World Food Policy Volume/Issue 2-2/3-1 Fall 2015/Spring 2016 | Page 151

World Food Policy

to agricultural development in the poorer
countries meeting agreed quantifiable
criteria, in an agreed proportion to what
these richer countries do for their domestic
farmers. Just to suggest an idea of relevant
orders of magnitude, if one were to take
no >1% of what governments do for
farmers in rich countries and channel that
amount into agricultural development in
the poorer countries, that would increase
current ODA to agriculture by ~20%.
Thus, a small proportion of gov ernment
support to farmers in the richer countries
could do a lot to improve the prospects for
agricultural development in the poorer
countries. And as this approach would
not raise food prices in the recipient
developing countries, it would also not do
any harm to poor consumers. This concrete
element of financial solidarity between
richer and poorer countries could do a lot
to improve food security and agricultural
development in countries.

Conclusions

T

here are good reasons to believe
that the “new normal” on markets
for agricultural and food products
may be a higher level of food prices than
the world was used to before the price
peak in 2007–2008 and subsequent years.
Of course this is not a certain outcome,
but one that appears to have a significant
probability. However, nobody knows with
any certainty what is going to happen to
markets in the years to come. Given that
uncertainty the international trade regime
should be prepared for both high and low
food prices.

In the past, the WTO and
its predecessor, the GATT, focused
on depressed prices and tried to

discipline policies that contributed
to price depression. In other words,
the international trade regime was
traditionally focused on limiting farm
support so as to act against depressed
food prices. There is no reason to discard
that orientation altogether. However, to be
on the safe side the WTO should also do
more to guard against high food prices.
One of the options available and worthy
of a negotiating effort is a more effective
and operational discipline on export
restrictions.

The international community
should certainly also do more to improve
food security in developing countries.
One option in that regard is to establish
a link between the benefits governments
in rich countries provide to their domestic
farmers on the one hand, and what they
do on the other hand for agricultural
development and food security in the
poorer countries.

As far as domestic policies in
developing countries are concerned, there
is reason to reconsider the price support
policies pursued by many governments
through both border measures and
domestic instruments. Quite apart from
efficiency considerations, which also
speak against such price support policies,
in most developing countries these
policies do more harm to food consumers
than they provide benefits to farmers. And
where price support comes in the guise
of improving food security, e.g., through
public stockholding for food security
purposes, one should be particularly
skeptical. There are much more effective
and efficient ways of improving food
security and at the same time fostering
agricultural development.

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