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An agricultural problem emerging in high-performing Asian economies

Author

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  • Yujiro Hayami

Abstract

Policies tending to tax farmers in low-income countries and subsidize them in high-income countries have been identified as a major source of disequilibrium for world agriculture. Recently, on advancing from low-income to middle-income status thanks to successful industrialization, many high-performing economies in Asia have been confronted with the problem of a widening income gap between farm and non-farm workers, corresponding to rapid shifts in comparative advantage from agricul-ture to manufacturing. In order to prevent this disparity from culminating in serious social and political instability, policies have been reoriented towards supporting farmers’ incomes. At the same time, governments in middle-income countries must continue to secure low-cost food for the urban poor, who remain numerous. The need to achieve the two conflicting goals with the still weak fiscal capacity of governments tends to deprive agricultural policies of real efficacy in such economies. Greater re-search inputs in this area are called for in order to prevent the growth momentum of high-performing economies in Asia from being disrupted by political crises.

Suggested Citation

  • Yujiro Hayami, 2008. "An agricultural problem emerging in high-performing Asian economies," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
  • Handle: RePEc:rar:journl:0069
    as

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    References listed on IDEAS

    as
    1. Hayami, The late Yujiro & Godo, Yoshihisa, 2005. "Development Economics: From the Poverty to the Wealth of Nations," OUP Catalogue, Oxford University Press, edition 3, number 9780199272716.
    2. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151.
    3. Yujiro Hayami & Yoshihisa Godo, 2004. "The Three Agricultural Problems in the Disequilibrium of World Agriculture," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1), pages 3-16, June.
    4. Douangngeune, Bounlouane & Hayami, Yujiro & Godo, Yoshihisa, 2005. "Education and natural resources in economic development: Thailand compared with Japan and Korea," Journal of Asian Economics, Elsevier, vol. 16(2), pages 179-204, April.
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    More about this item

    Keywords

    World Agriculture; Farm and Non-Farm Income Gap; Asian Economies;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

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