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Populism and agricultural trade in developing countries: a case study of Thailand’s rice-pledging scheme

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  • Thanapan Laiprakobsup

Abstract

This paper aims to ascertain the trade impact of a populist program on agriculture. It argues that the scheme has a negative impact on the sector in that it limits the country’s competitiveness in agricultural exports due to the government’s prices, which are set a great deal above the market prices. Examining the effect of a rice pledging scheme on rice exports in Thailand, the paper finds that the effectiveness of a short-term subsidy program has contributed to a decline in rice export volumes. Appealing to rural voters, the government procures paddy rice from farmers at high prices. The paper proposes that the government should not intervene in the agricultural commodity market via a populist program because it does not encourage the development of the sector in the long run. Instead of intervening in the market, the government should implement market-oriented policy in order to expand the country’s agricultural trade.

Suggested Citation

  • Thanapan Laiprakobsup, 2014. "Populism and agricultural trade in developing countries: a case study of Thailand’s rice-pledging scheme," International Review of Public Administration, Taylor & Francis Journals, vol. 19(4), pages 380-394, October.
    • Handle: RePEc:taf:rrpaxx:v:19:y:2014:i:4:p:380-394
    DOI: 10.1080/12294659.2014.967000
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    1. Kym Anderson & William A. Masters, 2009. "Distortions to Agricultural Incentives in Africa," World Bank Publications - Books, The World Bank Group, number 2607.
    2. Kym Anderson, 2009. "Distortions to Agricultural Versus Nonagricultural Producer Incentives," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 55-74, September.
    3. Kym Anderson, 2009. "Distortions to Agricultural Incentives : A Global Perspective, 1955-2007," World Bank Publications - Books, The World Bank Group, number 9436.
    4. Anderson, Kym, 2009. "Five Decades of Distortions to Agricultural Incentives," Agricultural Distortions Working Paper Series 48742, World Bank.
    5. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications - Books, The World Bank Group, number 2611.
    6. Anderson, Kym & Swinnen, Johan F.M., 2009. "Distortions to Agricultural Incentives in Eastern Europe and Central Asia," Agricultural Distortions Working Paper Series 48624, World Bank.
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    Cited by:

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