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Author: Balié, Jean
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 45
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Book Description
In March 2019, the government of the Philippines promulgated a bill called the Rice Tariffication Law (RTL). It has dramatically changed the policy landscape in the rice sector and generated heated debates on how it would affect food security and poverty. This study explores the welfare effects of this reform across different types of households. We rely on the IRRI Global Rice Model to simulate the domestic price effects of the reform (Balié and Valera, 2020) and the Family Income and Expenditure Survey (FIES) to study the welfare impact of these price changes. Our results show that the RTL reduces consumer and producer rice prices, which affects households on the production and the consumption sides. Because a large majority of households are net buyers of rice and the policy reform reduces rice prices, most households benefit from the reform. Overall, the effects of the reform on poverty are beneficial. The poorest quintiles are positively affected, while the richest quintiles are unaffected or slightly worse-off. Spatially, the poorest regions also benefit the most. However, the rice growers who are net sellers are negatively impacted. The government should seek to mitigate the negative effects on non-competitive rice growers. Investments in public goods and services are a promising option to ease the emergence of on-farm and off-farm businesses as more profitable alternatives to rice production.
Author: Balié, Jean
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 45
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Book Description
In March 2019, the government of the Philippines promulgated a bill called the Rice Tariffication Law (RTL). It has dramatically changed the policy landscape in the rice sector and generated heated debates on how it would affect food security and poverty. This study explores the welfare effects of this reform across different types of households. We rely on the IRRI Global Rice Model to simulate the domestic price effects of the reform (Balié and Valera, 2020) and the Family Income and Expenditure Survey (FIES) to study the welfare impact of these price changes. Our results show that the RTL reduces consumer and producer rice prices, which affects households on the production and the consumption sides. Because a large majority of households are net buyers of rice and the policy reform reduces rice prices, most households benefit from the reform. Overall, the effects of the reform on poverty are beneficial. The poorest quintiles are positively affected, while the richest quintiles are unaffected or slightly worse-off. Spatially, the poorest regions also benefit the most. However, the rice growers who are net sellers are negatively impacted. The government should seek to mitigate the negative effects on non-competitive rice growers. Investments in public goods and services are a promising option to ease the emergence of on-farm and off-farm businesses as more profitable alternatives to rice production.
Author: Jean Balié
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Author: Roehlano M. Briones
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Tariffication of quantitative restrictions on rice imports was a key policy reform of the Duterte administration. This study reviews recent trends in the rice market, and assesses the poverty and distributional effects of rice tariffication using a computable general equilibrium model with microsimulation. Owing to the price difference between domestic prices in Philippines and exporting countries, imports of rice have surged under tariffication. As a result, domestic prices have fallen, though gross marketing margins have increased, amplifying the effect of the drop in retail prices on both wholesale prices and palay prices. The price and associated economic adjustments are expected to cause an increase in income poverty as conventionally measured. However, the increases are rather small, and would diminish over time. The value of the income loss suffered by the poor is far below what the amount provided by law to address problems in the rice economy with tariffication.
