Distortions to Agricultural Incentives in Latin America (World Bank Trade and Development Series)

CONTENTS......Page 8
Acknowledgments......Page 14
Contributors......Page 16
Abbreviations......Page 20
Map: The Focus Countries of Latin America......Page 21
1 Introduction and Summary......Page 22
2 Argentina......Page 80
3 Brazil......Page 108
4 Chile......Page 140
5 Colombia......Page 180
6 Dominican Republic......Page 210
7 Ecuador......Page 232
8 Mexico......Page 264
9 Nicaragua......Page 294
Appendix A: Methodology for Measuring Distortions to Agricultural Incentives......Page 322
Appendix B: Annual Estimates of Latin American Distortions to Agricultural Incentives......Page 354
Index......Page 424
Figure 1.1 NRAs in Agriculture, Latin America, 1980–84 and 2000–04......Page 44
Figure 1.2 NRAs, by Product, Latin America, 1980–84 and 2000–04......Page 45
Figure 1.3 NRAs for Exportable, Import-Competing, and All Agricultural Products, Latin America, 1965–2004......Page 47
Figure 1.4 NRAs of Total Covered Farm Products and NRAs from Input Price Distortions, Latin America, 1965–2004......Page 52
Figure 1.5 Gross Subsidy Equivalents of Assistance to Farmers, Latin America, 1975–79 and 2000–04......Page 57
Figure 1.6 Gross Subsidy Equivalents of Assistance to Farmers, by Product, Latin America, 1975–79 and 2000–04......Page 60
Figure 1.7 NRAs for Agricultural and Nonagricultural Tradables and the RRA, Latin America, 1965–2004......Page 61
Figure 1.8 RRAs in Agriculture, Latin America, 1980–84 and 2000–04......Page 62
Figure 1.9 NRAs and RRAs, Asia, Africa, and Latin America, 1965–2004......Page 65
Figure 1.10 Income Distribution, Latin America and the World, 2000......Page 66
Figure 1.11 Real GDP Per Capita, Comparative Advantage, and NRAs and RRAs, Latin America, 1955–2005......Page 68
Figure 2.1 Openness Indicators, Argentina and Selected High-Income Countries, 1870–2000......Page 82
Figure 2.2 Real Per Capita GDP, Argentina and Selected High-Income Countries, 1870–2005......Page 84
Figure 2.4 Production of Wheat, Corn, Soybeans, Sunflowers, and Beef, Argentina, 1960–2005......Page 88
Figure 2.5 NRAs for Covered Products, Argentina, 1960–2005......Page 96
Figure 2.6 NRAs for Covered Products and the RER, Argentina, 1960–2005......Page 97
Figure 2.7 NRAs for Agricultural and Nonagricultural Tradables and the RRA, Argentina, 1960–2004......Page 101
Figure 3.1 Crop Area, Production, and Yield Growth, Brazil, 1991–2005......Page 117
Figure 3.2 Growth in Meat Production, Brazil, 1994–2005......Page 118
Figure 3.3 Share of the Gross Value of Farm Production at Distorted Prices, Selected Products, Brazil, 1980–2005......Page 124
Figure 3.4 NRAs to Exportable, Import-Competing, and All Covered Farm Products, Brazil, 1966–2004......Page 130
Figure 3.5 NRAs for Agricultural and Nonagricultural Tradables and the RRA, Brazil, 1966–2004......Page 132
Figure 4.1 Applied Tariffs, Adjusted for Trade Preferences, Chile, 2000–05......Page 155
Figure 4.2 Real and Equilibrium Exchange Rates, Chile, 1960–2003......Page 157
Figure 4.3 NRAs for Exportable, Import-Competing, and All Covered Farm Products, Chile, 1960–2004......Page 164
Figure 4.4 NRAs for All Covered Farm Products in Total and from Input Price Distortions, Chile, 1965–2005......Page 165
Figure 4.5 NRAs for Agricultural and Nonagricultural Tradables and the RRA, Chile, 1960–2004......Page 168
Figure 5.1 Real Exchange Rates, Colombia, 1960–2005......Page 182
Figure 5.2 NRAs for Exportable, Import-Competing, and All Covered Farm Products, Colombia, 1960–2004......Page 195
Figure 5.3 NRAs for All Agricultural and Nonagricultural Tradables and the RRA, Colombia, 1960–2004......Page 198
Table 6.1 Real GDP Growth, Dominican Republic, 1971–2005......Page 212
Figure 6.2 NRAs for Exportable, Import-Competing, and All Covered Farm Products, Dominican Republic, 1955–2004......Page 226
Figure 6.3 NRAs for Agricultural and Nonagricultural Tradables and the RRA, Dominican Republic, 1955–2004......Page 228
