Climate change, agriculture, and adaptation in the Republic of Korea to 2050

Climate change, agriculture, and adaptation in the Republic of Korea to 2050

Author: Cenacchi, Nicola

Publisher: Intl Food Policy Res Inst

Published: 2016-12-16

Total Pages: 92

ISBN-13:

DOWNLOAD EBOOK

As the effects of climate change set in, and population and income growth exert increasing pressure on natural resources, food security is becoming a pressing challenge for countries worldwide. Awareness of these threats is critical to transforming concern into long-term planning, and modeling tools like the one used in the present study are beneficial for strategic support of decision making in the agricultural policy arena. The focus of this investigation is the Republic of Korea, where economic growth has resulted in large shifts in diet in recent decades, in parallel with a decline in both arable land and agricultural production, and a tripling of agricultural imports, compared to the early 2000s. Although these are recognized as traits of a rapidly growing economy, officials and experts in the country recognize that the trends expose the Republic of Korea to climate change shocks and fluctuations in the global food market. This study uses the IMPACT (International Model for Policy Analysis of Agricultural Commodities and Trade) economic model to investigate possible future trends of both domestic food production and dependence on food imports, as well as the effects from adoption of agricultural practices consistent with a climate change adaptation strategy. The goal is to help assess the prospects for sustaining improvements in food security and possibly inform the national debate on agricultural policy. Results show that historical trends of harvested area and imports may continue into the future under climate change. Although crop models suggest negative long-term impacts of climate change on rice yield in the Republic of Korea, the economic model simulations show that intrinsic productivity growth and market effects have the potential to limit the magnitude of losses; rice production and yield are projected to keep growing between 2010 and 2050, with a larger boost when adoption of improved technologies is taken into consideration. At the same time, food production and net exports from the country’s major trading partners are also projected to increase, although diminished by climate change effects. In sum, these results show that kilocalorie availability will keep growing in the Republic of Korea, and although climate change may have some impact by reducing the overall availability, the effect does not appear strong enough to have significant consequences on projected trends of increasing food security.


Book Synopsis Climate change, agriculture, and adaptation in the Republic of Korea to 2050 by : Cenacchi, Nicola

Download or read book Climate change, agriculture, and adaptation in the Republic of Korea to 2050 written by Cenacchi, Nicola and published by Intl Food Policy Res Inst. This book was released on 2016-12-16 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the effects of climate change set in, and population and income growth exert increasing pressure on natural resources, food security is becoming a pressing challenge for countries worldwide. Awareness of these threats is critical to transforming concern into long-term planning, and modeling tools like the one used in the present study are beneficial for strategic support of decision making in the agricultural policy arena. The focus of this investigation is the Republic of Korea, where economic growth has resulted in large shifts in diet in recent decades, in parallel with a decline in both arable land and agricultural production, and a tripling of agricultural imports, compared to the early 2000s. Although these are recognized as traits of a rapidly growing economy, officials and experts in the country recognize that the trends expose the Republic of Korea to climate change shocks and fluctuations in the global food market. This study uses the IMPACT (International Model for Policy Analysis of Agricultural Commodities and Trade) economic model to investigate possible future trends of both domestic food production and dependence on food imports, as well as the effects from adoption of agricultural practices consistent with a climate change adaptation strategy. The goal is to help assess the prospects for sustaining improvements in food security and possibly inform the national debate on agricultural policy. Results show that historical trends of harvested area and imports may continue into the future under climate change. Although crop models suggest negative long-term impacts of climate change on rice yield in the Republic of Korea, the economic model simulations show that intrinsic productivity growth and market effects have the potential to limit the magnitude of losses; rice production and yield are projected to keep growing between 2010 and 2050, with a larger boost when adoption of improved technologies is taken into consideration. At the same time, food production and net exports from the country’s major trading partners are also projected to increase, although diminished by climate change effects. In sum, these results show that kilocalorie availability will keep growing in the Republic of Korea, and although climate change may have some impact by reducing the overall availability, the effect does not appear strong enough to have significant consequences on projected trends of increasing food security.


Climate Change Adaptation in South Korea

Climate Change Adaptation in South Korea

Author: Susann Schäfer

Publisher: transcript Verlag

Published: 2015-03-31

Total Pages: 263

ISBN-13: 3839430577

DOWNLOAD EBOOK

Climate change will impact ecosystems and production processes. Thus, adaptation to climate change has become a prevalent concept in environmental politics worldwide. In South Korea, climate change is expected to be above the global average. As response, the South Korean government has initiated climate change adaptation in diverse sectors. In this book, the entire process, from formulation and development, implementation and reaction of involved people is examined in a particular sector, agriculture. Theoretically framed as an Actor-Network, this study highlights current developments of South Korean politics, the tensions of urban-periphery development, and the status of agriculture.


