Agriculture production subsidies in developed countries: which way out for developing countries?
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Date
2003-09
Authors
Gachanja, Paul M.
Kosimbei, G. K.
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Abstract
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.
Description
Fourth international conference proceeedings of the association of third world studies, inc. Kenya chapter
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Citation
Disparities in Social Sciences, Politics and Gender, Vol. 1