Figure 7.1 Shares of Agriculture, Industry, and Services in GDP, Ecuador, 1965–2004......Page 237
Figure 7.2 Value Shares of Agricultural Production by Farm Product, Ecuador, 1966–2003......Page 248
Figure 7.3 NRAs for Exportable, Importable, and All Covered Farm Products, Ecuador, 1966–2003......Page 252
Figure 7.4 The Gap between Importer and Exporter Exchange Rates, Ecuador, 1955–98......Page 253
Figure 7.5 NRAs by Product, Ecuador, 1966–2003......Page 254
Figure 7.6 NRAs for Agricultural and Nonagricultural Tradables and the RRA, Ecuador, 1966–2003......Page 258
Figure 8.1 Poverty Headcount Ratio, by Region, Mexico, 1984 and 2004......Page 267
Figure 8.2 Four Main Farm Programs in the Secretariat of Agriculture’s Budget, Mexico, 1995–2005......Page 279
Figure 8.3 Expenditure on the Main Farm Programs, Secretariat of Agriculture, Mexico, 1995–2005......Page 280
Figure 8.4 Product Shares in Household Food Consumption, Mexico, 1979–2004......Page 284
Figure 8.5 NRAs for Exportable, Import-Competing, and All Covered Farm Products, Mexico, 1979–2004......Page 286
Figure 8.7 NRAs for Agricultural Tradables and the Real Exchange Rate, Mexico, 1979–2004......Page 288
Figure 9.1 Product Shares in Agricultural Production and Consumption, Nicaragua, 1991–2004......Page 297
Figure 9.3 NRAs for Agricultural and Nonagricultural Tradables and the RRA, Nicaragua, 1991–2004......Page 306
Figure A.1 A Distorted Domestic Market for Foreign Currency......Page 326
Figure A.2 Distorted Domestic Markets for Farm Products......Page 345
Table 1.1 Key Economic and Trade Indicators, Latin America, 2000–04......Page 24
Table 1.2 Growth of Real GDP, Latin America, 1980–2004......Page 26
Table 1.3 Sectoral Shares of GDP, Latin America, 1965–2004......Page 27
Table 1.4 Agriculture’s Share in Employment, Latin America, 1965–2004......Page 28
Table 1.5 Sectoral Shares in Merchandise Exports, Latin America, 1965–2004......Page 29
Table 1.6 Indexes of Comparative Advantage in Agriculture and Processed Food, Latin America, 1965–2004......Page 31
Table 1.7 Exports of Goods and Services as a Share of GDP, Latin America, 1975–2004......Page 32
Table 1.8 Export Orientation, Import Dependence, and Self-Sufficiency in Primary Agricultural Production, Latin America, 1965–2004......Page 33
Table 1.9 NRAs in Agriculture, Latin America, 1965–2004......Page 43
Table 1.10 Dispersion of NRAs across Covered Agricultural Products, Latin America, 1965–2004......Page 46
Table 1.11 NRAs for Exportable and Import-Competing Products, and the TBI, Latin America, 1965–2004......Page 48
Table 1.12 NRAs in Agriculture Relative to Nonagricultural Industries, Latin America, 1965–2004......Page 51
Table 1.13 NRAs for Covered Farm Products, by Policy Instrument, Latin America, 1965–2004......Page 53
Table 1.14 Gross Subsidy Equivalents of Assistance to Farmers, Latin America, 1965–2004......Page 55
Table 1.15 Gross Subsidy Equivalents of Assistance to Farmers, by Product and Subsector, Latin America, 1965–2004......Page 58
Table 1.16 RRAs in Agriculture, Latin America, 1965–2004......Page 63
Table 1.17 Relative Income, Comparative Advantage, and NRAs and RRAs in Tradable Agriculture, Latin America, 2000–04......Page 67
Table 1.18 NRAs and Some of Their Determinants, Latin America, 1960–2004......Page 70
Table 1.19 CTEs for Covered Farm Products, Latin America, 1965–2003......Page 71
Table 1.20 Value of CTEs of Policies Assisting the Producers of Covered Farm Products, Latin America, 1965–2003......Page 73
Table 2.1 Key Economic Indicators, Argentina, 1960–2004......Page 87
Table 2.2 NRAs for Covered Farm Products, Argentina, 1960–2005......Page 95
Table 2.3 NRAs in Agriculture Relative to Nonagricultural Industries, Argentina, 1960–2005......Page 99
Table 3.1 Key Economic Indicators, Brazil, 1970–2004......Page 110
Table 3.2 NRAs for Covered Farm Products, Brazil, 1966–2005......Page 126
