Policies Used by Transformed Countries, 1970-2015
We look back at four types of policies used by 15 countries that transformed: public investment, price policies, macroeconomic policies, and land and other institutional reforms.
Click the dots to show a specific contextual description.
Public Investment |
*Price Interventions |
Macroeconomic Policies |
Land and Other Institutional Reforms |
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Transformation Context in 1970 |
Country |
R&D and Extension Services |
Rural Infrastructure |
Rural Health and Education |
Remove Anti-Agriculture Bias |
Trade Policy Reform |
Monetary and Exchange Rate Policy |
Economic Diversification |
Land Reform |
Credit |
High Birth Rates and Scarce Land |
China |
X
There was a significant level of public investment in the post-war period. The level of government funding to the agriculture, forestry and fisheries sector more than tripled between 1963 and 1975. From 1970 to 1979 18 per cent of government expenditure on agriculture went to research and extension. Public expenditure per farmer remains high in South Korea, at 9,972 PPP USD per farmer in 2015 (Country Profile). Investment on research and extension has including the introduction of new crop varieties and chemical fertilizers. Ref/Country Profile
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X
Expenditure on irrigation, roads and telecommunications in China has been found to have a positive impact on both agricultural production and poverty reduction. Public investment in infrastructure was significant through the 1990s and early 2000s. Spending on irrigation rose from less than CNY 10 billion per year in the early 1990s to more than CNY 40 billion in 2000. Spending on roads, electrification and communications also increased significantly in this time frame, from less than CNY 10 billion combined in the early 1990s, to about CNY 45 billion in 2000. Ref/Country Profile
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X
Rural education received the largest portion of rural spending in China during the 1990s and early 2000s, at 33 per cent in 2000, and this spending helped increase agricultural production and reduce poverty. Ref/Country Profile
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X
After 1979, the government began raising crop purchase prices, which significantly contributed to domestic agricultural growth in the early transition period. The nominal rate of assistance to agriculture improved through the 1980s and 1990s with ongoing reforms. By 2015 the relative rate of assistance to agriculture was positive. Ref/Country Profile
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X
Gradual trade liberalization began in the 1980s and continued with China’s accession to the WTO in 2001. Between 1980 and 2000, the value of agricultural trade grew 6 per cent per year. The government maintains control over commodities of national interest. Ref/Country Profile
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X
Reforms to exchange policy through the 1980s and 1990s depreciated the currency to improve export competitiveness. Ref/Country Profile |
X
Labour mobility and policies such as the Town and Village Enterprises policy in the rural non-farm sector was an important success factor in China, allowing the growth of non-agricultural sectors including manufacturing. The Town and Village Enterprises and Household Responsibility policies explain a majority of China’s agricultural growth from 1978 to 1990. Ref/Country Profile
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X
The Household Responsibility System allowed for greater individual control over agricultural production and profits, providing greater incentives for agricultural growth. The Town and Village Enterprises and Household Responsibility policies explain a majority of China’s agricultural growth from 1978 to 1990. Ref/Country Profile
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X
Author’s analysis, based on data. |
Indonesia |
X
The creation of the Agency for Agricultural Research and Development led to an increase of funding for research in the 1970s, spurring agricultural transformation. However, an economic crisis in the late 1990s led to cuts in public investment, including in agricultural research, which have only recently been reversed. Ref/Country Profile
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X
Rural infrastructure spending had a significant positive impact in Indonesia, with the development of roads, irrigation and electrification accounting for 48 per cent of poverty reduction from 1976 to 1993. However, an economic crisis in the late 1990s led to cuts in public investment, including in infrastructure, which has only recently been reversed. Rural electrification increased from 43 per cent in 1985 to 92 per cent in 2015. Ref/Country Profile
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X
Spending on primary education was strongly complementary with research and extension programs, and helps to explain positive outcomes in Indonesian agriculture. The share of enrollment in primary education was high in 2000 at 0.94, and grew to 1.01 in 2015. Ref/Country Profile
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X