Book Synopsis Climate Change Adaptation in South Korea by : Susann Schäfer

Download or read book Climate Change Adaptation in South Korea written by Susann Schäfer and published by transcript Verlag. This book was released on 2015-03-31 with total page 263 pages. Available in PDF, EPUB and Kindle. Book excerpt: Climate change will impact ecosystems and production processes. Thus, adaptation to climate change has become a prevalent concept in environmental politics worldwide. In South Korea, climate change is expected to be above the global average. As response, the South Korean government has initiated climate change adaptation in diverse sectors. In this book, the entire process, from formulation and development, implementation and reaction of involved people is examined in a particular sector, agriculture. Theoretically framed as an Actor-Network, this study highlights current developments of South Korean politics, the tensions of urban-periphery development, and the status of agriculture.


Building a climate change-resilient food system in Korea: The case of extension and technology dissemination services

Building a climate change-resilient food system in Korea: The case of extension and technology dissemination services

Author: Won, Jieun

Publisher: Intl Food Policy Res Inst

Published: 2019-08-29

Total Pages: 53

ISBN-13:

DOWNLOAD EBOOK

Climate change affects various stages of the food system including production, processing, distribution, and consumption. To cope with this vulnerability, many nations have engaged in a global movement to establish strategies aimed at food security. As in other countries, in the Republic of Korea climate change has had, and will continue to have, a significant influence on the food system, creating many uncertainties. In response, the Korean government and relevant agencies under national strategies have implemented various policy measures and programs to respond to the effects of climate change and strengthen the country’s food resiliency. In this paper we examine those strategies, measures, and specific programs, and in particular those that involve agricultural extension and technology dissemination. These various sector-specific or cross-sector strategies have not only counteracted climate change impacts but also improved the incomes of farming households, who have struggled with import competition and low profitability under Korea’s generally slowing economy. The Korean government has also implemented extension and tech dissemination projects in and with developing countries with the aim of building resilient food systems in the era of climate change. We find that such programs would benefit from the formation and maintenance of international networks, and moreover, each international program must be preceded by a thorough needs assessment that takes into account the regional context and each project should promote appropriate technologies-that is, technologies customized or particularly suited to the local context.


Book Synopsis Building a climate change-resilient food system in Korea: The case of extension and technology dissemination services by : Won, Jieun

Download or read book Building a climate change-resilient food system in Korea: The case of extension and technology dissemination services written by Won, Jieun and published by Intl Food Policy Res Inst. This book was released on 2019-08-29 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: Climate change affects various stages of the food system including production, processing, distribution, and consumption. To cope with this vulnerability, many nations have engaged in a global movement to establish strategies aimed at food security. As in other countries, in the Republic of Korea climate change has had, and will continue to have, a significant influence on the food system, creating many uncertainties. In response, the Korean government and relevant agencies under national strategies have implemented various policy measures and programs to respond to the effects of climate change and strengthen the country’s food resiliency. In this paper we examine those strategies, measures, and specific programs, and in particular those that involve agricultural extension and technology dissemination. These various sector-specific or cross-sector strategies have not only counteracted climate change impacts but also improved the incomes of farming households, who have struggled with import competition and low profitability under Korea’s generally slowing economy. The Korean government has also implemented extension and tech dissemination projects in and with developing countries with the aim of building resilient food systems in the era of climate change. We find that such programs would benefit from the formation and maintenance of international networks, and moreover, each international program must be preceded by a thorough needs assessment that takes into account the regional context and each project should promote appropriate technologies-that is, technologies customized or particularly suited to the local context.


