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ROA and the policy landscape

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1 ROA and the policy landscape
Gérard Viatte

2 1. The general approach to policy in ROA
1.1 a comprehensive analysis of policy trends over the previous decade(s) : module 1, an “over-arching module” the key question: how do policies impact on the various roles of agriculture, at different stages of development? 1.2 ROA Project - FAO

3 1. The general approach to policy in ROA
1.3 an instrument: the policy/role matrix: its significance: highlighting the trade-offs its limitations: difficult to measure the impacts an on-going effort: calculations of ERAs and other indicators - - 1.4 ROA Project - FAO

4 2. Two general findings 2.1 In all countries, global and agricultural policy settings experienced major, sometimes drastic, changes over the last decade(s): - the various phases implied different trade-offs among policy objectives ROA Project - FAO

5 2. Two general findings 2.2 KEY MESSAGE: Roles of agriculture are more influenced by macro policy and other sectoral policies, than by agricultural policy itself. Major implications for: - the analysis: ROA took the right comprehensive approach the policy elaboration, implementation and evaluation process - ROA Project - FAO

6 3. Specific policy trends
3.1 Macro policy influences “ROLES” mainly through financial and trade policy: key role of exchange rate 3.2 General trend towards privatisation, deregulation of domestic markets, trade liberalisation: impact on “ROLES”complex, sometimes ambivalent, such as: - reduction of taxation of agriculture (and of the “urban bias”) market-led incentives for farmers - ROA Project - FAO

7 3. Specific policy trends
3.2 (Cont’d.) - development of marketing and processing: positive impact on “ROLES”. reduction of subsidies and public expenditure may have positive impact (better use of inputs) or negative impact (reduction of investments) market and trade liberalisation may lead to a more efficient commodity mix, including for exports, but may have negative impact on some farmers’ groups and increase price variability - - ROA Project - FAO

8 3. Specific policy trends
3.3 Policies remain often deficient for the creation/development of: - efficient land markets :THE key issue in many countries efficient labour markets financial and credit frameworks export potential realization - - - ROA Project - FAO

9 3. Specific policy trends
3.4 Some policies should receive higher priority because: - they have been developed too late (environment) they have been curtailed although they are essential for productivity enhancement (research and other support services). they have major international spillovers (environment) - - ROA Project - FAO

10 4. Some generic issues “Sequencing” of policy reform is key:
4.1 “Sequencing” of policy reform is key: - too slow implementation reduces reform benefits and impacts on “ROLES” too rapid reform may make adjustment difficult and creates problems for some “ROLES” - 4.2 The impact of the institutional framework on “ROLES” is as important as policies themselves: - major examples: decentralisation, land tenure, social safety nets, ... ROA Project - FAO

11 4. Some generic issues 4.3 Policies impact on “ROLES” through changes in farm structure 4.4 Impact on “ROLES” depends on mix between resources/subsidies appropriated individually and those invested for creation of public goods 4.5 Policies to promote diversification of income sources, within and outside agriculture, are essential to strengthen “ROLES”. ROA Project - FAO

12 5. Implications for future work
5.1 Capturing the complex web of inter-related “ROLES” continues to require an over-arching, comprehensive and interdisciplinary approach ROA Project - FAO

13 5. Implications for future work
5.2 As “ROLES” are influenced more and more by a wider range of domestic and international policies, priority attention should be given to: - the search for the right policy mix the development of the most efficient institutional framework the identification of the international relationships and spillovers - - ROA Project - FAO


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