Indonesia adopted market-oriented reforms, with some government intervention to support agriculture, including the removal of ceiling prices, high tariffs and pesticide subsidies combined with the use of targeted fertilizer subsidies. The relative rate of assistance rose from – 0.22 in 1970 to 0.2 in 2015. Ref/Country Profile
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X
The market-oriented reforms undertaken in Indonesia included the removal of high tariffs, output taxes and export restrictions. Indonesia maintained some control of rice imports in order to control prices. Ref/Country Profile
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X
Successive five-year plans beginning in 1969 focused on creating macroeconomic stability and financial discipline, including an aversion to budget financing by creating money and periodic devaluations to dampen the effects of an appreciating currency (arising from large capital inflows because of the country’s vast oil reserves and exports). This stable macroeconomic environment contributed to the success of the Green Revolution in Indonesia, albeit at some environmental cost. Because of its large population, the Green Revolution in Indonesia was focussed on boosting the amount of rice production in order to attain self-sufficiency. This initiative involved close collaboration between the government, universities and research organizations and included large-scale investment in agricultural extension, infrastructure for irrigation and research on, and introduction of, new varieties of rice (Mariyono et al., 2010). Ref/Country Profile |
X
Export-oriented manufacturing took off in the mid 1980s, and industry as a whole rose from 11 per cent of GDP in the mid 1960s to 40 per cent by the 1990s. The service sector also took off, including communications, finance and tourism. Ref/Country Profile |
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X
Subsidized credit was made available through the BIMAS program, allowing for greater access to capital and encouraging agricultural growth. Ref/Country Profile
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Malaysia |
X
The New Agricultural Program of 1984 set out to increase incomes from primary agriculture, including through new research and development support. The revenue generated by export duties was reinvested into research programs. Ref/Country Profile |
X
Public expenditure per farmer has been quite high, at about 1,600 PPP USD per farmer in 1985 and 2000, increasing significantly to 5,937 PPP USD per farmer in 2015 (Country Profile). Rural electrification was over 99 per cent in 2015. Ref/Country Profile |
X
The share of primary enrollment is quite high in Malaysia, rising from 0.85 in 1970 to 1.02 in 2015. Ref/Country Profile |
X
Price supports have been given to some crops, such as rice, which received fertilizer and cash subsidies. The level of agricultural bias declined from -1.5 in 1970 to -0.05 in 2000. Ref/Country Profile |
X
Throughout the development process tariffs for both agricultural and manufactured goods were kept low, and non-tariff barriers were not widely used. Ref/Country Profile |
X
Macroeconomic policy was generally stable over the development period. Apart from short periods of macroeconomic instability—in particular the Asian Financial Crisis of the late 1990s—the government avoided budget deficits. Domestic prices and the real exchange rate were kept stable. Ref/Country Profile |
X
Development of the manufacturing sector was a long-term goal in Malaysia. The Industrial Master Plan of 1986 encouraged the further processing of agricultural goods, including rubber and palm oil. Ref/Country Profile |
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South Korea |
X
There was a significant level of public investment in the post-war period. The level of government funding to the agriculture, forestry and fisheries sector more than tripled between 1963 and 1975. From 1970 to 1979 18 per cent of government expenditure on agriculture went to research and extension. Public expenditure per farmer remains high in South Korea, at 9,972 PPP USD per farmer in 2015 (Country Profile). Investment on research and extension has including the introduction of new crop varieties and chemical fertilizers. Ref/Country Profile
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X
Investment in irrigation boosted the level of irrigated land by 85 per cent from 1954 to 1970. Ref/Country Profile |
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X
Agricultural price policy shifted from net taxation in the 1960s to subsidization in the 1970s. Import restrictions were introduced, purchase prices were increased, and subsidies for fertilizer were provided. The Relative Rate of Assistance to the sector increased dramatically from 0.12 in 1970 to 1.15 in 1985. Ref/Country Profile |
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X
Macroeconomic stability was important to the growth experienced in South Korea from the 1960s, albeit there were some disruptions to this such as the Kwangju uprising in 1980 or the Asian Financial Crisis in the late 1990s. Policies undertaken by the state were aimed at supporting the industrial export sector, in close collaboration with industrial groups such as Hyundai and Samsung. Ref/Country Profile |
X
