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Poverty impacts of the volume-based special safeguard mechanism

Author

Listed:
  • Ivanic, Maros
  • Martin, Will
Abstract
The volume-based Special Safeguard Mechanism was proposed as essential for small, poor farmers and became the proximate cause of the collapse of the Doha Agenda negotiations in 2008. But is it helpful for these farmers, given that it is likely to be applied when farm output is depressed and many poor farmers in developing countries need to buy food? Stochastic simulations for 31 countries suggest that use of this safeguard in line with the proposed World Trade Organization rules would raise the world poverty headcount by an average of 24 million. The adverse poverty impact of the duty is larger when the quantity safeguard is triggered than it would be in other years, because lower farm output levels reduce or reverse the benefits to poor farm households from higher prices.

Suggested Citation

  • Ivanic, Maros & Martin, Will, 2014. "Poverty impacts of the volume-based special safeguard mechanism," Policy Research Working Paper Series 7006, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7006
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    References listed on IDEAS

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    1. Hertel, Thomas W. & Martin, William J. & Leister, Amanda M., 2010. "Potential Implications of a Special Safeguard Mechanism in the WTO: the Case of Wheat," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61000, Agricultural and Applied Economics Association.
    2. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
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    Cited by:

    1. Kym Anderson, 2023. "Agriculture's globalization: Endowments, technologies, tastes and policies," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1314-1352, September.
    2. Countryman, Amanda M. & Narayanan, Badri G., 2017. "Price volatility, tariff structure and the special safeguard mechanism," Economic Modelling, Elsevier, vol. 64(C), pages 399-408.
    3. Donald MacLaren, 2016. "The Contingent Tariff of the Special Safeguard Mechanism: What Happens When Markets are Imperfectly Competitive?," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 62-83, February.
    4. Anderson, Kym, 2022. "Trade-related food policies in a more volatile climate and trade environment," Food Policy, Elsevier, vol. 109(C).
    5. Kym Anderson, 2021. "Food policy in a more volatile climate and trade environment," Departmental Working Papers 2021-25, The Australian National University, Arndt-Corden Department of Economics.
    6. Countryman, Amanda & Ufer, Danielle, 2016. "Potential Poverty Effects of the Special Safeguard Mechanism: the Case of Wheat," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236023, Agricultural and Applied Economics Association.
    7. Popp, J. & Olah, J. & Peto, K., 2018. "Short Food Suply Chains in Europe: differences between the EU-15 and EU-13," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277136, International Association of Agricultural Economists.

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    Keywords

    Rural Poverty Reduction; Markets and Market Access; Regional Economic Development; Emerging Markets;
    All these keywords.

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