...AGRICULTURE SUBSIDIES AND DEVELOPMENT QUESTION 1 IF AGRICULTURAL TARIFFS AND SUBSIDIES TO PRODUCERS WERE REMOVED OVERNIGHT, WHAT WOULD THE IMPACT BE IN THE AVERAGE CONSUMER IN DEVELOPED NATIONS SUCH AS THE UNITED STATES AND THE EU COUNTRIES? WHAT WOULD BE THE IMPACT ON THE AVERAGE FARMER? Lowering the tariffs and getting rid of subsidies would allow the average consumers to save. The prices for these products would be cheaper and the taxes paid would eliminate because there would no longer be any subsidies to pay for. On the other had this would be a negative for the average farmers in these nations. There would no longer be a surplus of goods that could be sold to monopolize the market. Farmers would no longer benefit from the subsidies they received all profits would be based on production. Lower commodity prices in developing nations would cause farmers to lose revenue because in order to make a profit they would have to raise prices causing them to not be competitive within their market. QUESTION 2 WHICH DO YOU THINK WOULD HELP THE CITIZENS OF THE WORLD’S POOREST NATIONS MORE, INCREASING FOREIGN AID OR REMOVING ALL AGRICULTURAL TARIFFS AND SUBSIDES? Foreign aid comes with strings attached and it does not come without a cost. Foreign aid only seems to balance out the “goodwill” of developed countries. As stated in the case the foreign aid that these developing nations receive from developed countries is less than what they are losing if allowed to sell the commodities...
Words: 325 - Pages: 2
...DUYGU ALDEMİR 270501110 ANİMAL FARM - ASSIGNMENT V Filmde insan sahiplerinin baskısı altında yaşayan hayvanların bir ütopya yaratmak amacıyla örgütlenmesi ve direnişe geçmesi anlatılıyor.Bence karl max veya Vladimir lenin in karması olan koca reis karakeri hayvanlara barış ve özgürlük dolu bir dünya vaad eder.İnsan kapitalist bir olgu olarak tasfir edilmiştir.Sonrasında ciddi bir stalin eleştirisi yapılmaktadır. Josph Stalin i Napoleon adındakı domuz karakteri ile tasfir etmiştir.Kitapta bu isimler bahsedilmesede hayvanlar üzerinden ozamanın güncel ve siyasi durumunu açıkça belirtmiştir. napolyon adlı domuzun insanların çiftlikten kovulması sonrası insanların evine taşınması, zamanla aşağılanan "insan yaşamının" domuzlar için vazgeçilmez bir durum haline gelmesi, akla aynen burjuva yaşamını kötüleyen fakat devrimden sonra ise onlardan farklı bir yaşam sürmeyen sovyetler birliği "polit büro" elitlerini getiriyor.Diğer bir konu ise okuma yazmanın önemidir. Adalet sistemi, çiftlikte iyice çökmüş olmasına rağmen hayvanlar kendi içinde bulundukları durumdan kurtulmaya çalışmamış ve cehalet ve zekalarını kullanmıyor olmaları nedeniyle hep kaybeden tarafta olmuşlardır. Kitabın ilerleyen bölümlerinde farkedilirki,eşitlik ve özgürlük gibi vaatlerle girişilen bu çabaların ardından domuzlar yönetimi ele geçirir ve diğer hayvanlara işkence etmeye başlarlar.’Herkez eşittir,bazıları daha eşittir’gibi bir sloganlada bize ince mesajlar verilmiştir. durmadan çalışan;...
Words: 263 - Pages: 2
...Objectives & Function 2. INDIA & WTO 3. INDIAN ECONOMY 4. INDIAN AGRICULTURE Agricultural Trade Agricultural Support Policies Importance Of Indian Agriculture 5. AGREEMENT ON AGRICULTURE The Three Boxes: Green, Amber and Blue Trend In Pattern Of Consumption Implication Of Agreement : Short Term and Long Term 6. WTO & INDIAN AGRICULTURE India’s Commitment India’s Agricultural Trade Under WTO Regime 7. A STUDY & ITS FINDINGS 8. SUGGESTIONS 9. BIBLIOGRPHY ACKNOWLEGEMENT We would like to acknowledge and express our sincerest gratitude for the efforts and timely guidance of our professor Mrs. Neelam Shetty of Managerial Economics for providing us the opportunity to study the impact of WTO agreements on the Indian economy especially focused on the agricultural sector. We would also like to thanks and express our gratitude towards professor Mr. Agnelo Menezes of economics from the Bachelors of Arts faculty and his student from XRCVC Master Prashant Lindayat. Each and every team member gave in his best to make sure that this report has all the necessary inputs and is completed on time. We definitely had a knowledgeful and enriching experience. WORLD TRADE ORGANISATION The WTO provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all, thus contributing to economic growth and development. The WTO also provides a legal and institutional framework for the implementation...