Rapid growth of the non-agricultural sector helped to absorb excess labour from the agricultural sector. The strong performance of agriculture also allowed the government to prioritize the non-agricultural sector early in the industrialization process. Ref/Country Profile |
X
Land reforms undertaken after 1949 helped to achieve equitable land distribution, which in turn supported smallholder agriculture, contributing to the agricultural transformation. Ref/Country Profile |
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Vietnam |
X
Research spending in Vietnam has been low, at only 1.7 per cent of total agriculture expenditure from 1994 to 2004. However, the impact has been high, with spending on research garnering the greatest return to agricultural output. Public expenditure per farmer in Vietnam increased significantly from 29.5 PPP USD per farmer in 1985 to 172.7 PPP USD in 2015, although it remains low relative to other countries. Ref/Country Profile
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X
Spending on rural infrastructure was prioritized from 1993 to 2000, with investments in irrigation and roads, resulting in improvements to agricultural production and reductions in rural poverty. Public expenditure per farmer in Vietnam increased significantly from 29.5 PPP USD per farmer in 1985 to 172.7 PPP USD in 2015, although it remains low relative to other countries. Ref/Country Profile
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X
Vietnam invested extensively in primary education, resulting in a better-educated population than countries with a similar average per capita income by the 1980s. Investment was also directed toward technical and professional training, which helped lay the groundwork for economic diversification. Ref/Country Profile |
X
The Doi Moi set of economic reforms in 1986 helped to remove the bias against agriculture, including the end of the rationing system and the increase of official prices. Farmers were able to sell all goods at market prices by 1990. In 1985 the Relative Rate of Assistance was – 0.21 but has hovered around 0 since 2000. Ref/Country Profile |
X
The Doi Moi beginning in 1986 introduced a number of trade reforms aimed at market liberalization, including the reduction of import tariffs, removal of quantitative import restrictions, and the reduction of restrictions to foreign direct investment. Ref/Country Profile |
X
Exchange rates were unified and devalued in 1989. Macroeconomic policies have been successful in reducing inflation and keeping the exchange rate stable since the mid 1990s. Ref/Country Profile |
X
Investment in technical and professional training helped lay the groundwork for the growth of the non-agricultural sector, as excess rural labour moved into paid labour and entrepreneurship in new sectors, including manufacturing. Ref/Country Profile |
X
Greater control over land and production decisions has been given to farmers since reforms in the late 1970s. Tenure rights were extended to 20 years and farmers were given the right to sell and exchange land in 1993. Ref/Country Profile |
X
Reduced debt financing and loans to state enterprises as part of the Doi Moi reforms and the end of financing from the Soviet Union created a finance constraint for rural households and the newly emerging agricultural input and output marketing system. The Bank for Agriculture and Rural Development came into operation in 1990. However, as a commercial bank, lending was constrained by income and collateral requirements, particularly as agriculture is a seen as a risky sector. The Bank for Social Policies was created in 2002 to address credit access problems, but has limited resources. Ref/Country Profile
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High Birth Rates and Scarce but Fertile Land |
Ghana |
X
Research expenditure in Ghana has been relatively low, as has public expenditure per farmer as a whole, at only 19.4 PPP USD per farmer in 2000. Despite the low spending, agricultural research has had a large impact, with research into new cultivars and inorganic fertilizer showing a 75 per cent rate of return from 1968 to 1991. Greater public spending would have further encouraged agricultural transformation. Ref/Country Profile |
X
Spending on feeder roads was found to have a positive impact on agricultural productivity, but public expenditure per farmer in Ghana has been low at only 19.4 PPP USD per farmer in 2000. Greater public spending would have further encouraged agricultural transformation. Ref/Country Profile |
X
Spending on formal education in Ghana was found to have a slight negative impact on agricultural productivity as farmers moved to other sectors. However, it can also increase investment and reduce rural poverty, while also supporting the development of the non-agricultural sector. The share of enrollment in primary education was 0.96 in 2015. Ref/Country Profile |
X
Following a collapse of the cocoa sector in the 1980s, the government initiated an agricultural reform program, including privatization of state farms, the removal of price controls and reduction of subsidies. These reforms played a large part in the recovery of cocoa production in the country. Ghana has steadily reduced the bias to agriculture from – 0.35 in 1970 to – 0.07 in 2015. Ref/Country Profile |
X
