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Policy Response to Challenges in Agriculture and Rural Development in the Europe and Central Asia Region: Sharing Experience and Enhancing Cooperation in the Region. William H. Meyers Professor of Agricultural Economics and Co-Director, FAPRI University of Missouri - PowerPoint PPT Presentation
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Policy Response to Challenges in Agriculture and Rural Development in the Europe and
Central Asia Region: Sharing Experience and
Enhancing Cooperation in the Region
William H. MeyersProfessor of Agricultural Economics
and Co-Director, FAPRIUniversity of Missouri
Twenty-Seventh FAO Regional Conference for EuropeYerevan, Armenia
13 May 20
Outline Food price surge and (partial) retreat Macroeconomic crisis and (slow) recovery Diverse impacts of and response to the crises How is food security jeopardized? Major uncertainties, challenges and
opportunities Policy priorities for discussion
Short term Medium to Long term
Comparison of real GDP growth rates in selected regions
-8
-6
-4
-2
0
2
4
6
8
10
World
Major advanced economies (G7)
European Union
Central and eastern Europe
Commonwealth of Independent States
Diverse impacts on real GDP growth rates in Europe and Central Asia, 2009 to 2011
-20
-15
-10
-5
0
5
10
15
20
Uzbe
kist
anTu
rkm
enist
anAz
erba
ijan
Alba
nia
Tajik
istan
Kyrg
yz R
epub
licPo
land
Kaza
khst
anTF
YR M
aced
onia
Bela
rus
Bosn
ia a
nd
…Se
rbia
M
onte
negr
oCz
ech
Repu
blic
Croa
tiaGe
orgi
aSl
ovak
Rep
ublic
Bulg
aria
Turk
eyHu
ngar
ySl
oven
iaRo
man
iaRe
publ
ic o
f Mol
dova
Russ
ian
Fede
ratio
nEs
toni
aUk
rain
eAr
men
iaLa
tvia
Lith
uani
a
2009 2010 2011
Diverse response: share of stimulus in GDP and importance of social protection in the stimulus
0 5 10 15 20 25 30 35 40 45
Georgia
Kazakhstan
Turkey
Russian Federation
Poland
Germany
Slovenia
Czech Republic
France
share of social protection (where available) total stimulus as % of 2008 GDP
Diverse structure: share of rural population in the total, 1992 compared with 2008
0
10
20
30
40
50
60
70
80
1992 2008
Success in growth of net exports from the region
-505
10152025303540455055
Ukraine
Russian Federation
Kazakhstan
How is food security jeopardized?
Reduction in the quantity and/or quality of food purchases High food prices Loss of employment or reduction of wages
and income Market disruption or policy reaction that
impairs availability
How is food security jeopardized? Reduction in food production
High prices of feed and other inputs Lack of credit access
Reduction in the quantity and/or quality of food aid High food prices Decline of government/international donor
financial resources Macro instability, market disruption or policy
reaction that impairs availability
A more uncertain future1. Road to economic recovery?2. Timing and size of oil price volatility?3. Will biofuel policies change?4. Will other policies be unstable? 5. Will DDA be completed in near term?6. Climate change and policy impacts?7. Wider range of possible outcomes8. Complicated decision making and planning9. Larger impacts on low income consumers
Challenge and Opportunity
1. Challenge – devise strategies that are sustainable in very uncertain conditions
2. Opportunity – focus on policies that contribute to long-term policy goals
3. National and international policy actions needed
Short run Long run
Policy priorities Short run
Prudent use of limited budget resources Avoid short-term policies that conflict with long-
term goals Food assistance and early warning Twin track approach – food aid and production aid Continue economic and structural reforms Complete the Doha Round of trade negotiations,
Restore trust in the international trading system and advance new member accession
Policy priorities Long run (but start yesterday)
Increasing economic growth is best strategy Investment (not land grabs) in agric. development
AND R&D for production and post harvest Improve market functioning to facilitate price
transmission and integration with global markets Risk management tools for farmers-men and women Enhance rural development and rural infrastructure
investments Invest in social protection or safety net measures to
protect vulnerable populations
Conclusions Not simple formulas or quick remedies
Conditions in the region are diverse Situation is very volatile and persistent
Engage policy dialogue among experts in the region exchanging successes and failures Food and agricultural policies and reforms Climate change adaptation and mitigation
Dialogue begins here at high level but can continue among expert groups
CONTACT INFORMATION:EMAIL: [email protected]: WWW.FAPRI.MISSOURI.EDU
Thank you!