The World Food Economy

Cover......Page 1
Title Page......Page 5
Copyright......Page 6
Contents......Page 7
Preface to the Second Edition......Page 11
Acknowledgments......Page 13
1 Introduction......Page 15
1.1 Our Focus......Page 18
1.2 Chapter Outline......Page 21
Study Questions......Page 24
2 The Demand Side: How Population Growth and Higher Incomes Affect Food Consumption......Page 25
2.1 Classic Malthusianism, Its Modern Variants, and Its Critiques......Page 26
Is the World Dismally Malthusian?......Page 31
2.2 Demographic Transition......Page 34
The Modern Transition in the Developing World......Page 37
The Revolution in Human Fertility......Page 41
2.3 Trends in Human Numbers, Past and Present......Page 45
2.4 Food Consumption and Income......Page 48
2.5 Demand Trends and Projections......Page 52
Key Words and Terms......Page 55
Study Questions......Page 56
Appendix: The Fundamental Economics of Demand......Page 57
Own-Price Elasticity......Page 58
Changes in Demand......Page 61
3 The Supply Side: Agricultural Production and Its Determinants......Page 63
3.1 The Nature of Agriculture......Page 64
Agriculture, Soils, and Climate......Page 66
Specialization and Diversity in the Food Economy......Page 68
3.2 Increases in Agricultural Supply......Page 73
Extensification......Page 77
Intensification......Page 82
3.3 Has Intensification Run Its Course?......Page 89
Irrigation and Water Scarcity......Page 90
Energy and Agriculture......Page 92
Support for Technological Improvement......Page 94
3.4 The Food Economy Beyond the Farm Gate......Page 96
3.5 Trends in Per Capita Production......Page 99
Key Words and Terms......Page 101
Study Questions......Page 102
Appendix: The Fundamental Economics of Supply......Page 103
Supply Elasticity......Page 104
Changes in Supply......Page 106
Agricultural Supply: Real and Imagined Characteristics......Page 107
4 Aligning the Consumption and Production of Food over Time......Page 109
4.1 The Desirability of Competitive Equilibrium......Page 111
4.2 Public Policy and Markets for Farm Products......Page 114
Why Did Food Prices Spike in 2007 and 2008?......Page 115
Governments and Markets for Agricultural Commodities......Page 117
Proper Roles for the Public Sector......Page 119
4.3 Historical Trends in the Scarcity of Agricultural Products......Page 120
4.4 Outlook for the Twenty-First Century......Page 125
Key Words and Terms......Page 127
Appendix: The Coordination of Decentralized Decision Making......Page 128
The Alignment of Production and Consumption......Page 129
Shifts in Demand and Supply......Page 130
Net Economic Value and Its Maximization......Page 133
5 Agriculture and the Environment......Page 136
5.1 Diagnosing and Correcting Environmental Market Failure......Page 138
5.2 Agriculture and Climate Change......Page 141
5.3 Farmland Degradation......Page 145
5.4 Agriculture and Deforestation......Page 150
5.5 Agricultural Development and the Environment......Page 154
Study Questions......Page 158
Market Failure and the Inefficiency It Causes......Page 159
Correcting Market Failure......Page 161
6 Globalization and Agriculture......Page 165
6.1 The Theory of Comparative Advantage......Page 166
Should Tiger Woods Mow His Own Lawn?......Page 167
6.2 Trade Distortions and the Economic Impacts......Page 168
Multinational Firms......Page 172
Free Trade versus Fair Trade......Page 174
6.4 Potential Gains from Agricultural Trade Liberalization......Page 175
Before the Doha Round......Page 179
The Doha Round......Page 181
Why Negotiations Failed......Page 182
6.6 The Case for Free Trade Still Stands......Page 184
Key Words and Terms......Page 185
Appendix: Two-Country Illustrations of Comparative Advantage......Page 186
NEV Gains from Trade......Page 189
7 Agriculture and Economic Development......Page 192
7.1 Economic Expansion and Structural Transformation......Page 194
The Diversity of Structural Transformation......Page 197
Living Standards and Income Distribution......Page 198
7.2 Agriculture’s Role in Economic Development......Page 201
Experiments in Communist Nations......Page 203