In the 1990s, Ghana simplified its tariff structure and removed differentiations between locally produced and imported goods. Cocoa remained under state control, and the marketing board focused on maintaining quality and passing more of the world price on to producers. Studies have suggested that further revenues could be gained from more comprehensive trade reforms. Ref/Country Profile
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X
Following economic crises through the 1970s the government implemented a program to ensure macroeconomic stability in the 1980s, including efforts to control overvaluation and inflation. Management of the exchange rate played a central role in the success of the economic recovery program, and all but eliminated the cocoa black market by the early 1990s. Ref/Country Profile |
X
There has been some growth in non-agricultural sectors. Manufacturing grew quickly for a period in the 1980s, but has since fallen behind the growth of the overall economy. Ref/Country Profile |
X
The Land Administration Project instituted in 1999 set out to strengthen land administration and security of tenure has faced difficulty reconciling the complex customary tenure system with land registration and titling. In addition, the legal framework addressing gender equality has faced issues of entrenched discrimination in land tenure. Ref/Country Profile |
X
Ghana scores better than the regional average in terms of access to credit. However, high interest rates and a lack of interested borrowers present problems for access to credit. Ref/Country Profile |
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Thailand |
X
Public agricultural research in Thailand was organized within the Ministry of Agriculture and universities in the 1950s and 1960s. High-yielding varieties of rice, sugarcane, and the adoption of tractors has been important for agricultural development. Public expenditure per farmer has risen steadily, growing from 253.3 PPP USD per farmer in 1985 to 693.8 PPP USD in 2015. Ref/Country Profile |
X
Irrigated land more than doubled from 1.7 million ha to 4.4 million ha from the 1970s through the 1990s. Rural electrification increased from 77 per cent in 1985 to 98 per cent in 2015. Ref/Country Profile |
X
The share of enrollment in primary education in Thailand has risen significantly, from 0.42 in 1970 to 0.96 in 2015. Ref/Country Profile |
X
Agricultural exports were highly taxed through the 1980s, as a source of government revenue. The level of taxation has since been reduced, particularly for rice and rubber. The relative rate of assistance moved from – 0.34 in 1970 to – 0.1 in 2000. Ref/Country Profile |
X
The country introduced some liberalization reforms in the 1990s, including the reduction of export taxes, but still maintains control over the import of certain commodities using non-tariff instruments. Thailand has provided support for high-value commodities by developing food safety programs while strengthening value chains and international marketing efforts. Ref/Country Profile |
X
Ref/Country Profile |
X
Thailand adopted an export-oriented industrialization strategy in 1977. Tax incentives and subsidies were used to attract foreign investment and support domestic development. These policies were successful in diversifying the economy, and creating economic growth, particularly through the 1990s. Ref/Country Profile |
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X
The Bank for Agriculture and Agricultural Cooperatives provides accessible credit to small-scale farmers and now reaches more than 90 per cent of farm households. Ref/Country Profile |
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Abundant and Fertile Land |
Brazil |
X
Significant efforts to improve agricultural research and development have been made in Brazil since the 1970s, including the creation of the Brazilian Agricultural Research Corporation in 1974 and increasing budgets until 1997. Research and extension combined with credit was key to productivity increases in Brazil, as farmers adopted new technologies through the 1990s. Ref/Country Profile |
X
Public expenditure per farmer has steadily increased from 136.7 PPP USD in 1985 to 1,038.5 USD PPP in 2015. Rates of rural electrification have also increased significantly, from 55 per cent in 1985 to 96 per cent in 2015. Ref/Country Profile |
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X
Brazil has successfully reduced the anti-agriculture bias, from – 0.47 in 1970 to – 0.11 in 2015. Floor prices sometimes helped farmers maintain production in the presence of credit and insurance market failures. Recent reductions to price supports have encouraged productivity increases and set the stage for the growth of the export sector. Ref/Country Profile |
X
Brazil has used a number of instruments in the past to restrict trade flows, including tariffs, export taxes, import and export restrictions and monopoly control on exports. Trade liberalization in the 1990s helped to reduce the cost of inputs and supported the growth of the agricultural export sector. Ref/Country Profile |
X
Brazil removed foreign exchange controls and liberalized the capital account after 1987, which helped contribute to a strong export sector. Depreciation of the Real due to a floating exchange rate policy in 1999 further supported the export sector. Ref/Country Profile |
X
