duminică, iulie 03, 2016

Diego Arias: Reform Policies and Support Programs to the Agricultural Sector in Latin America: Trade Liberalization, Market Volatility, and Climate Change


Organization for Economic Co-operation and Development (OECD) countries are reducing total agricultural support, from price supports to fiscal support. Latin America and the Caribbean (LAC) is also making the same change of price supports fiscal support given to the free trade agreements signed (or signed) with the United States and other countries. These exogenous changes in the structure of support dictated by trade liberalization must be taken as an opportunity to introduce public policies and implement programs to support the transition to maximize the benefits of future integration of LAC agricultural sector to international markets. Reviewing and measuring the price supports and taxes, especially private property, should key for the actors involved in the design of public policies to analyze and respond to the needs and opportunities of the sector element agriculture in the region facing an increase in trade liberalization of their products. Although the priority of public spending on agriculture is investment in public goods and services, the Government will always have the need to be able to support the most vulnerable population in response to catastrophic events or price shocks. This contingent response is increasingly common in a context of increased volatility in international prices and the number of natural disasters time. In LAC countries, such as Mexico and Brazil, have already several years of experience with agricultural risk management programs and recent reforms in that area. A reform in the agricultural public spending is more important than ever given the current context of trade liberalization, volatility of international food markets, and climate change.