Estimating the Constraints to Agricultural Trade of Developing Countries

Publication Date 31 Jan 2013. Estimating the Constraints to Agricultural Trade of Developing Countries
Evdokia Moïsé, Claire Delpeuch, Silvia Sorescu, Novella Bottini, Arthur Foch
OECD, France
Pages 86

Agricultural trade is widely considered as an important contributor to developing countries‘ economic growth, poverty alleviation and food security. 

This report identifies and analyses some of the most important supply-side constraints to developing countries‘ exports of agricultural products, in order to inform prioritisation and sequencing of domestic policy reforms as well as targeting of donor interventions. The analysis is supplemented by case studies of Aid for Trade programmes supporting agricultural trade expansion in Indonesia, Zambia and Mozambique. 

The report confirms that developing countries‘ agricultural exports are highly responsive to the quality of transport and trade-related infrastructure, while tariffs still have a significant negative impact. The analysis also highlights the importance of complementary policies such as education and political stability on developing countries‘ agricultural trade performance. In the poorest countries of the sample, significant trade expansion could be achieved by easing constraints related to governance and infrastructure quality, as well as by lifting constraints related to the efficient use of existing freshwater resources. 

The case studies illustrate the impact on agricultural exports of constraints related to standards and conformity assessment or access to credit, in particular as regards small and medium agricultural producers, processors and traders. They also show the contribution of donor supported programmes promoting private sector initiatives to poverty reduction through increased employment and the promotion of production adapted to local endowments.

OECD Global Forum on Agriculture 2012

26 November 2012, Paris. OECD Conference Centre. OECD Global Forum on Agriculture 2012. Policy Coherence for Food Security in Developing Countries.

The aim of this Global Forum was to foster a dialogue among policy makers from OECD countries and emerging and developing economies on how best to address these challenges. In particular, the Forum:

• Took stock of the spill-overs of national agricultural and agriculture related policies, suggesting ways in which negative impacts can be avoided and identifying positive effects that can be leveraged, for example through knowledge sharing in areas such as agricultural research;
• Examined ways in which aid and aid-related policies, including donor support for developing country led co-ordination processes, can better support a structured prioritisation of investments to improve food security;
• Considered ways in which governments can encourage the kinds of private investment – both foreign and domestic – that are conducive to improved food security.

Agenda (last updated 22 November)
List of Participants (last updated 23 November at 15:30)

Related:

In order to support future food security policy making, the DAC EvalNet meeting in 2010 expressed the need for a systematic review of recent evaluations and other research that would provide evidence-based information on successful approaches. The Netherlands, through its evaluation agency IOB, proposed that it should take the lead in preparing this systematic review and the Royal Tropical Institute was invited to carry it out. 

The main research question of this review was: ‘what is the evidence for, and nature of, the impact of development interventions on food security in developing countries?’

- Full report (190 pages)
- Evaluation insight (12-page summary)

New release! Platform study on policy coherence for ARD

Bonn, 8 Sep 2011. New release! Platform study on policy coherence for ARD (106 pages).

The international community is increasing efforts to foster coherence and institutional reform in the global policy and institutional framework for food security, agriculture and rural development. The UN HLTF, CFA and G8 / G20 work on the L'Aquila Food Security Initiative and on excessive global food price volatility, along with the upcoming 4th DAC High Level Forum on Aid Effectiveness in Busan, are all part of this process.

This study is unique, with potential to enrich these processes with a wealth of analysis and concrete examples, including 16 case studies fromthree continents in development – Africa, Latin America and Asia.

It pulls together important evidence-based lessons from policy and practice distilled skilfully by the ODI research team from an extensive review of the literature, interviews with experts and agency staff in head office and country contexts. It provides practical recommendations to donors to identify best practices and improve policy coherence for agriculture and rural development.

Rightly, the authors point out that the current range of global initiatives in agriculture, food and nutrition security and climate change could all complicate policy coherence still further, and the attainment of our ultimate objectives.

Quote on page 42: It is to the credit of most development agencies that they have recognised the merit of CAADP as an example of regional leadership that reflects the spirit of the Paris Declaration.

The challenge now for development partners and international agencies involved in agriculture and rural development policy and practice is to seriously address the key conclusions and recommendations.