Brazil developed a strong and diversified manufacturing sector in the 1980s. However, primary product exports surpassed manufactured exports in 2009-2010, and labour productivity in manufacturing has decreased, pointing to early deindustrialization. Ref/Country Profile |
X
Land reform began in the 1990s, and has had limited results. It remains an unfinished issue in Brazil. Ref/Country Profile
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X
Subsidized credit with low interest rates has contributed to the productivity of large farms and helped create a strong export sector in Brazil. However, a focus on large farms has limited the impact on poverty, inequality reduction and food security. Ref/Country Profile |
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Colombia |
X
Agricultural research funding saw a large increase in the 1980s, followed by a decline beginning in the mid 1990s and continuing through the 2000s. Funding increased again in 2011 with the launch of the National Research, Development and Innovation Agenda and reforms to the royalty system. Ref/Country Profile |
X
Public expenditure per farmer increased significantly from 156.6 PPP USD in 2000 to 315.9 PPP USD in 2015, but remains relatively low. Rates of rural electrification increased from 71 per cent in 1985 to 88 per cent in 2015. Ref/Country Profile |
X
The Familias en Accion program, launched in 2000, encouraged enrollment in primary education and preventive health care and had a significant impact, reducing extreme poverty an estimated 1.2 per cent and inequality an estimated 0.5 per cent. The share of enrollment in primary education increased from 0.51 in 1970 to 1.1 in 2015. Ref/Country Profile |
X
Early price policies pursued import substitution, and resulted in declining sectoral growth through the 1980s. A series of liberalization reforms began in the 1990s, including the replacement of support prices with floor prices. The government provides direct payments for cocoa and rice to encourage commercialization. By 2015, anti-agricultural bias had been successfully removed, with the relative rate of assistance at 0.11. Ref/Country Profile |
X
Early price policies pursued import substitution, and resulted in declining sectoral growth through the 1980s. A series of liberalization reforms began in the 1990s, including the replacement of support prices with floor prices. The government provides direct payments for cocoa and rice to encourage commercialization. By 2015, anti-agricultural bias had been successfully removed, with the relative rate of assistance at 0.11. Ref/Country Profile |
X
Colombia used a crawling peg system for the exchange rate until 1990. Liberalization reforms in the 1990s removed the central bank’s control over the currency market and eliminated the crawling peg. However, overvaluation of the currency has been a consistent problem, and has been detrimental to the export sector. Ref/Country Profile |
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X
Land inequality and concentration has persisted in Colombia, despite several attempts at land reform. High concentration of land has had a negative impact on agricultural growth, as regions with less concentration have seen higher growth rates. Ref/Country Profile |
X
Availability and access to credit was important for structural transformation in Colombia. The public sector maintained some control of the agricultural credit sector in order to ensure smallholder access to credit. The experience of Colombia in building inclusive credit markets is notable. Ref/Country Profile |
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Abundant but Infertile Land |
Chile |
X
Public Investment per farmer increased significantly from 312.4 PPP USD in 1985 to 960.9 PPP USD in 2015, but remains relatively low. Ref/Country Profile |
X
In Chile, public investment in rural infrastructure and services benefited the export-oriented sectors, particularly those requiring irrigation such as fresh fruits and vegetables. Public investment per farmer increased significantly from 312.4 PPP USD in 1985 to 960.9 PPP USD in 2015, but remains relatively low. Ref/Country Profile |
X
Enrollment in primary education has been high (a share of above 0.9) throughout the study period. Ref/Country Profile |
X
Reforms to price policies over the past four decades have been successful in moving the relative rate of assistance from highly negative to almost zero. The relative rate of assistance in 2015 was – 0.03. Reforms to price policies helped to encourage the growth of the export sector, which has played a central role in Chile’s agricultural transformation. Ref/Country Profile |
X
Trade began to be liberalized in the 1970s and 1980s. In the 1990s Chile furthered liberalization, with price stabilization for exports, and accession to a number of regional and international trade agreements, which resulted in lower tariffs. These reforms were important to the growth of the export sector. Chile has played a leading role in the Pacific Alliance regional integration initiative. Ref/Country Profile
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X
Attempts at import substitution policies resulted in high inflation and unstable exchange rates. Beginning in the 1970s, Chile attempted to stabilize the macroeconomic environment and reduce inflation, which has helped the development of a strong export sector. Ref/Country Profile |
X