Climate Change and Resilient Food Systems

Climate Change and Resilient Food Systems

Author: Vinaya Kumar Hebsale Mallappa

Publisher: Springer Nature

Published: 2021-02-04

Total Pages: 423

ISBN-13: 9813345381

DOWNLOAD EBOOK

This book provides insights on innovative strategies to build resilient food systems in the wake of challenges posed by climate change. Providing food security to the growing population especially in developing countries without exacerbating the environment is a major challenge. Climate change is expected to reduce agricultural productivity, leading to a decline in overall food availability and significantly increasing the number of malnourished children in developing countries. Interventions for enhancing the adaptive capacity of farmers especially of small holders needs immediate impetus. The policy formulation and development programs must reorient in the wake of the new expectations and deliverables. This book comprises of sixteen chapters that discuss the trends in global agriculture development and food system. The book highlights different aspects of household food and nutritional security. The chapters covering diverse aspects address food system, rural and urban food chain, factors affecting their sustainability and short and long term solutions to make them climate resilient. Important issues having significant implications on climate change such as Waste management, Value chain, Agri-marketing, etc. are also covered. The book would be an important resource for researchers in food science, environmental sciences and agriculture. It would also be beneficial for students and future scientists working on sustainable agriculture and food security.


Book Synopsis Climate Change and Resilient Food Systems by : Vinaya Kumar Hebsale Mallappa

Download or read book Climate Change and Resilient Food Systems written by Vinaya Kumar Hebsale Mallappa and published by Springer Nature. This book was released on 2021-02-04 with total page 423 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides insights on innovative strategies to build resilient food systems in the wake of challenges posed by climate change. Providing food security to the growing population especially in developing countries without exacerbating the environment is a major challenge. Climate change is expected to reduce agricultural productivity, leading to a decline in overall food availability and significantly increasing the number of malnourished children in developing countries. Interventions for enhancing the adaptive capacity of farmers especially of small holders needs immediate impetus. The policy formulation and development programs must reorient in the wake of the new expectations and deliverables. This book comprises of sixteen chapters that discuss the trends in global agriculture development and food system. The book highlights different aspects of household food and nutritional security. The chapters covering diverse aspects address food system, rural and urban food chain, factors affecting their sustainability and short and long term solutions to make them climate resilient. Important issues having significant implications on climate change such as Waste management, Value chain, Agri-marketing, etc. are also covered. The book would be an important resource for researchers in food science, environmental sciences and agriculture. It would also be beneficial for students and future scientists working on sustainable agriculture and food security.


Assessment of outcomes based on the use of PIM-supported foresight modeling work, 2012-2018

Assessment of outcomes based on the use of PIM-supported foresight modeling work, 2012-2018

Author: Lowder, Sarah K.

Publisher: Intl Food Policy Res Inst

Published: 2020-02-17

Total Pages: 56

ISBN-13:

DOWNLOAD EBOOK

This report presents results of a study to assess the use of foresight modeling tools and outputs produced since 2012 and funded through Flagship 1, Cluster 1.1 of the CGIAR Research Program on Policies, Institutions, and Markets (PIM). The goal of this study is to examine how the tools and outputs of foresight modeling supported by PIM through Flagship 1 (hereafter “PIM-supported foresight modeling”) have been used by stakeholders. The study aims to identify as many uses of and outcomes from the PIM-supported foresight modeling as possible. It is by no means comprehensive, but it does cover usage by a wide range of stakeholders from across the CGIAR system, other international organizations, academia, and national governments.


Book Synopsis Assessment of outcomes based on the use of PIM-supported foresight modeling work, 2012-2018 by : Lowder, Sarah K.

Download or read book Assessment of outcomes based on the use of PIM-supported foresight modeling work, 2012-2018 written by Lowder, Sarah K. and published by Intl Food Policy Res Inst. This book was released on 2020-02-17 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report presents results of a study to assess the use of foresight modeling tools and outputs produced since 2012 and funded through Flagship 1, Cluster 1.1 of the CGIAR Research Program on Policies, Institutions, and Markets (PIM). The goal of this study is to examine how the tools and outputs of foresight modeling supported by PIM through Flagship 1 (hereafter “PIM-supported foresight modeling”) have been used by stakeholders. The study aims to identify as many uses of and outcomes from the PIM-supported foresight modeling as possible. It is by no means comprehensive, but it does cover usage by a wide range of stakeholders from across the CGIAR system, other international organizations, academia, and national governments.