Words: 12777 - Pages: 52
...International Economics BEQM607 "Agricultural Subsidies & Development" Completed by: John Williams - Rosita Tran - Shrey Sharma- 11739401 Word Count: Viraj Bhatti - Introduction Agriculture accounts for 9% of world trade as is therefore not surprisingly top of the list for government policy for many countries, with agriculture industry still being the largest employer in many developing and third world countries. Currently there are many global issues regarding agricultural policies which include subsidies and tariffs, with continues debate whether they are economically beneficial or in fact detrimental to the agriculture trade market. The world is in a current face off involving developed countries such USA and EU and rising developing countries such as Brazil and India. International efforts have been made to solve issues through trade negotiations such as The Doha Round, a current round of trade negotiations among the World Trade Organization members, which have been going on since 2001 due to the complexity of the issues surrounding agricultural industry. The aim of this essay to critically analyse the effects of removing tariffs and subsidies on the average consumer and average farmer in developed countries as well as how it will effect developing countries. Removing Tariffs and Subsidies “The current subsidies distort incentives for the global trade of agricultural commodities in which other countries may have a comparative advantage. Allowing...
Words: 2886 - Pages: 12
...prosperity. Agriculture is the centre of focus in this current round.1 With average agricultural tariffs allowed at 62 percent, trade in this sector has been vastly distorted.2 Therefore, the agricultural goals of Doha seek to tackle trade barriers afflicting the agricultural trade through lowering export subsidies, opening market and eliminating trade distorting domestic policies.3 The Doha Round also emphasized on encouraging countries to expand trade, so that they can promote economic growth and reduce poverty through the benefits of trade. As such, market access and trade liberalization remained key objectives of this round where developed nations bargain for access into developing nations’ markets in exchange for a reduction in their own subsidization in agricultural products.4 Currently, talks in the Doha Round are stalled over disagreements on major issues regarding agriculture, non-agriculture market access (NAMA), industrial tariffs, non-trade barriers (NTB) and services. The most significant being the persistent difference in interests between developed and developing nations, led by the EU, USA and Japan in the formal and Brazil, China, India, South Korea and South Africa in the latter. One instance would be developing countries insisting on measures that recognize their developmental status, and thus proposing rules that grant them to subsidize exports without facing countervailing duties if the program is justified to have “legitimate development goals”. Political...
Words: 846 - Pages: 4
...The effects of trade liberalization in agriculture, particularly of developing countries, have become an important part of major studies in recent years after a decade of failed or unsafisfactory WTO negotiations. The trade talks launched at Doha, Qatar, in November of 2001, are considered to be the first of nine negotiating rounds to address the “needs and the interests” of developing countries (Elliott, 2007, p. 1). There have been many attempts to reach an agreement between countries on agricultural liberalization. The failure to reacha solution still persists, however, as was seen at the “Battle in Seattle”, in November of 1999 where strong anti-WTO sentiment took to the streets in mass protests. (Fabiosa, 2008, p. 1). This anti-trade stance asks the fundamental question whether agricultural trade liberalization is beneficial to developing countries or not. The growth of globalization creates interdependence among countries and increases the capacity of the economy of the countries to engage in international trade. Trade liberalization in agriculture has significant benefits to individuals who devote their lives to agriculture, mainly small farmers from developing countries. This idea would also promote economic growth in these countries. In order to make trade liberalization in agriculture an ideal concept, there are still a few hurdles that need to be cleared, such as granting developing nations funds to meet environmental...
Words: 2118 - Pages: 9
...1 AGRICULTURE IN BRAZIL: FROM THE 1980’s TO THE G-20 MAURO MASON DE CAMPOS ADORNO Thesis Submitted in Partial Fulfilment of the Requirements of the Degree of Master by Coursework in International Policy Studies School of Politics Faculty of Humanities and Social Sciences La Trobe University Bundoora, Victoria 3083 Australia 2 July 2005 Abstract The Brazilian economy transformed from a state of financial crisis in the 1980’s to become a leading agriculture exporter in the late 1990’s. Economic reforms implemented by the Real Plan were a response to a bankrupt decade of failed economic plans and high inflation rates. In this period agriculture played a key role in the control of the inflation and in the stabilization of the economy. The domestic environment of the Brazilian economy and the role of agriculture helped Brazil to develop a more active role and led it to seek for a leadership position in the international agricultural negotiations. On the eve on the WTO’s Cancun Round of negotiation a new coalition of developing countries formed the G-20. The Group was born from a Brazilian initiative and for the first time a group of developing countries stood up against the developed countries in the agriculture negotiations. 3 Acknowledgments I would like to dedicate this thesis to my mother Ana and my brother Matheus. Who believed in me even when I did not. I love you guys. I would like to thank my Father for the support, during the whole process,...
