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Analysis Of Agricultural Support Policies And Its Effects In The Philippines

Posted on:2020-05-29Degree:MasterType:Thesis
Country:ChinaCandidate:Y YaoFull Text:PDF
GTID:2439330596993341Subject:Agriculture
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The Philippines is located in the southeast of China and is a middle-income agricultural country.Based on the characteristics of agriculture's weak nature,externality and versatility,many countries will implement support and protection policies for agriculture during the economic transformation stage,and the Philippines is no exception.Due to the small number of people,the Philippines faces many difficulties and challenges in the process of agricultural development,and has not yet achieved the goal of food self-sufficiency.With the help of the World Bank and the International Monetary Fund,the Philippines has adopted a series of agricultural policy reform measures since the 1970 s.What are the stages in the evolution of the Philippine agricultural support policy?What kind of support policy system is built at this stage? What are the distortion effects of these support policy measures on the market?Systematic analysis and quantitative research are urgently needed.As an important country along “The Belt and Road”,China's economic and trade exchanges with the Philippines have been close in recent years.In2017,China jumped to become the Philippines' largest trading partner,the largest source of imports and the fourth largest export market.The research on the above issues is of great significance for enhancing China's understanding and accumulation of Philippine agricultural support policy experience,helping China's agriculture-related enterprises to carry out international economic and trade cooperation in the agricultural sector,and promoting the strategy of “The Belt and Road” to develop in depth.Focusing on the above issues,the research is mainly divided into four parts:First,the research on the evolution process of the agricultural support policy in the Philippines.This part through the theoretical analysis and literature research,longitudinally combed the evolution of the agricultural support policy in the Philippines since the 1970 s.Duringthe period of massive government intervention(1970-1986),the Philippine government directly intervened in the production,processing,and circulation of agricultural products through state monopoly agencies,providing farmers with high-yield rice seeds,fertilizers and other input subsidies to significantly increase rice yield,and finally completed.The goal of rice self-sufficiency.However,the increase in output,which was based on high-cost input subsidies,was unsustainable,which led to the Philippines becoming a rice importer again since 1984.Towards the stage of liberalization(1986-2000),during this period the Philippines continued to achieve the goal of rice self-sufficiency in agricultural policy.The government's intervention in the market has decreased,and the private sector has played a greater role in agricultural credit policies.The main policy tool it has adopted is still to provide input subsidies to farmers.With the new government coming to power in 1986,agricultural policies have gradually become liberalized.In the 1990 s,the Philippines accelerated the process of trade liberalization.In the early 1990 s,it launched the follow-up unilateral tariff reform plan.In 1992,it joined the ASEAN Free Trade Area(AFTA)and joined the WTO in 1995.Adapting to the trend of globalization;on the other hand,the agricultural sector has implemented a series of plans to increase rice productivity,which is largely dependent on input subsidies to increase rice production.Increase the public support phase of agriculture(2000-present).The main goal of the Philippine agricultural policy during this period was to achieve rice self-sufficiency and ensure food security.Until 2010,in order to encourage farmers to adopt high-yield hybrid rice and fertilizer,the Philippines successively implemented the “Hybrid Rice Commercialisation Programme(HRCP)” and the “Fertilizer,Infrastructure and Irrigation,Extension and Education,Loans,Drying and other post-harvest facilities,Seeds(FIELDS)”,and the budget allocation for seed subsidies once soared to About 20% of the total agricultural budget.Since 2011,the Philippine government has shifted its focus on agriculture from input subsidies to general support services,and subsidies for seed and fertilizer have been partially replaced by “roll-over schemes”.Second,the study of the agricultural support policy system built inthe Philippines at this stage.Through theoretical analysis and literature research,this part horizontally sorts out the domestic price support,input subsidies,agricultural credit,agricultural insurance and other foreign trade import and export policies from the domestic support policy and foreign trade policy.In terms of domestic support policies,the Philippines has implemented price support policies to control the purchase and sale prices and distribution channels of agricultural products,and to accumulate and manage national grain reserves to stabilize domestic producer prices and supply;through variable inputs such as high-yield rice seeds and fertilizers.And the input subsidy policy for subsidizing the purchase of fixed assets such as agricultural machinery,directly reducing the production cost of farmers;indirectly reducing agriculture through the support of infrastructure construction such as the construction and maintenance of farmland irrigation facilities and the construction of farmland to market roads.Cost of production.In addition,it helps farmers maintain production and stabilize income by providing agricultural creditors with low-cost credit agricultural credit policies and agricultural insurance policies that increase the resilience of agricultural producers to natural risks.In terms of foreign trade policy,in order to protect domestic food prices from fluctuations in international food prices,the Philippines has set a “threshold” for foreign agricultural imports through tariffs and tariff quotas and a series of non-tariff measures to protect its agricultural products market.Third,the study of the effects of agricultural support policies in the Philippines.This section is based on the results of the Organization Of Economic Cooperation and Development(OECD)'s 2000-2017 Philippine Agricultural Support Policy,using the methodology of Producer Support Estimate(PSE)developed by the OECD to analyze its agricultural support levels,structural characteristics and policy effects.The analysis shows that:(1)the overall Total Support Estimate of the Philippines in2000-2017 is on the rise,among which Producer Support Estimate accounted for the largest proportion(more than 80%)and General Services Support Estimate still accounted for a small proportion,indicating that the agricultural support policy system established in thePhilippines at the present stage mainly supported agricultural producers;(2)the overall Percent Total Support Estimate of the Philippines in2000-2016 is on the rise.The Percent Total Support Estimate in the Philippines in 2014-2016 averaged 3.36%,which is 3.36% of the gross national income of the Philippines,which is used for subsidies to the agricultural sector,about five times that of the OECD member countries(35 member states)in the same period.It shows that the Philippine national economy supports the development of the agricultural sector with a heavy burden;(3)in 2000-2017,Market Price Support is a major component of Producer Support Estimate,and the most important category of General Services Support Estimate is infrastructure development and maintenance.A large part of it is mainly used to invest in irrigation systems;(4)in 2000-2017,the Market Price Support dominated the Total Support Estimate(about 80%-90%),indicating that government support for agricultural producers is mainly achieved through the Market Price Support,and the distortion effect of agricultural support policies on market signals has been high for a long time;(5)since 2000,the Philippines has implemented “positive” protection for certain agricultural products such as rice,corn,refined sugar,pork and poultry.Among the average support levels of specific agricultural products in the Philippines in 2015-2017,rice(59.4%)was the highest,followed by refined sugar(36.85%),followed by poultry(23.85%)and pork(23.59%).Fourth,the study of the implications of the Philippine agricultural support policy.Based on the previous evolution of the Philippine agricultural support policy,the agricultural support policy system and its policy effects at the current stage,this section draws on the implications of the Philippines in the practice of building an agricultural support policy system:(1)the objectives of the agricultural support policy should be compatible with the basic national conditions and development stages of the country;(2)make full use of limited policies to support resources and maximize the comprehensive effectiveness of the policies;(3)promote domestic support gradually from Market Price Support to Direct Payments transformation;(4)can not relax the support and protection ofkey sensitive agricultural products.
Keywords/Search Tags:Philippines, Agricultural Support Policy, Policy Effect, Producer Support Estimate
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