Changing preferences through experimental games

Changing preferences through experimental games

Author: Stopnitzky, Yaniv

Publisher: Intl Food Policy Res Inst

Published: 2016-12-16

Total Pages: 36

ISBN-13:

DOWNLOAD EBOOK

Much policy interest in sanitation and hygiene promotion focuses on changing behavior and increasing demand for these goods. Yet the effectiveness of large-scale interventions has been mixed, in large part because of the difficulty of changing attitudes on deeply rooted behaviors. This study tests whether an experiential learning exercise structured around an experimental game can be used to shift preferences around sanitation and hygiene. A minimum coordination game is adapted to the sanitation and hygiene setting by linking game choices to real-world investment decisions and payoffs in terms of health and status. Individuals from 20 villages in rural Tamil Nadu were randomly assigned to one of three groups: one that played a game in which communication between rounds was allowed, another that played a game in which communication was prohibited, and a control group that only completed a survey. Based on a comparison of survey responses across treatment arms, the game improved stated preferences in relation to sanitation and hygiene. This effect was larger when communication was allowed, and men responded on average more strongly than women across both versions of the game. These results suggest that experimental games can be a valuable tool not only for the study of decision making but for improving participants’ knowledge and pro-sanitation preferences.


Book Synopsis Changing preferences through experimental games by : Stopnitzky, Yaniv

Download or read book Changing preferences through experimental games written by Stopnitzky, Yaniv and published by Intl Food Policy Res Inst. This book was released on 2016-12-16 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Much policy interest in sanitation and hygiene promotion focuses on changing behavior and increasing demand for these goods. Yet the effectiveness of large-scale interventions has been mixed, in large part because of the difficulty of changing attitudes on deeply rooted behaviors. This study tests whether an experiential learning exercise structured around an experimental game can be used to shift preferences around sanitation and hygiene. A minimum coordination game is adapted to the sanitation and hygiene setting by linking game choices to real-world investment decisions and payoffs in terms of health and status. Individuals from 20 villages in rural Tamil Nadu were randomly assigned to one of three groups: one that played a game in which communication between rounds was allowed, another that played a game in which communication was prohibited, and a control group that only completed a survey. Based on a comparison of survey responses across treatment arms, the game improved stated preferences in relation to sanitation and hygiene. This effect was larger when communication was allowed, and men responded on average more strongly than women across both versions of the game. These results suggest that experimental games can be a valuable tool not only for the study of decision making but for improving participants’ knowledge and pro-sanitation preferences.


The changing structure of Africa’s economies

The changing structure of Africa’s economies

Author: Diao, Xinshen

Publisher: Intl Food Policy Res Inst

Published: 2017-01-13

Total Pages: 40

ISBN-13:

DOWNLOAD EBOOK

In recent years, some counties in Africa south of the Sahara (SSA) have experienced growth in their economies and improvements in living standards. Although there is some debate, it is clear that the share of the population living below the poverty line fell significantly over the past decade and a half; there has been a general decline in infant mortality rates and increased access to education; in some of the fastest-growing economies, average growth rates have been positive for the first time in decades; and since the early 1990s, real consumption in SSA has grown between 3.4 and 3.7 percent per year. The reasons behind this so-called “African growth miracle” are not well understood, and to our knowledge, this paper is the first to connect these improvements in living standards to important occupational changes. Using data from the Groningen Growth and Development Center’s Africa Sector Database and the Demographic and Health Surveys, we show that much of SSA’s recent growth and poverty reduction has been associated with a substantive decline in the share of the labor force engaged in agriculture. This decline is most pronounced for rural females over the age of 25 who have a primary education. This has been accompanied by a systematic increase in the productivity of the labor force, as it has moved from low productivity agriculture to higher productivity services and manufacturing. We also show that although the employment share in manufacturing is not expanding rapidly, in most of the low-income SSA countries, the employment share in manufacturing has not peaked and is still expanding, albeit from very low levels. Although these patterns are encouraging, more work is needed to understand the implications of these shifts in employment shares for future growth and development in SSA.


Book Synopsis The changing structure of Africa’s economies by : Diao, Xinshen

Download or read book The changing structure of Africa’s economies written by Diao, Xinshen and published by Intl Food Policy Res Inst. This book was released on 2017-01-13 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, some counties in Africa south of the Sahara (SSA) have experienced growth in their economies and improvements in living standards. Although there is some debate, it is clear that the share of the population living below the poverty line fell significantly over the past decade and a half; there has been a general decline in infant mortality rates and increased access to education; in some of the fastest-growing economies, average growth rates have been positive for the first time in decades; and since the early 1990s, real consumption in SSA has grown between 3.4 and 3.7 percent per year. The reasons behind this so-called “African growth miracle” are not well understood, and to our knowledge, this paper is the first to connect these improvements in living standards to important occupational changes. Using data from the Groningen Growth and Development Center’s Africa Sector Database and the Demographic and Health Surveys, we show that much of SSA’s recent growth and poverty reduction has been associated with a substantive decline in the share of the labor force engaged in agriculture. This decline is most pronounced for rural females over the age of 25 who have a primary education. This has been accompanied by a systematic increase in the productivity of the labor force, as it has moved from low productivity agriculture to higher productivity services and manufacturing. We also show that although the employment share in manufacturing is not expanding rapidly, in most of the low-income SSA countries, the employment share in manufacturing has not peaked and is still expanding, albeit from very low levels. Although these patterns are encouraging, more work is needed to understand the implications of these shifts in employment shares for future growth and development in SSA.


