Agriculture production subsidies in developed countries: which way out for developing countries?
Gachanja, Paul M.
Kosimbei, G. K.
MetadataShow full item record
D eveloping countries participation in the world economy has declined alarmingly over the past 50 years in terms of GDp, exports and foreign investment. The Uruguay Round agreement on Agriculture (URAA) 2 brought world agricultural production and trade under a rules-based regime that not only governs market access, but also domestic support and export subsidies in the form of subsidies in the agricultural sector. In the developing countries, where agriculture is even more important, the biggest concern is with the effects on world markets of subsidized production and exports in DEeD countries. Agriculture is the backbone of the economies of many African countries. Agricultural exports account for a large share in total exports from these countries. Developed countries are known for giving agricultural production subsidies to farmers. These subsidies always depress world market prices rendering products from Africa and other developing countries uncompetitive. The general objective of this paper is to examine the effects of agriculture production subsidies in developed countries on agricultural performance in developing countries. The paper reveals that agriculture production subsidies hamper agriculture production in developing countries. The paper reveals that the subsidies should be reduced and agriculture production be left for the developing countries in the global economy.