Links between the agricultural sector and the rural non-farm sector have played an important role in reducing poverty. Chile encouraged these links with investment in rural infrastructure and the development of services to support value-chain linkages. Ref/Country Profile |
X
Land reform has played an important role in the transformation of agriculture in Chile. Land remains concentrated, but largely in the export sector, with the crop and livestock sector experiencing less concentration. Ref/Country Profile |
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Costa Rica |
X
Public expenditure per farmer increased significantly from 330 PPP USD in 2000 to 3,115 PPP USD in 2015. Ref/Country Profile |
X
Public expenditure per farmer increased significantly from 330 PPP USD in 2000 to 3,115 PPP USD in 2015. The rural electrification rate was 95 per cent in 1985 and more than 98 per cent in 2015. Ref/Country Profile |
X
The share of primary enrollment in Costa Rica was 0.83 in 1970 and increased to 1 by 2015. Ref/Country Profile |
X
Price controls and agricultural subsidies in the 1970s created distortions that impacted small producers and reduced welfare. Reforms in the 1990s removed many of the price controls and subsidies. A minimum price for rice, an important staple food, is maintained. There are also a few minor subsidies in place, primarily for credit, insurance and farm equipment and infrastructure. Ref/Country Profile |
X
In the 1970s and part of the 1980s, Costa Rica pursued an import substitution policy. Starting in the 1980s, the country moved toward trade liberalization including unilateral reductions in tariffs, removal of non-tariff barriers and ratification of several free trade agreements including with the United States, Canada and Mexico. Ref/Country Profile |
X
Stabilization of exchange and interest rates was an important aspect of the export strategy adopted by Costa Rica in the 1980s. Monetary policies have been successful at controlling inflation, which fell from 19 per cent in 1990 to 0.8 per cent in 2015. Ref/Country Profile |
X
Costa Rica has used Productive Development Policies to successfully diversify its economy. Policies include export promotion, attraction of FDI and finance, value-chain linkage, and technical assistance programs aimed at small and medium-sized enterprises. Ref/Country Profile |
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X
Access to agricultural credit is limited in Costa Rica, due in part to strict requirements for loans from commercial banks. The Development Bank System (SDB) was put in place in 2009 to address the issue by providing loans to micro, small and medium-sized enterprises. However, the resources of the SDB are limited, and credit remains a constraint on agricultural production. Ref/Country Profile |
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Morocco |
X
The level of spending on agricultural research in Morocco as a percentage of GDP is low, at only 0.49 per cent. The research system has lost capacity following programs to encourage voluntary retirement in the 2000s. Ref/Country Profile |
X
The rate of rural electrification increased significantly, from 9 per cent in 1985 to 77 per cent in 2015. Ref/Country Profile |
X
The share of primary enrollment in Morocco has increased significantly, from 0.35 in 1970 to 0.98 in 2015. However, illiteracy remains high in rural areas, which limits connections with the non-farm sector and hampers efforts at economic diversification. Ref/Country Profile |
X
Morocco pursued import substitution in the 1960s and 1970s. Liberalization was pursued in the 1990s. However, many of the expected gains from liberalization did not materialize, in part because poor investment in research and high levels of illiteracy hampered the development of high-productivity manufacturing. Ref/Country Profile |
X
Liberalization reforms in the 1990s were meant to encourage growth and efficiency in the manufacturing sector. However, the country was unable to diversify into high-productivity manufacturing, and low-productivity manufacturing industries struggled to compete with lower-wage countries. Some protections remain in place for cereal crops, as these are more vulnerable to drought. Ref/Country Profile |
X
Macroeconomic policy in the 1980s was aimed at supporting the development of the manufacturing and export sectors. This was accomplished by exchange rate devaluation, which helped the competitiveness of Moroccan products. Reforms that relaxed foreign exchange controls in the 1990s reduced competitiveness, as the country was unable to diversify into higher-value products. Ref/Country Profile |
X
Liberalization in the 1990s was pursued in part to encourage industrialization and exports. However, the manufacturing sector and the export sector remain undiversified. There has been success in developing the service sector, with a boom in telecommunications and financial services over the 2000s. Ref/Country Profile |
X
Land ownership in Morocco is a complex mixture of customary, religious and modern legal rules. Along with a high level of fragmentation, this makes it difficult for farmers to obtain loans or secure the full benefit of government subsidies. Ref/Country Profile |
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Peru |
X