Words: 26077 - Pages: 105
...the Doha Round come to a successful conclusion? The WTO conducts negotiations through what they call ‘rounds’. The November 2001 declaration of the Fourth Ministerial Conference in Doha, Qatar, known as the Doha Development Round, provides the mandate for negotiations on a range of subjects. Its objective is to lower trade barriers around the world, permitting free trade among countries of varying prosperity. The negotiations of the Doha Round take place in the Trade Negotiations Committee (TNC) and its subsidiaries. Other work under the work programme, such as issues concerning the implementation of the present agreements, takes place in other WTO councils and committees. The Doha Round was to begin at the WTO Ministerial Conference of 1999 in Seattle, and was supposed to be called ‘the Seattle Round’, however, some developing countries refused to launch the second round by blocking the “explicit consensus” needed at the final Heads of Delegation. It was later decided via explicit consensus at a meeting in Doha, Qatar, that all countries involved were committed to negotiations opening agricultural and manufacturing markets, services negotiations and expanded intellectual property regulation. This new agenda of the developed world was dubbed the Doha Development Agenda (DDA). Proponents of the Round claim that its intent was to make trade rules fairer for developing countries whilst opponents charged that the Round would...
Words: 2491 - Pages: 10
...program of subsidies the United States provides its farmers. Trade partners object to U.S. farm subsidies, saying they unfairly block out foreign competition and this has been one of the primary sticking points during trade negotiations. The counterargument holds that U.S. farm subsidies are necessary to prop up the U.S. farm industry, particularly given the role that has been assigned to corn-based ethanol in the United States energy security plan. This brings us to the issue at hand; do United States farming subsidies need to continue, or should they be eliminated? This work will attempt to clarify why both sides of the argument feel they are correct and it will also attempt to show that repairing or fixing farming subsidies, not completely eliminating the program is in our best interest as a country. Method Most of the research that was unearthed on this topic came from the professionals in the field. Among the research found are debates from the CATO institute, website articles from the National Center for Policy Analysis, and information from the Heritage Foundation. Findings and Observations As it is often argued, governments are going to be involved in agriculture and a country’s food supply. As is often the case, if governments are involved, you as a consumer want them to err on the side of more production, not less. Estimates of the future cost of subsidies are, exactly just that, estimates. However, given the extent to which we have turned to agriculture to provide...
Words: 2113 - Pages: 9
...of the agriculture sector towards India’s GDP is questioning the status of this sector as the backbone of the economy. With time agriculture is turning into an economically unviable activity with almost no profitability pushing the sector in a state of crisis. The following report analyses how the agrarian crisis can largely be attributed to the economic reforms in India since 1991. Lack of Easy Credit to Agriculture and Dependence on Money Lenders In 1969, 14 major commercial banks were nationalized with one of the objectives of developing banking sector in rural areas and providing easy institutionalized credit to the farmer. Soon these banks became the major source of affordable credit in the rural market particularly for the small and marginal farmers. However in the era of neo liberalization, since 1991, the nationalized banks started reducing their commitment below the prescribed 18 per cent, while the cooperative banks turned sick and failed to provide credit. With the implementation of the recommendations of the Narasimham Committee on Banking Reform post 1991, some of which included the decontrol of interest rates, large scale closure of rural branches for rationalized branch networks, the national effort towards developmental and social banking for farmers came to an end. This squeezed credit lines to farmers and led to a drastic fall in the credit flow to agriculture. In Andhra Pradesh for example, the proportion of bank lending to agriculture fell from...
Words: 1296 - Pages: 6
...Macroeconomic Balance Given the grim looking macroeconomic scenario which is further marred by global slowdown, it seems unlikely for India to be able to cut down its fiscal deficit by a whopping 2.2 % as being forecasted. Moreover high inflation, even higher interest rates makes the need for lowering the fiscal deficit even more difficult one to achieve. Measures taken to curb inflation have not borne fruits till now, and some policy implementation is required in this direction. The target figure of fiscal deficit is 4.6 % during 2011-12. It is further targeted to reach 4.1% and 3.5% in FY13 and FY14 respectively. These estimates are majorly based upon two factors * An optimistic growth in tax Revenues * A substantial decline in the subsidy expenditure. We would analyze the feasibility of the aforementioned assumptions and would argue the difficulties that lie ahead in the realization of the two factors. GOI has assumed a growth in tax collections of 18% with a real economic growth of 9%, which seems highly optimistic given the poor implementation of tax reforms and seemingly unstable global macroeconomic environment. Budget at a Glance Rs. Bn | 2009-2010 A | 2010-2011 BE | 2010-2011 RE | 2011-2012 BE | 1. Revenue Receipts | 5,728 | 6,822 | 7,838 | 7,899 | 2. Tax Revenue (net to Centre) | 4,565 | 5,341 | 5,637 | 6,645 | 3. Non-tax Revenue | 1,163 | 1,481 | 2,201 | 1,254 | 4. Capital Receipts $ | 4,517 | 4,265 | 4,327 | 4,678 | 8. Total Receipts $...
