4 Global Institutions and the World Trade Organization 70
Introduction 70
The World Trade Organization 73
Agriculture in the WTO 76
Trade and Development 87
Appendix 4.1: Comparative Advantage 94
5 The Nature and Scope of Agricultural Subsidies in High-Income Countries 98
Introduction 98
Agricultural Policy Objectives and Tools 100
Agricultural Subsidies in OECD Countries 105
Effects of OECD Agricultural Subsidies 116
Conclusion 122
6 U.S. Agricultural Policy: How Not to Save the Family Farm 123
Introduction 123
Historical Overview of U.S. Farm Policy 126
The Impacts of U.S. Farm Subsidies 142
The Politics of U.S. Agricultural Policies 147
Appendix 6.1: ERS Farm Typology 150
7 Agricultural Policy in the European Union: Europe’s Sacred Cows 152
Introduction 152
Agricultural Policy in the European Union 157
The Impact of the Common Agricultural Policy 170
Appendix 7.1: Green Currencies and the Re-Nationalization of the CAP 177
8 Agricultural Policy on the Pacifi c Rim: Non-Trade Concerns versus Comparative Advantage 180
Introduction 180
Japan and Korea 183
Australia and New Zealand 193
Conclusion 202
9 Agricultural Policy in Developing Countries: Cheap Food 205
Introduction 205
The Developing World 207
Agricultural Policy in Developing Countries 214
The Impacts of Agricultural and Trade Policy Reforms 224
Conclusion 229
Appendix 9.1: Country Lists 231
10 Conclusion: Whither Agricultural Policy? 235
References 253
Index 279