Nepal’s 2072 federal constitution: Implications for the governance of the agricultural sector

Nepal’s 2072 federal constitution: Implications for the governance of the agricultural sector

Author: Kyle, Jordan

Publisher: Intl Food Policy Res Inst

Published: 2016-12-22

Total Pages: 84

ISBN-13:

DOWNLOAD EBOOK

In this paper we explore the implications of Nepal’s new federal Constitution—passed in September 2015—for governance of the agricultural sector. Agriculture is the backbone of the Nepali economy, providing a livelihood for approximately two-thirds of the population, contributing one-third of the country’s GDP, and constituting more than half of the country’s exports. In transitioning from a unitary to a federal republic—with greater authority and autonomy granted to subnational units of government—it is of paramount importance to ensure that the agricultural sector is guided by coordinated planning, retains sufficient human capacity, and receives adequate fiscal resources. These considerations are particularly important given that the governance of Nepal’s agricultural sector already suffers from poor coordination, low human resources capacity, and inadequate financial resources. Addressing these issues may become more difficult under a federal structure. This paper begins by laying out the main challenges for agricultural governance in Nepal under the current structure. To do so, it relies on an original survey of 100 district agricultural and livestock officers in charge of local agricultural service delivery in Nepal as well as perspectives collected through more than two dozen semi-structured interviews with officials from the Ministry of Agricultural Development, the Ministry of Livestock Development, civil society, the private sector, and donors. Because Nepal is embarking on a pathway to more decentralized governance, which has been well-trodden by a number of other countries, the paper proceeds by examining five case studies, drawing lessons from India, Indonesia, Kenya, Malaysia, and South Africa. Based on these analyses, the paper offers policy recommendations on how the sector can be restructured to meet the constitutional provisions, while simultaneously ensuring that the government can deliver on its long-term objectives to develop the agricultural sector.


Book Synopsis Nepal’s 2072 federal constitution: Implications for the governance of the agricultural sector by : Kyle, Jordan

Download or read book Nepal’s 2072 federal constitution: Implications for the governance of the agricultural sector written by Kyle, Jordan and published by Intl Food Policy Res Inst. This book was released on 2016-12-22 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we explore the implications of Nepal’s new federal Constitution—passed in September 2015—for governance of the agricultural sector. Agriculture is the backbone of the Nepali economy, providing a livelihood for approximately two-thirds of the population, contributing one-third of the country’s GDP, and constituting more than half of the country’s exports. In transitioning from a unitary to a federal republic—with greater authority and autonomy granted to subnational units of government—it is of paramount importance to ensure that the agricultural sector is guided by coordinated planning, retains sufficient human capacity, and receives adequate fiscal resources. These considerations are particularly important given that the governance of Nepal’s agricultural sector already suffers from poor coordination, low human resources capacity, and inadequate financial resources. Addressing these issues may become more difficult under a federal structure. This paper begins by laying out the main challenges for agricultural governance in Nepal under the current structure. To do so, it relies on an original survey of 100 district agricultural and livestock officers in charge of local agricultural service delivery in Nepal as well as perspectives collected through more than two dozen semi-structured interviews with officials from the Ministry of Agricultural Development, the Ministry of Livestock Development, civil society, the private sector, and donors. Because Nepal is embarking on a pathway to more decentralized governance, which has been well-trodden by a number of other countries, the paper proceeds by examining five case studies, drawing lessons from India, Indonesia, Kenya, Malaysia, and South Africa. Based on these analyses, the paper offers policy recommendations on how the sector can be restructured to meet the constitutional provisions, while simultaneously ensuring that the government can deliver on its long-term objectives to develop the agricultural sector.


