Gordon C. Rausser's GATT Negotiations and the Political Economy of Policy Reform PDF

By Gordon C. Rausser

ISBN-10: 3642792847

ISBN-13: 9783642792847

ISBN-10: 3642792863

ISBN-13: 9783642792861

This quantity is devoted to knowing the political economic system hindrances to exchange reform, specially worldwide agricultural exchange reform, and the way those hindrances will be surmounted. the focal point is at the alternate reform below the GATT negotiations. New political-economic methodologies are used to evaluate and overview the stumbling blocks and unique scholarly analyses were designed to give an explanation for why agriculture - between such a lot of issues - turned this kind of major challenge within the latest Uruguay around of the GATT.

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Nevertheless, we have only begun to scratch the surface in the development of operational frameworks for blending productive and rent-seeking policies. In general, work in this area must recognize that these two types of poli- The Uruguay Round and the GATT Negotiations 31 cies go hand in hand; frequently, predatory policies are offered as compensation to those that are harmed as a result of the implementation of productive policies. Opportunities for restructuring the tradeoff between public and special interests have often appeared greatest during times of economic crises.

For most classes of farm programs, the more efficient a program, the lower its trade-distorting effect. Thus, a necessary and sufficient condition for a policy to be non-trade-distorting is that the program transfer be 100% efficient. This occurs when the size of the producer subsidy is equal to the size of government plus consumer transfer. Although our approach provides a number of new and useful insights into the problem of trade distortion measure- 36 Andrew Schmitz and James Vercammen ment, it should be viewed as complementary to, and not a substitute for, the traditional measures.

The model focuses on the transitional effects of a lO-year program to substitute decoupled support policies (which are generally permitted under the major GATT proposals) for coupled policies (which are generally forbidden under the major proposals). The intent is to examine the feasibility and cost of using permitted policies to sufficiently compensate important special interest groups and make policy reform sustainable. Three particular compensation policies are considered: direct payments, environmental programs that raise crop prices, and land retirement programs.

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GATT Negotiations and the Political Economy of Policy Reform by Gordon C. Rausser

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