Globalization of Food and Agriculture in the Changing World Economy

1. Food and Agriculture in the globalizing world economy byMarcello GorgoniDepartment of Public EconomicsUniversity of Rome La SapienzaItalyDamascus, 22 July 2003

2. Mode of presentation 1. Food and Agriculture 2. Globalization and the Global Economy 3.Globalization of Food and Agriculture 4.Consumers and Food Consumption 5. Producers and Food Production 6. Growth and Development, in time and space 7. Public Action, Food and Agricultural Policies 8. Agricultural Protectionism in the Age of Globalization 9. Poverty and food Insecurity in the Age of Globalization

3. 1.a Agriculture • Biological and environmental basis • Social and Economic Organization • Agro-Industrial v Rural-Urban Articulations • Decision making centers shifting along the chain • New (and Old) Interest Groups • From Traditional Agricultural Techniques to (Advanced) Genetic Engineering • Socio - Economic Implications of Technical Change

4. 1.b Food • To satisfy nutritional needs and much more • For a very long time, and for most of the world population, the food economy has been dominated by nutritional needs • Only recently, and for most of the population (at least in the Developed World) non- nutritional needs,(edonistic, social,...) tend to prevail • Eventually nutritional and non-nutritional needs may enter in conflict, both for the rich and the poor • the food economy shifting from the original agricultural rural local setting to an (increasingly) industrial - urban - global one

5. 2 . GlobalizationandThe Global Economy • Global, Globalization: • The Globe becoming (or being perceived as becoming) “smaller” • Intensified (international) relations • A symbol, an “Icon” of present times • Is the World (Globe) really “smaller” than it used to be? • Il the ”local” loosing weight vis a vis the “global”? • The present Globalization is not the first one but by far the most extensive and pervasive • Forces pro and contra • Technical • Political • Istitutional

6. 3. Globalization of Food and Agriculture • In the traditional (largely local) economy • High (local) specificities with low interaction with the external world • Prevaling role of agriculture in both production and consumption • (Slow) evolution of techniques • Within the local context: growing (functional) distance between Producers (P) and Consumers (C) • Among local contexts: diminishing distances and growing interaction • In the advanced (largely global) economy • Low (local) specificity with high external interaction • Prevaling role of industry and services in both production and consumption • (Accelerated) evolution of techniques outside the agricultural context

7. 4. Consumers, Food Consumption • Household Food Consumption • Food Consumption at the Working Place and “Street Food Consumption” • Fast Food, Slow Food • Less primary (agricultural) inputs, more value added by industry and services • Internationalization • Omogeneization

8. 5. Producers, Food Production • Farmers Industrial Firms and Traders in the Food Economy • Competition and integration. Systems and subsystems, chains and rings. Economies of scale and of scope. • From the family farm to the multinational corporation • Small scale local household production • Large scale global multinational production • Countries, Governments and Interest Groups.

9. 6. Growth andDevelopmentin time and space • Development and Underdevelopment • Population Growth and (per capita) Food Consumption • Economic Development and Changes in Food Consumption Patterns • International Division of Labour and International Agrifood Trade • Pre and post WWII scenarios • Buyers and sellers • Explanatory factors of observed comparative advantages • Non Trade Transactions, Food Aid and Development Cooperation

10. 7. Public Action, Food and Agricultural Policies • Micro and Macro policies affecting the Agrifood Economy • Historical trends and diverging patterns • Urban Bias

11. 8. Agricultural Protectionism in the Age of Globalization • Protecting and over protecting:EU, US, Japan and others • An “expensive good” for those who can afford it? If yes, “good” for what? • Domestic and International dimensions of agricultural protectionism • Food and Agriculture from the Uruguay Round into the WTO • Regulating the Global (Food) Economy

12. 10. Food Insecurity in the Age of Globalization (1) • The two sides of the coin • No food can be consumed if not available • No food can be consumed without access to it • Does availability imply access? • Does access imply availability? • A food insecure Planet? • Global scenarios and global dilemmas • Too many mouths? • Should those who “consume too much” come to “consume less” to allow “enough food” for those who “do not have enough to eat” ? • Should the fathers “consume less” to “allow enough food” for their children? • Does more food security imply less food safety?

13. 10. Food Insecurity in the Age of Globalization (2) • If not the Planet, who is food insecure: countries, social groups, households? • Countries • Macroeconomic disequilibria and food availability unbalances • No food security can be attained if the economy is in disarray (example Argentina) • Macroeconomic adjustments may hide (rather than solve) food crises • Macroeconomic adjustments do not automatically alleviate food insecurity for the vulnerable groups

14. 10. Food Insecurity in the Age of Globalization (3) • Social groups and Households • suffering Hunger while exporting Food • Food Insecurity and Poverty • Economic Development leading to Poverty and Food Insecurity Alleviation • Targeted Policies and Programs

15. 10. Food Insecurity in the Age of Globalization (4) • The World Food Summit (WFS) from 1996 to 2002 • Before 1996 • Preparing the WFS: starting positions and the negotiating process • The Rome Declaration and Plan of Action • From the 1996 WFS to the 2002 WFS FYL • Wy Governments (and International Organizations) do what they do? • What next?