Author: Marc Jim Mariano
Publisher:
ISBN:
Category :
Languages : en
Pages : 900
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Book Description
The Philippines has been a net rice importer since the 1990s. Against a background of rapid population growth and a high dependence by the country's rural poor on paddy production, recent price volatility in global rice markets has made food security a significant policy issue in the country. The main focus of the government's food security agenda is the rice market, with self-sufficiency and price stabilisation being key goals. The centrality of rice in the government's food security policy is understandable given the commodity's dietary and economic importance. This thesis concerns the analysis of food security interventions in the Philippines. More specifically, I carried out policy simulations that investigate the impact - both for the broader economy, household welfare, and for indices of food security - of the following scenarios: (1) the removal of rice market price subsidies, (2) the removal of rice tariff import restriction, and (3) an external rice price shock to the domestic economy. To undertake the policy simulations, I developed a large-scale dynamic computable general equilibrium (CGE) model of the Philippine economy. This Philippine economic model is distinct from other CGE models for the Philippines because of the following modelling extensions: (1) a detailed treatment of agricultural land supply-use process, tracking the transition through time of agricultural land between competing land uses; (2) a three-stage demand structure of household food consumption, to better model inter-food substitution possibilities, particularly as they relate to food staples, so as to properly elucidate food security consequences of policy reform; (3) modelling of surplus agricultural labour, and the mechanism governing rural-urban migration, to better model the full economic benefits of agricultural policy reform; (4) multi-household top-down income-expenditure extension of the CGE model, in order to understand the distributional consequences of policies that affect relative food prices; and (5) modelling of a number of food security indices, in order to track the year-on-year policy-induced changes in national and household food security. For the price subsidy simulations, I investigated the effects of three policies: (1) the paddy 'price floor' which provides a subsidy on the sales of paddy, (2) the rice 'price ceiling' which provides a subsidy on the consumption of rice, and (3) a price subsidy on intermediate seed inputs used by paddy farmers. These government interventions are aimed at enhancing the incomes of small farmers through price support (in the form of the paddy price ceiling and input subsidy policies) while simultaneously lowering the price of rice to consumers (via the rice price floor policy). However, these programs have been criticised within the Philippines on the grounds of allocative inefficiency, poor targeting, and high public budgetary cost. Simulation results indicate that, as an exercise in demonstrating policy concern for the incomes of farmers and the food security needs of households, the three policies would appear to have a modest budgetary cost, while improving several measures of food security. The allocative efficiency gains available from ending the programs are small, and may be outweighed by the potential for adverse short-run macroeconomic consequences. Like the price subsidy interventions in the rice market, another favourite subject of public debate in the Philippines is whether or not the government should liberalise the domestic rice market. At present, rice remains as the most protected traded commodities in the Philippines, with a tariff rate ranging from 40 to 50 per cent. For my second simulation, I examine the national economic consequences and food security implications of permanently removing the tariff trade barrier in the domestic rice market. Macro results show that the removal of rice tariff enhances the country's real GDP, and household's real consumption particularly urban non-farming households. Removing the rice tariff import restriction also generates allocative efficiency gains. The economy becomes more efficient because: (i) workers are shifted from the agriculture sector, where returns to labour are relatively low, into the manufacturing sector, where returns to labour are relatively high, and (ii) land moves out from low-rent paddy agriculture into higher value uses in non-paddy agriculture. In terms of food security impacts, the removal of the tariff on rice imports generates a deterioration in two of the four food security indexes in the model. The results of the first two simulations support the argument that removing the existing rice tariff import restriction and price subsidy programs of the government generates allocative efficiency gains to the domestic economy. Despite the economic benefits of program removal, the government justifies these programs on the grounds that they insulate the domestic economy from unexpected price spikes in the international rice market. An interesting matter for policy evaluation therefore is to quantify the insulation benefit that the government rice interventions provide in such circumstances. To examine this question, I carried out a third simulation in which the Philippines is subject to an external rice price shock. I run this scenario against two alternative baselines: one in which the existing rice import tariff and price subsidy interventions are in place (the "with support" case), and one in which they have been removed (the "without support" case). Results indicate that, relative to the "without support" case, the economy is more insulated from the rice price spike under the "with support" case, reducing the real consumption loss from a 2008-like event by approximately 0.10 per cent. However the cost of insuring against these price spikes is significant. The estimated annual allocative efficiency cost of implementing the rice market interventions is approximately 0.40 per cent of real consumption. This thesis makes two broad contributions in the current literature. One relates to the methodological contribution, and the other relates to the policy simulations. The methodological contribution is the modelling extensions incorporated in the PhAGE model, which made it possible to evaluate the full effects of food security interventions. The policy contribution is an in-depth analysis of simulation results that identifies policy implications for the removal of existing price subsidies and import tariff in the Philippine rice market, and provides policy insights on the extent to which the government rice market support mechanisms insulate the domestic economy from external rice price shocks.