Table 3.3 NRAs in Agriculture Relative to Nonagricultural Industries, Brazil, 1966–2005......Page 131
Table 3.4 CTEs for Covered Farm Products, Brazil, 1970–2005......Page 133
Table 4.1 Performance Indicators for Agriculture, Chile, 1960–2004......Page 147
Table 4.2 Average Annual Growth in the Value of Exports, Chile, 1960–2005......Page 148
Table 4.3 NRAs for Covered Farm Products, Chile, 1960–2005......Page 163
Table 4.4 NRAs for Agriculture Relative to Nonagricultural Industries, Chile, 1960–2005......Page 166
Table 4.5 CTEs for Covered Farm Products, Chile, 1960–2004......Page 171
Table 5.1 Official and Parallel Market Exchange Rates, Columbia, 1979–2005......Page 183
Table 5.2 Shares of Selected Commodities in Total Agricultural Production at Distorted Prices, Colombia, 1981–2004......Page 186
Table 5.3 NRAs for Covered Farm Products, Colombia, 1960–2005......Page 194
Table 5.4 NRAs in Agriculture Relative to Nonagricultural Industries, Colombia, 1960–2005......Page 197
Table 6.2 Selected Product Shares in the Gross Value of Agricultural Production, Dominican Republic, 2001–05......Page 224
Table 6.3 NRAs for Covered Farm Products, Dominican Republic, 1955–2005......Page 225
Table 6.4 NRAs in Agriculture Relative to Nonagricultural Industries, Dominican Republic, 1955–2005......Page 227
Table 7.1 Basic Economic Indicators, Ecuador, 1965–2004......Page 233
Table 7.2 Value and Product Composition of Merchandise Exports, Ecuador, 1965–2004......Page 238
Table 7.3 Major Agricultural Policy Milestones, Ecuador, 1957–2003......Page 241
Table 7.4 NRAs for Covered Farm Products, Ecuador, 1966–2003......Page 251
Table 7.5 NRAs in Agriculture Relative to Nonagricultural Industries, Ecuador, 1966–2003......Page 257
Table 8.1 Real Growth and Sectoral Shares of GDP, Mexico, 1980–2005......Page 265
Table 8.2 Area Planted, by Main Crop, Mexico, 1980–2004......Page 266
Table 8.3 Main Price and Income Support Measures, by Product, Mexico, Mid-1980s–2005......Page 281
Table 8.4 Product Shares in the Total Value of Agricultural Production, Mexico, 1980–2004......Page 283
Table 8.5 NRAs for Covered Farm Products, Mexico, 1979–2004......Page 285
Table 8.6 NRAs in Agriculture Relative to Nonagricultural Industries, Mexico, 1979–2004......Page 287
Table 8.7 CTEs for Covered Farm Products, Mexico, 1986–2005......Page 289
Table 9.1 Product Composition of Agricultural Output, Nicaragua, 1991–2004......Page 296
Table 9.2 Real Growth in GDP, Nicaragua, 1960–2004......Page 299
Table 9.3 Import Quota-Contingent Tariff Structure, Nicaragua, 2004......Page 302
Table 9.4 NRAs for Covered Farm Products, Nicaragua, 1991–2004......Page 305
Table 9.5 NRAs in Agriculture Relative to Nonagricultural Industries, Nicaragua, 1991–2004......Page 308
Table 9.6 CTEs for Covered Farm Products, Nicaragua, 1991–2004......Page 309
Table B.1 Annual Distortion Estimates, Argentina, 1960–2005......Page 356
Table B.2 Annual Distortion Estimates, Brazil, 1966–2005......Page 362
Table B.3 Annual Distortion Estimates, Chile, 1966–2005......Page 368
Table B.4 Annual Distortion Estimates, Colombia, 1960–2005......Page 374
Table B.5 Annual Distortion Estimates, Dominican Republic, 1955–2005......Page 380
Table B.6 Annual Distortion Estimates, Ecuador, 1966–2003......Page 386
Table B.7 Annual Distortion Estimates, Mexico, 1979–2004......Page 392
Table B.8 Annual Distortion Estimates, Nicaragua, 1991–2004......Page 398
Table B.9 Annual Distortion Estimates, Latin America, 1955–2005......Page 401
Table B.10 Distortion Estimates of NRAs for Nonagricultural Industries, by Trade Status, Latin America, 1955–2005......Page 412
Table B.11 Gross Subsidy Equivalents of Assistance to Farmers, Latin America, 1960–2005......Page 416
Table B.12 Share of the Regional Value of Agricultural Production, Latin America, 1960–2005......Page 418
Table B.13 Summary of NRA Statistics, Latin America......Page 420
Table B.14 Summary of NRA Statistics, by Major Product, Latin America, 2000–04......Page 421