140 likes | 265 Views
Effects of agricultural liberalization on farmers. Multiple liberalization policies. IFI Sructural adjustment prescriptions For Philippines first SAP in 1980 WTO AoA AFTA. Philippines response. Social safety nets Modernization – Agriculture and Fisheries Modernization Act
E N D
Multiple liberalization policies • IFI Sructural adjustment prescriptions • For Philippines first SAP in 1980 • WTO AoA • AFTA
Philippines response • Social safety nets • Modernization – Agriculture and Fisheries Modernization Act • Reduction of cereals production • Promotion of HVC • Agribusiness – farmer-peasant nexus • Problems • Framework on agricultural development • Resources and government capacity
Philippines agriculture performance under trade liberalization Philippine Agricultural Production (1990-2003) Volume in million metric tons; growth rates in percent Year Volume GrowthRate 1990 61.57 1991 64.11 4.13 1991 1992 63.84 0.42 1992 1993 65.77 3.02 1993 1994 68.53 4.20 1994 1995 62.16 -9.28 1995 1996 69.13 11.20 1996 1997 68.30 -1.20 1997 1998 57.93 -15.18 1998 1999 65.76 13.51 1999 2000 68.11 3.58 2000 2001 68.00 -0.17 2001 2002 67.02 -1.43 2002 2003 71.61 6.85 2003 Average 65.84 1.45
Agricultural Production Per Capita, 1990-2003 ('000 metric tons)
Balance of Agricultural Trade(FOB Value in million US dollars)
Assumed Implications on agricultural sector • Import surges and dumping • Price competition • Pressure on farmgate prices • Restructuring in agricultural production • Restructuring in control over land
ACTUAL EFFECTS –Different levels of development- not just between countries- but also among crop and agricultural sectors
Different levels of agricultural development in Philippines • Subsistence and commercial food production by small farmers • Traditional export crops • Modern corporate agribusiness
Subsistence and commercial food production by small farmers • Subsistence food production • Cereals and tropical vegetables • Small scale commercial domestic food production • Small scale, relatively low input commercialcrops such as vegetables, poultry and livestock • Negative effects of dumping and import surges of cheap imports • Cumulative effects of cheap imports on farmgate prices without reducing production costs
Subsistence and commercial food production by small farmers • Farmer bankruptcies further complicated by resulting increasing tenurial issues and merchant dominance, further reducing profitability for small farmers • Restructuring through crop conversion combined with contract growing, plantation leases and corporative schemes lead to peasant and farm worker economic and even physical displacement
Traditional Commercial crop production • Traditional export crop • Predominantly produced in small farms • Relatively low input export crop production such as sugar, coconut oil, hemp • Economic failure due to uncompetitive-ness in international markets and even in domestic market • Bankruptcies for small farmers and inefficient mills, displacement of farm workers
Expansion of TNC agribusiness • Modernization program and thrust for efficiency and competitiveness essentially favorable for TNCs without resorting to high government intervention in technology, capital, trading • Increase or re-concentration of land to TNC-comprador/landlord concerns through various schemes