How to Feed the World

How to Feed the World

Author: Jessica Eise

Publisher: Island Press

Published: 2018-03-15

Total Pages: 258

ISBN-13: 1610918843

DOWNLOAD EBOOK

By 2050, we will have ten billion mouths to feed in a world profoundly altered by environmental change. How will we meet this challenge? In How to Feed the World, a diverse group of experts from Purdue University break down this crucial question by tackling big issues one-by-one. Covering population, water, land, climate change, technology, food systems, trade, food waste and loss, health, social buy-in, communication, and equal access to food, the book reveals a complex web of challenges. Contributors unite from different perspectives and disciplines, ranging from agronomy and hydrology to economics. The resulting collection is an accessible but wide-ranging look at the modern food system.


Book Synopsis How to Feed the World by : Jessica Eise

Download or read book How to Feed the World written by Jessica Eise and published by Island Press. This book was released on 2018-03-15 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt: By 2050, we will have ten billion mouths to feed in a world profoundly altered by environmental change. How will we meet this challenge? In How to Feed the World, a diverse group of experts from Purdue University break down this crucial question by tackling big issues one-by-one. Covering population, water, land, climate change, technology, food systems, trade, food waste and loss, health, social buy-in, communication, and equal access to food, the book reveals a complex web of challenges. Contributors unite from different perspectives and disciplines, ranging from agronomy and hydrology to economics. The resulting collection is an accessible but wide-ranging look at the modern food system.


Entitlement fetching or snatching? Effects of arbitrage on India’s public distribution system

Entitlement fetching or snatching? Effects of arbitrage on India’s public distribution system

Author: Chakrabarti, Suman

Publisher: Intl Food Policy Res Inst

Published: 2016-12-22

Total Pages: 36

ISBN-13:

DOWNLOAD EBOOK

Would households be able to buy more subsidized grains from a food-based safety-net program if the difference between prices in the program and in the open market were to increase? This is an important question for safety-net programs anywhere in the world, but particularly so for the public distribution system (PDS) of grains in India—the largest food-based safety-net program in the world. The standard economic intuition suggests that price controls distort signals and create incentives for unintended transactions. Price difference between the PDS and the open market compromise entitlements and divert grains to open markets—an entitlement-snatching effect. Drèze and Sen (2013), however, posit the opposite—an entitlement-fetching effect, where an increase in arbitrage increases the value of PDS entitlement. This raises the stakes in the PDS for eligible beneficiaries, resulting in a rise in accountability and ultimately an increase in household purchases of grains from the PDS. We test these two competing hypotheses using multiple datasets: consumer expenditure surveys conducted by the National Sample Survey Organization, and panel datasets from the India Human Development Survey and the Village Dynamics in South Asia. Depending on the context, we find both entitlement-snatching and entitlement-fetching effects. In states where welfare programs are better governed, the Drèze and Sen (2013) conjecture holds. Conversely, in states like Bihar and Jharkhand—where welfare programs are poorly run—the opposite pattern holds; that is, households’ purchase of subsidized grains recedes with greater arbitrage.


Book Synopsis Entitlement fetching or snatching? Effects of arbitrage on India’s public distribution system by : Chakrabarti, Suman

Download or read book Entitlement fetching or snatching? Effects of arbitrage on India’s public distribution system written by Chakrabarti, Suman and published by Intl Food Policy Res Inst. This book was released on 2016-12-22 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Would households be able to buy more subsidized grains from a food-based safety-net program if the difference between prices in the program and in the open market were to increase? This is an important question for safety-net programs anywhere in the world, but particularly so for the public distribution system (PDS) of grains in India—the largest food-based safety-net program in the world. The standard economic intuition suggests that price controls distort signals and create incentives for unintended transactions. Price difference between the PDS and the open market compromise entitlements and divert grains to open markets—an entitlement-snatching effect. Drèze and Sen (2013), however, posit the opposite—an entitlement-fetching effect, where an increase in arbitrage increases the value of PDS entitlement. This raises the stakes in the PDS for eligible beneficiaries, resulting in a rise in accountability and ultimately an increase in household purchases of grains from the PDS. We test these two competing hypotheses using multiple datasets: consumer expenditure surveys conducted by the National Sample Survey Organization, and panel datasets from the India Human Development Survey and the Village Dynamics in South Asia. Depending on the context, we find both entitlement-snatching and entitlement-fetching effects. In states where welfare programs are better governed, the Drèze and Sen (2013) conjecture holds. Conversely, in states like Bihar and Jharkhand—where welfare programs are poorly run—the opposite pattern holds; that is, households’ purchase of subsidized grains recedes with greater arbitrage.