Author: David Dawe
Publisher: Routledge
ISBN: 1136530398
Category : Nature
Languages : en
Pages : 394
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Book Description
The recent escalation of world food prices – particularly for cereals - prompted mass public indignation and demonstrations in many countries, from the price of tortilla flour in Mexico to that of rice in the Philippines and pasta in Italy. The crisis has important implications for future government trade and food security policies, as countries re-evaluate their reliance on potentially more volatile world markets to augment domestic supplies of staple foods. This book examines how government policies caused and responded to soaring world prices in the particular case of rice, which is the world's most important source of calories for the poor. Comparable case studies of policy reactions in different countries, principally across Asia, but also including the USA, provide the understanding necessary to evaluate the impact of trade policy on the food security of poor farmers and consumers. They also provide important insights into the concerns of developing countries that are relevant for future international trade negotiations in key agricultural commodities. As a result, more appropriate policies can be put in place to ensure more stable food supplies in the future. Published with the Food and Agriculture (FAO) Organization of the United Nations
Author: David Charles Dawe
Publisher: Int. Rice Res. Inst.
ISBN: 9712202097
Category : Free trade
Languages : en
Pages : 172
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Book Description
Some little-know facts about rice in the Philippines; Rice trade liberalization, poverty, and food security; Improving productivity in the rice sector: solutions for farmers; Potential for crop diversification.
Author: Caesar Bucia Cororaton
Publisher: International Food Policy Research Insitute
ISBN: 9780896291706
Category : Agriculture
Languages : en
Pages : 0
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Book Description
Despite progress in recent years, poverty incidence remains very high in the Philippines, and poor households are highly vulnerable to the recent dramatic increases in food prices. In response to this problem, this research report investigates how Philippine policymakers can lower prices and reduce poverty. Using a dynamic-recursive computable general equilibrium model calibrated to a social accounting matrix of the Philippine economy, as well as other tools, the report simulates the effects of trade reform and increased rice productivity. The results indicate that diminished protection for major food items and investments in greater inbred-rice productivity have the potential to reduce prices and poverty in the Philippines. This report will be a valuable resource for policymakers,development specialists, and others trying to cope with the challenges of rising food prices.
Author: Stephane Hallegatte
Publisher: World Bank Publications
ISBN: 1464806748
Category : Business & Economics
Languages : en
Pages : 227
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Book Description
Ending poverty and stabilizing climate change will be two unprecedented global achievements and two major steps toward sustainable development. But the two objectives cannot be considered in isolation: they need to be jointly tackled through an integrated strategy. This report brings together those two objectives and explores how they can more easily be achieved if considered together. It examines the potential impact of climate change and climate policies on poverty reduction. It also provides guidance on how to create a “win-win†? situation so that climate change policies contribute to poverty reduction and poverty-reduction policies contribute to climate change mitigation and resilience building. The key finding of the report is that climate change represents a significant obstacle to the sustained eradication of poverty, but future impacts on poverty are determined by policy choices: rapid, inclusive, and climate-informed development can prevent most short-term impacts whereas immediate pro-poor, emissions-reduction policies can drastically limit long-term ones.
Author: Randolph Barker
Publisher: Int. Rice Res. Inst.
ISBN: 0915707152
Category : Business & Economics
Languages : en
Pages : 359
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Book Description
The purpose of this book is to present a comprehensive picture of the role of rice in the food and agricultural sectors of Asian nations.
Author: Marc Bacchetta
Publisher:
ISBN: 9789287038128
Category : Political Science
Languages : en
Pages : 0
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Book Description
Trade flows and trade policies need to be properly quantified to describe, compare, or follow the evolution of policies between sectors or countries or over time. This is essential to ensure that policy choices are made with an appropriate knowledge of the real conditions. This practical guide introduces the main techniques of trade and trade policy data analysis. It shows how to develop the main indexes used to analyze trade flows, tariff structures, and non-tariff measures. It presents the databases needed to construct these indexes as well as the challenges faced in collecting and processing these data, such as measurement errors or aggregation bias. Written by experts with practical experience in the field, A Practical Guide to Trade Policy Analysis has been developed to contribute to enhance developing countries' capacity to analyze and implement trade policy. It offers a hands-on introduction on how to estimate the distributional effects of trade policies on welfare, in particular on inequality and poverty. The guide is aimed at government experts engaged in trade negotiations, as well as students and researchers involved in trade-related study or research. An accompanying DVD contains data sets and program command files required for the exercises. Copublished by the WTO and the United Nations Conference on Trade and Development