Following efforts at revitalization in the 1980s, the public research sector was largely dismantled in the 1990s. Public research expenditure has increased in the 2000s, but remains low at only 0.35 per cent of agricultural GDP. Ref/Country Profile |
X
Public investment in agriculture peaked in the mid 1970s, and was largely aimed at irrigation projects. Irrigation is particularly important for the development of high-value commodity export crops. However, funding has since declined. Ref/Country Profile |
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X
Price policies in the 1970s were aimed at ensuring low food prices for urban consumers, which had a negative impact on domestic production. Reforms in the 1990s removed price controls and changed tax policy, which helped to support domestic agriculture and the export sector. Ref/Country Profile |
X
Following stabilization in the 1990s, Peru has supported agricultural exports with tax incentives, as well as lowering tariffs and removing non-tariff barriers. Peru has also ratified a number of trade agreements, including with the United States in 2009 and China in 2010. Ref/Country Profile |
X
After a period of instability in the 1980s, Peru implemented a stabilization program in the 1990s that included controls on public expenditures and free-floating exchange and interest rates. The stabilization program was successful at reducing inflation and assisted the development of the agricultural export sector. Ref/Country Profile |
X
A lack of active industrial support and high mineral prices have hampered economic diversification in Peru. Exports have concentrated on traditional products, primarily minerals. Ref/Country Profile |
X
Efforts at land reform in the 2000s that focused on registration and titling have not been as successful as hoped. As of 2015, only 48 per cent of farmers in the Costa region held title, 17 per cent in the Sierra and 23 per cent in the Selva. Lack of a land title can make it difficult for a farmer to access credit, and reduces incentives for long-term land improvements. Ref/Country Profile |
X
The Banco Agrario was abolished during the structural reforms of the 1990s, which resulted in restricted credit access to smallholder farmers. Access to credit remained a limiting factor for agricultural production into the 2000s. Ref/Country Profile |
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South Africa |
X
Only Nigeria spends more on agricultural research than South Africa in Africa. Public expenditure per farmer increased significantly from 242.5 PPP USD in 2000 to 972.6 PPP USD in 2015. Ref/Country Profile |
X
Public expenditure per farmer increased significantly from 242.5 PPP USD in 2000 to 972.6 PPP USD in 2015. The rate of rural electrification also increased significantly, from 26 per cent in 1980 to 67 per cent in 2015. Ref/Country Profile |
X
Ref/Country Profile |
X
Government marketing boards in South Africa had considerable control over prices until 1980. Marketing boards had a negative impact on the growth of several agricultural sectors, including maize, red meat and fruit. Ref/Country Profile |
X
South Africa liberalized trade in the 1990s, removing quantitative restrictions and other barriers in favour of tariffs. However, high tariffs and other types of support remain in place for some products, including sugar. The country participates in a number of trade preference scheme or trade agreements, including with the United States and Europe. Ref/Country Profile |
X
South Africa adopted an inflation targeting policy in 2000 in order to increase transparency and accountability over the previous policy, which made use of pre-announced monetary target ranges. The inflation targeting policy has been successful at maintaining low inflation rates. Ref/Country Profile |
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X
Land reform policy implemented in 1997 aimed to redistribute land, provide restitution and reform tenure. However, restrictions on subdivision meant that much of the available land was too expensive for many farmers. The Land Reform for Agricultural Development program adopted in the late 1990s provided larger grants. However, the impact of land reforms has been limited. Ref/Country Profile |
X
After Apartheid, the mandate of the Land Bank was expanded in order to provide credit to a larger number of farmers, and the number of branches was increased. However, a number of smallholders were still unable to access credit. The Agricultural Credit Scheme was launched to complement the Land Bank with a focus on smallholder farmers. |
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: Higher Priority : Medium Priority : Lower Priority
*The two sub-categories for price interventions are interrelated. Trade policy reform refers to the use of trade measures such as tariffs, export taxes, export promotion and sectoral policies. The anti-agricultural bias refers to the relative rate of assistance to agriculture compared to other sectors of the economy. It includes trade measures such as tariffs and subsidies but also other government policies that affect prices, such as input subsidies and direct price controls. It is expressed as positive, negative or neutral, relative to other sectors. This table shows that removing the negative relative rate of assistance (the anti-agricultural bias) was key in the agricultural transformation process.