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| | When we talk about food access then first thing which comes to our mind is whether hunger which exists because of not having access to food is either production problem or distribution problem? From a dynamic perspective it is both. Before proceeding further let’s understand what does production problem actually mean and what does distribution problem actually mean.<br/> | | When we talk about food access then first thing which comes to our mind is whether hunger which exists because of not having access to food is either production problem or distribution problem? From a dynamic perspective it is both. Before proceeding further let’s understand what does production problem actually mean and what does distribution problem actually mean.<br/> |
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| | Both, policies that increases food supply and policies that help increase the incomes of the poor are important for reducing hunger, improve access to food as well as in achieving food security. The world food equation has demand on one side and supply on the other. Variables on the demand and supply side are mentioned in the table below | | Both, policies that increases food supply and policies that help increase the incomes of the poor are important for reducing hunger, improve access to food as well as in achieving food security. The world food equation has demand on one side and supply on the other. Variables on the demand and supply side are mentioned in the table below |
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| | | style="text-align: center" | '''Demand Side''' | | | style="text-align: center" | '''Demand Side''' |
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| | = Pricing Options in Developing Country = | | = Pricing Options in Developing Country = |
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| | '''Protection of farmers through high market prices''' | | '''Protection of farmers through high market prices''' |
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| | *This is the policy that was typically observed in rich countries over the last few decades. | | *This is the policy that was typically observed in rich countries over the last few decades. |
| | *Given the huge number of poor consumers, this policy is rather rare for staple foods in developing countries. | | *Given the huge number of poor consumers, this policy is rather rare for staple foods in developing countries. |
| | *For a long time agriculture was seen as a passive sector, with the task to provide cheap food, but otherwise no important role in the overall economy. | | *For a long time agriculture was seen as a passive sector, with the task to provide cheap food, but otherwise no important role in the overall economy. |
| | *Farmers in developing countries are rarely organized, they live in remote areas and have a low level of education. Hence do not constitute a strong lobby. | | *Farmers in developing countries are rarely organized, they live in remote areas and have a low level of education. Hence do not constitute a strong lobby. |
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| − | '''Protection of consumers through low market prices''' | + | <br/><br/>'''Protection of consumers through low market prices''' |
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| | *This has been dominant policy in most developing countries. | | *This has been dominant policy in most developing countries. |
| | *Helps poor consumers, but taxes the farm sector (not all farmers as some farmers are net consumers). | | *Helps poor consumers, but taxes the farm sector (not all farmers as some farmers are net consumers). |
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| | *Urban consumers are more visible to politicians. Together with industrialists they constitute a strong lobby. | | *Urban consumers are more visible to politicians. Together with industrialists they constitute a strong lobby. |
| | *If agricultural commodities are being exported then government revenues through export taxes. | | *If agricultural commodities are being exported then government revenues through export taxes. |
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| − | '''High producer prices, low consumer prices''' | + | <br/><br/>'''High producer prices, low consumer prices''' |
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| | *Explicit producer and/or consumer subsidies entail price wedge (higher price for farmers, lower price for consumers). | | *Explicit producer and/or consumer subsidies entail price wedge (higher price for farmers, lower price for consumers). |
| | *Price wedge has to be paid from government budget and this can easily overstrain the financial capacity. | | *Price wedge has to be paid from government budget and this can easily overstrain the financial capacity. |
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| | *Explicit consumer subsidies are sometimes implemented in a dual market structure with targeting (e.g in rationing schemes). | | *Explicit consumer subsidies are sometimes implemented in a dual market structure with targeting (e.g in rationing schemes). |
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| | [[Category:Food_Security]] | | [[Category:Food_Security]] |
When we talk about food access then first thing which comes to our mind is whether hunger which exists because of not having access to food is either production problem or distribution problem? From a dynamic perspective it is both. Before proceeding further let’s understand what does production problem actually mean and what does distribution problem actually mean.
Both, policies that increases food supply and policies that help increase the incomes of the poor are important for reducing hunger, improve access to food as well as in achieving food security. The world food equation has demand on one side and supply on the other. Variables on the demand and supply side are mentioned in the table below
In the picture above three actors are shown at all three corners of the triangle. Food prices are very important for the welfare of people to leave them to the market forces alone. But how the good prices should look like? (what type of price policies will help you stay in power as policymaker?)
