Agricultural Exports from Latin America and the Caribbean : Harnessing Trade to Feed the World and Promote Development
The United Nations estimates that global food demand will double by 2050, with much of that growth in developing countries. The world will have 2.3 billion more people, and given the deep transformation of growth trajectories in low-income countrie...
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Language: | English en_US |
Published: |
World Bank, Washington, DC
2013
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Online Access: | http://documents.worldbank.org/curated/en/2013/05/17886002/agricultural-exports-latin-america-caribbean-harnessing-trade-feed-world-promote-development http://hdl.handle.net/10986/16048 |
Summary: | The United Nations estimates that global
food demand will double by 2050, with much of that growth in
developing countries. The world will have 2.3 billion more
people, and given the deep transformation of growth
trajectories in low-income countries, they will be
increasingly affluent, with demands for more, different, and
better food. While countries in Latin America and the
Caribbean (LAC) are quite heterogeneous in their production
potential, overall they are well equipped to contribute to
meeting this challenge. LAC has always maintained a strong
comparative advantage in agricultural production, as
indicated not only by its position as a net food exporter
but also by its high comparative advantage. LAC is also well
endowed in renewable water resources, with about a third of
the 42,000 cubic kilometers worldwide. Per capita, LAC has
the highest endowment of renewable water among developing
regions, though some sub regions in LAC face higher than
average scarcity. This report's in-depth look at
Argentina and Brazil identifies looming logistics and policy
issues that threaten to derail these locomotives of
agricultural growth and some policy choices that have
contributed to their success and that might be worth
emulating. While LAC countries have substantially reduced
the anti-export and anti-agricultural biases in their trade
regimes, this bias remains significant in some countries.
Argentina, a major food exporter, imposes export taxes and
quantitative controls, with considerable adverse
consequences for the sector and the global food trade
system. For LAC countries' agricultural sectors to stay
competitive, it is important to appropriately manage the
real exchange rate to minimize Dutch disease. |
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