Governmental Intervention in the Developing World......Page 205
7.4 Agricultural Development for the Sake of Economic Growth and Diversification......Page 207
7.5 Summary and Conclusions......Page 210
Study Questions......Page 211
8 Striving for Food Security......Page 213
8.1 Who and Where Are the Food-Insecure?......Page 214
8.2 Achieving Food Security......Page 218
Food Aid......Page 219
Economic Growth and Lower Food Prices......Page 220
8.3 The Food Security Synthesis and Economic Development......Page 222
The Standard Model......Page 225
Implementation Issues......Page 230
8.4 The Standard Model and Communitarian Values......Page 231
Study Questions......Page 234
9.1 Economic Growth and Income Distribution......Page 235
Regional Trends in GDP per Capita......Page 237
9.2 Population Dynamics......Page 240
Increased Human Longevity......Page 241
Reduced Human Fertility......Page 243
Natural Increase......Page 247
9.3 Agriculture’s Response to Demand Growth......Page 248
Changes in the Mix of Inputs......Page 249
Production Trends......Page 251
9.4 Summary......Page 252
Study Questions......Page 254
10 Affluent Nations......Page 255
10.1 Standards of Living......Page 256
10.2 Population Dynamics......Page 259
10.3 The Food Economy......Page 263
Agricultural Subsidies and Protectionism......Page 265
Production Technology and Output Trends......Page 269
10.4 Dietary Change and Consumption Trends......Page 273
The Obesity Problem......Page 276
10.5 Summary......Page 278
Study Questions......Page 280
11 Asia......Page 281
11.1 Trends in GDP per Capita......Page 282
China Ascendant......Page 285
The Other Asian Colossus......Page 287
Reduced Human Fertility......Page 288
Natural Increase......Page 290
Intensified Production......Page 293
Intensification, Extensification, and Output Growth......Page 295
11.4 Dietary Change, Consumption Trends, and Food Security......Page 299
11.5 Summary......Page 304
Study Questions......Page 305
12 Latin America and the Caribbean......Page 306
12.1 Trends in GDP per Capita......Page 307
Reduced Human Fertility......Page 312
Natural Increase......Page 315
12.3 Agricultural Development......Page 316
Factor Use......Page 318
Intensification, Extensification, and Output Growth......Page 321
12.4 Dietary Change, Consumption Trends, and Food Security......Page 325
12.5 Summary......Page 329
Study Questions......Page 332
13 The Middle East and North Africa......Page 333
13.1 Political Realities and Economic Trends......Page 334
13.2 Population Dynamics......Page 338
Natural Increase......Page 339
13.3 Agricultural Development......Page 342
Factor Use......Page 343
Intensification, Extensification, and Trends in Output......Page 345
13.4 Dietary Change, Consumption Trends, and Food Security......Page 349
13.5 Summary......Page 353
Study Questions......Page 354
14 Eastern Europe and the Former Soviet Union......Page 355
14.1 Economic Trends since the Fall of Communism......Page 357
Russia’s Troubled Resurgence......Page 362
Human Fertility......Page 363
14.3 The Agricultural Sector......Page 367
Factor Use......Page 372
Agricultural Yields and Land Use and Trends in Output......Page 373
14.4 Dietary Change, Consumption Trends, and Food Security......Page 376
14.5 Summary......Page 384
Study Questions......Page 385
15 Sub-Saharan Africa......Page 386
15.1 Trends in GDP per Capita......Page 389
15.2 Demographic Trends......Page 394
Human Fertility......Page 395
Natural Increase......Page 398
15.3 Agricultural Development......Page 400
Factor Use......Page 401
Intensification, Extensification, and Trends in Output......Page 405
15.4 Consumption Trends and Food Security......Page 409
15.5 Summary......Page 416
Study Questions......Page 417
16 The Global Food Economy in the Twenty-First Century......Page 418
16.1 Victims of Our Own Success?......Page 421
16.2 The New Food Economy......Page 424
16.3 The Changing Role of Government......Page 426
16.4 Back to the Future Food Economy?......Page 428
Study Questions......Page 432
Abbreviations and Acronyms......Page 433
Map Annex......Page 435
References......Page 441
Index......Page 455