ANNUAL ESTIMATES OF LATIN AMERICAN DISTORTIONS TO AGRICULTURAL INCENTIVES
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1 ANNUAL ESTIMATES OF LATIN AMERICAN DISTORTIONS TO AGRICULTURAL INCENTIVES Ernesto Vlenzuel, Mrinne Kurzweil, Estebn Jr, Johnn Croser nd Kym Anderson* Agriculturl Distortions Working Pper 49, December 2007 The uthors were ll t the University of Adelide in Austrli t the time of completing this compiltion except Kurzweil, who is t the Africn Development Bnk in Tunis. This is product of reserch project on Distortions to Agriculturl Incentives, under the ledership of Kym Anderson of the World Bnk s Development Reserch Group. The uthors re grteful for helpful comments from workshop prticipnts nd for funding from World Bnk Trust Funds provided by the governments of Irelnd, Jpn, the Netherlnds (BNPP) nd the United Kingdom (DfID). This Working Pper series is designed to promptly disseminte the findings of work in progress for comment before they re finlized. The views expressed re the uthors lone nd not necessrily those of the World Bnk nd its Executive Directors, nor the countries they represent, nor of the institutions providing funds for this reserch project.
2 ANNUAL ESTIMATES OF LATIN AMERICAN DISTORTIONS TO AGRICULTURAL INCENTIVES Ernesto Vlenzuel, Mrinne Kurzweil, Estebn Jr, Johnn Croser nd Kym Anderson This compiltion summrizes the estimtes, for the focus countries of Ltin Americ nd the Cribben, of key distortion indictors defined in Anderson et l. (2008). These tbles pper lso in n Appendix in Anderson nd Vldés (2008). Three tbles re provided for ech country: () the Nominl Rte of Assistnce to individul frm products covered in the study nd their weighted verge, using s weights production vlued t undistorted prices; (b) the Reltive Rte of Assistnce to producers of griculturl (reltive to non-griculturl) trdbles, gin using s weights production vlued t undistorted prices, nd the component prts of the RRA clcultion; nd (c) the weights themselves for individul covered frm products nd for the residul non-covered group of products, shown s percentges nd so they sum to 100 percent. The Nominl Rte of Assistnce (NRA) in the cse of product hving just its output price distorted by government policies is the percentge by which the domestic producer price exceeds the price tht would previl under free mrkets, tht is, the border price ppropritely djusted to ccount for differences in product qulity, trnsport costs, processing costs, etc. A negtive vlue indictes the domestic price is below tht comprble border price. If producers of tht product lso re ffected by distortions to product-specific input prices, their d vlorem equivlent is ccounted for by subtrcting the d vlorem input price distortion times its input-output coefficient from the frm industry s output NRA to get the totl nominl rte of ssistnce to production of tht frm product. The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively. The sources of these tbles re the Working Pper version of the chpters in Anderson nd Vldés (2008) (nd its ssocited spredsheet), ech of which is downlodble in the Working Pper section of the project s website, Also
3 vilble t tht website is the complete globl distortions dtbse (Anderson nd Vlenzuel 2008). The references re provided below. References Anderson, K., M. Kurzweil, W. Mrtin, D. Sndri nd E. Vlenzuel (2008), Methodology for Mesuring Distortions to Agriculturl Incentives, Agriculturl Distortions Working Pper 02, World Bnk, Wshington DC, revised Jnury. Anderson, K. nd A Vldés (eds.) (2008), Distortions to Agriculturl Incentives in Ltin Americ, Wshington DC: World Bnk (forthcoming September). Anderson, K. nd E. Vlenzuel (2008), Globl Estimtes of Distortions to Agriculturl Incentives, 1955 to 2007, dtbse spredsheets vilble t forthcoming October. Berthelon, M., D. Kruger nd D. Svedr (2007), Distortions to Agriculturl Incentives in Nicrgu, Agriculturl Distortions Working Pper 18, World Bnk, Wshington DC, December. de los Sntos, J. nd P. Pblo Peñ (2007), Distortions to Agriculturl Incentives in Dominicn Republic, Agriculturl Distortions Working Pper 15, World Bnk, Wshington DC, December. Gutermn, L. (2007), Distortions to Agriculturl Incentives in Colombi, Agriculturl Distortions Working Pper 14, World Bnk, Wshington DC, December. Lopes, M., I. Lopes, M. Silv de Oliveir, F. Cmpos Brcelos, E. Jr nd P. Rngel Bogdo (2007), Distortions to Agriculturl Incentives in Brzil, Agriculturl Distortions Working Pper 12, World Bnk, Wshington DC, December. Solog, I. nd G. Lr (2007), Distortions to Agriculturl Incentives in Mexico, Agriculturl Distortions Working Pper 17, World Bnk, Wshington DC, December. Sturzenegger, A.C. nd M. Slzni (2007), Distortions to Agriculturl Incentives in Argentin, Agriculturl Distortions Working Pper 11, World Bnk, Wshington DC, December. Vldés, A. nd E. Jr (2007), Distortions to Agriculturl Incentives in Chile, Agriculturl Distortions Working Pper 13, World Bnk, Wshington DC, December.