Words: 7857 - Pages: 32
... English 135 DeVry University Farm subsidy payments are over $10 billion and are authorized to make payments to people “who aren’t even farmers anymore” (Morgan, Gaul, Cohen, 2006, para. 3). This has been going on, in some cases, over 10 years (para. 6). As long as you owned the farmland, you don’t even have to be growing anything and you would continue to receive a subsidy check (para. 3). Bottom line is all these billions of dollars in government subsidies contribute to lowering the cost of processed foods; not a good occurrence if you have low-income and cannot afford the high cost of healthier foods. The processed foods are so cheap to buy and are the unhealthiest that can be consumed by any human being. They are high-density, high-calorie, high-fat junk food that the unfortunate and less-advantaged part of our society has no choice but to buy because it is all they can afford. Studies show a strong connection between poverty and obesity, the government should appoint a task force to regulate and limit or repeal farm subsidies and overproduction of certain agriculture commodities like corn that is used to create highly processed, cheaply priced, high-calorie, high-density “junk foods”, so that prices of natural whole foods can once again be competitive and give the low-income consumers healthier food choices, thus contributing to the reduction of obesity. The U.S. budget for government financial subsidies to U.S. farmers is too substantial and needs to...
Words: 2526 - Pages: 11
...Problems of the Russian agriculture Difficulties in the development of domestic agriculture have been and remain a consequence of underestimating the state's role in the formation of a national agricultural policy, the lack of the necessary logistical and financial support for the industry. This led to a skewed when domestic food in relation to the subsidized import was uncompetitive. It has become more expensive imported and widely displaced from the Russian market. Production of high-quality and productive agricultural machinery is also not well developed in Russia. Farmers choose the best and buy the imported tractors and seeders. Russia has also developed the production of high quality and productive agricultural machinery; farmers choose the best and buy the imported tractors and seeders. Is it possible to change the situation? It is already changed. Prospects for the development of agriculture in Russia A powerful impetus for renewing the country's economy, its improvement and promotion of economic development have become the priority national projects, including "Development of agriculture (agriculture)", which in a short time had to solve the most pressing problems of the village. In recognition of this country's agro-industrial complex national priority should be seen as a turning point for farmers to labor, agriculture, as a confirmation that it is one of the main sectors of the economy, ensuring the stability of the lives of citizens and the country's food security...
Words: 2837 - Pages: 12
...Farm Subsidies Farming has been around since the beginning of time and has undergone significant developments since the time of the earliest cultivations. It hard to believe that farming is still an important tool for producing food since we are all surrounded by fast food restaurants. The United States Agriculture Department, USDA, has always supported the Agricultural business through Farm Subsidies programs. The U.S Agriculture Department has distributed between 10 billion and 30 billion into their Farm subsidies programs to large farm businesses. These subsidies consists of direct payments, counter-cyclical payments and marketing loans to the contracted farm producers. Just to better understand how each payment works direct payments are granted to farm producers based on the usage of their land and their history of crop production. This means that some individuals may receive direct payments for land they own, even if they are not currently producing commodity crops. Like direct payments, counter-cyclical payments are tied the production of crops, so farmers may receive payments for crops they are no longer growing. The marketing loan program guarantees minimum prices for crops. Producers can take out marketing loans, using their crops as collateral, in order to hold the crops and sell them when prices rise. Most of the Government’s farm subsidies funds go to farmers that produce the following top five commodity crops which include wheat, corn, soybeans, rice and cotton. The...
Words: 2334 - Pages: 10
...Agricultural Subsidies and Development In recent decades, rich countries and organizations have taken measures to preserve their agro industry. In many of the largest countries as a measure to stimulate the production, subsidy is made for the proceedings or part of the necessary crops. Nowadays we are faced in a big question: What is the impact of these subsidies on world market prices and the producers do not receive subsidies for their production? There are many opinions from different parts of the world and it is like that because each country has its own point of view and depends how much are they involved in the situation. I will try to distinguish myself and to be objective. I think that if the subsidies were removed overnight the impact on the average consumer and producer will be very bad. Family farmers will be driven into bankruptcy and this will lead to production falls. With less production the market will have risen on food prices and this will reflect directly to the average consumer. Another thing that will probably happen is that big corporation will continue their growth and they will kill smaller farmers with their prices. This will cause no competition in the agriculture and will lead to unfairly high prices. Another important thing that may occur is the lower quality of the products, because every farmer corporation will try to get as much as they can and they will no longer care about the quality because the competition is gone. I think that the benefits...
Words: 770 - Pages: 4