4 Vlenzuel, E., S. Wong nd D. Sndri (2007), Distortions to Agriculturl Incentives in Ecudor, Agriculturl Distortions Working Pper 16, World Bnk, Wshington DC, December.
5 Tble 1: Annul distortion estimtes, Argentin, 1960 to 2005 () Nominl rtes of ssistnce to covered products Whet Mize Soyben Sunflower Beef Milk All n n -40 n n n -40 n n n -44 n n n -39 n n n -23 n n n -35 n n n -25 n n n -38 n n n -38 n n n -39 n n n -25 n n n -13 n n n -31 n n n -35 n n n -28 n n n -42 n n n -19 n n n n n n n n n n n n n
6 Tble 1 (continued): Annul distortion estimtes, Argentin, 1960 to 2005 (b) Nominl nd reltive rtes of ssistnce to ll griculturl products, to exportble b nd import-competing b griculturl industries, nd reltive c to non-griculturl industries Covered products Totl g NRA All products (incl NPS) Ag trdbles NRA Non-g trdbles NRA Noncovered products Exportblecompeting Import- Inputs Outputs All RRA n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n NRAs including ssistnce to nontrdbles nd non-product specific ssistnce. b NRAs including products specific input subsidies. c The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively.
7 Tble 1 (continued): Annul distortion estimtes, Argentin, 1960 to 2005 (c) Vlue shres of primry production of covered nd non-covered products, Whet Mize Soyben Sunflower Beef Milk Noncovered Totl n n 43 n n n 50 n n n 48 n n n 47 n n n 41 n n n 43 n n n 48 n n n 43 n n n 42 n n n 38 n n n 36 n n n 38 n n n 46 n n n 36 n n n 30 n n n 44 n n n 37 n n n n n n n n n n n n n At frmgte undistorted prices, US$ Source: Sturzenegger nd Slzni (2007)
8 Tble 2: Annul distortion estimtes, Brzil, 1966 to 2005 () Nominl rtes of ssistnce to covered products Soyben Pig- Poultr Rice Whet Mize Sugr Cotton Coffee Beef met y All 1966 n n -16 n n n n n n -5 n n n n n n -9 n n n n n n -6 n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n
9 Tble 2 (continued): Annul distortion estimtes, Brzil, 1966 to 2005 (b) Nominl nd reltive rtes of ssistnce to ll griculturl products, to exportble b nd import-competing b griculturl industries, nd reltive c to non-griculturl industries Covered products Totl g NRA All products (incl NPS) Ag trdbles NRA Non-g trdbles NRA Noncovered products Exportblecompeting Import- Inputs Outputs All RRA n n n n n n n n NRAs including ssistnce to nontrdbles nd non-product specific ssistnce. b NRAs including products specific input subsidies. c The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively.
10 Tble 2 (continued): Annul distortion estimtes, Brzil, 1966 to 2005 (c) Vlue shres of primry production of covered nd non-covered products, Rice Whet Mize Soyben Sugr Cotton Coffee Beef Pigmet Poultry Noncovered 1966 n n 9 n n n n n n 7 n n n n n n 10 n n n n n n 10 n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n At frmgte undistorted prices, US$ Source: Lopes et l. (2007)
11 Tble 3: Annul distortion estimtes, Chile, 1960 to 2005 () Nominl rtes of ssistnce to covered products Whet Mize Sugr Apple Grpe Beef Milk All n n n n n n n n n n n n n n n
12 Tble 3 (continued): Annul distortion estimtes, Chile, 1960 to 2005 (b) Nominl nd reltive rtes of ssistnce to ll griculturl products, to exportble b nd import-competing b griculturl industries, nd reltive c to non-griculturl industries Covered products Totl g NRA All products (incl NPS) Ag trdbles NRA Non-g trdbles NRA Noncovered products Exportblecompeting Import- Inputs Outputs All RRA NRAs including ssistnce to nontrdbles nd non-product specific ssistnce. b NRAs including products specific input subsidies. c The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively.
13 Tble 3 (continued): Annul distortion estimtes, Chile, 1960 to 2005 (c) Vlue shres of primry production of covered nd non-covered products, Noncovered Whet Mize Sugr Apple Grpe Beef Milk Totl n n n n n n n n n n n n n n n At frmgte undistorted prices, US$ Source: Vldes nd Jr (2007)
14 Tble 4: Annul distortion estimtes, Colombi, 1960 to 2005 () Nominl rtes of ssistnce to covered products Whet Sorghum Soyben Plmoil Cotton Coffee Beef Milk All Rice Mize Sugr n
15 Tble 4 (continued): Annul distortion estimtes, Colombi, 1960 to 2005 (b) Nominl nd reltive rtes of ssistnce to ll griculturl products, to exportble b nd import-competing b griculturl industries, nd reltive c to non-griculturl industries Covered products Totl g NRA All products (incl NPS) Ag trdbles NRA Non-g trdbles NRA Noncovered products Exportblecompeting Import- Inputs Outputs All RRA NRAs including ssistnce to nontrdbles nd non-product specific ssistnce. b NRAs including products specific input subsidies. c The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively.
16 Tble 4 (continued): Annul distortion estimtes, Colombi, 1960 to 2005 (c) Vlue shres of primry production of covered nd non-covered products, Rice Mize Sugr Whet Sorghum Soyben Plmoil Cotton Coffee Beef Milk Noncovere d n At frmgte undistorted prices, US$ Source: Gutemn (2007)
17 Tble 5: Annul distortion estimtes, Dominicn Republic, 1955 to 2005 () Nominl rtes of ssistnce to covered products Rice Sugr Coffee Bnn Ben Grlic Onion Tomto Poultry All * Cssv hs zero NRA throughout the period.
18 Tble 5 (continued): Annul distortion estimtes, Dominicn Republic, 1955 to 2005 (b) Nominl nd reltive rtes of ssistnce to ll griculturl products, to exportble b nd import-competing b griculturl industries, nd reltive c to non-griculturl industries Covered products Totl g NRA All products (incl NPS) Ag trdbles NRA Non-g trdbles NRA Noncovered products Exportblecompeting All RRA Import- Inputs Outputs NRAs including ssistnce to nontrdbles nd non-product specific ssistnce. b NRAs including products specific input subsidies. c The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively.
19 Tble 5 (continued): Annul distortion estimtes, Dominicn Republic, 1955 to 2005: (c) Vlue shres of primry production of covered nd non-covered products, Rice Sugr Coffee Ben Bnn Cssv Grlic Onion Tomto Poultry Non- - covered At frmgte undistorted prices, US$ Source: de los Sntos nd Pblo Peñ (2007)
20 Tble 6: Annul distortion estimtes, Ecudor, 1966 to 2003 () Nominl rtes of ssistnce to covered products Rice Mize Soybe n Sugr Coffe e Coco Bnn Beef Pigme t Poultr y Milk All
21 Tble 6 (continued): Annul distortion estimtes, Ecudor, 1966 to 2003 (b) Nominl nd reltive rtes of ssistnce to ll griculturl products, to exportble b nd import-competing b griculturl industries, nd reltive c to non-griculturl industries Covered products Totl g NRA All products (incl NPS) Ag trdbles NRA Non-g trdbles NRA Noncovered products Exportblecompeting Import- Inputs Outputs All RRA NRAs including ssistnce to nontrdbles nd non-product specific ssistnce. b NRAs including products specific input subsidies. c The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively.
22 Tble 6 (continued): Annul distortion estimtes, Ecudor, 1966 to 2003 (c) Vlue shres of primry production of covered nd non-covered products, Rice Mize Soybe n Sugr Coffe e Coco Bnn Beef Pigme t Poultr y Milk Noncovered At frmgte undistorted prices, US$ Source: Vlenzuel, Sndri nd Wong (2007)
23 Tble 7: Annul distortion estimtes, Mexico, 1979 to 2004 () Nominl rtes of ssistnce to covered products Rice Mi ze Whet Sorghu m Tom to Beef Brley Soyben Sugr Coffee Ben Pigme t Poul try Egg Mil k All
24 Tble 7 (continued): Annul distortion estimtes, Mexico, 1979 to 2004 (b) Nominl nd reltive rtes of ssistnce to ll griculturl products, to exportble b nd import-competing b griculturl industries, nd reltive c to non-griculturl industries Covered products Totl g NRA All products (incl NPS) Ag trdbles NRA Non-g trdbles NRA Noncovered products Exportblecompeting Import- Inputs Outputs All RRA NRAs including ssistnce to nontrdbles nd non-product specific ssistnce. b NRAs including products specific input subsidies. c The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively.
25 Tble 7 (continued): Annul distortion estimtes, Mexico, 1979 to 2004 (c) Vlue shres of primry production of covered nd non-covered products, Rice Mi ze Whet Sorghu m Brl ey At frmgte undistorted prices, US$ Source: Solog nd Lr (2007) Coff ee Be n Soyben Sugr Tomt o Beef Pigme t Poul try Egg Mil k Non cove red
26 Tble 8: Annul distortion estimtes, Nicrgu, 1991 to 2004 () Nominl rtes of ssistnce to covered products Rice Grou ndnut Sugr Mize Sorghum Soyben Sesme Coffee Ben Beef Poultry Milk All n n n -9
27 Tble 8 (continued): Annul distortion estimtes, Nicrgu, 1991 to 2004 (b) Nominl nd reltive rtes of ssistnce to ll griculturl products, to exportble b nd import-competing b griculturl industries, nd reltive c to non-griculturl industries Covered products Totl g NRA All products (incl NPS) Ag trdbles NRA Non-g trdbles NRA Noncovered products Exportblecompeting Import- Inputs Outputs All RRA NRAs including ssistnce to nontrdbles nd non-product specific ssistnce. b NRAs including products specific input subsidies. c The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively.
28 Tble 8 (continued): Annul distortion estimtes, Nicrgu, 1991 to 2004 (c) Vlue shres of primry production of covered nd non-covered products, Rice Mize Groun dnut Sugr Sorghum Soyben Sesme Coffee Ben Beef n n n 24 At frmgte undistorted prices, US$ Source: Berthelon, Kruger nd Svedr (2007) Milk Poultry Noncover ed
29 Tble 9: Annul distortion estimtes for Ltin Americ, 1955 to 2005 () Nominl rtes of ssistnce to covered products Rice Mize n n n n n n n n n -43 n n n n n n n n n n -28 n n n n n n n n n n -48 n n n n n n n n n n -21 n n n n n n n n n n -10 n n 10 n -4 n n n -1 n -4 n n n 10 n -4 n n n 4 n -4 n n n 12 n -4 n n n 12 n -4 n n n 0 n -4 n n n 1 n -4 n n n 1 n -4 n n n 2 n -4 n n n -1 n -5 n n n 7 n -7 n n n -1 n -3 n n n -25 n -4 n n n -4 n 2 n n n -6 n 0 n n n -16 n -3 n n n -22 n n n -14 n n n n n n n -1-9 n n n n n n n n n n n n n n n n n n n n -13 n n Continued over Groun dnut Sunfl ower Sugr Whet Sorghum Brley Soyben Plmoil Sesme Cotton Coffee
30 Tble 9() (continued): Coco Apple Bnn Grpe Ben Grlic Onion Beef Tomto Pigmet Poultry Egg Milk 1955 n n -37 n n n 163 n n 1956 n n -27 n n n 170 n n 1957 n n -24 n n n 159 n n 1958 n n -22 n n n 178 n n 1959 n n -23 n n n 172 n n 1960 n n 171 n n n 177 n n n 150 n n n 141 n n n 121 n n n 89 n n n n n n n n n n n n n n n n n 20 * Cssv hs zero NRA throughout the period.
31 Tble 9 (continued): Annul distortion estimtes for Ltin Americ, 1955 to 2005 (b) Nominl nd reltive rtes of ssistnce to ll griculturl products, to exportble b nd import-competing b griculturl industries, nd reltive c to non-griculturl industries Covered products Inputs Outputs Totl g NRA All products (incl NPS) Ag trdbles NRA Noncovered products Exportbles Importcompeting All Non-g trdbles NRA NRAs including ssistnce to nontrdbles nd non-product specific ssistnce. b NRAs including products specific input subsidies. c The Reltive Rte of Assistnce (RRA) is defined s 100*[(100+NRAg t )/ (100+NRAnong t )-1], where NRAg t nd NRAnong t re the percentge NRAs for the trdbles prts of the griculturl nd non-griculturl sectors, respectively. RRA
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